DoD Awards $11M Firm Fixed Price Contract for Compressor Rotor Blade Sets to RTX Corporation
Contract Overview
Contract Amount: $11,065,036 ($11.1M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-05
End Date: 2026-07-15
Contract Duration: 313 days
Daily Burn Rate: $35.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8511590795!BLADE SET-COMPRESSOR ROTOR,5S
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $11.1 million to RTX CORPORATION for work described as: 8511590795!BLADE SET-COMPRESSOR ROTOR,5S Key points: 1. Contract awarded to a single, large aerospace manufacturer, indicating potential for limited competition. 2. The contract value of $11.06 million for a 313-day duration suggests a significant investment in critical aircraft components. 3. Risk of price escalation exists due to the firm fixed-price structure, though it aims to control costs. 4. Spending falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a key area for defense readiness.
Value Assessment
Rating: fair
The $11.06 million award for compressor rotor blade sets appears to be a substantial amount for the specified duration. Benchmarking against similar specialized aerospace components would be necessary to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, suggesting a sole-source award. This limits price discovery and may result in higher costs compared to a competitive environment.
Taxpayer Impact: Without competition, taxpayers may bear a higher cost for these critical aircraft parts.
Public Impact
Ensures availability of critical components for military aircraft maintenance and readiness. Supports a major defense contractor, contributing to the aerospace industrial base. Potential for cost savings if the firm fixed-price contract is managed effectively. Impacts the operational readiness of specific aircraft platforms reliant on these components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for sole-source price inflation
- Reliance on a single supplier for critical parts
Positive Signals
- Firm fixed-price contract structure
- Award to established defense contractor
- Supports critical defense logistics
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is vital for maintaining military aviation capabilities. Spending in this area is often driven by specific platform needs and readiness requirements.
Small Business Impact
The award to RTX Corporation, a large prime contractor, suggests no direct benefit to small businesses through this specific contract vehicle. Subcontracting opportunities may exist but are not detailed here.
Oversight & Accountability
The 'NOT COMPETED' status warrants scrutiny to ensure the justification for a sole-source award is robust and that fair pricing was pursued through other means.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award lacks competitive pressure on price.
- Potential for cost overruns if pricing assumptions are incorrect.
- Dependency on a single supplier for critical components.
- Limited transparency into the cost build-up.
- Risk of supply chain disruptions affecting RTX Corporation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.1 million to RTX CORPORATION. 8511590795!BLADE SET-COMPRESSOR ROTOR,5S
Who is the contractor on this award?
The obligated recipient is RTX CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $11.1 million.
What is the period of performance?
Start: 2025-09-05. End: 2026-07-15.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Defense Contract Management Agency (DCMA) or the contracting officer would have assessed the contractor's proposal against established cost and pricing principles, potentially including audits and negotiations, to determine fair and reasonable pricing in the absence of competitive bids.
How does the unit cost of these compressor rotor blade sets compare to industry benchmarks for similar components, considering the firm fixed-price nature of the contract?
Without specific unit cost data and access to industry benchmarks for highly specialized aerospace components like compressor rotor blades, a direct comparison is difficult. However, the firm fixed-price structure aims to transfer cost risk to the contractor, implying that the negotiated price should reflect anticipated costs plus a reasonable profit. Any deviation from expected performance or cost overruns would be absorbed by RTX Corporation.
What is the potential impact on long-term aircraft readiness and sustainment if this sole-source supplier faces production issues or significant price increases in the future?
A sole-source reliance creates a vulnerability. If RTX Corporation encounters production challenges or seeks substantial price increases, it could directly impact the availability and affordability of critical spare parts, potentially leading to aircraft downtime and reduced operational readiness. Contingency planning or exploring alternative suppliers for future procurements would be advisable to mitigate this risk.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: SPE4A625R0112
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 400 MAIN ST, EAST HARTFORD, CT, 06118
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,065,040
Exercised Options: $11,065,036
Current Obligation: $11,065,036
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE4A121G0001
IDV Type: BOA
Timeline
Start Date: 2025-09-05
Current End Date: 2026-07-15
Potential End Date: 2026-07-15 00:00:00
Last Modified: 2025-09-05
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