DoD awards $6.18M for turbine rotors, with RTX Corporation as sole contractor

Contract Overview

Contract Amount: $6,153,182 ($6.2M)

Contractor: RTX Corporation

Awarding Agency: Department of Defense

Start Date: 2025-12-16

End Date: 2027-10-07

Contract Duration: 660 days

Daily Burn Rate: $9.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIXED PRICE REDETERMINATION

Sector: Defense

Official Description: 8511817355!BLADE,TURBINE ROTOR

Place of Performance

Location: MIDDLETOWN, MIDDLESEX County, CONNECTICUT, 06457

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to RTX CORPORATION for work described as: 8511817355!BLADE,TURBINE ROTOR Key points: 1. The contract value represents a significant investment in critical aircraft engine components. 2. Sole-source award suggests limited market alternatives or specific technological requirements. 3. Fixed Price Redetermination pricing structure introduces potential for cost fluctuations. 4. Long contract duration indicates a sustained need for these specialized parts. 5. The award falls within the Aircraft Engine and Engine Parts Manufacturing sector. 6. No small business set-aside was applied, indicating a focus on large prime contractors.

Value Assessment

Rating: fair

Benchmarking the value of this specific turbine rotor delivery order is challenging without detailed specifications and market comparisons for identical components. The Fixed Price Redetermination (FPR) contract type introduces uncertainty in the final cost, as prices can be adjusted post-award based on actual costs incurred. While RTX Corporation is a major defense contractor, the lack of competitive bidding means there's no direct price comparison to assess optimal value for money. Further analysis would require understanding the cost drivers and the redetermination process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, RTX Corporation, was solicited. This approach is typically used when there is a lack of competition due to proprietary technology, urgent needs, or when only one source can fulfill the requirement. The absence of multiple bidders limits price discovery and may result in higher costs compared to a competitively bid contract.

Taxpayer Impact: Taxpayers may face higher costs due to the lack of competitive pressure to drive down prices. The government relies on negotiation and oversight to ensure a fair price in sole-source situations.

Public Impact

The Department of Defense benefits from the acquisition of essential turbine rotor components for aircraft engines. This contract supports the operational readiness and maintenance of military aviation assets. The primary beneficiary is the U.S. military's aviation fleet, ensuring continued flight operations. Geographic impact is primarily centered around RTX Corporation's manufacturing facilities and DLA distribution points. Workforce implications include employment at RTX Corporation and its supply chain partners involved in manufacturing these specialized parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Fixed Price Redetermination contract type introduces cost uncertainty and requires robust oversight.
Lack of transparency in the sole-source justification could mask potential inefficiencies.
Dependence on a single supplier (RTX Corporation) for critical components poses supply chain risk.

Positive Signals

Award to a major, established defense contractor (RTX Corporation) suggests reliability and experience.
Long-term contract (ending 2027) indicates a stable supply chain for critical components.
The contract addresses a clear need for essential aircraft engine parts, supporting military readiness.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on aircraft engine components. The market for such specialized parts is often dominated by a few large, established players like RTX Corporation due to high barriers to entry, including significant R&D investment, complex manufacturing processes, and stringent quality control requirements. Comparable spending benchmarks are difficult to ascertain without specific part numbers and detailed technical specifications, but turbine rotors are high-value, critical components.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large prime contractor like RTX Corporation suggests that the primary focus is on established capabilities and large-scale production. This may limit direct opportunities for small businesses to participate as prime contractors on this specific award, though they may be involved further down the supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Defense, specifically the Defense Logistics Agency (DLA), which awarded the delivery order. The Fixed Price Redetermination (FPR) contract type necessitates close monitoring of RTX Corporation's costs to ensure the final price is fair and reasonable. Accountability measures would involve performance metrics, delivery schedules, and adherence to contract terms. Transparency may be limited due to the sole-source nature, but contract awards are generally reported in federal procurement databases.

Related Government Programs

Aircraft Engine Manufacturing
Turbine Components
Defense Logistics Agency Procurement
RTX Corporation Contracts
Fixed Price Redetermination Contracts

Risk Flags

Sole Source Justification
Fixed Price Redetermination Pricing
Potential for Cost Overruns
Supply Chain Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to RTX CORPORATION. 8511817355!BLADE,TURBINE ROTOR

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 $6.2 million.

What is the period of performance?

Start: 2025-12-16. End: 2027-10-07.

What is the historical spending pattern for turbine rotors by the Department of Defense, and how does this award compare?

Historical spending on turbine rotors by the Department of Defense is substantial, reflecting the critical nature of these components for aviation readiness. While specific figures for 'turbine rotors' as a distinct category are not readily available without deeper database analysis, the broader category of aircraft engines and parts manufacturing consistently represents billions of dollars annually. This $6.18 million award for a specific set of turbine rotors is a component of that larger spending picture. Comparing it requires identifying if this is a recurring need, a new requirement, or a one-time purchase. Without more context on the specific part number and its application, it's difficult to definitively state if this award is high or low relative to historical norms for similar items. However, given the sole-source nature and the prime contractor, it suggests a specialized, potentially high-cost item.

What are the specific risks associated with a Fixed Price Redetermination (FPR) contract for turbine rotors?

The primary risk with a Fixed Price Redetermination (FPR) contract for turbine rotors lies in cost uncertainty. Initially, a target price is set, but the final price is determined after the contract is completed based on the contractor's actual, allowable costs plus a negotiated profit. This means the final cost could be higher or lower than the initial target. For the government, the risk is paying more than anticipated if costs escalate unexpectedly, especially for complex manufactured items like turbine rotors where unforeseen production challenges can arise. Conversely, the contractor bears the risk if actual costs are significantly lower than projected. Effective oversight is crucial to scrutinize the contractor's cost submissions and ensure the redetermined price is fair and reasonable, mitigating the government's risk of overpayment.

What is RTX Corporation's track record with sole-source awards for critical defense components?

RTX Corporation (formerly Raytheon Technologies) is a major defense contractor with a long history of receiving sole-source awards for critical components, including those related to aerospace and defense systems. These awards are often justified by the company's proprietary technologies, extensive research and development investments, and established manufacturing capabilities that few, if any, other companies possess. While sole-source awards inherently lack competitive pricing, they are generally awarded to contractors with proven performance records and the ability to meet stringent military specifications. RTX's track record suggests they are capable of delivering complex, high-value components, but the government's procurement process must still ensure fair pricing and value through rigorous negotiation and oversight, even in the absence of competition.

How does the lack of competition in this sole-source award impact the government's ability to secure favorable pricing for turbine rotors?

The lack of competition in this sole-source award significantly impacts the government's ability to secure favorable pricing. In a competitive bidding process, multiple vendors vie for the contract, driving prices down through market forces. With a sole-source award, the government negotiates directly with a single provider, RTX Corporation. While the government aims for fair and reasonable pricing, the absence of competing offers removes the primary mechanism for price discovery and downward pressure. The government must rely heavily on its negotiation expertise, cost analysis, and potentially historical pricing data (if available and comparable) to achieve a price that reflects value. This often leads to higher prices than would be achieved in a competitive environment, necessitating robust justification for the sole-source determination.

What are the potential performance risks associated with relying solely on RTX Corporation for these specific turbine rotors?

Relying solely on RTX Corporation for these specific turbine rotors introduces several performance risks. Firstly, there's a supply chain dependency risk; any disruption at RTX, whether due to production issues, labor disputes, natural disasters, or financial instability, could directly impact the availability of these critical components for the Department of Defense. Secondly, without competitive pressure, there might be less incentive for RTX to innovate or aggressively improve efficiency, potentially leading to slower technological advancements or less cost-effective production over time. Thirdly, the government has limited leverage if performance issues arise, as switching to an alternative supplier would likely be difficult, time-consuming, and costly, if even possible, given the specialized nature of the parts and potential proprietary aspects.

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

Pricing Type: FIXED PRICE REDETERMINATION (A)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

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: $6,153,182

Exercised Options: $6,153,182

Current Obligation: $6,153,182

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPE4AX25D9424

IDV Type: IDC

Timeline