DoD Awards $326M Contract for Aircraft Engine Parts to RTX Corporation, Lacking Competition
Contract Overview
Contract Amount: $326,145,888 ($326.1M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2025-03-31
End Date: 2028-12-31
Contract Duration: 1,371 days
Daily Burn Rate: $237.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: INITIAL SPARES
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $326.1 million to RTX CORPORATION for work described as: INITIAL SPARES Key points: 1. Significant award of $326M for initial spares. 2. Sole awardee, RTX Corporation, raises competition concerns. 3. Long contract duration (2028) may limit future price adjustments. 4. Focus on aircraft engine parts places spending in a critical defense sector.
Value Assessment
Rating: questionable
The contract value of $326M for initial spares is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or previous procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a large contract like this suggests potential overspending, impacting taxpayer funds negatively.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. Dependence on a single supplier for critical aircraft engine parts could pose a supply chain risk. The long-term nature of the contract might not reflect the most cost-effective solutions available over time.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Award to established contractor
- Addresses critical need for spares
Sector Analysis
The Department of the Navy's procurement of aircraft engine parts falls within the broader Defense sector, specifically Aircraft Engine and Engine Parts Manufacturing. Spending in this area is critical for military readiness but often involves specialized, high-cost components.
Small Business Impact
The awardee, RTX Corporation, is a large corporation. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further oversight is needed to ensure the pricing is justified and that future procurements explore competitive options.
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 competition
- Potential for inflated pricing
- Long-term dependency on one supplier
- Limited transparency in price justification
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 $326.1 million to RTX CORPORATION. INITIAL SPARES
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 $326.1 million.
What is the period of performance?
Start: 2025-03-31. End: 2028-12-31.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this contract, the Department of Defense must provide detailed documentation supporting the sole-source justification. To ensure fair pricing, they may rely on historical pricing data, independent cost estimates, or price analysis techniques, though the absence of competition inherently limits the robustness of price discovery.
What are the potential risks associated with relying on a single supplier for critical aircraft engine spares over a multi-year period?
Relying on a single supplier for critical spares over several years presents several risks. These include potential supply chain disruptions if the sole source faces production issues, limited leverage for price negotiations, and a lack of incentive for the supplier to innovate or improve efficiency. It also creates a dependency that could be problematic if the supplier's business strategy or financial health changes.
How does this contract contribute to the overall readiness and cost-effectiveness of the Navy's aircraft fleet?
This contract directly supports the readiness of the Navy's aircraft fleet by ensuring the availability of necessary spare parts for engines. However, the lack of competition raises questions about its cost-effectiveness. While ensuring availability is crucial, the absence of competitive pricing may mean that the fleet's operational readiness is being achieved at a higher cost than could potentially be secured through a more competitive procurement process.
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: $326,145,888
Exercised Options: $326,145,888
Current Obligation: $326,145,888
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: 2025-03-31
Current End Date: 2028-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2025-06-18
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