DoD awards $77M for Aircraft Engine Parts to RTX Corporation via sole-source contract
Contract Overview
Contract Amount: $76,959,782 ($77.0M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2021-09-17
End Date: 2023-06-30
Contract Duration: 651 days
Daily Burn Rate: $118.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPARES AND KITS
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $77.0 million to RTX CORPORATION for work described as: SPARES AND KITS Key points: 1. Significant contract value of $77M for specialized aircraft engine parts. 2. Sole-source award to RTX Corporation raises questions about competition. 3. Potential risk associated with single-source reliance for critical components. 4. Spending falls within the Defense sector, specifically Aircraft Engine Manufacturing.
Value Assessment
Rating: fair
The $77M award for aircraft engine parts appears to be a substantial investment. Benchmarking against similar sole-source contracts for specialized components is difficult without more data, but the price should be scrutinized for reasonableness given the lack of competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these critical aircraft engine parts.
Public Impact
Ensures continued availability of critical aircraft engine parts for the Navy. Supports a major defense contractor, RTX Corporation, and its supply chain. Potential for increased maintenance costs if pricing is not optimized due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Reliance on a single vendor for critical parts poses supply chain risk.
- Contract duration is lengthy (over 1.5 years).
Positive Signals
- Ensures supply of essential aircraft engine parts.
- Supports a key defense industrial base company.
Sector Analysis
This spending is within the Defense sector, specifically for aircraft engine and engine parts manufacturing. The $77M award is significant for this niche, and benchmarks for sole-source procurements in this area are often higher due to specialized requirements.
Small Business Impact
The contract was awarded to RTX Corporation, a large business. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific award, suggesting limited small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. Accountability for the justification of the sole-source procurement should be clearly documented.
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 price competition.
- Potential for inflated pricing.
- Supply chain dependency on a single vendor.
- Long contract duration.
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 $77.0 million to RTX CORPORATION. SPARES AND KITS
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 $77.0 million.
What is the period of performance?
Start: 2021-09-17. End: 2023-06-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this contract, the Department of the Navy would need to provide documentation detailing why RTX Corporation was the only viable option and why competition was not feasible or advantageous.
How does the per-unit cost of these spares and kits compare to historical data or industry benchmarks for similar components, especially considering the sole-source nature?
Without specific unit cost data and comparable benchmarks, a precise assessment is challenging. However, given the sole-source award, it is crucial for the DoD to rigorously validate the pricing against any available historical data for similar parts procured competitively or through other means to ensure cost-effectiveness and prevent potential overpayment.
What are the long-term implications for the Department of the Navy's supply chain resilience and cost management if reliance on sole-source providers for critical engine parts continues?
Continued reliance on sole-source providers can increase vulnerability to supply chain disruptions, price escalations, and reduced innovation. The Navy should actively explore strategies to foster competition, develop alternative sources, or negotiate long-term agreements with built-in cost controls to mitigate these risks.
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
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: $76,959,782
Exercised Options: $76,959,782
Current Obligation: $76,959,782
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001920D0013
IDV Type: IDC
Timeline
Start Date: 2021-09-17
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2023-08-22
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