DoD's $25.6M Propulsion Tech R&D Contract Awarded to Rolls-Royce Amidst Full and Open Competition

Contract Overview

Contract Amount: $25,634,458 ($25.6M)

Contractor: Rolls-Royce North American Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2018-10-11

End Date: 2026-09-30

Contract Duration: 2,911 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST SHARING

Sector: R&D

Official Description: EFFICIENT MEDIUM SCALE PROPULSION TECHNOLOGIES

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46241

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $25.6 million to ROLLS-ROYCE NORTH AMERICAN TECHNOLOGIES INC for work described as: EFFICIENT MEDIUM SCALE PROPULSION TECHNOLOGIES Key points: 1. The Department of Defense is investing $25.6 million in advanced propulsion technologies through a contract with Rolls-Royce. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The primary focus is on Research and Development in physical and engineering sciences, excluding nanotechnology and biotechnology. 4. The contract duration extends over 2911 days, indicating a long-term project.

Value Assessment

Rating: good

The contract value of $25.6 million for R&D in propulsion technologies appears reasonable given the scale and duration. Benchmarking against similar large-scale R&D contracts in the aerospace sector would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order suggests a phased approach to funding and tasking.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely led to more favorable pricing than a sole-source contract.

Public Impact

Advancements in propulsion technology could lead to more efficient and capable military aircraft. Investment in R&D supports innovation and technological superiority for the U.S. Air Force. The long-term nature of the contract suggests a sustained commitment to developing next-generation propulsion systems. Potential for spin-off technologies that could benefit the commercial aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 88 / 10

Warning Flags

Potential for cost overruns in long-term R&D projects.
Dependence on a single contractor for critical technology development.

Positive Signals

Awarded through full and open competition.
Focus on critical R&D for national defense.
Long-term commitment to technological advancement.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for maintaining technological advantage, with significant government investment directed towards innovation in areas like aerospace and defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large corporation, Rolls-Royce. There is no direct indication of small business participation within this specific award, though subcontracting opportunities may exist.

Oversight & Accountability

The Department of Defense, specifically the Air Force, is responsible for overseeing this contract. Standard oversight mechanisms for R&D contracts, including milestone reviews and performance monitoring, would be in place to ensure accountability and progress.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long-term R&D project with inherent uncertainties.
Potential for technological obsolescence.
Dependence on a single large contractor.
Cost overruns are a common risk in R&D.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to ROLLS-ROYCE NORTH AMERICAN TECHNOLOGIES INC. EFFICIENT MEDIUM SCALE PROPULSION TECHNOLOGIES

Who is the contractor on this award?

The obligated recipient is ROLLS-ROYCE NORTH AMERICAN TECHNOLOGIES INC.

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 $25.6 million.

What is the period of performance?

Start: 2018-10-11. End: 2026-09-30.

What specific propulsion technologies are being developed under this contract, and what are the expected performance improvements?

The contract focuses on 'EFFICIENT MEDIUM SCALE PROPULSION TECHNOLOGIES.' While specific details are not provided, this likely encompasses advancements in engine efficiency, thrust, fuel consumption, and potentially reduced emissions for medium-sized aircraft. Expected improvements would aim for enhanced operational range, reduced logistical footprint, and increased mission effectiveness for the Air Force.

What are the key risks associated with the long duration and R&D nature of this contract?

Key risks include technological obsolescence if development timelines are too long, potential for cost overruns due to the inherent uncertainties in R&D, and the possibility that the developed technologies may not meet performance requirements or be integrated into future platforms. Changes in strategic priorities or budget constraints could also impact the project's continuation.

How will the effectiveness of the developed propulsion technologies be measured and validated?

Effectiveness will likely be measured through a series of rigorous testing and validation phases, including component testing, subsystem integration, and full-scale engine performance trials. Key performance parameters such as thrust, specific fuel consumption, thermal efficiency, and durability will be assessed against predefined requirements and benchmarks. Independent verification and validation by the Air Force will ensure the technologies meet operational needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA865018S2002

Pricing Type: COST SHARING (T)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rolls-Royce Holdings PLC

Address: 2059 S TIBBS AVE, INDIANAPOLIS, IN, 46241

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: $66,712,523

Exercised Options: $66,712,523

Current Obligation: $25,634,458

Actual Outlays: $352,093

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $7,858,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865019D2063

IDV Type: IDC

Timeline