DoD Awards $26.8M for Aircraft Engine Monitoring Systems to RTX Corporation
Contract Overview
Contract Amount: $26,842,501 ($26.8M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2007-09-24
End Date: 2014-11-30
Contract Duration: 2,624 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BUILD SET, ENGINE MONITORING
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $26.8 million to RTX CORPORATION for work described as: BUILD SET, ENGINE MONITORING Key points: 1. Contract awarded to a single large business, RTX Corporation. 2. Full and open competition was utilized. 3. The contract duration is over 2 years. 4. The sector is Defense, specifically Aircraft Engine Manufacturing.
Value Assessment
Rating: fair
The contract value of $26.8 million for engine monitoring systems appears moderate. Benchmarking against similar contracts for specialized defense equipment is difficult without more detailed specifications, but the price seems within a reasonable range for complex aerospace components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best value through market forces.
Public Impact
Ensures operational readiness of critical aircraft engines. Supports the Department of Defense's aviation capabilities. Contributes to the aerospace manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to cost overruns if not managed effectively.
- Reliance on a single large contractor may limit future competition.
- Potential for scope creep over the contract's extended period.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type provides cost certainty.
- Awarded to a reputable defense contractor.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft engine maintenance and monitoring. Spending in this area is crucial for national security and operational readiness, with benchmarks often driven by technological complexity and specialized manufacturing capabilities.
Small Business Impact
The contract was awarded to RTX Corporation, a large business. There is no indication of small business participation in this specific award, which is common for prime contracts of this nature.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is necessary to ensure performance, quality, and adherence to the firm fixed price terms.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (over 2 years).
- Award to a single large prime contractor.
- Potential for obsolescence of technology over contract life.
- Limited visibility into specific system capabilities.
- No explicit mention of small business subcontracting.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ct, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.8 million to RTX CORPORATION. BUILD SET, ENGINE MONITORING
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 $26.8 million.
What is the period of performance?
Start: 2007-09-24. End: 2014-11-30.
What is the specific technological advancement or capability this engine monitoring system provides compared to previous systems?
The provided data does not specify the technological advancements of the engine monitoring system. Further analysis would require details on the system's features, such as real-time diagnostics, predictive maintenance capabilities, or integration with advanced avionics. Understanding these specifics is crucial for assessing its true value and potential impact on operational efficiency and safety.
How does the per-unit cost of these engine monitoring systems compare to industry benchmarks for similar defense applications?
Without specific unit cost data or detailed technical specifications of the monitoring systems, a direct comparison to industry benchmarks is not feasible. The total award value of $26.8 million for 2 units suggests a very high per-unit cost, likely reflecting the specialized nature, R&D investment, and stringent quality requirements inherent in defense aerospace components.
What are the key performance indicators (KPIs) used to measure the effectiveness of this contract and the monitoring system's performance?
The data does not outline specific KPIs for this contract. Effective oversight would typically involve metrics related to system reliability, accuracy of monitoring data, reduction in unscheduled maintenance, and overall contribution to aircraft availability and safety. These KPIs would be essential for evaluating the contractor's performance and the system's long-term value.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
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, 06108
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $26,842,501
Exercised Options: $26,842,501
Current Obligation: $26,842,501
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365798D0018
IDV Type: IDC
Timeline
Start Date: 2007-09-24
Current End Date: 2014-11-30
Potential End Date: 2014-11-30 00:00:00
Last Modified: 2014-12-23
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