DoD awards $15.4M for aircraft gearboxes, raising questions about competition and value
Contract Overview
Contract Amount: $15,388,589 ($15.4M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2010-02-22
End Date: 2012-09-30
Contract Duration: 951 days
Daily Burn Rate: $16.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SEAL AIR,AIRCRAFT G
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $15.4 million to RTX CORPORATION for work described as: SEAL AIR,AIRCRAFT G Key points: 1. Significant award for industrial high-speed drives and gear manufacturing. 2. RTX Corporation is the sole awardee, limiting competitive options. 3. Contract duration of 951 days suggests a substantial project. 4. Fixed-price contract type aims to control costs, but competition is key.
Value Assessment
Rating: questionable
The award amount of $15.4M for aircraft gearboxes is substantial. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar industrial high-speed drives and gear manufacturing contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This limits the government's ability to leverage market forces to achieve the best possible pricing and terms.
Taxpayer Impact: The absence of competition may lead to higher costs for taxpayers than if multiple vendors had been considered.
Public Impact
Impacts the aerospace and defense sector, specifically aircraft component manufacturing. Potential for increased costs due to sole-source award. Ensures supply of critical components for defense applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of clear justification for sole-sourcing.
- Potential for inflated pricing without competitive pressure.
Positive Signals
- Firm fixed-price contract type.
- Awarded to a known entity (RTX Corporation).
Sector Analysis
This contract falls within the Defense sector, specifically focusing on manufacturing of industrial high-speed drives and gearboxes for aircraft. Spending benchmarks in this niche area are highly dependent on specific technical requirements and the competitive landscape.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this sole-source award. Further analysis would be needed to determine if small businesses were excluded or had opportunities to participate.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that competition was not improperly excluded. Documentation justifying the sole-source decision is crucial.
Related Government Programs
- Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award raises concerns about fair pricing.
- Lack of transparency regarding competition justification.
- Potential for overpayment without competitive bids.
- Limited visibility into small business participation.
Tags
speed-changer-industrial-high-speed-driv, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.4 million to RTX CORPORATION. SEAL AIR,AIRCRAFT G
Who is the contractor on this award?
The obligated recipient is RTX CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $15.4 million.
What is the period of performance?
Start: 2010-02-22. End: 2012-09-30.
What is the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies explored?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is a strong indicator of a sole-source award. A thorough review would require access to the contract file to understand the specific justification, such as unique capabilities, urgent need, or lack of market availability. Without this, it's impossible to confirm if alternative competitive strategies were adequately explored or deemed infeasible.
How does the $15.4M award for aircraft gearboxes compare to industry benchmarks for similar components, especially given the sole-source nature?
Benchmarking this $15.4M award is challenging without detailed specifications and competitive data. Sole-source awards inherently lack the price discovery mechanism of competition. Therefore, comparing it to industry benchmarks requires careful consideration of the specific technical requirements, material costs, and the typical profit margins for similar sole-source contracts in the defense aerospace sector.
What is the potential long-term impact on defense readiness and cost-efficiency if critical components like these are consistently awarded without competition?
Consistent sole-source awards for critical components can lead to reduced innovation, higher costs for taxpayers, and a potential erosion of the industrial base's competitive edge. Over time, this can negatively impact defense readiness by limiting access to diverse technological solutions and potentially creating dependencies on single suppliers, which could be exploited or become a vulnerability.
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, 06108
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,388,589
Exercised Options: $15,388,589
Current Obligation: $15,388,589
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPM40001D9405
IDV Type: IDC
Timeline
Start Date: 2010-02-22
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2018-11-06
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