DoD Awards $50M Contract for Core Modules to RTX Corporation, Lacking Competition
Contract Overview
Contract Amount: $50,013,026 ($50.0M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-30
End Date: 2029-07-31
Contract Duration: 1,400 days
Daily Burn Rate: $35.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CORE MODULES
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $50.0 million to RTX CORPORATION for work described as: CORE MODULES Key points: 1. Significant award value of over $50 million. 2. Sole-source award to RTX Corporation raises competition concerns. 3. Contract duration extends to July 2029. 4. Focus on aircraft parts manufacturing within the Defense sector.
Value Assessment
Rating: questionable
The contract's value of $50,013,025.52 for 'CORE MODULES' is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar aircraft parts contracts.
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 lack of competition limits price discovery and may result in a higher cost to the government.
Taxpayer Impact: The absence of competition for a $50 million contract could lead to taxpayers paying a premium for these core modules.
Public Impact
Potential for higher costs due to lack of competition. Impact on the supply chain for critical aircraft components. Long contract duration may lock in pricing for an extended period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Award to established defense contractor
- Supports critical defense logistics
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industrial base. Spending benchmarks for sole-source awards in this area are often higher due to specialized requirements.
Small Business Impact
The data indicates this is a large contract awarded to RTX Corporation, with no indication of small business participation. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. Accountability for pricing and performance will be crucial throughout the contract's duration.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Long contract duration (nearly 4 years).
- No indication of small business subcontracting.
- Potential for cost overruns without competitive pressure.
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 $50.0 million to RTX CORPORATION. CORE MODULES
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 $50.0 million.
What is the period of performance?
Start: 2025-09-30. End: 2029-07-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of adequate competition. Without further details, it's difficult to ascertain the specific reasons. However, such awards necessitate rigorous justification to ensure taxpayer funds are used efficiently and that the government explored all viable competitive options.
What are the potential risks associated with a sole-source contract of this magnitude?
The primary risk is paying an inflated price due to the lack of competitive pressure. Other risks include potential complacency from the contractor regarding innovation or quality, and a reduced incentive to control costs. Furthermore, a sole-source award can limit the government's flexibility if market conditions or requirements change significantly during the contract's long term.
How can the government ensure value and effectiveness in this sole-source contract?
The government can ensure value and effectiveness through robust contract management, including detailed performance metrics, regular progress reviews, and potentially independent cost analyses. Establishing clear milestones and deliverables, and actively monitoring contractor performance against these, are crucial. Negotiating favorable payment terms and exercising options judiciously can also help manage costs and ensure the contract remains aligned with evolving needs.
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: SPRTA125R0232
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: $50,013,026
Exercised Options: $50,013,026
Current Obligation: $50,013,026
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4A121G0001
IDV Type: BOA
Timeline
Start Date: 2025-09-30
Current End Date: 2029-07-31
Potential End Date: 2029-07-31 00:00:00
Last Modified: 2025-09-30
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