DoD Awards $21.7M for B-52 Engine Contract to Rolls-Royce Corporation
Contract Overview
Contract Amount: $21,729,617 ($21.7M)
Contractor: Rolls-Royce Corporation
Awarding Agency: Department of Defense
Start Date: 2024-04-01
End Date: 2025-04-30
Contract Duration: 394 days
Daily Burn Rate: $55.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: B52 CERP ENGINE CONTRACT, TINKER AFB, OK
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46225
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $21.7 million to ROLLS-ROYCE CORPORATION for work described as: B52 CERP ENGINE CONTRACT, TINKER AFB, OK Key points: 1. Contract Value: $21.7 million for B-52 engine sustainment. 2. Competition: Awarded under full and open competition. 3. Risk: Potential for supply chain disruptions in aircraft manufacturing. 4. Sector: Aircraft Manufacturing (NAICS 336411).
Value Assessment
Rating: good
The contract value of $21.7 million appears reasonable for sustainment of B-52 engines, given the complexity and specialized nature of aerospace components. Benchmarking against similar engine maintenance contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple qualified vendors can bid.
Taxpayer Impact: The competitive nature of this award is expected to yield fair pricing, maximizing taxpayer value for essential aircraft sustainment.
Public Impact
Ensures continued operational readiness of the B-52 bomber fleet. Supports critical defense infrastructure and national security. Maintains specialized manufacturing capabilities within the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-source follow-on contracts if Rolls-Royce is the only qualified provider.
- Dependence on a single contractor for critical engine parts.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost overrun risk.
- Contract duration aligns with operational needs.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, which is characterized by high technological barriers and significant R&D investment. Spending in this sector is crucial for maintaining advanced military capabilities.
Small Business Impact
The data indicates the prime contractor is Rolls-Royce Corporation, a large business. There is no explicit information on small business subcontracting in this award notice.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The firm fixed price contract type provides some cost control, but ongoing monitoring of performance and adherence to specifications is essential.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for contractor lock-in.
- Dependence on specialized manufacturing capabilities.
- Supply chain risks for critical components.
- Limited visibility into small business participation.
Tags
aircraft-manufacturing, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to ROLLS-ROYCE CORPORATION. B52 CERP ENGINE CONTRACT, TINKER AFB, OK
Who is the contractor on this award?
The obligated recipient is ROLLS-ROYCE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $21.7 million.
What is the period of performance?
Start: 2024-04-01. End: 2025-04-30.
What is the historical cost trend for B-52 engine maintenance and how does this award compare?
Analyzing historical spending on B-52 engine maintenance is crucial to assess if this $21.7 million award represents a fair market price or an escalation. Benchmarking against previous contracts, considering inflation, and factoring in any technological upgrades or changes in scope will provide a comprehensive view of value for taxpayer money.
What are the specific risks associated with relying on Rolls-Royce Corporation for B-52 engine sustainment?
Risks include potential supply chain vulnerabilities for specialized parts, dependence on a single manufacturer for critical components, and the possibility of price increases in future contract renewals if competition diminishes. Ensuring robust contract management and exploring alternative sustainment strategies can mitigate these risks.
How effectively does this contract contribute to the long-term operational readiness of the B-52 fleet?
This contract is vital for maintaining the operational readiness of the B-52 fleet by ensuring engine reliability and performance. The firm fixed price structure and full and open competition suggest a focus on cost-effectiveness. However, ongoing performance monitoring and proactive maintenance planning are key to sustained effectiveness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
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: $21,729,617
Exercised Options: $21,729,617
Current Obligation: $21,729,617
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810721D0001
IDV Type: IDC
Timeline
Start Date: 2024-04-01
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2024-12-18
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