DoD's $38.8M R&D Contract for Propulsion Tech Awarded to RTX Corporation
Contract Overview
Contract Amount: $38,826,533 ($38.8M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2021-08-23
End Date: 2024-10-31
Contract Duration: 1,165 days
Daily Burn Rate: $33.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: PRESSURE GAIN PROPULSION FREEJET TEST
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $38.8 million to RTX CORPORATION for work described as: PRESSURE GAIN PROPULSION FREEJET TEST Key points: 1. This contract focuses on advanced propulsion research, a critical area for defense capabilities. 2. RTX Corporation, a major defense contractor, is the sole awardee, indicating potential concentration. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code suggests a high-tech focus. 4. The contract duration of nearly 4 years allows for significant project development and potential cost escalation.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee. While this can be suitable for R&D where costs are uncertain, it carries a risk of cost overruns if not managed tightly. Benchmarking CPFF R&D contracts is challenging due to inherent variability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific award mechanism as a 'Delivery Order' suggests it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, where the initial competition might have occurred earlier.
Taxpayer Impact: Full and open competition generally aims to secure the best value for taxpayers by encouraging multiple bids. The CPFF structure, however, requires diligent oversight to ensure costs remain reasonable.
Public Impact
Advancements in propulsion technology could lead to more efficient and capable military aircraft. Investment in R&D supports technological superiority for the U.S. Air Force. Potential for spin-off technologies benefiting the commercial aerospace sector. Job creation within RTX Corporation and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) can lead to cost overruns if not closely monitored.
- Sole awardee to RTX Corporation may limit competitive pressure on future related contracts.
- Long contract duration increases exposure to changing economic conditions and technological obsolescence.
Positive Signals
- Awarded under full and open competition.
- Focus on critical R&D for national defense.
- RTX Corporation is a reputable defense contractor with relevant expertise.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on advanced propulsion systems. Spending in this area is crucial for maintaining technological superiority in defense. Benchmarks for R&D contracts vary widely based on complexity and scope, but significant investments are typical for cutting-edge defense technologies.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this contract. Given the specialized nature of advanced propulsion research and the prime contractor being RTX Corporation, small business participation may be limited unless specifically mandated or pursued by the prime.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The CPFF contract type necessitates robust financial monitoring and performance evaluation to ensure funds are used efficiently and effectively towards the research objectives.
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
- Potential for cost overruns due to CPFF structure.
- Limited visibility into specific R&D objectives and expected outcomes.
- Long contract duration increases risk exposure.
- Lack of explicit small business participation noted.
- Reliance on a single contractor for this specific technology area.
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 $38.8 million to RTX CORPORATION. PRESSURE GAIN PROPULSION FREEJET TEST
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 $38.8 million.
What is the period of performance?
Start: 2021-08-23. End: 2024-10-31.
What specific propulsion technologies are being researched, and what are the expected performance improvements?
The contract details are limited, but 'PRESSURE GAIN PROPULSION FREEJET TEST' suggests research into advanced engine cycles that could offer higher thrust-to-weight ratios, improved fuel efficiency, or reduced emissions compared to current technologies. Expected improvements would likely focus on enhanced aircraft performance, extended range, or reduced operational costs for the Air Force.
How will the government ensure cost control and prevent overruns under the Cost Plus Fixed Fee structure for this R&D effort?
The Air Force will likely implement stringent oversight mechanisms, including regular audits of contractor expenditures, detailed progress reviews, and performance metrics tied to milestones. Establishing realistic cost estimates and a well-defined scope of work are crucial. The fixed fee provides an incentive for the contractor to manage costs efficiently to maximize their profit margin.
What is the long-term strategic value of this propulsion research for the Department of Defense beyond immediate operational needs?
This research could yield foundational technologies for future generations of aircraft, potentially leading to breakthroughs in hypersonic flight, advanced unmanned systems, or novel power sources. Such advancements are vital for maintaining a technological edge against adversaries and ensuring future national security capabilities remain state-of-the-art.
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 › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
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: $38,826,533
Exercised Options: $38,826,533
Current Obligation: $38,826,533
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865018D2062
IDV Type: IDC
Timeline
Start Date: 2021-08-23
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2024-07-30
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