DoD's $78M Component Improvement Program contract awarded to RTX Corporation for aircraft engine parts
Contract Overview
Contract Amount: $78,246,081 ($78.2M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2019-01-19
End Date: 2023-12-31
Contract Duration: 1,807 days
Daily Burn Rate: $43.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CY2019 COMPONENT IMPROVEMENT PROGRAM (CIP) REQUIREMENTS
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $78.2 million to RTX CORPORATION for work described as: CY2019 COMPONENT IMPROVEMENT PROGRAM (CIP) REQUIREMENTS Key points: 1. Significant contract value of $78.2M for critical aircraft engine components. 2. RTX Corporation, a major defense contractor, is the sole awardee. 3. Potential risk associated with sole-source awards and cost-plus contracts. 4. Spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Benchmarking against similar sole-source, cost-plus contracts for specialized engine parts is difficult without more data, but the fixed fee component offers some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially increases costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition for this significant award raises concerns about potential overspending and reduced value for taxpayer funds.
Public Impact
Ensures continued availability of critical aircraft engine components for military readiness. Supports a major defense contractor, potentially impacting industry supply chains. Raises questions about the long-term strategy for sourcing these essential parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Supports critical defense capability
- Long contract duration ensures supply stability
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this sector is often characterized by high R&D costs, specialized manufacturing, and long product lifecycles, with significant government procurement.
Small Business Impact
The awardee, RTX Corporation, is a large prime contractor. There is no indication of small business participation in this specific contract, suggesting potential missed opportunities for subcontracting.
Oversight & Accountability
The Department of Defense, specifically the Defense Contract Management Agency, is responsible for oversight. The cost-plus nature of the contract necessitates robust oversight to ensure costs are reasonable and allocable.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type can lead to cost overruns.
- Lack of transparency in pricing justification.
- Potential for contractor dependency.
- No clear small business participation noted.
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 $78.2 million to RTX CORPORATION. CY2019 COMPONENT IMPROVEMENT PROGRAM (CIP) REQUIREMENTS
Who is the contractor on this award?
The obligated recipient is RTX CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $78.2 million.
What is the period of performance?
Start: 2019-01-19. End: 2023-12-31.
What efforts were made to justify the sole-source award and ensure fair and reasonable pricing?
Justification for sole-source awards typically involves documenting the unique capabilities of the contractor or the unavailability of alternatives. Fair and reasonable pricing is assessed through various methods, including historical pricing, comparison to similar items, or cost analysis. Without access to the specific justification documentation, it's difficult to assess the thoroughness of these efforts.
What are the long-term risks associated with relying on a single source for critical engine components?
Long-term reliance on a single source can lead to price escalation, reduced innovation, and supply chain vulnerability. If the sole provider faces production issues, financial distress, or decides to exit the market, it could severely impact military readiness. Developing alternative sources or fostering competition over time is crucial for mitigating these risks.
How effectively is the Cost Plus Fixed Fee structure being managed to control costs and ensure value?
Effective management of a CPFF contract requires rigorous oversight of incurred costs, contractor performance, and adherence to the fixed fee. Regular audits, performance reviews, and clear communication channels are essential. The agency must ensure that the contractor is incentivized to control costs while meeting performance requirements, maximizing the value delivered to the government.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $78,246,081
Exercised Options: $78,246,081
Current Obligation: $78,246,081
Actual Outlays: $2,956,741
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001917G0005
IDV Type: BOA
Timeline
Start Date: 2019-01-19
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2025-07-25
More Contracts from RTX Corporation
- LOT 12 AAC Long Lead for Propulsion Systems — $8.7B (Department of Defense)
- 200204!008533!1700!AF600 !naval AIR Systems Command !N0001902C3003 !A!N! !N! !20011026!20120430!001447952!001447952!001344142!n!united Technologies Corp !400 Main Street !east Hartford !ct!06108!22700!003!09!east Hartford !hartford !conn !+000014000000!n!n!004803460088!ac15!rdte/Aircraft-Eng/Manuf Develop !a1b!aircraft Engines and Spares !2ama!jast/Jsf !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !d!n!r!1!001!n!1a!a!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $7.9B (Department of Defense)
- LOT 15 FMS-1 F135 Ctol Prop System — $7.5B (Department of Defense)
- FY21 PBL2 — $4.9B (Department of Defense)
- F119 Engine Long Term Sustainment Program for the Raptor Engine (spare) — $3.6B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)