DoD Awards $85.7M for F119 Engine Advance Buy to RTX Corporation
Contract Overview
Contract Amount: $85,658,392 ($85.7M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2008-11-26
End Date: 2011-07-29
Contract Duration: 975 days
Daily Burn Rate: $87.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LOT 10 F119-PW-100 ENGINES ADVANCE BUY
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06108
Plain-Language Summary
Department of Defense obligated $85.7 million to RTX CORPORATION for work described as: LOT 10 F119-PW-100 ENGINES ADVANCE BUY Key points: 1. Significant contract value for advanced aircraft engines. 2. Sole-source award to RTX Corporation, a major defense contractor. 3. Potential risk due to lack of competition. 4. Spending falls within the Defense sector, specifically aircraft parts manufacturing.
Value Assessment
Rating: fair
The contract value of $85.7 million for engine parts is substantial. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar advanced engine components from other manufacturers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award raises concerns about potential overspending and reduced value for taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. Reliance on a single supplier for critical engine components could pose supply chain risks. The advanced nature of the engines suggests a high level of technological investment, but the cost-effectiveness is unclear.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Critical defense procurement
- Advance buy for essential components
Sector Analysis
This contract falls under the Defense sector, specifically focusing on aircraft engine manufacturing. Spending in this area is critical for national security but often involves high R&D costs and specialized production, making direct cost comparisons challenging.
Small Business Impact
The contract was awarded to RTX Corporation, a large prime contractor. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is justified and that future procurements explore competitive options where feasible to maximize value.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of bidders.
- No clear indication of small business involvement.
- Long-term supply chain dependency on one vendor.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ct, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $85.7 million to RTX CORPORATION. LOT 10 F119-PW-100 ENGINES ADVANCE BUY
Who is the contractor on this award?
The obligated recipient is RTX CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $85.7 million.
What is the period of performance?
Start: 2008-11-26. End: 2011-07-29.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. For this contract, the Department of Defense would need to document why RTX Corporation was the only viable source. Oversight should focus on validating this justification and scrutinizing cost breakdowns to ensure the $85.7 million price reflects reasonable costs and a fair profit margin, rather than a premium due to lack of competition.
What are the long-term risks associated with relying on a single supplier for these advanced engine components?
Long-term risks include potential supply chain disruptions if the sole supplier faces production issues, price increases over time without competitive pressure, and a lack of innovation spurred by market competition. The government should consider strategies for developing alternative sources or ensuring robust contract terms that mitigate these risks, such as performance incentives and clear escalation clauses.
How does the cost of these F119 engine components compare to industry benchmarks for similar advanced aerospace parts?
Without access to detailed cost breakdowns and specific technical requirements, a direct comparison to industry benchmarks is difficult. However, the absence of competition for this $85.7 million contract raises a red flag. A thorough review by the agency or an independent body would be needed to assess if the per-unit cost is aligned with market rates for comparable high-performance engine parts, considering factors like material, labor, and complexity.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 400 MAIN ST, EAST HARTFORD, CT, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $85,658,392
Exercised Options: $85,658,392
Current Obligation: $85,658,392
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-11-26
Current End Date: 2011-07-29
Potential End Date: 2011-07-29 00:00:00
Last Modified: 2011-09-20
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