DoD's $4M SPARTA contract to RTX Corp for titanium alloy research shows strong competition and potential for innovation

Contract Overview

Contract Amount: $4,015,377 ($4.0M)

Contractor: RTX Corporation

Awarding Agency: Department of Defense

Start Date: 2023-02-07

End Date: 2027-03-31

Contract Duration: 1,513 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SCALABLE PREDICTIONS AND ANALYTICS OF RARE EVENTS IN TITANIUM ALLOYS (SPARTA)

Place of Performance

Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $4.0 million to RTX CORPORATION for work described as: SCALABLE PREDICTIONS AND ANALYTICS OF RARE EVENTS IN TITANIUM ALLOYS (SPARTA) Key points: 1. The contract leverages full and open competition, suggesting a robust market for specialized R&D services. 2. RTX Corporation's selection indicates a competitive process that likely yielded favorable pricing for the government. 3. The cost-plus-fixed-fee structure allows for flexibility in research while maintaining cost control. 4. This award falls within the R&D sector, specifically focusing on advanced materials for potential defense applications. 5. The contract duration of over four years suggests a significant, long-term research objective. 6. The geographic location in Connecticut may indicate a concentration of specialized research facilities and talent.

Value Assessment

Rating: good

While specific cost benchmarks for this niche R&D are not readily available, the contract's value of $4.01 million over approximately four years for specialized research appears reasonable. The cost-plus-fixed-fee (CPFF) pricing structure is common for research and development where exact costs are difficult to predict, allowing for flexibility. Benchmarking against similar advanced materials research contracts would provide a more precise value assessment, but the competitive award suggests a fair price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors were solicited and allowed to bid. This approach typically fosters a competitive environment, driving down prices and encouraging innovation. The specific number of bidders is not provided, but the designation implies a significant number of interested parties, leading to a more robust price discovery process.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by promoting a marketplace where the best value is sought. This method minimizes the risk of overpayment and maximizes the potential for innovative solutions at competitive rates.

Public Impact

The Department of Defense benefits from advancements in titanium alloy research, potentially leading to lighter, stronger, and more durable components for military platforms. RTX Corporation, through its research efforts, will contribute to the scientific understanding and practical application of advanced materials. The research conducted could have broader implications for the aerospace and manufacturing industries, fostering technological progress. The project may support highly skilled jobs in research and development, particularly in specialized fields like materials science.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not closely monitored, though the fixed fee component provides some control.
The specialized nature of the research may limit the immediate applicability or scalability of findings to broader defense needs.
Reliance on a single contractor for this specific research could pose a risk if unforeseen issues arise with their performance or capabilities.

Positive Signals

Awarded under full and open competition, indicating a healthy market and likely competitive pricing.
The contract focuses on advanced materials research, a critical area for future technological superiority.
The long duration suggests a commitment to achieving significant research outcomes.
RTX Corporation is a major defense contractor with a strong track record in aerospace and defense technologies.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical sciences and engineering. The market for advanced materials research, particularly for defense applications, is highly specialized and often dominated by large aerospace and defense contractors. The total federal spending on R&D is substantial, with a significant portion allocated to materials science. This contract represents a small but critical investment in maintaining technological advantage through material innovation.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature of advanced materials research and the prime contractor being RTX Corporation, it is likely that any small business involvement would be through subcontracting opportunities. The extent of small business participation will depend on RTX Corporation's subcontracting plan and the availability of small businesses with the necessary expertise in titanium alloy research.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, a component of the Department of Defense. The cost-plus-fixed-fee structure necessitates close monitoring of expenditures to ensure costs remain within reasonable bounds and that the fixed fee is earned appropriately. Transparency will be maintained through regular reporting requirements from the contractor. The Inspector General's office within the DoD may conduct audits or investigations as deemed necessary to ensure accountability and prevent fraud, waste, or abuse.

Related Government Programs

Advanced Materials Research Programs
Aerospace Component Development
Titanium Alloy Research Initiatives
Department of Defense Research and Development Contracts
Materials Science and Engineering R&D

Risk Flags

Cost Overrun Risk (CPFF)
Limited Scope of Research
Contractor Performance Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.0 million to RTX CORPORATION. SCALABLE PREDICTIONS AND ANALYTICS OF RARE EVENTS IN TITANIUM ALLOYS (SPARTA)

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 $4.0 million.

What is the period of performance?

Start: 2023-02-07. End: 2027-03-31.

What is RTX Corporation's track record in materials science research, particularly concerning titanium alloys?

RTX Corporation, through its various subsidiaries and divisions (including Pratt & Whitney, Collins Aerospace, and Raytheon), has a long and extensive history in advanced materials research and development. They are a major player in the aerospace and defense industries, where materials science is critical for performance, durability, and weight reduction. Their work often involves developing and testing new alloys, including titanium, for applications in jet engines, airframes, and other high-stress environments. While specific details on their titanium alloy research are often proprietary, their overall portfolio demonstrates significant expertise and investment in this area, making them a logical choice for such a specialized contract.

How does the $4.01 million contract value compare to similar R&D efforts in advanced materials?

Benchmarking the $4.01 million value for this specific contract requires comparing it to similar research and development efforts in advanced materials, particularly those involving titanium alloys and targeting defense applications. Contracts in this domain can vary widely based on scope, duration, and the specific research objectives. However, for a multi-year project (over 4 years) involving a major defense contractor like RTX, this funding level appears to be within a reasonable range for specialized R&D. It suggests a focused effort rather than a broad, large-scale program. A more precise comparison would necessitate access to detailed data on comparable contracts, including their specific technical goals and deliverables.

What are the primary risks associated with this cost-plus-fixed-fee (CPFF) contract structure for R&D?

The primary risks associated with a CPFF contract structure for R&D, like the SPARTA contract, revolve around cost control and contractor efficiency. While the fixed fee provides a ceiling for the contractor's profit, the cost-plus aspect means the government reimburses allowable costs incurred by the contractor. If R&D efforts prove more complex or time-consuming than initially anticipated, costs can escalate. There's also a risk that the contractor might not be as incentivized to control costs as they would be under a fixed-price contract, although the fixed fee does provide some profit incentive. Effective government oversight, clear milestones, and robust reporting are crucial to mitigate these risks and ensure value for taxpayer money.

What is the expected program effectiveness and potential impact of the SPARTA contract's research outcomes?

The expected program effectiveness of the SPARTA contract hinges on its ability to yield significant advancements in the understanding and application of titanium alloys. If successful, the research could lead to the development of new materials with enhanced properties such as higher strength-to-weight ratios, improved corrosion resistance, or better performance at extreme temperatures. The potential impact is substantial for the Department of Defense, enabling the creation of more capable and resilient aircraft, vehicles, and equipment. Broader impacts could include technological spin-offs benefiting the commercial aerospace and manufacturing sectors, driving innovation and economic growth.

How does historical spending on R&D for advanced materials by the Department of Defense inform the assessment of this contract?

Historical spending data on R&D for advanced materials by the Department of Defense (DoD) provides context for the SPARTA contract. The DoD consistently invests billions annually in R&D to maintain technological superiority, with a significant portion dedicated to materials science. This includes research into alloys like titanium, composites, and ceramics. The $4.01 million allocated to SPARTA, while substantial for a single project, represents a fraction of the DoD's overall R&D budget. Analyzing past spending patterns can reveal trends in research priorities, identify successful research areas, and help benchmark the cost-effectiveness of current investments against previous ones. It underscores the strategic importance the DoD places on materials innovation.

What are the potential implications of this contract for future defense procurement and technological development?

This contract has the potential to significantly influence future defense procurement and technological development by advancing the capabilities of titanium alloys. Successful research could lead to new material specifications and manufacturing processes that become standard for future platforms. This might result in requirements for lighter, stronger, and more resilient components, impacting the design and performance of next-generation aircraft, missiles, and ground systems. Furthermore, the insights gained could spur further R&D investments in related material science fields, potentially leading to breakthroughs that redefine defense capabilities and procurement strategies in the long term.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 1

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: $4,015,377

Exercised Options: $4,015,377

Current Obligation: $4,015,377

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline