DoD's $12.7M F-22 Engine Sustainment Contract Awarded to RTX Corporation Shows Increased Costs

Contract Overview

Contract Amount: $12,672,011 ($12.7M)

Contractor: RTX Corporation

Awarding Agency: Department of Defense

Start Date: 2018-01-01

End Date: 2019-04-30

Contract Duration: 484 days

Daily Burn Rate: $26.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: F-22 F119 ENGINE SUSTAINMENT NOZZLE AFT BULKHEAD RETROFIT KT IDV INSTRUMENT SHOWS AN INCREASE

Place of Performance

Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to RTX CORPORATION for work described as: F-22 F119 ENGINE SUSTAINMENT NOZZLE AFT BULKHEAD RETROFIT KT IDV INSTRUMENT SHOWS AN INCREASE Key points: 1. The contract's value increased significantly, indicating potential cost overruns or scope expansion. 2. Awarded to a single source, RTX Corporation, raising questions about competitive pricing. 3. The 'Other Support Activities for Air Transportation' NAICS code suggests a focus on maintenance and sustainment. 4. The contract duration of 484 days points to a medium-term sustainment effort. 5. The 'COST PLUS FIXED FEE' contract type can sometimes lead to higher costs if not managed tightly. 6. The absence of small business involvement suggests a focus on specialized, large-scale industrial capabilities.

Value Assessment

Rating: questionable

The total award amount of $12.7 million for the F-22 engine sustainment nozzle retrofit is substantial. Without specific benchmarks for this particular retrofit, it is difficult to definitively assess value for money. However, the fact that this was a sole-source award to RTX Corporation, a known prime contractor for F-22 components, suggests a lack of competitive pressure which could inflate costs. Further analysis would require comparing this cost to similar sustainment efforts for other high-performance aircraft engines or previous retrofits of the F119 engine.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, RTX Corporation, was solicited. This approach is typically used when a specific capability or proprietary technology is required, or in cases of urgent need where competition is not feasible. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to a higher price than if multiple vendors had competed.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price, as the government did not benefit from competitive market forces.

Public Impact

The primary beneficiaries are the U.S. Air Force's F-22 Raptor fleet, ensuring continued operational readiness. The services delivered involve critical sustainment activities for the F119 engine, specifically the nozzle aft bulkhead retrofit. The geographic impact is likely concentrated around F-22 operating bases and RTX Corporation's facilities in Connecticut. Workforce implications include specialized technicians and engineers at RTX Corporation involved in aircraft engine maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Cost-plus contract type carries inherent risk of cost overruns if not closely monitored.
Lack of small business participation means limited opportunities for smaller firms in this specialized sector.
The 'increase' in the contract value noted in the data suggests potential budget challenges or scope creep.

Positive Signals

Award to RTX Corporation, a known entity with established expertise in F-22 sustainment, suggests technical capability.
Focus on sustainment of a critical fighter jet engine (F119) is vital for national defense readiness.
The contract addresses a specific, necessary retrofit for the F-22's engine components.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft engine sustainment and maintenance. The market for such specialized services is dominated by a few large, established aerospace manufacturers like RTX Corporation. Spending in this area is critical for maintaining the operational readiness of advanced military platforms. Comparable spending benchmarks would involve analyzing sustainment contracts for other high-performance military jet engines, which often represent significant long-term investments.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Given the specialized nature of F-22 engine sustainment and the sole-source award to a large prime contractor, it is unlikely that significant subcontracting opportunities for small businesses exist within this specific contract. This limits the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force and the Department of Defense's contracting and program management offices. Given it's a sole-source award, scrutiny on cost justification and performance metrics would be crucial. Transparency is limited due to the non-competitive nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

F-22 Raptor Sustainment Programs
Pratt & Whitney F119 Engine Support Contracts
Department of Defense Aircraft Engine Maintenance
Aerospace Component Retrofit Contracts

Risk Flags

Sole-source award
Cost-plus contract type
Potential for cost overruns
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to RTX CORPORATION. F-22 F119 ENGINE SUSTAINMENT NOZZLE AFT BULKHEAD RETROFIT KT IDV INSTRUMENT SHOWS AN INCREASE

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 $12.7 million.

What is the period of performance?

Start: 2018-01-01. End: 2019-04-30.

What is the historical spending pattern for F-22 F119 engine sustainment nozzles with RTX Corporation?

Analyzing historical spending for F-22 F119 engine sustainment nozzles with RTX Corporation requires access to historical contract data beyond this single award. This specific contract, valued at approximately $12.7 million, covers a period from January 1, 2018, to April 30, 2019. To understand historical patterns, one would need to examine previous contracts awarded to RTX Corporation (or its predecessor, Pratt & Whitney) for similar F119 engine components, including sustainment, maintenance, and retrofits. This would involve looking at contract values, durations, and the specific services rendered over multiple years to identify trends in spending, potential cost increases, or shifts in sustainment strategies for the F-22 fleet's engines.

How does the 'COST PLUS FIXED FEE' (CPFF) contract type typically perform in terms of cost control for aerospace sustainment?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is uncertainty in the cost of performance. In aerospace sustainment, it can provide flexibility to address unforeseen issues. However, it carries a risk of cost overruns because the contractor is reimbursed for all allowable costs plus a fixed fee. The government bears the risk of cost increases. Effective cost control under a CPFF contract relies heavily on robust government oversight, detailed cost tracking, and clear definition of allowable costs to prevent contractor inefficiencies from inflating the final price. Without stringent oversight, CPFF contracts can be more expensive than fixed-price alternatives.

What are the specific risks associated with a sole-source award for critical aircraft engine components?

Sole-source awards for critical aircraft engine components like the F-22's F119 engine nozzle present several risks. Primarily, the lack of competition means the government cannot leverage market forces to secure the best possible price, potentially leading to higher costs for taxpayers. There's also a risk of complacency from the sole provider, potentially impacting innovation or responsiveness. Furthermore, reliance on a single supplier creates a vulnerability in the supply chain; any disruption at the contractor's facility could have significant implications for fleet readiness. Finally, without competitive benchmarking, it's harder to ensure the contractor is operating with maximum efficiency.

What is the significance of the 'increase' mentioned in the contract description for the F-22 engine sustainment nozzle?

The mention of an 'increase' in the contract description for the F-22 F119 engine sustainment nozzle is significant as it suggests that the initial value or scope of the contract may have been revised upwards. This could stem from several factors: unforeseen technical challenges encountered during the retrofit, changes in the required scope of work by the Air Force, escalation in material or labor costs, or a re-evaluation of the total effort needed. Without further details, it's difficult to pinpoint the exact reason, but it warrants closer examination of the contract modifications and justifications to understand the drivers behind the cost increase and ensure it aligns with program objectives and fair pricing.

How does this contract fit into the broader sustainment strategy for the F-22 Raptor program?

This contract for the F-22 F119 engine nozzle aft bulkhead retrofit is a component of the broader sustainment strategy for the F-22 Raptor program, which aims to maintain the aging fleet's operational readiness and extend its service life. The F-22 is a complex and technologically advanced aircraft, and its engines require continuous maintenance, repair, and upgrades. Sustainment contracts like this one address specific, critical components that may wear out, become obsolete, or require modernization. The focus on engine sustainment is crucial because the engines are vital to the aircraft's performance and mission capabilities. Effective sustainment ensures the F-22 remains a viable asset in the U.S. Air Force's inventory.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 400 MAIN ST, EAST HARTFORD, CT, 06118

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,554,518

Exercised Options: $13,126,907

Current Obligation: $12,672,011

Actual Outlays: $344,844

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA861118D2850

IDV Type: IDC

Timeline