DoD Awards $40M for F-15 Engine Modules to RTX Corp for Korea's Fleet

Contract Overview

Contract Amount: $40,055,865 ($40.1M)

Contractor: RTX Corporation

Awarding Agency: Department of Defense

Start Date: 2021-09-27

End Date: 2025-06-30

Contract Duration: 1,372 days

Daily Burn Rate: $29.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FOREIGN MILITARY SALES PRATT AND WHITNEY ENGINE MODULES FOR KOREA'S F-15 FLEET

Place of Performance

Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $40.1 million to RTX CORPORATION for work described as: FOREIGN MILITARY SALES PRATT AND WHITNEY ENGINE MODULES FOR KOREA'S F-15 FLEET Key points: 1. Significant award for critical aircraft components. 2. Sole-source award to RTX Corporation, a major defense contractor. 3. Potential for higher costs due to limited competition. 4. Long-term contract duration suggests ongoing need.

Value Assessment

Rating: fair

The contract value of $40,055,865 is for engine modules. Without specific per-unit cost data or a clear benchmark for F-15 engine modules, a precise value assessment is difficult. The firm-fixed-price structure aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not available for competition, indicating a sole-source or limited source award. This lack of competition can potentially lead to higher prices than if multiple vendors were bidding.

Taxpayer Impact: Taxpayer funds are being used for this sole-source procurement, highlighting the importance of ensuring fair pricing and value for money despite the limited competition.

Public Impact

Ensures operational readiness of the F-15 fleet for a key ally. Supports a major US defense contractor and its supply chain. Highlights the ongoing need for advanced military aircraft components. Potential impact on future FMS pricing strategies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition
  • Sole-source award
  • Lack of detailed cost breakdown

Positive Signals

  • Supports allied military capabilities
  • Firm-fixed-price contract

Sector Analysis

This award falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the aerospace and defense industry. Spending in this sector is often characterized by high R&D costs and specialized manufacturing capabilities, leading to significant contract values.

Small Business Impact

This contract was awarded to RTX Corporation, a large prime contractor. There is no indication that small businesses were involved in this specific award, either as subcontractors or direct awardees.

Oversight & Accountability

The Department of the Air Force is overseeing this Foreign Military Sale. Oversight is crucial to ensure that the procurement process, especially sole-source awards, provides fair value and meets the needs of the partner nation.

Related Government Programs

  • Aircraft Engine and Engine Parts Manufacturing
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Limited competition may result in higher costs.
  • Lack of transparency in pricing due to sole-source nature.
  • Dependence on a single supplier for critical components.
  • Potential for cost overruns if not closely monitored.

Tags

aircraft-engine-and-engine-parts-manufac, department-of-defense, ct, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.1 million to RTX CORPORATION. FOREIGN MILITARY SALES PRATT AND WHITNEY ENGINE MODULES FOR KOREA'S F-15 FLEET

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 $40.1 million.

What is the period of performance?

Start: 2021-09-27. End: 2025-06-30.

What is the specific justification for awarding this contract on a limited/sole-source basis?

The justification for a limited or sole-source award typically stems from unique capabilities, proprietary technology, or existing system compatibility requirements. For F-15 engine modules, it's likely tied to specific engine models and maintenance requirements that only RTX Corporation can fulfill, ensuring interoperability and performance standards are met without compromising the aircraft's operational integrity.

How does the per-unit cost compare to similar F-15 engine module procurements, if available?

Without access to specific per-unit cost data for this contract or comparable historical procurements, a direct comparison is not possible. The firm-fixed-price nature of the contract aims to cap costs, but the absence of competitive bidding means there's no market-driven price discovery mechanism to ensure optimal value. Further analysis would require access to internal DoD cost data or industry benchmarks.

What is the long-term strategic value of this sole-source award for US foreign military sales?

This sole-source award ensures the continued operational readiness of South Korea's F-15 fleet, strengthening a key US ally's defense capabilities. Strategically, it reinforces the US position as a reliable provider of advanced military hardware and support, potentially influencing future defense procurement decisions by other allied nations. It also maintains a critical revenue stream for a major US defense contractor.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Engine and Engine Parts Manufacturing

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

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: $40,055,865

Exercised Options: $40,055,865

Current Obligation: $40,055,865

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862616D0028

IDV Type: IDC

Timeline

Start Date: 2021-09-27

Current End Date: 2025-06-30

Potential End Date: 2025-06-30 00:00:00

Last Modified: 2025-04-26

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