DoD Awards $374M to Pratt & Whitney for NGAP Engine Prototyping, Facing Limited Competition
Contract Overview
Contract Amount: $373,845,354 ($373.8M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2023-01-26
End Date: 2026-06-30
Contract Duration: 1,251 days
Daily Burn Rate: $298.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: PRATT & WHITNEY NGAP PROTOTYPING
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $373.8 million to RTX CORPORATION for work described as: PRATT & WHITNEY NGAP PROTOTYPING Key points: 1. Significant investment in advanced aircraft engine technology. 2. RTX Corporation (Pratt & Whitney) is the sole awardee, raising competition concerns. 3. Cost-plus incentive fee contract structure requires careful monitoring for cost overruns. 4. Prototyping phase may yield valuable technological advancements for the Air Force.
Value Assessment
Rating: fair
The contract value of $373.8M for prototyping is substantial. Benchmarking is difficult without specific contract details, but the cost-plus incentive fee structure suggests potential for cost growth if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under a limited competition, with Pratt & Whitney as the sole awardee. This limits price discovery and potentially increases costs compared to a full and open competition.
Taxpayer Impact: Taxpayer funds are being used for advanced defense technology development. The limited competition raises concerns about achieving the best possible value for the investment.
Public Impact
Advancement of critical military aviation technology. Potential for job creation in the aerospace manufacturing sector. Impact on future defense procurement strategies for aircraft engines.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- Cost-plus contract requires diligent oversight.
- Sole-source award limits market price discovery.
Positive Signals
- Investment in critical national defense technology.
- Potential for technological innovation in aircraft engines.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a high-value, technologically intensive industry. Defense spending in this sector is crucial for maintaining military readiness and technological superiority.
Small Business Impact
The data indicates no direct small business participation in this specific contract award. Larger prime contractors often subcontract, but direct involvement for small businesses in advanced prototyping is less common.
Oversight & Accountability
The cost-plus incentive fee structure necessitates robust oversight from the Department of the Air Force to ensure cost control and performance targets are met. Regular audits and performance reviews will be critical.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition
- Cost-plus contract type
- Sole awardee
- High contract value
- Long contract duration
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 $373.8 million to RTX CORPORATION. PRATT & WHITNEY NGAP PROTOTYPING
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 $373.8 million.
What is the period of performance?
Start: 2023-01-26. End: 2026-06-30.
What is the projected return on investment for this prototyping effort in terms of enhanced aircraft performance or reduced lifecycle costs?
The return on investment is primarily measured by the successful development of advanced engine technology that enhances aircraft performance, survivability, and potentially reduces operational costs over the system's lifecycle. Specific ROI metrics are typically defined within the contract's performance objectives and may not be fully quantifiable until the technology is integrated and operational.
What are the specific risks associated with the cost-plus incentive fee structure in this limited competition environment?
The primary risks include potential cost overruns if performance targets are not met efficiently, and the contractor having less incentive to control costs compared to fixed-price contracts. In a limited competition, the government has less leverage to negotiate favorable terms, potentially leading to higher overall expenditure for the desired technological outcome.
How will the effectiveness of the NGAP prototyping be measured to ensure it meets the Air Force's future operational requirements?
Effectiveness will be measured against pre-defined technical performance metrics (TPMs) outlined in the contract, such as thrust, fuel efficiency, weight, and durability. The Air Force will likely conduct rigorous testing and evaluation throughout the prototyping phase, comparing results against established requirements and future operational needs.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA862622R0012
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
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: $388,804,628
Exercised Options: $373,845,354
Current Obligation: $373,845,354
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $75,000
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862622D0002
IDV Type: IDC
Timeline
Start Date: 2023-01-26
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-16
More Contracts from RTX Corporation
- LOT 12 AAC Long Lead for Propulsion Systems — $8.7B (Department of Defense)
- 200204!008533!1700!AF600 !naval AIR Systems Command !N0001902C3003 !A!N! !N! !20011026!20120430!001447952!001447952!001344142!n!united Technologies Corp !400 Main Street !east Hartford !ct!06108!22700!003!09!east Hartford !hartford !conn !+000014000000!n!n!004803460088!ac15!rdte/Aircraft-Eng/Manuf Develop !a1b!aircraft Engines and Spares !2ama!jast/Jsf !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !d!n!r!1!001!n!1a!a!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $7.9B (Department of Defense)
- LOT 15 FMS-1 F135 Ctol Prop System — $7.5B (Department of Defense)
- FY21 PBL2 — $4.9B (Department of Defense)
- F119 Engine Long Term Sustainment Program for the Raptor Engine (spare) — $3.6B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)