DoD Awards $11.7M for F119 Engine Component Improvement to RTX Corporation
Contract Overview
Contract Amount: $11,707,603 ($11.7M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2024-01-01
End Date: 2026-07-31
Contract Duration: 942 days
Daily Burn Rate: $12.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: COMPONENT IMPROVEMENT PROGRAM F119 ENGINE
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $11.7 million to RTX CORPORATION for work described as: COMPONENT IMPROVEMENT PROGRAM F119 ENGINE Key points: 1. The contract focuses on research and development for the F119 engine, a critical component for Air Force aircraft. 2. RTX Corporation, a major aerospace and defense contractor, is the sole awardee. 3. The contract is a cost-plus-fixed-fee type, indicating potential for cost overruns. 4. The R&D sector is vital for maintaining technological superiority in defense.
Value Assessment
Rating: fair
The contract is a cost-plus-fixed-fee type, which can lead to higher costs than fixed-price contracts. Benchmarking against similar R&D contracts for engine components is difficult due to the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, raising concerns about price discovery and whether the government received the best possible price. Sole-source awards can limit competition and potentially increase costs.
Taxpayer Impact: The lack of competition may result in higher taxpayer costs compared to a fully competed contract.
Public Impact
Ensures continued development and improvement of a key military engine. Supports a major defense contractor and its associated workforce. Potential for advancements in aerospace technology with broader applications. Lack of competition raises questions about cost efficiency for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of transparency in price negotiation
Positive Signals
- Supports critical defense technology
- Awarded to a known industry leader
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical and engineering sciences. Defense R&D spending is crucial for maintaining military readiness and technological advantage, often involving significant investment in specialized areas like advanced engine components.
Small Business Impact
This contract was awarded directly to RTX Corporation and does not indicate any subcontracting opportunities for small businesses. The nature of advanced engine R&D often requires specialized facilities and expertise typically found in large corporations.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and the scope of work aligns with stated objectives. The Department of the Air Force should provide detailed justifications for the lack of competition.
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
- Limited transparency in pricing
- Reliance on a single contractor
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 $11.7 million to RTX CORPORATION. COMPONENT IMPROVEMENT PROGRAM F119 ENGINE
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 $11.7 million.
What is the period of performance?
Start: 2024-01-01. End: 2026-07-31.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure cost-effectiveness?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs that only one contractor can fulfill. To ensure cost-effectiveness, the Department of Defense should conduct thorough cost analyses, negotiate aggressively on fee structures, and potentially implement performance metrics tied to cost savings or efficiency gains. Regular reviews of progress and expenditures are also crucial.
What are the potential risks associated with a cost-plus-fixed-fee contract for R&D in this specific engine component area?
Cost-plus-fixed-fee contracts carry inherent risks, especially in R&D, as the final cost is not predetermined. The contractor is reimbursed for allowable costs plus a fixed fee, which can incentivize cost overruns if not managed properly. For engine components, unforeseen technical challenges or material costs could significantly inflate the final price, impacting the overall value for taxpayers. Robust oversight is needed to monitor expenditures and control scope creep.
How will the outcomes of this R&D effort be measured to ensure effectiveness and future applicability?
Effectiveness will be measured through defined technical milestones and performance metrics outlined in the contract. This could include improvements in engine efficiency, durability, or reduced maintenance requirements. The Air Force should establish clear criteria for successful completion and ensure that the R&D outputs are transferable to production or future upgrades, providing tangible benefits to the F119 engine's operational capabilities and lifecycle cost.
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: 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: $25,490,617
Exercised Options: $12,465,775
Current Obligation: $11,707,603
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $44,940
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: 2024-01-01
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-12-18
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