DoD awards $14.7M for Air Force compressor disks, with no competition
Contract Overview
Contract Amount: $14,710,346 ($14.7M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2007-08-10
End Date: 2009-09-30
Contract Duration: 782 days
Daily Burn Rate: $18.8K/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 $14.7 million to RTX CORPORATION for work described as: DISK,COMPRESSOR,AIR Key points: 1. Significant contract value for specialized aircraft components. 2. Sole-source award raises questions about price discovery. 3. Potential for higher costs due to lack of competition. 4. Sector: Aircraft Engine and Engine Parts Manufacturing.
Value Assessment
Rating: questionable
The contract value of $14.7M for compressor disks is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar specialized parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition could lead to taxpayers paying more than necessary for these critical aircraft components.
Public Impact
Essential components for Air Force aircraft maintenance and readiness. Potential impact on defense budget due to non-competitive pricing. Highlights the importance of competitive sourcing for specialized manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Critical defense component
- Established manufacturer
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical area for defense readiness. Spending in this niche can be high due to specialized requirements and limited suppliers.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting large prime contractors are involved in this segment of defense manufacturing.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and adherence to procurement regulations, even in specialized areas.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Limited transparency on justification
- No small business participation noted
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 $14.7 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 $14.7 million.
What is the period of performance?
Start: 2007-08-10. End: 2009-09-30.
What was the justification for the sole-source award of this compressor disk contract?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives from other manufacturers. Without specific documentation, it's presumed the Air Force determined RTX Corporation was the only viable source for these specific compressor disks at the time of award.
What is the estimated cost premium associated with this sole-source award compared to a competitive scenario?
Estimating the precise cost premium for a sole-source award is challenging without market data or competitive bids. However, industry benchmarks often suggest that sole-source contracts can be 15-30% higher than competitively procured ones, depending on the complexity and uniqueness of the item.
How does the duration and value of this contract align with typical procurement cycles for aircraft engine parts?
A duration of 782 days (over two years) for a $14.7 million contract for specialized parts like compressor disks is not unusual, reflecting production lead times and the critical nature of the components. The value aligns with the high cost of advanced aerospace manufacturing.
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,710,346
Exercised Options: $14,710,346
Current Obligation: $14,710,346
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP040001D9405
IDV Type: IDC
Timeline
Start Date: 2007-08-10
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2009-06-30
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