DoD awards $36.3M for aircraft engines and spares, with RTX Corporation as the contractor

Contract Overview

Contract Amount: $36,336,100 ($36.3M)

Contractor: RTX Corporation

Awarding Agency: Department of Defense

Start Date: 2004-12-08

End Date: 2006-12-31

Contract Duration: 753 days

Daily Burn Rate: $48.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200505!000340!5700!FA8104!OC-ALC/LPK !F3365798D0018 !A!N! !N!SD08 ! !20041208!20060731!001447952!835551474!001344142!N!UNITED TECHNOLOGIES CORPORATIO!400 MAIN ST !EAST HARTFORD !CT!06108!22700!003!09!EAST HARTFORD !HARTFORD !CONN !+000037050000!N!N!000000000000!2840!GAS TURBINES AND JET ENGINES, ACFT & COMPS !A1B!AIRCRAFT ENGINES AND SPARES !000 !* !336412!E! !5!A!S! ! ! !20200930!B! ! !N!Z!C!N!J!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y! ! ! ! ! ! !0001! !

Place of Performance

Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06108

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $36.3 million to RTX CORPORATION for work described as: 200505!000340!5700!FA8104!OC-ALC/LPK !F3365798D0018 !A!N! !N!SD08 ! !20041208!20060731!001447952!835551474!001344142!N!UNITED TECHNOLOGIES CORPORATIO!400 MAIN ST !EAST HARTFORD !CT!06108!22700!003!09!EAST HARTFORD !HART… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $36.3M falls within a moderate spending range for this type of procurement. 3. The duration of 753 days indicates a medium-term supply or service requirement. 4. The primary NAICS code 336412 points to a focus on aircraft engine manufacturing and related parts. 5. The contract was awarded by the Defense Contract Management Agency, a key DoD procurement entity. 6. The contractor, RTX Corporation, is a major player in the aerospace and defense industry.

Value Assessment

Rating: good

The contract value of $36.3M for aircraft engines and spares appears reasonable given the contractor's industry standing and the nature of the goods. Benchmarking against similar contracts for engine components or maintenance would provide a more precise value-for-money assessment. The fixed-price nature of the contract shifts risk to the contractor, which can be favorable for the government if costs are managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a degree of competition, though the exact number of bids received is not specified. This level of competition is generally positive for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices.

Public Impact

The primary beneficiaries are likely military aviation units requiring operational aircraft engines and spare parts. Services delivered include the provision of aircraft engines and associated spare parts, crucial for maintaining air fleet readiness. The geographic impact is primarily within the United States, with potential global implications for deployed military assets. Workforce implications may include employment opportunities within RTX Corporation and its supply chain, particularly in manufacturing and engineering roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if market prices for raw materials or specialized components increase significantly during the contract period.
Dependency on a single large contractor like RTX Corporation could limit future competitive options if not managed strategically.
Ensuring timely delivery of critical spare parts to avoid operational delays for military aircraft.

Positive Signals

Award to a major defense contractor like RTX Corporation suggests a high likelihood of meeting technical specifications and quality standards.
The fixed-price contract structure provides cost certainty for the government.
Full and open competition indicates an effort to secure the best possible value through market forces.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft engine manufacturing and parts. The market for aircraft engines and spares is dominated by a few large, established players like RTX Corporation. Spending in this category is critical for maintaining national defense capabilities and supporting military aviation operations. Comparable spending benchmarks would typically involve analyzing other DoD contracts for similar engine types or fleet support.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside criterion (ss: false, sb: false). While this contract itself may not be directly set aside for small businesses, RTX Corporation, as the prime contractor, may engage small businesses through subcontracting opportunities. The extent of small business subcontracting would need further investigation to assess its impact on the small business ecosystem.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration and oversight. Oversight mechanisms would include monitoring performance, delivery schedules, and compliance with contract terms. Accountability is ensured through the fixed-price nature of the contract and potential penalties for non-performance. Transparency is facilitated through contract databases like FPDS, though detailed operational performance data may be limited.

Related Government Programs

Aircraft Engine Maintenance and Repair
Aerospace Parts Manufacturing
Defense Logistics Support
Military Aircraft Procurement
Aviation Systems Support

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Risk of price escalation for specialized materials.
Ensuring long-term availability of critical spare parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.3 million to RTX CORPORATION. 200505!000340!5700!FA8104!OC-ALC/LPK !F3365798D0018 !A!N! !N!SD08 ! !20041208!20060731!001447952!835551474!001344142!N!UNITED TECHNOLOGIES CORPORATIO!400 MAIN ST !EAST HARTFORD !CT!06108!22700!003!09!EAST HARTFORD !HARTFORD !CONN !+000037050000!N!N!000000000000!2840!GAS TURBINES AND JET ENGINES, ACFT & COMPS !A1B!AIRCRAFT ENGINES AND SPARES !000 !* !336412!E! !5!A!S! ! ! !202

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 $36.3 million.

What is the period of performance?

Start: 2004-12-08. End: 2006-12-31.

What is RTX Corporation's track record with similar DoD contracts for aircraft engines and spares?

RTX Corporation, through its subsidiaries like Pratt & Whitney, has a long and extensive history of supplying aircraft engines and spare parts to the Department of Defense. They are a primary contractor for numerous military aircraft platforms, including fighter jets, bombers, and transport planes. Their track record generally includes delivering complex, high-value systems, though like any large defense contractor, they have faced scrutiny regarding cost, performance, and delivery timelines on specific programs. Analyzing their past performance on contracts with similar scope, value, and duration would provide a clearer picture of their reliability and efficiency in fulfilling this specific award.

How does the $36.3M contract value compare to historical spending on aircraft engines and spares by the DoD?

The $36.3 million contract value is a moderate sum within the broader context of Department of Defense spending on aircraft engines and spares. The DoD procures billions of dollars worth of aviation components and support annually. This specific contract likely represents a portion of the sustainment or procurement for a particular aircraft fleet or engine type. To provide a precise comparison, one would need to analyze historical spending data for the specific engine model or aircraft platform associated with this contract, as well as the average contract values for similar 'Aircraft Engine and Engine Parts Manufacturing' (NAICS 336412) procurements over the past several fiscal years.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract include potential cost increases if market prices for raw materials or specialized components fluctuate unfavorably, although the fixed-price nature mitigates this to some extent. There's also a risk of delivery delays, which could impact aircraft readiness and operational capabilities. Dependency on a single large contractor like RTX Corporation could pose long-term strategic risks if not managed carefully, potentially limiting future competition or leverage. Ensuring the quality and reliability of the delivered engines and spares is paramount to avoid costly in-field failures and safety concerns.

How effective is full and open competition in ensuring value for money for aircraft engine procurements?

Full and open competition is generally considered the most effective method for ensuring value for money in government procurements, including complex items like aircraft engines and spares. It allows a wide range of qualified vendors to bid, fostering price competition and encouraging innovation. When multiple bidders vie for a contract, they are incentivized to offer their best pricing and most competitive terms. However, the effectiveness can be influenced by the number of actual bidders and the complexity of the technical requirements, which might limit the pool of truly competitive sources for highly specialized defense systems.

What is the typical duration for contracts of this nature (aircraft engines and spares)?

The typical duration for contracts involving aircraft engines and spares can vary significantly based on whether it's for initial procurement, sustainment, or specific component manufacturing. Contracts for the production of new engines or large batches of spares might span several years. Sustainment contracts, which cover ongoing support, maintenance, and parts replenishment over the life cycle of an aircraft fleet, can last much longer, often five years or more, potentially with option periods extending the total duration. This contract's duration of 753 days (approximately 2 years) suggests it might be for a specific batch of spares, a mid-life upgrade component, or a defined period of sustainment support rather than a full fleet-wide, long-term sustainment contract.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 400 MAIN STREET, EAST HARTFORD, FL

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: F3365798D0018

IDV Type: IDC

Timeline