DoD Awards $74M for F100 Spare Engines to Pratt & Whitney for Poland's Military Needs
Contract Overview
Contract Amount: $73,984,281 ($74.0M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2024-04-12
End Date: 2025-08-27
Contract Duration: 502 days
Daily Burn Rate: $147.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: PRATT AND WHITNEY FOREIGN MILITARY SALES F100 PRODUCTION, POLAND SPARE ENGINES.
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $74.0 million to RTX CORPORATION for work described as: PRATT AND WHITNEY FOREIGN MILITARY SALES F100 PRODUCTION, POLAND SPARE ENGINES. Key points: 1. Significant award for critical defense components supporting a NATO ally. 2. Sole-source award to RTX Corporation (Pratt & Whitney) raises competition concerns. 3. Fixed Price Incentive contract type aims to balance cost and performance. 4. Long-term delivery schedule indicates sustained demand for these engines.
Value Assessment
Rating: fair
The contract is a Fixed Price Incentive type, which can lead to higher costs if not managed carefully. Benchmarking against similar sole-source engine part contracts is difficult without more data, but the award amount appears substantial for spare parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits the government's ability to leverage market forces for better pricing and potentially increases costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Supports Poland's defense capabilities through Foreign Military Sales. Ensures operational readiness of F100-powered aircraft. Highlights reliance on a single manufacturer for critical engine components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Fixed Price Incentive contract requires careful monitoring.
- Potential for cost overruns if performance targets are not met efficiently.
Positive Signals
- Supports a key NATO ally's military readiness.
- Addresses critical need for aircraft engine spare parts.
- Long-term contract provides supply chain stability.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aircraft engine manufacturing and parts. Spending in this area is often characterized by high R&D costs, long product lifecycles, and significant reliance on a few major contractors.
Small Business Impact
This award does not appear to directly benefit small businesses, as it is a sole-source contract with a large prime contractor, RTX Corporation. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award notice.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The fixed-price incentive structure necessitates close monitoring of performance and costs to ensure value for money.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source procurement limits competitive pricing.
- Potential for cost overruns under FPI contract structure.
- Dependence on a single supplier for critical components.
- Lack of transparency regarding specific cost breakdowns.
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 $74.0 million to RTX CORPORATION. PRATT AND WHITNEY FOREIGN MILITARY SALES F100 PRODUCTION, POLAND SPARE 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 $74.0 million.
What is the period of performance?
Start: 2024-04-12. End: 2025-08-27.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically relates to unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this contract, the specific justification is not provided. To ensure fair pricing, the government likely relies on historical pricing data, should-cost analysis, and negotiation strategies, though the absence of competition inherently limits price discovery.
What are the potential risks associated with a Fixed Price Incentive (FPI) contract for spare engine parts?
An FPI contract shares cost risks and benefits between the government and the contractor. Risks include potential cost overruns if the contractor's costs exceed estimates, as the government absorbs a portion of the excess. Conversely, the contractor is incentivized to control costs to share in savings. For spare parts, the complexity of predicting exact needs and associated costs can increase the risk of the government paying more than necessary if cost targets are not met efficiently.
How does this award contribute to the long-term sustainment and operational readiness of Poland's F100-equipped aircraft?
This award directly addresses the need for spare F100 engines, which are critical components for maintaining the operational readiness of Poland's F100-powered aircraft fleet. By securing these parts, Poland can ensure its aircraft are available for training, deployment, and defense missions, thereby contributing to its overall military sustainment and security posture within NATO.
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: FIXED PRICE INCENTIVE (L)
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: $73,984,281
Exercised Options: $73,984,281
Current Obligation: $73,984,281
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: 2024-04-12
Current End Date: 2025-08-27
Potential End Date: 2025-08-27 00:00:00
Last Modified: 2025-08-27
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