DoD Awards $24.8M for F100 Engine Parts to RTX Corporation Amidst Sole-Source Concerns
Contract Overview
Contract Amount: $24,845,411 ($24.8M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-18
End Date: 2027-12-31
Contract Duration: 1,199 days
Daily Burn Rate: $20.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NEW MANUFACTURED MATERIAL APPLICABLE TO F100 ENGINES
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $24.8 million to RTX CORPORATION for work described as: NEW MANUFACTURED MATERIAL APPLICABLE TO F100 ENGINES Key points: 1. Significant contract value for critical engine components. 2. Sole-source award to RTX Corporation raises competition questions. 3. Potential risk of inflated pricing due to limited competition. 4. Defense sector spending on engine sustainment is substantial.
Value Assessment
Rating: questionable
The contract value of $24.8M for F100 engine parts appears high given the nature of the items (bolts, nuts, etc.). Benchmarking against similar procurements for standard hardware is difficult without more specific data, but the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to RTX Corporation. This method limits price discovery and may lead to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for these essential engine parts could result in higher expenditures for the Department of Defense, impacting overall budget efficiency.
Public Impact
Ensures continued operational readiness of F100 engines, critical for military aircraft. Taxpayers may be overpaying for standard hardware due to sole-source award. Potential for supply chain vulnerabilities if only one supplier is relied upon. Impacts the broader aerospace and defense manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for price gouging
- Limited transparency
Positive Signals
- Ensures critical part availability
- Supports existing engine fleet
Sector Analysis
This contract falls within the Defense Logistics Agency's purview, supporting the sustainment of critical military assets. Spending on engine components is a significant part of the defense budget, often characterized by long-term contracts and specialized suppliers.
Small Business Impact
The awardee, RTX Corporation, is a large defense contractor. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and prevent potential waste, fraud, and abuse. Further review of the justification for not competing the award is recommended.
Related Government Programs
- Bolt, Nut, Screw, Rivet, and Washer Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in pricing.
- Dependency on a single supplier.
- Risk of inadequate oversight on pricing.
Tags
bolt-nut-screw-rivet-and-washer-manufact, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to RTX CORPORATION. NEW MANUFACTURED MATERIAL APPLICABLE TO F100 ENGINES
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 $24.8 million.
What is the period of performance?
Start: 2024-09-18. End: 2027-12-31.
What is the justification for awarding this contract on a sole-source basis, and has it been adequately documented?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where competition is not feasible. For this contract, the specific rationale needs to be examined to ensure it aligns with federal procurement regulations and that alternatives were thoroughly explored. Without this documentation, it's difficult to assess the necessity of bypassing competition.
How does the unit cost of these manufactured materials compare to industry benchmarks for similar components, especially considering the sole-source nature?
Benchmarking the unit cost is crucial given the sole-source award. Without access to RTX's internal cost data or comparable market prices for identical or functionally equivalent components, a precise comparison is challenging. However, a significant deviation from typical hardware costs, adjusted for any unique specifications, would raise concerns about price reasonableness and potential overpayment by the government.
What measures are in place to ensure the quality and timely delivery of these critical F100 engine parts under this sole-source contract?
Despite the sole-source award, robust quality assurance and performance monitoring are essential. The Department of Defense and the Defense Logistics Agency should have established protocols for inspecting materials, tracking delivery schedules, and addressing any performance deficiencies. Contract clauses related to quality control and timely delivery, along with regular performance reviews, are key to mitigating risks associated with a single supplier.
Industry Classification
NAICS: Manufacturing › Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing › Bolt, Nut, Screw, Rivet, and Washer Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,845,411
Exercised Options: $24,845,411
Current Obligation: $24,845,411
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX16D9476
IDV Type: IDC
Timeline
Start Date: 2024-09-18
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2024-09-18
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