DoD's $71M F100 Component Improvement Program awarded to RTX Corporation for R&D
Contract Overview
Contract Amount: $71,263,627 ($71.3M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2021-01-12
End Date: 2025-12-19
Contract Duration: 1,802 days
Daily Burn Rate: $39.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: F100 COMPONENT IMPROVEMENT PROGRAM
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $71.3 million to RTX CORPORATION for work described as: F100 COMPONENT IMPROVEMENT PROGRAM Key points: 1. Significant investment in advanced component research for military aircraft. 2. Sole-source award to RTX Corporation, a major defense contractor. 3. Potential for technological advancements but limited competition raises cost concerns. 4. Focus on R&D within the physical and engineering sciences sector.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure for R&D can lead to cost overruns. Benchmarking is difficult due to the specialized nature of component improvement, but the lack of competition suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to RTX Corporation. This limits price discovery and potentially increases costs for the government compared to a competitive process.
Taxpayer Impact: Taxpayers may bear higher costs due to the absence of competitive bidding, potentially funding research without the benefit of market-driven price optimization.
Public Impact
Enhances critical military aircraft component technology. Supports a major defense contractor and its workforce. Potential for long-term national security benefits through technological superiority. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus-fixed-fee structure can inflate costs.
- Lack of clear performance metrics for R&D.
- Long contract duration.
Positive Signals
- Addresses critical component improvement needs.
- Leverages expertise of a key industry player.
- Potential for significant technological advancement.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining technological superiority but often involves higher risk and less predictable outcomes compared to procurement contracts.
Small Business Impact
This contract does not appear to involve small business participation, as it is a sole-source award to a large corporation, RTX. Opportunities for small businesses in subcontracting are not explicitly detailed.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution of research objectives. The Department of the Air Force should monitor expenditures and R&D progress diligently.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition.
- Potential for cost overruns.
- Difficulty in measuring R&D effectiveness.
- Limited transparency in pricing.
- Potential for contractor lock-in.
Tags
research-and-development-in-the-physical, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.3 million to RTX CORPORATION. F100 COMPONENT IMPROVEMENT PROGRAM
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 $71.3 million.
What is the period of performance?
Start: 2021-01-12. End: 2025-12-19.
What is the justification for the sole-source award, and how was the fixed fee determined to ensure value for money?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. The fixed fee in a cost-plus-fixed-fee contract is negotiated based on estimated costs and desired profit margin. Without competition, ensuring this fee represents fair market value requires rigorous government cost analysis and negotiation.
How will the effectiveness of the R&D be measured, and what are the key performance indicators for this program?
Measuring R&D effectiveness is challenging. Key performance indicators might include successful prototype development, achievement of specific technical milestones, performance improvements in tested components, and successful integration into existing systems. The contract should clearly define these metrics and the process for evaluating progress against them.
What is the potential long-term cost implication if component improvements lead to increased sustainment or operational costs for the Air Force?
While the goal is improvement, R&D can sometimes introduce unforeseen sustainment challenges or require new operational procedures. The Air Force must conduct thorough lifecycle cost analyses to ensure that the benefits of improved components outweigh any potential increases in long-term sustainment or operational expenses.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
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: $96,693,337
Exercised Options: $73,503,120
Current Obligation: $71,263,627
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862621D0001
IDV Type: IDC
Timeline
Start Date: 2021-01-12
Current End Date: 2025-12-19
Potential End Date: 2025-12-19 00:00:00
Last Modified: 2025-09-30
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