DoD's $100M R&D Contract with RTX Corporation: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $99,973,828 ($100.0M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2012-10-19
End Date: 2017-12-31
Contract Duration: 1,899 days
Daily Burn Rate: $52.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: RESEARCH AND DEVELOPMENT
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $100.0 million to RTX CORPORATION for work described as: RESEARCH AND DEVELOPMENT Key points: 1. Significant investment in advanced R&D, potentially driving technological innovation. 2. RTX Corporation, a major defense contractor, likely possesses specialized expertise. 3. Potential risks include cost overruns and the long-term effectiveness of the research. 4. Spending aligns with the broader defense sector's focus on technological superiority.
Value Assessment
Rating: fair
The contract value of $99.97M over nearly 5 years suggests a substantial investment. Benchmarking against similar large-scale R&D contracts is difficult without more specific project details, but the duration and cost indicate a significant undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method aims to ensure fair pricing and access to the best available solutions, though the specific price discovery mechanisms are not detailed.
Taxpayer Impact: Taxpayer funds are being utilized for advanced research, with the expectation of future technological advancements and potential economic benefits derived from these innovations.
Public Impact
Advancement of critical defense technologies that could enhance national security. Potential for job creation and economic stimulus within the defense industry. Long-term implications for technological competitiveness on a global scale.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns due to the nature of R&D.
- Research may not yield desired or applicable results.
- Dependency on a single large contractor for critical R&D.
Positive Signals
- Potential for groundbreaking technological advancements.
- Strengthens domestic defense industrial base.
- RTX's established track record in defense innovation.
Sector Analysis
This contract falls within the defense sector, which heavily invests in research and development to maintain technological superiority. Spending benchmarks for R&D in this sector are typically high due to the complexity and strategic importance of the work.
Small Business Impact
The contract was awarded to RTX Corporation, a large prime contractor. There is no explicit information provided regarding subcontracting opportunities for small businesses on this specific award.
Oversight & Accountability
The Department of Defense, through its agencies like the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial to manage R&D risks and ensure accountability for taxpayer funds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High cost potential in R&D.
- Uncertainty of research outcomes.
- Long contract duration.
- Reliance on a single large entity.
- Potential for scope creep.
Tags
research-and-development-in-the-physical, department-of-defense, ct, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $100.0 million to RTX CORPORATION. RESEARCH AND DEVELOPMENT
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 $100.0 million.
What is the period of performance?
Start: 2012-10-19. End: 2017-12-31.
What specific technological advancements are expected from this $100M R&D investment, and how will their success be measured?
The specific technological advancements are not detailed in the provided data. Measuring success in R&D is complex and typically involves milestones related to prototype development, performance testing, and eventual integration into defense systems. Clear, objective metrics should be established upfront to track progress and determine the value derived from the investment.
What are the primary risks associated with a Cost Plus Fixed Fee contract for advanced R&D, and how are they mitigated?
The primary risk with Cost Plus Fixed Fee (CPFF) for R&D is that the contractor may have less incentive to control costs, as the government covers allowable costs plus a fixed fee. Mitigation strategies include stringent oversight, detailed cost tracking, clearly defined project scope, and performance incentives tied to successful outcomes rather than just cost containment.
How does this contract contribute to the Department of Defense's long-term strategic goals and technological roadmap?
This contract likely supports specific strategic objectives within the DoD's technology roadmap, aiming to develop capabilities that address future threats or enhance existing operational effectiveness. The R&D's contribution is measured by its alignment with these goals and its potential to provide a decisive advantage, though the direct link requires further context on the specific research areas.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 400 MAIN ST, EAST HARTFORD, CT, 06108
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $99,973,828
Exercised Options: $99,973,828
Current Obligation: $99,973,828
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-10-19
Current End Date: 2017-12-31
Potential End Date: 2017-12-31 00:00:00
Last Modified: 2020-09-28
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