DoD's $335M Contract for SPARES MINI MODULES Awarded to RTX Corporation
Contract Overview
Contract Amount: $334,795,425 ($334.8M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2023-02-28
End Date: 2026-12-31
Contract Duration: 1,402 days
Daily Burn Rate: $238.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPARES MINI MODULES FY23
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $334.8 million to RTX CORPORATION for work described as: SPARES MINI MODULES FY23 Key points: 1. Significant spending on critical aircraft engine parts. 2. Sole-source award to RTX Corporation raises competition concerns. 3. Long-term contract duration (2026) impacts future pricing flexibility. 4. Focus on a specific manufacturing sector (Aircraft Engine and Engine Parts).
Value Assessment
Rating: questionable
The contract value of $334.8M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar modules from other manufacturers.
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 lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these essential aircraft engine parts.
Public Impact
Ensures availability of critical aircraft engine components for the Navy. Potential for higher costs due to lack of competitive pricing. Long-term commitment may limit adoption of newer, potentially more efficient technologies. Supports a major defense contractor, RTX Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Ensures supply of critical parts
- Supports national defense
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the aerospace and defense industry. Spending benchmarks for similar sole-source contracts can vary widely.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within RTX Corporation's supply chain.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and performance. The Department of the Navy is responsible for managing this contract and ensuring accountability.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration may lead to price increases.
- Limited transparency on price justification.
- Dependency on a single supplier for critical components.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ct, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $334.8 million to RTX CORPORATION. SPARES MINI MODULES FY23
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 $334.8 million.
What is the period of performance?
Start: 2023-02-28. End: 2026-12-31.
What is the justification for the sole-source award, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The government should have conducted a price analysis, potentially using historical data, cost breakdowns, or comparisons to similar commercial items, to establish a fair and reasonable price. Without this information, the price remains questionable.
What are the long-term risks associated with a sole-source contract for critical aircraft parts?
Long-term sole-source contracts for critical parts pose risks such as price escalation over time, reduced incentive for the contractor to innovate or improve efficiency, and potential supply chain vulnerabilities if the sole provider faces disruptions. It also limits the government's ability to leverage competitive market forces for better pricing and technological advancements.
How does this contract contribute to the overall readiness and cost-effectiveness of the Navy's aircraft fleet?
This contract directly contributes to fleet readiness by ensuring the availability of essential spare parts. However, the lack of competition raises concerns about cost-effectiveness, as taxpayers may be bearing a higher cost than if the contract were competitively awarded. The long duration further compounds this potential cost inefficiency.
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: 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: $334,795,425
Exercised Options: $334,795,425
Current Obligation: $334,795,425
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: 2023-02-28
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-09-17
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