DoD's $14.6M contract for air compressor disks awarded to RTX Corporation shows concerning competition
Contract Overview
Contract Amount: $14,637,290 ($14.6M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2007-03-30
End Date: 2009-09-30
Contract Duration: 915 days
Daily Burn Rate: $16.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DISK, COMPRESSOR, AIR
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06108
Plain-Language Summary
Department of Defense obligated $14.6 million to RTX CORPORATION for work described as: DISK, COMPRESSOR, AIR Key points: 1. The contract value is substantial, indicating significant investment in critical aircraft components. 2. RTX Corporation, a major defense contractor, secured this award. 3. The lack of competition raises concerns about potential overpricing and limited innovation. 4. The sector is Aircraft Engine and Engine Parts Manufacturing, vital for military readiness.
Value Assessment
Rating: concerning
The contract was not competed, making a direct pricing assessment difficult. Without competitive bids, it's hard to determine if the $14.6 million price reflects fair market value or if taxpayers are overpaying.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded using a sole-source method ('NOT COMPETED'). This significantly limits price discovery and prevents the government from benefiting from potential cost savings through competitive bidding.
Taxpayer Impact: The lack of competition likely results in higher costs for taxpayers, as there was no market pressure to drive down the price of these essential compressor disks.
Public Impact
Military readiness may be impacted if essential aircraft parts are procured at inflated prices. Taxpayers may be bearing the cost of reduced competition in the defense industrial base. The sole-source award limits opportunities for other qualified manufacturers to supply these critical components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Awarded to a known defense contractor
- Contract addresses critical aircraft components
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending in this area is essential for maintaining military aircraft, but competitive procurement is key to ensuring value for money.
Small Business Impact
The sole-source nature of this award, coupled with the large contract value, suggests that small businesses were likely excluded from participating in this specific procurement. This limits opportunities for SMBs to enter or expand within this specialized manufacturing segment.
Oversight & Accountability
The 'NOT COMPETED' status indicates a potential lapse in competitive sourcing strategies. Further review is needed to understand why this procurement was not opened to competition and if adequate justification exists for the sole-source award.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited visibility into cost drivers
- Missed opportunity for small business participation
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 $14.6 million to RTX CORPORATION. DISK, COMPRESSOR, AIR
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 $14.6 million.
What is the period of performance?
Start: 2007-03-30. End: 2009-09-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price was fair and reasonable?
The justification for a sole-source award is crucial for understanding the necessity of bypassing competition. Agencies must demonstrate that only one responsible source can provide the required supplies or services. For this contract, the 'NOT COMPETED' status necessitates a review of the specific justification (e.g., urgent need, unique capability) and the process used to validate the price, such as cost realism analysis or comparison to previous similar contracts, to ensure taxpayer funds are used efficiently.
What is the potential impact of this sole-source award on the long-term availability and cost of air compressor disks for the Air Force?
Sole-source awards can negatively impact long-term availability and cost by stifling innovation and preventing market competition. Without competitive pressure, the incumbent contractor may have less incentive to reduce costs or improve efficiency. This could lead to sustained higher prices and potentially limited options for future procurements, impacting the Air Force's budget and operational readiness over time.
How does this contract align with broader Department of Defense strategies for fostering competition and supporting the industrial base?
This sole-source award appears to run counter to broader DoD strategies aimed at increasing competition and strengthening the industrial base. While specific circumstances might warrant such an award, a pattern of non-competitive contracts can reduce the overall health and innovation within the defense industrial base. It limits opportunities for new entrants and potentially entrenches existing suppliers, which may not be optimal for long-term strategic goals.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 400 MAIN ST, EAST HARTFORD, CT, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,637,290
Exercised Options: $14,637,290
Current Obligation: $14,637,290
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SP040001D9405
IDV Type: IDC
Timeline
Start Date: 2007-03-30
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2008-10-07
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