DoD Awards $253.8M Contract to RTX Corp for Rotor Repair Capability
Contract Overview
Contract Amount: $25,384,538 ($25.4M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-19
End Date: 2026-04-30
Contract Duration: 954 days
Daily Burn Rate: $26.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RAPID SUSTAINMENT OFFICE, INTEGRALLY BLADED ROTOR (IBR) REPAIR CAPABILITY
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $25.4 million to RTX CORPORATION for work described as: RAPID SUSTAINMENT OFFICE, INTEGRALLY BLADED ROTOR (IBR) REPAIR CAPABILITY Key points: 1. Contract awarded to a single, large business (RTX Corp). 2. Full and open competition was utilized. 3. Potential for high taxpayer impact due to contract value. 4. Focus on engineering services for critical defense assets.
Value Assessment
Rating: good
The contract value of $253.8 million for engineering services appears substantial. Benchmarking against similar large-scale defense sustainment contracts would be necessary for a precise assessment, but the firm fixed-price structure suggests a degree of cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market value.
Taxpayer Impact: The significant contract value of $253.8 million means that taxpayer funds are being allocated to a critical defense capability. The effectiveness of the competition process will directly influence the value for money received.
Public Impact
Ensures continued operational readiness for critical Air Force rotorcraft. Supports advanced engineering services for specialized repair capabilities. Potential for job creation within the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Large contract value could lead to significant cost overruns if not managed effectively.
- Reliance on a single contractor for critical sustainment may pose supply chain risks.
Positive Signals
- Full and open competition promotes a competitive bidding environment.
- Firm fixed-price contract provides cost certainty.
- Contract supports a vital national defense capability.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting aerospace and defense. Spending benchmarks for similar sustainment and repair contracts for complex military equipment are typically in the millions to billions of dollars, depending on scope and duration.
Small Business Impact
The contract data indicates that small businesses were not directly awarded this contract, as it went to RTX Corporation. There is no explicit mention of small business subcontracting goals, which could be an area for further inquiry.
Oversight & Accountability
The Department of Defense, specifically the Air Force, is the awarding agency. Oversight will be crucial to ensure performance, cost control, and adherence to contract terms throughout the contract's duration.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High contract value requires diligent oversight.
- Potential for sole-source dependency if competition is not sustained.
- Complexity of rotor repair may lead to unforeseen technical challenges.
- Reliance on specific parts could create supply chain vulnerabilities.
Tags
engineering-services, department-of-defense, ct, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.4 million to RTX CORPORATION. RAPID SUSTAINMENT OFFICE, INTEGRALLY BLADED ROTOR (IBR) REPAIR CAPABILITY
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 $25.4 million.
What is the period of performance?
Start: 2023-09-19. End: 2026-04-30.
What specific performance metrics will be used to evaluate the effectiveness of RTX Corporation's rotor repair services?
Performance metrics will likely include turnaround time for repairs, quality of workmanship, adherence to technical specifications, and overall impact on aircraft availability. The contract's success hinges on meeting or exceeding these benchmarks to ensure the operational readiness of the rotorcraft fleet.
What are the potential risks associated with relying on RTX Corporation for this critical repair capability, and how are they being mitigated?
Risks include potential single-source dependency, supply chain disruptions affecting parts availability, and the possibility of cost increases beyond initial projections. Mitigation strategies may involve robust contract management, regular performance reviews, and contingency planning for alternative solutions or suppliers.
How does this contract contribute to the long-term sustainment strategy for the Air Force's rotorcraft fleet?
This contract is integral to ensuring the long-term operational readiness and safety of the Air Force's rotorcraft by providing specialized repair capabilities. It addresses the need for continuous maintenance and upgrades, thereby extending the service life of critical assets and reducing the need for premature replacements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
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: $25,384,538
Exercised Options: $25,384,538
Current Obligation: $25,384,538
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $2,436,469
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-19
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-11-19
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