DoD awards $65.5M for Mini Modules to RTX Corporation, a sole-source contract
Contract Overview
Contract Amount: $65,487,209 ($65.5M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2021-09-03
End Date: 2023-06-30
Contract Duration: 665 days
Daily Burn Rate: $98.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MINI MODULES
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $65.5 million to RTX CORPORATION for work described as: MINI MODULES Key points: 1. Significant award value of $65.5 million for specialized aircraft engine parts. 2. Sole-source award to RTX Corporation indicates limited competition. 3. Potential risk associated with lack of competitive bidding impacting price. 4. Spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The contract's value of $65.5 million for mini modules is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar specialized aircraft engine components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to RTX Corporation. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to achieve the lowest possible price.
Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive process.
Public Impact
Taxpayers may be overpaying for critical aircraft engine components due to the absence of competition. The Department of Defense relies on RTX Corporation for these specialized parts, highlighting potential supply chain risks. The long duration of the contract (665 days) suggests a sustained need for these components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Potential for overpayment
Positive Signals
- Award to established contractor
- Addresses critical defense need
Sector Analysis
This spending falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical area for defense readiness. Benchmarks for similar sole-source contracts in this niche sector are hard to establish without competitive data.
Small Business Impact
The award went to RTX Corporation, a large prime contractor. There is no indication that small businesses were involved as subcontractors or partners in this specific delivery order.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further oversight is needed to ensure the price paid is fair and reasonable, and to explore opportunities for future competition.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price discovery.
- Potential for inflated pricing.
- Lack of transparency in justification.
- Dependency on a single supplier.
- No clear path to competition.
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 $65.5 million to RTX CORPORATION. MINI MODULES
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 $65.5 million.
What is the period of performance?
Start: 2021-09-03. End: 2023-06-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of adequate competition. Without further documentation, it's difficult to ascertain the specific reasons why RTX Corporation was the only viable option for these mini modules.
What is the potential cost impact of this sole-source award compared to a competitive process?
Sole-source contracts often result in higher costs for the government compared to competitive ones. While a precise figure is unavailable without a benchmark, the absence of bidding means the government likely did not benefit from price reductions that competition typically drives.
Are there plans to introduce competition for future procurements of these mini modules?
The provided data does not indicate future procurement plans or strategies for introducing competition. It would be advisable for the Department of the Navy to assess the market for these components to identify potential competitors for subsequent contract actions.
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: $65,487,209
Exercised Options: $65,487,209
Current Obligation: $65,487,209
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: 2021-09-03
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2023-08-30
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