DoD awards $21.4M for aircraft engine component parts to RTX Corporation, a sole-source contract
Contract Overview
Contract Amount: $21,409,878 ($21.4M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2014-06-27
End Date: 2016-08-31
Contract Duration: 796 days
Daily Burn Rate: $26.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NEW MANUFACTURE OF AIRCRAFT ENGINE COMPONENT PARTS.
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $21.4 million to RTX CORPORATION for work described as: NEW MANUFACTURE OF AIRCRAFT ENGINE COMPONENT PARTS. Key points: 1. Contract awarded to a single, large corporation (RTX). 2. Focus on manufacturing of aircraft engine component parts. 3. Potential for higher costs due to lack of competition. 4. Sector is Defense Logistics Agency, part of the broader Defense sector.
Value Assessment
Rating: fair
The award amount of $21.4M for aircraft engine component parts appears moderate. Without specific unit data or comparison to similar sole-source contracts for specialized components, a precise pricing assessment is difficult. However, the lack of competition suggests potential for above-market pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition in this sole-source award may result in a less favorable price for taxpayers compared to a competitively bid contract.
Public Impact
Ensures continued supply of critical aircraft engine components for defense operations. Supports a major defense contractor, RTX Corporation. Potential impact on the aerospace and defense manufacturing supply chain. Taxpayers may bear a higher cost due to the sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of transparency in pricing due to no-bid nature.
- Potential for cost overruns without competitive oversight.
Positive Signals
- Ensures supply of critical defense components.
- Supports established contractor with relevant expertise.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on component parts for aircraft engines. Spending in this area is critical for national security, but often involves specialized production and can be subject to limited competition.
Small Business Impact
This contract was awarded to RTX Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. While the Defense Logistics Agency is responsible for procurement, oversight should focus on ensuring the necessity of the sole-source justification and the reasonableness of the price negotiated.
Related Government Programs
- Bolt, Nut, Screw, Rivet, and Washer Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency in price negotiation
Tags
bolt-nut-screw-rivet-and-washer-manufact, department-of-defense, ct, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.4 million to RTX CORPORATION. NEW MANUFACTURE OF AIRCRAFT ENGINE COMPONENT PARTS.
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 $21.4 million.
What is the period of performance?
Start: 2014-06-27. End: 2016-08-31.
What is the justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of alternative sources. The price is usually determined fair and reasonable through methods like cost analysis, historical pricing, or comparison to similar commercial items, though transparency can be limited without competition.
What are the potential risks associated with awarding a sole-source contract for aircraft engine components?
The primary risks include paying a premium due to the absence of competitive bidding, potential for less innovation, and over-reliance on a single supplier. This can lead to higher long-term costs and reduced flexibility if market conditions or technological needs change.
How does this contract contribute to the overall effectiveness and readiness of the Department of Defense's aircraft fleet?
This contract is essential for maintaining the operational readiness of aircraft by ensuring a steady supply of necessary engine components. Its effectiveness is directly tied to the quality and timely delivery of these parts, which are critical for aircraft performance and safety.
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
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,409,879
Exercised Options: $21,409,878
Current Obligation: $21,409,878
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX13D9424
IDV Type: IDC
Timeline
Start Date: 2014-06-27
Current End Date: 2016-08-31
Potential End Date: 2016-08-31 00:00:00
Last Modified: 2015-01-08
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