DoD Awards $20.5M for Aircraft Engines, Facing Limited Competition
Contract Overview
Contract Amount: $20,463,558 ($20.5M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2002-11-12
End Date: 2007-12-17
Contract Duration: 1,861 days
Daily Burn Rate: $11.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: NOT REPORTED
Sector: Defense
Official Description: 200302!000101!5700!GD60 !OKLAHOMA CITY ALC/LPD !F4160898D0242 !A!N! !N!SD45 !20021112!20030430!001344142!001344142!001344142!N!UNITED TECHNOLOGIES CORPORATIO!1 FINANCIAL PLZ FL 24 !HARTFORD !CT!06103!65000!029!48!SAN ANTONIO !BEXAR !TEXAS !+000003022888!N!N!000000000000!2840!GAS TURBINES AND JET ENGINES, ACFT & COMPS !A1B!AIRCRAFT ENGINES AND SPARES !3BSR!F-100 !336412!E! !5!A!S! ! !D!20030430!B!D!N!N!Z!D!U!J!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78201
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $20.5 million to RTX CORPORATION for work described as: 200302!000101!5700!GD60 !OKLAHOMA CITY ALC/LPD !F4160898D0242 !A!N! !N!SD45 !20021112!20030430!001344142!001344142!001344142!N!UNITED TECHNOLOGIES CORPORATIO!1 FINANCIAL PLZ FL 24 !HARTFORD !CT!06103!65000!029!48!SAN ANTONIO !BEXAR… Key points: 1. Significant contract value for aircraft engines and spares. 2. Limited competition raises concerns about price discovery. 3. Potential for higher costs due to sole-source nature. 4. Sector is critical for defense readiness and technological advancement.
Value Assessment
Rating: questionable
The contract value of $20.5 million for aircraft engines and spares appears high given the limited competition. Benchmarking against similar sole-source or limited-competition contracts for specialized aerospace components is crucial to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under limited competition, suggesting that fewer than the full range of potential vendors were considered. This can lead to less aggressive pricing and potentially higher costs for the government.
Taxpayer Impact: Limited competition may result in taxpayers paying a premium for these critical aircraft engine components.
Public Impact
Ensures continued operational readiness of Air Force aircraft. Supports a key segment of the aerospace manufacturing industry. Potential for increased costs impacts overall defense budget allocation. Highlights reliance on specific manufacturers for specialized parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for price escalation
- Sole-source reliance
Positive Signals
- Critical defense procurement
- Supports established industry
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft engines and parts. Spending in this area is driven by military readiness requirements and technological upgrades, with significant R&D investment.
Small Business Impact
Analysis of small business participation is not directly available from the provided data. However, large prime contractors like United Technologies Corporation often subcontract to small businesses for specialized components or services.
Oversight & Accountability
Oversight is typically managed by the Department of Defense's contracting officers and auditors to ensure compliance with contract terms and fair pricing, especially in limited competition scenarios.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition
- Potential for price inflation
- Dependency on a single supplier
- Lack of transparency in pricing
- Risk of obsolescence if technology advances rapidly
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.5 million to RTX CORPORATION. 200302!000101!5700!GD60 !OKLAHOMA CITY ALC/LPD !F4160898D0242 !A!N! !N!SD45 !20021112!20030430!001344142!001344142!001344142!N!UNITED TECHNOLOGIES CORPORATIO!1 FINANCIAL PLZ FL 24 !HARTFORD !CT!06103!65000!029!48!SAN ANTONIO !BEXAR !TEXAS !+000003022888!N!N!000000000000!2840!GAS TURBINES AND JET ENGINES, ACFT & COMPS !A1B!AIRCRAFT ENGINES AND SPARES !3BSR!F-100 !336412!E! !5!A!S! ! !D!20030430!B
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 Air Force).
What is the total obligated amount?
The obligated amount is $20.5 million.
What is the period of performance?
Start: 2002-11-12. End: 2007-12-17.
What is the justification for limiting competition on this contract?
The justification for limited competition likely stems from the specialized nature of the aircraft engines and spares, potentially requiring specific technical expertise, proprietary technology, or existing integration with Air Force platforms. This can restrict the pool of eligible contractors.
How does the pricing compare to similar sole-source contracts for aircraft engines?
Without access to a broader database of comparable sole-source contracts for similar engine models and quantities, a precise comparison is difficult. However, limited competition generally leads to higher prices than fully competed contracts due to reduced market pressure.
What is the long-term impact of relying on limited competition for critical aircraft components?
Long-term reliance on limited competition can stifle innovation by reducing incentives for new entrants and potentially lead to price gouging. It also creates supply chain vulnerabilities if the limited number of suppliers face disruptions.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: NOT REPORTED (NO)
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 17900 BEELINE HWY, JUPITER, FL, 21
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F4160898D0242
IDV Type: IDC
Timeline
Start Date: 2002-11-12
Current End Date: 2007-12-17
Potential End Date: 2007-12-17 00:00:00
Last Modified: 2013-02-23
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