Coast Guard awards $15.6M for HC-130J aircraft engine support, extending services through September 2026

Contract Overview

Contract Amount: $15,606,400 ($15.6M)

Contractor: Rolls-Royce Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-14

End Date: 2026-09-13

Contract Duration: 364 days

Daily Burn Rate: $42.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TASK ORDER IS FOR FIELD SERVICE REPRESENTATIVES AND ENGINE SUPPORT SERVICES FOR HC-130J AIRCRAFT.

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46225

State: Indiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15.6 million to ROLLS-ROYCE CORPORATION for work described as: TASK ORDER IS FOR FIELD SERVICE REPRESENTATIVES AND ENGINE SUPPORT SERVICES FOR HC-130J AIRCRAFT. Key points: 1. Value for money assessed through firm-fixed-price contract structure, aiming for predictable costs. 2. Competition dynamics indicate a full and open approach, potentially fostering competitive pricing. 3. Risk indicators include reliance on a single contractor for specialized engine support. 4. Performance context is critical for maintaining the operational readiness of the HC-130J fleet. 5. Sector positioning places this contract within the broader aerospace and defense support services market.

Value Assessment

Rating: good

The contract's firm-fixed-price nature provides cost certainty for the U.S. Coast Guard. Benchmarking the $15.6 million award against similar engine support contracts for specialized aircraft like the HC-130J is challenging without more specific service details. However, the duration of the contract (one year) suggests a scope that is likely aligned with industry standards for such support services. The award amount appears reasonable for specialized aviation maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The specific number of bidders is not provided, but this approach generally promotes a competitive environment, allowing the government to solicit proposals from various qualified sources. The open competition aims to ensure that the most capable and cost-effective solution is selected.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and encourages a wider range of innovative solutions, potentially leading to better value for public funds.

Public Impact

The U.S. Coast Guard benefits directly through the continued operational readiness of its HC-130J aircraft. Services include essential field support and engine maintenance, crucial for mission effectiveness. The geographic impact is primarily focused on locations where HC-130J aircraft are stationed and operated. Workforce implications may involve specialized technicians and engineers employed by the contractor to deliver these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for sole-source reliance on Rolls-Royce for future specialized parts or expertise if not managed proactively.
Dependence on a single contractor for critical engine support could create vulnerabilities if the contractor faces operational issues.

Positive Signals

Firm-fixed-price contract structure provides cost predictability and limits the government's exposure to cost overruns.
Full and open competition suggests a robust selection process that likely identified a capable and competitive provider.
The contract duration of one year allows for periodic reassessment of needs and performance.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation maintenance and support services. The market for specialized aircraft engine support is often dominated by original equipment manufacturers (OEMs) or highly specialized third-party providers due to the technical expertise and certifications required. Spending in this area is critical for maintaining the operational capabilities of military and governmental aviation fleets, with comparable contracts varying significantly based on aircraft type, age, and complexity.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Rolls-Royce Corporation is a large business. While the prime contract is not set aside, there may be opportunities for small businesses to participate as subcontractors to Rolls-Royce, depending on the company's subcontracting plan and the nature of the services required. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

HC-130J Super Hercules Aircraft Operations
Aviation Maintenance and Repair Services
Aerospace Engine Support Contracts
Department of Homeland Security Aviation Procurement
U.S. Coast Guard Fleet Readiness

Risk Flags

Contractor performance risk
Supply chain dependency
Potential for price escalation in future renewals

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15.6 million to ROLLS-ROYCE CORPORATION. TASK ORDER IS FOR FIELD SERVICE REPRESENTATIVES AND ENGINE SUPPORT SERVICES FOR HC-130J AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is ROLLS-ROYCE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $15.6 million.

What is the period of performance?

Start: 2025-09-14. End: 2026-09-13.

What is the historical spending pattern for Rolls-Royce Corporation providing engine support services to the U.S. Coast Guard or similar agencies?

Analyzing historical spending requires access to detailed contract databases. Rolls-Royce Corporation, as a major engine manufacturer, likely holds numerous contracts across various government agencies for engine support, maintenance, and parts. For the U.S. Coast Guard specifically, past awards for HC-130J engine support would be the most relevant comparison. Without specific historical data for this contractor and agency, it's difficult to establish a precise spending pattern. However, the current $15.6 million award for a one-year period suggests a significant, ongoing need for these specialized services, consistent with the operational demands of maintaining a fleet of complex aircraft like the HC-130J.

How does the pricing of this contract compare to other full and open competition awards for similar engine support services?

Direct price comparison is challenging without knowing the exact scope of services, labor rates, and specific engine models covered. However, the firm-fixed-price structure indicates that the price was negotiated upfront and is intended to cover all costs associated with the defined services. A full and open competition generally aims to secure competitive pricing. If Rolls-Royce was selected under this mechanism, it implies their proposed price was deemed the best value among competing offers. Benchmarking would involve comparing the total award value against the duration and expected service levels of similar contracts for other aircraft types or agencies, considering factors like engine complexity and required maintenance frequency.

What are the key performance indicators (KPIs) used to evaluate Rolls-Royce Corporation's performance under this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for aviation engine support contracts include metrics such as aircraft availability rates, engine Mean Time Between Failures (MTBF), turnaround time for repairs and maintenance, adherence to scheduled maintenance, and quality of workmanship. The U.S. Coast Guard would likely monitor these factors closely to ensure the contractor meets contractual obligations and maintains the operational readiness of the HC-130J fleet. Contractual terms usually specify remedies or incentives tied to performance against these KPIs.

What is the potential risk associated with relying on a single contractor for specialized engine support for critical aircraft?

Relying on a single contractor, even one as established as Rolls-Royce, carries inherent risks. These include potential price increases in future contract renewals if competition is limited, dependency on the contractor's supply chain for parts, and vulnerability to disruptions in the contractor's operations (e.g., labor disputes, financial instability, or production issues). For critical assets like the HC-130J, such disruptions could significantly impact the U.S. Coast Guard's mission capabilities. Mitigating these risks often involves robust contract management, maintaining strong relationships, and exploring alternative support options or fostering competition where feasible.

What is the estimated total cost of ownership for the HC-130J aircraft, and how does this engine support contract contribute to it?

The total cost of ownership (TCO) for an aircraft like the HC-130J encompasses acquisition, sustainment, operations, and disposal costs over its lifecycle. Sustainment costs, which include maintenance, repair, and overhaul (MRO), are a significant component. This $15.6 million contract represents a portion of the annual sustainment costs for the HC-130J fleet's engines. While specific TCO figures for the HC-130J are not provided, engine support is a critical and often substantial element of overall operational expenses, directly impacting the aircraft's readiness and longevity.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rolls-Royce Holdings PLC

Address: 450 S MERIDIAN ST, INDIANAPOLIS, IN, 46225

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $15,606,400

Exercised Options: $15,606,400

Current Obligation: $15,606,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG3817DH00006

IDV Type: IDC

Timeline