DoD Awards $24.5M Component Improvement Program Contract to RTX Corporation for Aircraft Engines
Contract Overview
Contract Amount: $24,500,000 ($24.5M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2027-12-31
Contract Duration: 1,094 days
Daily Burn Rate: $22.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: COMPONENT IMPROVEMENT PROGRAM (CIP), CALENDAR YEAR (CY) 2025
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $24.5 million to RTX CORPORATION for work described as: COMPONENT IMPROVEMENT PROGRAM (CIP), CALENDAR YEAR (CY) 2025 Key points: 1. RTX Corporation, a major aerospace and defense contractor, secured this sole-source award. 2. The contract focuses on aircraft engine improvement, a critical component for naval aviation. 3. Potential risks include reliance on a single supplier and the cost-plus fixed fee structure. 4. This award falls within the broader aerospace and defense manufacturing sector.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar engine improvement contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, limiting price discovery and potentially increasing costs. The sole-source nature suggests a specific need or reliance on RTX's proprietary technology.
Taxpayer Impact: Taxpayer funds are being used for a sole-source contract, highlighting the need for robust oversight to ensure fair pricing and value for money.
Public Impact
Ensures continued readiness and performance of naval aircraft engines. Supports advanced manufacturing and technological development in the aerospace sector. Potential for cost overruns due to the sole-source and CPFF contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus fixed fee contract type
- Limited competition
Positive Signals
- Supports critical defense capability
- Long-term contract duration
Sector Analysis
This contract is within the aerospace and defense manufacturing sector, specifically focusing on aircraft engine components. Spending in this area is substantial, driven by military readiness requirements and technological advancements.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, as it was a sole-source award to a large corporation.
Oversight & Accountability
The sole-source nature of this award necessitates strong oversight from the Department of the Navy to ensure cost control and adherence to contract terms. Regular reviews of performance and expenditures are crucial.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to higher prices.
- CPFF contract type carries inherent cost overrun risk.
- Potential for vendor lock-in with sole-source provider.
- Limited transparency into cost build-up without 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 $24.5 million to RTX CORPORATION. COMPONENT IMPROVEMENT PROGRAM (CIP), CALENDAR YEAR (CY) 2025
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 $24.5 million.
What is the period of performance?
Start: 2025-01-01. End: 2027-12-31.
What is the justification for the sole-source award, and how does it ensure the best value for the government?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. For this contract, it's likely related to specific engine systems where RTX is the sole provider or has unique expertise. Ensuring best value requires rigorous negotiation and oversight to mitigate the lack of competitive pressure.
How will the Cost Plus Fixed Fee (CPFF) structure be managed to prevent cost overruns?
Managing a CPFF contract involves detailed cost tracking, regular audits, and performance reviews. The government must closely monitor all incurred costs and the contractor's efficiency. Establishing clear milestones and performance metrics, along with robust communication channels, is essential to control costs and ensure the fixed fee remains appropriate for the work performed.
What are the long-term implications for aircraft engine maintenance and upgrades given this sole-source award?
A sole-source award for component improvement could lead to long-term reliance on RTX for specific engine technologies. While ensuring continuity, it might limit future competition for upgrades or alternative solutions. The government should consider strategies to foster competition in the future or ensure technology transfer where possible to maintain flexibility and potentially reduce long-term costs.
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: 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: $40,862,397
Exercised Options: $40,862,397
Current Obligation: $24,500,000
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $676,087
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001922G0001
IDV Type: BOA
Timeline
Start Date: 2025-01-01
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-10-17
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