DoD awards $23.6M for Aircraft Fan Rotors to RTX Corporation, raising concerns about competition
Contract Overview
Contract Amount: $23,556,930 ($23.6M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2013-09-20
End Date: 2015-08-31
Contract Duration: 710 days
Daily Burn Rate: $33.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NEW MANUFACTURE OF AIRCRAFT FAN ROTORS
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06108
Plain-Language Summary
Department of Defense obligated $23.6 million to RTX CORPORATION for work described as: NEW MANUFACTURE OF AIRCRAFT FAN ROTORS Key points: 1. Significant contract value for specialized aircraft components. 2. Sole supplier RTX Corporation dominates the market for these parts. 3. Lack of competition poses a risk to price and innovation. 4. Defense sector spending on critical aircraft parts is substantial.
Value Assessment
Rating: questionable
The contract value of $23.6 million for aircraft fan rotors is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts or potential alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may lead to higher costs for taxpayers as there's no market pressure to offer the best price.
Taxpayer Impact: The absence of competition likely results in a higher cost to taxpayers than a competitively bid contract would yield.
Public Impact
Taxpayers may be overpaying for essential aircraft components due to the lack of competition. The Department of Defense relies on a single supplier for critical parts, creating a potential supply chain vulnerability. Limited visibility into the pricing structure raises questions about the efficiency of defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
- Supply chain risk
Positive Signals
- Essential defense procurement
- Established supplier relationship
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically for aircraft engine parts. Spending in this area is critical for national security but often involves high costs and limited suppliers.
Small Business Impact
This contract does not appear to involve small businesses, as it was awarded directly to a large corporation, RTX Corporation. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving fair value and to explore future competitive opportunities.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in cost justification.
- Dependency on a single supplier creates supply chain risk.
- No clear benefit to small businesses.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.6 million to RTX CORPORATION. NEW MANUFACTURE OF AIRCRAFT FAN ROTORS
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 $23.6 million.
What is the period of performance?
Start: 2013-09-20. End: 2015-08-31.
What is the justification for awarding this contract on a sole-source basis, and have alternatives been explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of viable alternative sources. For this contract, the Department of Defense would need to provide documentation detailing why RTX Corporation was the only capable provider and if any market research was conducted to identify potential competitors or alternative solutions.
How does the per-unit cost of these fan rotors compare to industry benchmarks or previous contracts?
Without access to specific pricing details and comparable industry data, it is challenging to establish a precise per-unit cost benchmark. However, given the sole-source nature, the price is likely higher than if the contract had been competitively bid. Further analysis would require access to historical pricing data and market research reports.
What are the long-term implications of relying on a single supplier for critical aircraft components?
Long-term reliance on a single supplier can create significant supply chain risks, including potential price increases, production delays, and vulnerability to disruptions. It also stifles innovation and competition within the industry. The DoD should actively seek opportunities to foster competition or develop alternative sources to mitigate these risks.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts 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, 06108
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,556,930
Exercised Options: $23,556,930
Current Obligation: $23,556,930
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038312G001M
IDV Type: BOA
Timeline
Start Date: 2013-09-20
Current End Date: 2015-08-31
Potential End Date: 2015-08-31 00:00:00
Last Modified: 2020-02-07
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