Rolls-Royce Corporation awarded $441K contract for engine kit overhaul by U.S. Coast Guard

Contract Overview

Contract Amount: $441,320 ($441.3K)

Contractor: Rolls-Royce Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-08

End Date: 2026-11-06

Contract Duration: 212 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OVERHAUL OF QUICK ENGINE CHANGE KIT IN ACCORDANCE WITH PERFORMANCE WORK STATEMENT SECTION 4.5.

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46225

State: Indiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $441,319.82 to ROLLS-ROYCE CORPORATION for work described as: OVERHAUL OF QUICK ENGINE CHANGE KIT IN ACCORDANCE WITH PERFORMANCE WORK STATEMENT SECTION 4.5. Key points: 1. Contract focuses on essential maintenance for air transportation support. 2. The firm fixed-price structure aims to control costs for the government. 3. A single delivery order indicates a specific, defined scope of work. 4. The contract duration is approximately seven months, suggesting a focused project. 5. This award falls under 'Other Support Activities for Air Transportation' services.

Value Assessment

Rating: fair

The contract value of $441,319.82 for an engine kit overhaul appears reasonable given the specialized nature of aerospace components. Benchmarking against similar overhauls for Rolls-Royce engines would provide a clearer picture of value for money. Without specific details on the scope of work within the overhaul, a precise comparison is difficult, but the price seems within a plausible range for such technical services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The specific number of bidders is not provided, but the competition type indicates a robust selection process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring that the government is not overpaying for specialized services like aircraft engine maintenance.

Public Impact

The U.S. Coast Guard benefits from the maintenance of its aircraft, ensuring operational readiness. Services delivered include the overhaul of quick engine change kits, critical for aircraft safety and performance. The geographic impact is localized to the operational areas of the U.S. Coast Guard aviation units. Workforce implications are primarily for specialized aerospace technicians involved in the overhaul process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of the overhaul is underestimated.
Dependence on a single contractor for a critical component's maintenance.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract type helps manage budget certainty.
Clear performance work statement (Section 4.5) provides defined expectations.

Sector Analysis

This contract operates within the aerospace maintenance and repair sector, a specialized segment of the broader aviation industry. The market for aircraft engine component overhauls is typically dominated by original equipment manufacturers (OEMs) or certified third-party repair stations due to stringent regulatory and technical requirements. Spending in this area is driven by fleet size, operational tempo, and the lifecycle of aircraft components.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Rolls-Royce Corporation is a large aerospace manufacturer, suggesting the primary contractor is not an SMB. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the overhaul process.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices. Accountability is ensured through the performance work statement and the firm fixed-price nature of the award. Transparency is generally maintained through contract award databases, though specific details of the overhaul process may be proprietary.

Related Government Programs

Aircraft Engine Maintenance
Aviation Support Services
U.S. Coast Guard Aviation Programs
Aerospace Component Overhaul

Risk Flags

Potential for vendor lock-in with OEM.
Dependency on a single supplier for critical components.
Risk of unforeseen complexities in overhaul process impacting cost/schedule.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $441,319.82 to ROLLS-ROYCE CORPORATION. OVERHAUL OF QUICK ENGINE CHANGE KIT IN ACCORDANCE WITH PERFORMANCE WORK STATEMENT SECTION 4.5.

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 $441,319.82.

What is the period of performance?

Start: 2026-04-08. End: 2026-11-06.

What is the historical spending pattern for Rolls-Royce Corporation with the Department of Homeland Security, specifically for aircraft engine maintenance?

Analyzing historical spending data for Rolls-Royce Corporation with the Department of Homeland Security (DHS) is crucial for understanding the contractor's track record and the government's reliance on their services. While this specific contract is for $441,319.82, a broader review would examine previous awards, their values, and the duration of those contracts. This includes looking at contracts awarded by various agencies within DHS, such as the U.S. Coast Guard, Customs and Border Protection, and Immigration and Customs Enforcement. Understanding if Rolls-Royce has consistently received contracts for similar services, or if there have been significant fluctuations in spending, can indicate the stability of the relationship and potential pricing trends. For instance, if DHS has awarded multiple, larger contracts to Rolls-Royce for engine overhauls in the past, it suggests a level of trust and established capability. Conversely, a history of smaller, infrequent awards might point to a more competitive market or a less critical role for the contractor. This historical context is vital for assessing the current award's significance and potential future spending.

How does the value of this contract compare to similar engine overhaul contracts awarded by other federal agencies?

Comparing the $441,319.82 value of this U.S. Coast Guard contract for a quick engine change kit overhaul to similar contracts across federal agencies requires access to a comprehensive database of defense and civilian aviation maintenance awards. Key comparison points would include the specific engine model being overhauled, the scope of work (e.g., routine maintenance vs. major repair), the turnaround time, and the contractor's overhead. For example, if the Federal Aviation Administration (FAA) or the Department of the Air Force has recently awarded contracts for overhauling comparable Rolls-Royce engine components, their values and terms can serve as benchmarks. A higher value for this contract compared to similar ones might suggest unique complexities, higher labor costs in the specific region, or less competitive bidding. Conversely, a lower value could indicate efficient execution or favorable market conditions. Without direct comparative data, it's challenging to definitively assess value for money, but the firm fixed-price nature suggests an attempt to lock in costs.

What are the potential risks associated with relying on Rolls-Royce Corporation for this specific engine component overhaul?

Potential risks associated with relying on Rolls-Royce Corporation for this engine component overhaul include dependency on a single, large manufacturer for critical parts and specialized services. If Rolls-Royce faces production delays, supply chain disruptions, or internal quality control issues, it could impact the U.S. Coast Guard's aircraft availability and operational readiness. Furthermore, as the original equipment manufacturer, Rolls-Royce may have less incentive to offer the most cost-effective solutions compared to independent repair facilities, potentially leading to higher long-term maintenance costs. There's also a risk of vendor lock-in, where the government becomes reliant on proprietary technology and repair procedures, limiting future competition. Ensuring robust contract oversight, clear performance metrics, and contingency planning for potential delays or quality issues are essential to mitigate these risks.

What is the expected effectiveness of this contract in ensuring the operational readiness of U.S. Coast Guard aircraft?

The effectiveness of this contract in ensuring U.S. Coast Guard aircraft operational readiness hinges on the timely and high-quality execution of the engine kit overhaul by Rolls-Royce Corporation. Quick engine change kits are vital components that allow for rapid replacement of engines in the field, minimizing aircraft downtime. If the overhaul is completed according to the Performance Work Statement (PWS) specifications and within the agreed-upon timeframe (ending November 6, 2026), it directly contributes to maintaining the serviceability of the Coast Guard's aviation assets. This, in turn, supports the Coast Guard's diverse missions, such as search and rescue, maritime law enforcement, and homeland security operations. The effectiveness is also tied to the reliability of the overhauled components; if they perform as expected, the contract successfully supports readiness. Conversely, any delays or quality deficiencies in the overhaul could negatively impact operational availability.

Are there any known performance issues or past contract disputes involving Rolls-Royce Corporation and the U.S. Coast Guard or other federal agencies?

Assessing past performance issues or contract disputes involving Rolls-Royce Corporation and the U.S. Coast Guard or other federal agencies is critical for a comprehensive risk assessment. While this specific contract award doesn't detail any such history, a thorough review of federal contract databases (like the Federal Procurement Data System - FPDS) and Inspector General reports would be necessary. Such a review would look for instances of late deliveries, quality defects, cost overruns on previous contracts, or formal disputes and litigation. Positive past performance, indicated by successful contract completions and favorable reviews, builds confidence in the contractor's ability to meet current requirements. Conversely, a history of significant performance problems or disputes could signal potential risks for this current contract, necessitating closer monitoring and more stringent performance management by the U.S. Coast Guard.

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: $441,320

Exercised Options: $441,320

Current Obligation: $441,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG3817DH00006

IDV Type: IDC

Timeline