DoD's $6.47M Vane & Compressor Contract Awarded to RTX Corporation Raises Competition Concerns

Contract Overview

Contract Amount: $6,472,847 ($6.5M)

Contractor: RTX Corporation

Awarding Agency: Department of Defense

Start Date: 2020-09-10

End Date: 2028-02-15

Contract Duration: 2,714 days

Daily Burn Rate: $2.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIXED PRICE REDETERMINATION

Sector: Defense

Official Description: VANE, COMPRESSOR

Place of Performance

Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to RTX CORPORATION for work described as: VANE, COMPRESSOR Key points: 1. Significant contract value of $6.47 million for critical hardware. 2. Sole-source award to RTX Corporation limits competitive pricing. 3. Potential for overpayment due to lack of competition. 4. Hardware Manufacturing sector sees substantial government investment.

Value Assessment

Rating: questionable

The contract value of $6.47 million for vanes and compressors appears high given the lack of competitive bidding. Without market comparison or multiple offers, it's difficult to ascertain if the fixed-price redetermination contract achieved optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses the competitive process, potentially leading to higher prices and reduced innovation as the government lacks leverage from multiple bidders.

Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive pressure to drive down costs.

Public Impact

Essential defense hardware procurement may be less cost-effective. Reliance on a single supplier could impact future availability and pricing. Lack of transparency in pricing due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for price gouging
Limited transparency

Positive Signals

Essential hardware procurement
Long-term contract duration

Sector Analysis

This contract falls within the Hardware Manufacturing sector, specifically for aerospace components. Spending in this area is critical for defense readiness, but competitive procurement is vital to ensure value for taxpayer dollars.

Small Business Impact

The data indicates this contract was not awarded to a small business. There is no information provided on whether small businesses were subcontracted, which is a missed opportunity for economic inclusion.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the pricing is fair and reasonable. Accountability is crucial to verify that the Department of Defense is obtaining the best value for this significant expenditure.

Related Government Programs

Hardware Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in cost determination
Over-reliance on a single supplier
Missed opportunity for small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to RTX CORPORATION. VANE, COMPRESSOR

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 $6.5 million.

What is the period of performance?

Start: 2020-09-10. End: 2028-02-15.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without specific documentation, it's difficult to assess if these criteria were met, raising questions about whether competition was truly impossible or simply not pursued.

How does the fixed-price redetermination structure mitigate risk in a sole-source scenario?

A fixed-price redetermination contract aims to set an initial price that is later adjusted based on actual costs incurred. While intended to provide some cost control, in a sole-source situation, the redetermination process still relies heavily on the contractor's cost reporting, potentially offering limited protection against inflated costs without independent verification.

What is the potential impact on future procurement of vanes and compressors if this sole-source contract is extended or renewed?

If this sole-source contract is renewed without re-evaluating competitive options, it could solidify RTX Corporation's monopoly on this specific defense component. This would likely lead to continued higher prices, reduced innovation, and a diminished ability for the DoD to secure more favorable terms in the future.

Industry Classification

NAICS: Manufacturing › Hardware Manufacturing › Hardware Manufacturing

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPRTA119R0383

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: $6,472,847

Exercised Options: $6,472,847

Current Obligation: $6,472,847

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPE4AX20DR001

IDV Type: IDC

Timeline