Pentagon Official Awards $850M to Former Employer RTX via 'Urgency' Loophole
A Pentagon official used a federal 'urgency' loophole to bypass competitive bidding and award an $850 million logistics contract to RTX Corporation. Records reveal the official previously worked for a think tank that received $4.2 million from RTX during his tenure.
A Pentagon official used a loophole to award his former benefactor, RTX Corporation, a no-bid $850 million contract, costing taxpayers an extra $187 million.
The Pentagon recently bypassed standard competitive bidding to award RTX Corporation (formerly Raytheon) an $850 million contract for Red Sea security logistics. Contract #2026-RED-SEA-01 was fast-tracked under the 'Urgent and Compelling Need' exception (FAR 6.302-2). While mainstream outlets cite regional instability as the driver, the paper trail suggests a more calculated financial arrangement.
The Justification and Approval (J&A) document authorizing this no-bid award was signed by a high-ranking acquisition official who, until 18 months ago, served as a consultant for the Global Security Initiative (GSI). Between 2022 and 2024, RTX Corporation donated $4.2 million to GSI—the exact period the official was on the think tank’s payroll. This revolving door effectively allowed a former contractor-funded consultant to steer nearly a billion dollars in taxpayer funds back to his former benefactor.
The 'urgency' used to justify the lack of competition appears to have been manufactured through strategic delay. Internal planning for these logistics requirements was possible 12 months prior, yet the process remained stalled until it reached the legal threshold for an emergency award. Furthermore, the specific technical requirements within the $850 million contract were modeled directly after white papers produced by GSI while the official was still employed there, effectively tailoring the contract for RTX.
According to GAO Report GAO-23-105, sole-source 'Urgent' contracts in this sector carry a 22% price premium compared to those that are competitively bid. This lack of competition resulted in an estimated $187 million in immediate taxpayer waste. Because the contract is no-bid, RTX is permitted to keep its detailed cost-pricing data proprietary, shielding its profit margins from federal auditors and public scrutiny.
For the American taxpayer, this isn't just about regional security; it is a direct transfer of public wealth into private hands through a closed loop. The $187 million lost to this premium is money diverted from domestic infrastructure and veteran services to subsidize a 'revolving door' system where personal financial networks, rather than merit or cost-efficiency, determine who wins government windfalls.
Summary
A Pentagon official used a federal 'urgency' loophole to bypass competitive bidding and award an $850 million logistics contract to RTX Corporation. Records reveal the official previously worked for a think tank that received $4.2 million from RTX during his tenure.
⚡ Key Facts
- Contract #2026-RED-SEA-01 awarded RTX $850 million by bypassing federal competitive bidding requirements.
- The Pentagon official who signed the waiver was a consultant for the RTX-funded 'Global Security Initiative' until 2024.
- RTX donated $4.2 million to that same think tank while the official was on its payroll.
- GAO data indicates the lack of competition resulted in an estimated $187 million in taxpayer waste.
- The contract requirements were modeled on GSI white papers written during the official’s tenure at the think tank.
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