DoD Awards $7.5B F135 Engine Contract to RTX Corporation, Facing Limited Competition
Contract Overview
Contract Amount: $7,498,943,172 ($7.5B)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2020-03-23
End Date: 2030-10-15
Contract Duration: 3,858 days
Daily Burn Rate: $1.9M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: LOT 15 FMS-1 F135 CTOL PROP SYSTEM
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $7.50 billion to RTX CORPORATION for work described as: LOT 15 FMS-1 F135 CTOL PROP SYSTEM Key points: 1. Significant award value of $7.5 billion for F135 CTOL Prop System. 2. Dominated by a single provider, RTX Corporation, raising competition concerns. 3. Long contract duration (2020-2030) suggests potential for cost overruns. 4. Sector focus on Aircraft Engine Manufacturing, a critical defense component.
Value Assessment
Rating: questionable
The contract value of $7.5 billion is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives. Benchmarking against similar engine contracts would be necessary for a thorough evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition scenario. This lack of competition likely resulted in higher prices than could have been achieved through a competitive bidding process, impacting price discovery.
Taxpayer Impact: The absence of competition for a contract of this magnitude raises concerns about taxpayer value, as the government may be paying a premium.
Public Impact
Impacts the operational readiness and cost of the F-35 fighter jet program. Potential for long-term reliance on a single supplier for critical engine components. Raises questions about the government's strategy for fostering innovation and competition in defense manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long contract duration
- Sole-source award
Positive Signals
- Critical defense system
- Established supplier
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a high-value and technologically advanced area crucial for national defense. Spending benchmarks in this specialized sector are often high due to R&D and production complexities.
Small Business Impact
The data indicates this is a large prime contract awarded to RTX Corporation. There is no information provided regarding subcontracting opportunities for small businesses within this specific contract award.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential oversight gaps or justifications for sole-sourcing that warrant further investigation. Robust oversight is needed to ensure fair pricing and performance over the contract's long duration.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price inflation
- Long contract duration
- Critical defense system dependency
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ct, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.50 billion to RTX CORPORATION. LOT 15 FMS-1 F135 CTOL PROP SYSTEM
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 Navy).
What is the total obligated amount?
The obligated amount is $7.50 billion.
What is the period of performance?
Start: 2020-03-23. End: 2030-10-15.
What is the justification for not competing this contract, and what steps are being taken to ensure fair pricing?
The justification for not competing this contract is not provided in the data. To ensure fair pricing, the Department of Defense should conduct thorough cost analyses, benchmark against similar contracts, and explore opportunities for future competition or negotiation to mitigate potential overpricing due to the sole-source nature.
What are the long-term risks associated with a sole-source award for a critical component like the F135 engine?
Long-term risks include potential price escalation without competitive pressure, reduced innovation from the supplier due to lack of market alternatives, and supply chain vulnerabilities if the sole provider faces production issues. This also limits the government's leverage in future negotiations and technology upgrades.
How does this contract contribute to the overall cost-effectiveness and readiness of the F-35 program?
While essential for F-35 readiness, the lack of competition raises concerns about cost-effectiveness. If the contract price is inflated due to sole-sourcing, it diverts funds that could be used for other program needs or readiness initiatives, potentially impacting the overall affordability and sustainment of the F-35 fleet.
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
Solicitation ID: N0001920R0019
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $7,498,943,172
Exercised Options: $7,498,943,172
Current Obligation: $7,498,943,172
Actual Outlays: $501,625
Subaward Activity
Number of Subawards: 65
Total Subaward Amount: $17,956,342
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-23
Current End Date: 2030-10-15
Potential End Date: 2030-10-15 00:00:00
Last Modified: 2025-09-16
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