DoD Awards RTX Corporation $212.5M for PW F100 Engine Production and Installation in Morocco
Contract Overview
Contract Amount: $212,535,948 ($212.5M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2021-07-26
End Date: 2025-06-30
Contract Duration: 1,435 days
Daily Burn Rate: $148.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PW F100 PRODUCTION, MOROCCO INSTALL ENGINES
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $212.5 million to RTX CORPORATION for work described as: PW F100 PRODUCTION, MOROCCO INSTALL ENGINES Key points: 1. Significant contract value for critical defense equipment. 2. RTX Corporation is a major player in the aerospace and defense sector. 3. Potential risks associated with sole-source procurement and long-term delivery. 4. Spending aligns with the Defense sector's need for advanced aircraft components.
Value Assessment
Rating: fair
The contract value of $212.5M is substantial. Without comparable contracts or detailed cost breakdowns, assessing its pricing against similar procurements is difficult. The firm fixed-price nature provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers due to the absence of competitive bidding.
Public Impact
Ensures operational readiness of critical military assets. Supports advanced aerospace manufacturing capabilities. Impacts international defense cooperation and logistics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement limits competition.
- Long contract duration (2021-2025) may not reflect current market prices.
- Dependency on a single supplier for critical components.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Supports a key defense contractor and its supply chain.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the Defense industry. Spending benchmarks for such specialized, high-value defense equipment are often opaque due to proprietary information and unique specifications.
Small Business Impact
The prime contractor is RTX Corporation, a large aerospace and defense company. There is no indication of specific provisions or set-asides for small businesses within this contract award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The firm fixed-price structure and defined delivery schedule provide a basis for accountability, but the sole-source nature warrants careful monitoring.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source procurement.
- Long-term contract duration.
- Potential for price escalation over time.
- Dependency on a single supplier.
- Lack of transparency in pricing justification.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ct, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $212.5 million to RTX CORPORATION. PW F100 PRODUCTION, MOROCCO INSTALL ENGINES
Who is the contractor on this award?
The obligated recipient is RTX CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $212.5 million.
What is the period of performance?
Start: 2021-07-26. End: 2025-06-30.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. Agencies are still required to conduct market research and negotiate to ensure the price is fair and reasonable, even without competition. Documentation of these efforts is crucial for oversight and accountability.
What are the long-term implications of relying on a sole-source provider for such critical engine components?
Long-term reliance on a sole-source provider can create strategic vulnerabilities, including supply chain disruptions, price escalation, and reduced innovation. It may also limit the government's ability to leverage competitive market forces for future procurements, potentially increasing overall program costs and reducing flexibility.
How does the firm fixed-price contract mitigate risks associated with potential cost overruns for this long-duration project?
A firm fixed-price contract shifts the primary cost risk to the contractor. This means RTX Corporation is responsible for any cost overruns incurred during production and delivery. This structure provides the government with cost certainty, assuming the initial price was negotiated fairly and the scope of work remains unchanged.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft 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: $212,535,948
Exercised Options: $212,535,948
Current Obligation: $212,535,948
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $62,500
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: 2021-07-26
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-09-19
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