DLA awards $43.9M for speed changers to RTX Corporation, a sole-source contract
Contract Overview
Contract Amount: $43,923,947 ($43.9M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2009-04-28
End Date: 2012-09-28
Contract Duration: 1,249 days
Daily Burn Rate: $35.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONE,EXHAUST AIRCRA
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06108
Plain-Language Summary
Department of Defense obligated $43.9 million to RTX CORPORATION for work described as: CONE,EXHAUST AIRCRA Key points: 1. Contract awarded to a single, large corporation (RTX). 2. Sole-source award raises concerns about price discovery and competition. 3. The contract covers industrial speed changers, a critical component. 4. Spending is within the Defense sector, managed by DLA.
Value Assessment
Rating: questionable
The contract value of $43.9M for 1249 days is difficult to assess without a per-unit cost or comparison to similar contracts. The lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely results in a higher price than if multiple vendors had bid, impacting taxpayer funds negatively.
Public Impact
Military readiness may be impacted if essential equipment is not procured at the best possible price. Taxpayers may be overpaying for critical defense components due to lack of competitive bidding. The long duration of the contract (over 3 years) means sustained potential for inflated costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No clear justification for sole-source
Positive Signals
- Contract awarded to a known entity (RTX Corporation)
- Specific industrial components procured
Sector Analysis
This contract falls within the Defense sector, specifically for industrial machinery. Spending benchmarks for such specialized equipment are highly variable and depend on specific technical requirements.
Small Business Impact
The contract was awarded to RTX Corporation, a large defense contractor. There is no indication that small businesses were involved in this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price paid was fair and reasonable, despite the lack of competition. Accountability for the procurement decision is crucial.
Related Government Programs
- Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing due to no competition.
- No clear justification for sole-source status provided.
- Long contract duration increases risk of sustained overpayment.
Tags
speed-changer-industrial-high-speed-driv, department-of-defense, ct, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.9 million to RTX CORPORATION. CONE,EXHAUST AIRCRA
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 $43.9 million.
What is the period of performance?
Start: 2009-04-28. End: 2012-09-28.
What is the justification for awarding this contract on a sole-source basis, and was a market survey conducted to confirm the absence of competition?
The provided data does not include the justification for the sole-source award or evidence of a market survey. Typically, sole-source contracts require a documented justification, such as unique capabilities or urgent needs, and a thorough analysis to confirm no other sources can meet the requirement. Without this information, it's impossible to assess the validity of the sole-source decision.
How does the per-unit cost of these speed changers compare to industry benchmarks or previous DLA procurements of similar items?
A direct per-unit cost benchmark is not available from the provided data. To assess value, one would need to divide the total contract value by the number of units procured (if known) or the duration. Comparing this to historical data or commercial equivalents is essential for determining if the government received a fair price, especially given the sole-source nature.
What is the potential impact on operational readiness if these speed changers fail and replacement parts are not readily available or are excessively priced due to the sole-source contract?
The sole-source award for critical components like speed changers poses a risk to operational readiness. If these parts fail, the reliance on a single supplier could lead to extended downtime and higher costs for replacements. This situation could delay critical military operations or maintenance schedules, impacting the overall effectiveness of defense assets.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 400 MAIN ST, EAST HARTFORD, CT, 01
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $43,923,947
Exercised Options: $43,923,947
Current Obligation: $43,923,947
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPM40001D9405
IDV Type: IDC
Timeline
Start Date: 2009-04-28
Current End Date: 2012-09-28
Potential End Date: 2012-09-28 00:00:00
Last Modified: 2012-11-21
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