DoD Awards $6.6M for TF33 Component Improvement Program to RTX Corporation

Contract Overview

Contract Amount: $6,628,585 ($6.6M)

Contractor: RTX Corporation

Awarding Agency: Department of Defense

Start Date: 2024-11-01

End Date: 2027-02-28

Contract Duration: 849 days

Daily Burn Rate: $7.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TF33 COMPONENT IMPROVEMENT PROGRAM

Place of Performance

Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $6.6 million to RTX CORPORATION for work described as: TF33 COMPONENT IMPROVEMENT PROGRAM Key points: 1. The contract is for research and development related to physical and engineering sciences. 2. RTX Corporation, a major aerospace and defense contractor, is the sole awardee. 3. The contract duration is 849 days, ending in February 2027. 4. This award falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code.

Value Assessment

Rating: fair

The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award amount is $6.6M, but the final cost is subject to actual expenses incurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process.

Taxpayer Impact: Taxpayer funds are being used for a sole-source R&D contract, where the full value and efficiency are not guaranteed through competition.

Public Impact

Supports advanced component improvement for critical defense systems. Potential for technological advancements in aerospace engineering. Ensures continued operational readiness of Air Force assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price negotiation.
  • Cost-plus contracts carry inherent risk of cost overruns.
  • Lack of transparency in R&D spending can obscure true value.

Positive Signals

  • Award to a known, established contractor (RTX).
  • Focus on critical component improvement for defense systems.
  • Long-term contract duration allows for thorough R&D.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for maintaining technological superiority but requires careful oversight to ensure value for money.

Small Business Impact

The awardee is RTX Corporation, a large business. There is no indication that small businesses will be involved as subcontractors in this specific award.

Oversight & Accountability

As a sole-source, cost-plus contract, this award warrants close oversight from the Department of Defense to ensure costs are reasonable and the research objectives are met efficiently.

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

  • Sole-source award
  • Cost-plus contract type
  • Lack of defined small business participation
  • Potential for cost overruns
  • Limited transparency in R&D spending

Tags

research-and-development-in-the-physical, department-of-defense, ct, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.6 million to RTX CORPORATION. TF33 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 $6.6 million.

What is the period of performance?

Start: 2024-11-01. End: 2027-02-28.

What is the specific component being improved under the TF33 program, and what is the expected performance enhancement?

The specific component targeted for improvement under the TF33 program is not detailed in the provided data. However, the objective is generally to enhance the performance, reliability, or lifespan of critical engine components. The expected enhancements would likely involve increased thrust, improved fuel efficiency, or reduced maintenance requirements, ultimately contributing to the operational effectiveness of the aircraft utilizing the TF33 engine.

Given the sole-source nature of this award, what mechanisms are in place to ensure RTX Corporation is not overcharging for its services?

For sole-source, cost-plus fixed-fee contracts, the government typically relies on forward pricing agreements, historical cost data, and independent government cost estimates to establish a reasonable fixed fee. Continuous monitoring of incurred costs, audits, and negotiation of equitable adjustments are also crucial. The Defense Contract Audit Agency (DCAA) plays a vital role in auditing costs to ensure they are allowable, allocable, and reasonable.

How will the effectiveness of the R&D investment be measured to ensure it meets the Department of Defense's objectives?

The effectiveness of this R&D investment will be measured through defined technical milestones and performance metrics outlined in the contract. This includes achieving specific performance improvements, demonstrating component reliability under simulated or actual operating conditions, and meeting cost targets for the research effort. Regular progress reports, technical reviews, and final acceptance testing by the Air Force will be key to assessing the program's success.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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: $16,155,315

Exercised Options: $7,905,410

Current Obligation: $6,628,585

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $89,944

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: 2024-11-01

Current End Date: 2027-02-28

Potential End Date: 2028-10-30 00:00:00

Last Modified: 2025-12-18

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