DoD Awards $47.5M for F135 Engine Parts, RTX Corporation Selected
Contract Overview
Contract Amount: $47,545,166 ($47.5M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2024-01-02
End Date: 2026-12-31
Contract Duration: 1,094 days
Daily Burn Rate: $43.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F135 CIP EPDS
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $47.5 million to RTX CORPORATION for work described as: F135 CIP EPDS Key points: 1. Significant award for critical aircraft engine components. 2. Sole-source award raises questions about price competition. 3. Long-term contract (2024-2026) indicates ongoing need. 4. Manufacturing sector (336412) is highly specialized.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the $47.5M award represents fair market value.
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 continued availability of critical engine parts for the F135 program. Supports a major defense contractor and its supply chain. Potential for increased costs due to sole-source nature impacts defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Essential for national defense
- Long-term program support
Sector Analysis
This award falls within the Aircraft Engine and Engine Parts Manufacturing sector, a highly specialized and capital-intensive industry. Benchmarks for similar sole-source contracts in this niche are often difficult to establish due to limited comparable data.
Small Business Impact
The awardee, RTX Corporation, is a large prime contractor. There is no indication of subcontracting opportunities for small businesses within this specific delivery order, though the prime contractor may have its own small business utilization plans.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. However, the sole-source nature of this award limits the agency's ability to ensure competitive pricing, making robust cost monitoring crucial.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type risks
- Potential for price escalation
- Limited transparency on pricing justification
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 $47.5 million to RTX CORPORATION. F135 CIP EPDS
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 $47.5 million.
What is the period of performance?
Start: 2024-01-02. End: 2026-12-31.
What is the historical cost performance of RTX Corporation on similar sole-source Cost Plus Fixed Fee contracts for F135 components?
Analyzing historical data for RTX Corporation's performance on comparable sole-source Cost Plus Fixed Fee contracts is essential. This would involve reviewing past contract awards, final negotiated costs, and any identified cost variances. Understanding their track record can provide insights into potential cost efficiencies or overruns, helping to better assess the value proposition of the current $47.5M award.
What are the specific technical or proprietary reasons that necessitate a sole-source award for these F135 engine parts?
Investigating the specific technical or proprietary reasons behind the sole-source award is critical. This could involve examining unique manufacturing processes, patented technologies, or specialized tooling held exclusively by RTX Corporation. Understanding these barriers to entry would clarify whether competition was genuinely infeasible or if alternative sourcing strategies could have been explored.
How does the unit cost of these F135 engine parts compare to similar components in other advanced military aircraft programs?
Benchmarking the unit cost of these F135 engine parts against similar components in other advanced military aircraft programs is vital for assessing value. This comparison, even if indirect, can highlight potential cost discrepancies. If costs are significantly higher without clear justification, it suggests potential inefficiencies or a lack of competitive pressure influencing pricing.
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,062,503
Exercised Options: $53,062,503
Current Obligation: $47,545,166
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $421,105
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001922G0001
IDV Type: BOA
Timeline
Start Date: 2024-01-02
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-03-21
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