Air Force Awards $73M Contract to RTX Corp for Aircraft Engine Parts Under Full and Open Competition
Contract Overview
Contract Amount: $73,041,072 ($73.0M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2025-03-14
End Date: 2026-09-13
Contract Duration: 548 days
Daily Burn Rate: $133.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DELIVERY ORDER 6 IS DERIVED FROM THE ORIGINAL BASIC IDIQ CONTRACT FA8626-22-D-0002. THUS, ALL RELEVANT CLAUSES EXISTING AS PART OF THE IDIQ ARE APPLICABLE TO THIS ACTION AND WILL FLOW DOWN TO THIS DELIVERY ORDER.
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $73.0 million to RTX CORPORATION for work described as: DELIVERY ORDER 6 IS DERIVED FROM THE ORIGINAL BASIC IDIQ CONTRACT FA8626-22-D-0002. THUS, ALL RELEVANT CLAUSES EXISTING AS PART OF THE IDIQ ARE APPLICABLE TO THIS ACTION AND WILL FLOW DOWN TO THIS DELIVERY ORDER. Key points: 1. Contract awarded to RTX Corporation for aircraft engine parts. 2. Full and open competition was utilized for this award. 3. The contract has a duration of 548 days. 4. This is a delivery order derived from a basic IDIQ contract.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. However, the fixed fee component provides some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple vendors to bid, driving competitive pricing.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring the government receives the most advantageous pricing.
Public Impact
Ensures continued supply of critical aircraft engine parts for the Air Force. Supports a major defense contractor, RTX Corporation. The award contributes to the readiness and operational capability of Air Force aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires careful monitoring to control costs.
- Reliance on a single IDIQ contract for multiple delivery orders.
Positive Signals
- Awarded under full and open competition.
- Clear contract duration and delivery timeline.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this sector is critical for defense readiness and technological advancement in aviation.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to understand the broader impact on small businesses within this supply chain.
Oversight & Accountability
The delivery order is subject to the terms and conditions of the original IDIQ contract, implying existing oversight mechanisms. However, the specific oversight for this delivery order needs to be confirmed.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns if not managed diligently.
- Reliance on a single IDIQ contract.
- No explicit mention of small business participation.
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 $73.0 million to RTX CORPORATION. DELIVERY ORDER 6 IS DERIVED FROM THE ORIGINAL BASIC IDIQ CONTRACT FA8626-22-D-0002. THUS, ALL RELEVANT CLAUSES EXISTING AS PART OF THE IDIQ ARE APPLICABLE TO THIS ACTION AND WILL FLOW DOWN TO THIS DELIVERY ORDER.
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 $73.0 million.
What is the period of performance?
Start: 2025-03-14. End: 2026-09-13.
What is the historical cost performance of similar Cost Plus Fixed Fee contracts for aircraft engine parts within the Department of Defense?
Analyzing historical data for similar CPFF contracts in this sector is crucial. Benchmarking against past performance can reveal cost trends, identify potential overruns, and assess the effectiveness of the fixed fee in incentivizing cost control. Without this data, it's difficult to definitively assess if the current pricing is optimal or if there are opportunities for savings in future procurements.
What are the specific risks associated with RTX Corporation's ability to deliver these aircraft engine parts within the specified timeframe and quality standards?
Risks could include supply chain disruptions, manufacturing delays, or quality control issues specific to RTX Corporation's production capabilities. Assessing their past performance on similar contracts, their current production capacity, and any known challenges within their supply chain would provide a clearer picture of potential delivery or quality risks.
How effectively does the Cost Plus Fixed Fee structure incentivize cost efficiency for this specific contract, given the nature of aircraft engine parts manufacturing?
The effectiveness of CPFF hinges on the clarity of the fixed fee and the government's ability to monitor costs. For complex items like aircraft engine parts, where R&D or unforeseen technical challenges can arise, the CPFF structure can be beneficial for innovation but may require stringent oversight to prevent cost creep. The government must ensure robust cost accounting and performance metrics are in place.
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
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: $73,041,072
Exercised Options: $73,041,072
Current Obligation: $73,041,072
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $324,748
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: 2025-03-14
Current End Date: 2026-09-13
Potential End Date: 2026-09-13 00:00:00
Last Modified: 2025-09-29
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