DoD awards RTX Corporation $5.77M for alloy structure engineering and testing

Contract Overview

Contract Amount: $5,771,535 ($5.8M)

Contractor: RTX Corporation

Awarding Agency: Department of Defense

Start Date: 2024-02-12

End Date: 2027-02-11

Contract Duration: 1,095 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MULTIOBJECTIVE ENGINEERING AND TESTING OF ALLOY STRUCTURES PROGRAM

Place of Performance

Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $5.8 million to RTX CORPORATION for work described as: MULTIOBJECTIVE ENGINEERING AND TESTING OF ALLOY STRUCTURES PROGRAM Key points: 1. Contract focuses on advanced materials research for defense applications. 2. RTX Corporation, a major defense contractor, is the awardee. 3. The contract duration is three years, indicating a medium-term research effort. 4. Funding is allocated under the Research and Development in Physical, Engineering, and Life Sciences category. 5. The contract type is Cost Plus Fixed Fee, common for R&D projects. 6. Competition was full and open, suggesting a broad search for qualified bidders.

Value Assessment

Rating: fair

The contract value of $5.77 million for a three-year R&D effort appears reasonable given the specialized nature of alloy structure engineering and testing. Benchmarking against similar contracts in advanced materials research is challenging due to the proprietary and specific nature of such work. However, the Cost Plus Fixed Fee structure allows for cost control while incentivizing efficient completion. The fixed fee component provides a degree of predictability for the contractor's profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the agency sought proposals from all responsible sources. The solicitation likely attracted multiple bidders, although the exact number of proposals received is not specified. A competitive process is generally expected to yield better pricing and innovative solutions by allowing the market to determine the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a wider range of offers, potentially leading to more cost-effective solutions and preventing price inflation that can occur with less competitive procurements.

Public Impact

The primary beneficiaries are the Department of Defense and its research arms, seeking advancements in material science for defense systems. Services delivered include engineering, testing, and analysis of alloy structures. The geographic impact is likely concentrated within RTX Corporation's research facilities, with potential downstream effects on defense readiness nationwide. Workforce implications include employment for specialized engineers, scientists, and technicians within the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
The specialized nature of the research may limit the number of truly competitive bids in the future.
Dependence on a single large contractor like RTX Corporation could pose supply chain risks for critical R&D.

Positive Signals

Award to a reputable contractor with a proven track record in aerospace and defense research.
Full and open competition suggests a thorough evaluation process and potential for innovative solutions.
The contract aims to advance critical defense technologies, aligning with national security objectives.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on materials science and engineering research. The market for advanced alloy development and testing is highly specialized, dominated by a few large, established players like RTX Corporation. Spending in this area is driven by the need for lighter, stronger, and more resilient materials for next-generation military platforms. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D contracts, but this award represents a modest investment in foundational research.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions. While RTX Corporation is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors, particularly in specialized testing or material supply. The agency's commitment to small business subcontracting will be a key factor in determining the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Defense Advanced Research Projects Agency (DARPA) contracting officers and technical representatives. Accountability measures are built into the contract through reporting requirements and milestone deliverables. Transparency is facilitated by the Federal Procurement Data System (FPDS), which records contract awards. The Inspector General's office may conduct audits to ensure proper use of funds.

Related Government Programs

Advanced Materials Research Programs
Aerospace Engineering Services
Defense Research and Development
Alloy Development and Testing
DARPA Research Contracts

Risk Flags

Cost Overruns Potential (CPFF)
Limited Competition Pool for Specialized R&D
Technical Feasibility Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.8 million to RTX CORPORATION. MULTIOBJECTIVE ENGINEERING AND TESTING OF ALLOY STRUCTURES PROGRAM

Who is the contractor on this award?

The obligated recipient is RTX CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2024-02-12. End: 2027-02-11.

What is RTX Corporation's track record with similar R&D contracts for the Department of Defense?

RTX Corporation, formerly Raytheon Technologies, has a substantial and extensive track record of performing research and development contracts for the Department of Defense and its various agencies, including DARPA. Their portfolio includes work on advanced materials, propulsion systems, sensors, and integrated defense systems. Historically, RTX has demonstrated capability in managing complex, high-value R&D projects, often involving cutting-edge technologies. While specific performance metrics for every contract are not publicly detailed, their consistent selection for significant R&D awards suggests a generally positive performance history and a strong understanding of DoD requirements. The company's deep expertise in aerospace and defense engineering positions them as a reliable partner for specialized research initiatives like the alloy structure testing program.

How does the $5.77 million value compare to other DoD contracts for alloy structure research?

The $5.77 million award for a three-year effort in multiobjective engineering and testing of alloy structures is a moderate-sized contract within the broader landscape of DoD R&D spending. Contracts in advanced materials research can vary significantly in value, ranging from smaller, focused studies costing hundreds of thousands of dollars to multi-year, multi-billion dollar programs for developing entirely new material classes or manufacturing processes. This specific award appears to be for a focused research initiative rather than a large-scale development program. Benchmarking is difficult without more specific details on the scope of work, but it suggests a targeted investment in specific alloy properties or testing methodologies, rather than a comprehensive materials development effort.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, such as this one, revolve around cost control and potential for scope creep. While the fixed fee provides a defined profit margin for the contractor (RTX Corporation), the government bears the risk of actual costs exceeding estimates. If the research encounters unforeseen technical challenges or requires more extensive testing than initially planned, the total cost to the government could escalate. Effective oversight by DARPA is crucial to monitor expenditures, ensure efficient resource utilization, and prevent unnecessary costs. Additionally, the CPFF structure can sometimes reduce the contractor's incentive to control costs aggressively compared to fixed-price contracts, although the fixed fee itself provides a ceiling on profit.

How effective is full and open competition in ensuring value for money in specialized R&D like this?

Full and open competition is generally considered the most effective method for ensuring value for money, even in specialized R&D. By allowing all responsible sources to bid, the government maximizes its chances of receiving innovative technical approaches and competitive pricing. For specialized R&D, this means that a wider pool of potential contractors, including those with unique expertise or novel methodologies, can be considered. While the number of bidders might be limited by the highly specialized nature of alloy structure engineering, the competitive process still pressures bidders to offer their best technical solutions at the most reasonable costs. The evaluation criteria used by DARPA will be critical in selecting the offer that represents the best overall value, balancing technical merit with cost.

What are the historical spending patterns for DARPA in the area of advanced materials R&D?

DARPA has a long history of investing significantly in advanced materials research as a critical enabler for future defense capabilities. Their spending patterns in this area are characterized by a focus on high-risk, high-reward projects that push the boundaries of material science. Historically, DARPA has funded research into areas such as lightweight composites, high-temperature alloys, self-healing materials, and materials for extreme environments. Funding levels can fluctuate based on strategic priorities and technological breakthroughs, but materials science remains a consistent and vital component of DARPA's portfolio. The $5.77 million award to RTX Corporation aligns with DARPA's typical approach of funding targeted, innovative research projects that have the potential for transformative impact on defense systems.

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: BASIC RESEARCH

Solicitation ID: HR001123S0029

Offers Received: 16

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 411 SILVER LN, EAST HARTFORD, CT, 06118

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,771,535

Exercised Options: $5,771,535

Current Obligation: $5,771,535

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline