DoD awards $51.8M contract for aircraft parts to RTX Corporation, raising questions about competition

Contract Overview

Contract Amount: $51,823,266 ($51.8M)

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: $37.0K/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

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $51.8 million to RTX CORPORATION for work described as: CORE MODULES Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Long contract duration of 1400 days suggests a need for sustained supply. 3. The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' a critical but broad category. 4. Awarded to a single, large defense contractor, potentially indicating market concentration. 5. Performance period extends into 2029, requiring long-term budget planning. 6. The firm fixed-price structure shifts cost risk to the contractor.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more specific details on the 'CORE MODULES' and their intended use. The sole-source nature means direct price comparisons to similar competitive awards are not feasible. However, the total value of over $51 million over approximately four years suggests a significant investment. Further analysis would require understanding the unit costs and comparing them to industry standards for similar components, which are not provided in the available data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically used when only one responsible source can provide the required goods or services. The lack of competition means that the Department of Defense did not benefit from the price discovery and potential cost reductions that typically arise from multiple bidders vying for a contract.

Taxpayer Impact: Taxpayers may have paid a higher price than if the contract had been competed. Without competitive pressure, there is less incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the Department of Defense and its aviation units, ensuring the availability of critical aircraft components. Services delivered include the manufacturing and supply of 'CORE MODULES' essential for aircraft operation and maintenance. The geographic impact is primarily within the United States, supporting domestic defense industrial capabilities. Workforce implications include potential job creation or retention within RTX Corporation and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential taxpayer savings.
Lack of detailed cost breakdown makes value assessment difficult.
Long contract duration could lead to cost overruns if not managed effectively.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Award to a major defense contractor like RTX Corporation suggests established capabilities and reliability.
Contract supports critical defense logistics and readiness.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a vital component of the aerospace and defense industry. This contract falls within the broader defense logistics and sustainment market. Spending in this area is often driven by the need to maintain aging fleets and ensure operational readiness. Comparable spending benchmarks would typically involve analyzing other sole-source or competitively awarded contracts for similar aircraft components, which are not readily available in this dataset.

Small Business Impact

This contract was awarded directly to RTX Corporation and does not indicate any specific small business set-aside provisions. Given the sole-source nature and the prime contractor's size, it is unlikely that small businesses will be directly involved as prime contractors. However, RTX Corporation may engage small businesses as subcontractors, but this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Contract Management Agency (DCMA) and the Defense Logistics Agency (DLA). Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods. Transparency is limited due to the sole-source award, but contract award data is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency Contracts
Aircraft Parts Procurement
Sole-Source Defense Contracts
RTX Corporation Contracts
Department of Defense Aviation Sustainment

Risk Flags

Sole-source award
Lack of detailed cost information
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.8 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 $51.8 million.

What is the period of performance?

Start: 2025-09-30. End: 2029-07-31.

What specific 'CORE MODULES' are being procured under this contract, and what is their function within the aircraft?

The provided data does not specify the exact nature of the 'CORE MODULES.' These are likely critical components for aircraft systems, potentially related to avionics, power generation, propulsion, or structural integrity. Without further details, their precise function remains unknown. Understanding the specific modules would allow for a more accurate assessment of their criticality to defense operations and enable better benchmarking against similar procurements or industry standards. The broad categorization suggests these could be standardized parts or custom-built units essential for specific aircraft platforms operated by the Department of Defense.

What is the historical spending pattern for these 'CORE MODULES' or similar components by the Department of Defense?

Historical spending data for these specific 'CORE MODULES' is not provided. However, the Department of Defense consistently spends billions annually on aircraft parts, maintenance, and sustainment. This includes both competitively awarded contracts for common parts and sole-source awards for specialized or proprietary components. Analyzing past spending on similar sole-source awards to RTX Corporation or other major defense contractors for aircraft components could provide context. Trends in defense budgets, fleet modernization programs, and the operational tempo of aircraft can influence historical spending patterns for such parts.

What justification was provided for awarding this contract on a sole-source basis instead of through full and open competition?

The data indicates the contract was awarded under 'CT' which typically signifies 'CONTRACT TYPE' and in this context, likely implies a sole-source justification. Common reasons for sole-source awards include the unique capabilities of a single contractor, urgent and compelling needs where competition is impractical, or when the item is a follow-on to a previously competed contract where only the original source can provide compatible parts. Without the specific justification document, the exact reason remains undisclosed, but it implies that the Defense Logistics Agency determined that only RTX Corporation could fulfill the requirement effectively and efficiently.

How does the per-unit cost of these 'CORE MODULES' compare to industry benchmarks or similar procurements?

The provided data does not include per-unit cost information for the 'CORE MODULES.' The total contract value of $51.8 million is spread over a period of approximately 1400 days (around 3.8 years), with only one delivery order issued. To assess per-unit costs, we would need the quantity of modules being procured and their individual prices. Without this granular data, it is impossible to benchmark against industry standards or compare with similar procurements. The sole-source nature of the award further complicates direct price comparisons.

What is RTX Corporation's track record in delivering similar aircraft components, and what is their performance history with the Department of Defense?

RTX Corporation (formerly Raytheon Technologies) is a major aerospace and defense contractor with a long history of supplying complex systems and components to the Department of Defense and other government agencies. They have a broad portfolio that includes engines, avionics, sensors, and other critical aircraft parts. While specific performance metrics for this particular contract are not yet available as it is ongoing, RTX generally has a substantial track record. However, like any large contractor, they may have experienced past performance issues on certain contracts, which would be detailed in performance evaluations accessible through government databases like the Contractor Performance Assessment Reporting System (CPARS).

What are the potential risks associated with a sole-source contract of this magnitude and duration?

The primary risk associated with a sole-source contract of this magnitude and duration is the potential for inflated pricing due to the lack of competitive pressure. Taxpayers may not be receiving the best possible value for their money. Additionally, there's a risk of contractor complacency, where the absence of competition might reduce the incentive for innovation or efficiency improvements. Dependence on a single supplier can also create supply chain vulnerabilities if the contractor faces production issues, financial instability, or geopolitical challenges. Long-term contracts also carry the risk of cost overruns if initial estimates are inaccurate or if unforeseen technical challenges arise during the performance period.

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: SPRTA125R1123

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: $51,823,266

Exercised Options: $51,823,266

Current Obligation: $51,823,266

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