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≈$8.69B Navy DEFINITIVE CONTRACT N0001918C1021

Long-lead material for propulsion systems: ~$8.7B — when airframe and engine are separate contracts (RTX, Navy)

Department of the Navy ・2018-03-23 〜 2024-12-30

The U.S. Navy awarded RTX about $8.7 billion for long-lead material for propulsion systems under a Lot 12 advance acquisition contract. In aircraft procurement the airframe and the engine are often bought under separate contracts, and this award is the engine side.

Contract key facts

  • RecipientRTX (Raytheon)
  • Contract value$8,688,654,907 (≈$8.69B)
  • BranchNavy
  • Awarding agencyDepartment of Defense
  • Awarding sub-agencyDepartment of the Navy
  • Award typeDEFINITIVE CONTRACT
  • Period of performance2018-03-23 〜 2024-12-30
  • Contract ID (PIID)N0001918C1021

Contract scope (original)

LOT 12 AAC LONG LEAD FOR PROPULSION SYSTEMS

Key points

  • The Navy ordered long-lead material for propulsion systems under a Lot 12 advance acquisition contract from RTX.
  • Value ~$8.69B ($8,688,654,907; multi-year cumulative); March 2018 to December 2024.
  • AAC = an award placed ahead of the main production contract to secure long-delivery items; engines are a textbook case.
  • Aircraft procurement often separates airframe and engine contracts; this is the engine side.
  • The aircraft type is not stated in the scope.
  • Airframe and engine come from different companies and separate contracts, so one amount cannot be read as the price of the equipment.

1A contract for propulsion alone

In aircraft procurement it is common for the company that builds the airframe and the company that builds the engine to be different. Contracts are therefore often written separately for airframe production and for the propulsion system. That is what the scope line here reflects when it names only long-lead material for propulsion systems.

Reading public data one award at a time, a single aircraft program can appear split across several contracts for exactly this reason.

2AAC and long-lead material

AAC in the scope stands for Advance Acquisition Contract — an award placed ahead of the main production contract to secure items that take a long time to deliver. An engine is a textbook long-lead item, requiring years from material sourcing through precision machining and testing. Without that early commitment, assembly stops while waiting for parts.

The reason this is repeated lot by lot, year after year, is to keep the production flow unbroken.

3What the record shows

The recipient is RTX CORPORATION, the buyer is the Navy, and the period runs from March 2018 to December 2024. The value of about $8.69 billion is the cumulative total of modifications across those years. Which aircraft the propulsion system serves is not stated in the scope, so this site does not go further.

4The airframe and the engine are separate contracts

In aircraft procurement the company building the airframe and the company building the engine are often different, so the contracts divide as well. That one aircraft's procurement looks like several contracts, read one at a time, follows from that structure.

The airframe contractThe propulsion contract
Awarded to the company assembling the airframeAwarded to the company building the engine
The type name appears in the descriptionThe description says only propulsion system
Scale can be read from the number of aircraftWhich type it is for may not be readable at all
Assembly sets the paceMaterial, precision machining and testing take years

AAC in the description is an advance acquisition contract, securing ahead of the main production award the parts that take long to deliver. Engines are the archetype; without acting early, airframe assembly stops waiting on parts. Not reading a single contract amount as the price of the equipment is a basic caution in reading public data.

Why it matters

When totaling procurement by platform, the split among airframe, engine, and long-lead contracts is an easy trap. From the supplier side, lot-by-lot advance funding drives the flow of orders, which makes production planning and material lead-time management the central operational question.

FAQ

What data is this?
A single Department of Defense (DoD) federal procurement contract recorded in "USAspending," the U.S. open government-spending dataset. The recipient, awarding component, value, and scope are public. This site is not an official U.S. government website.
Is the amount final?
It is a cumulative figure as of collection. Large defense contracts accumulate modifications over many years, so amounts change. The latest figure is available at the source, USAspending.
What is an advance acquisition contract?
An award placed ahead of the main production contract to secure items that take a long time to deliver. Without it, assembly stops while waiting for parts.
Why is there a contract for the engine alone?
The airframe and the engine are often built by different companies, so the contracts are written separately.

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Sources (primary)

This article is an independent organization based on the U.S. official spending data below. Verify the exact, latest details with the official source.

#Defense#DoD#Navy#Aircraft engines#Long-lead material#Federal procurement

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