DoD Awards Rolls-Royce $16.3M for Naval Marine R&D, Competition Method Unclear

Contract Overview

Contract Amount: $16,367,932 ($16.4M)

Contractor: Rolls-Royce Marine North America Inc.

Awarding Agency: Department of Defense

Start Date: 2002-06-25

End Date: 2011-07-21

Contract Duration: 3,313 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200209!001592!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001401C0439 !A!N! !N! !20020625!20040624!001006311!001006311!210908687!N!ROLLS-ROYCE NAVAL MARINE INC !110 NORFOLK STREET !WALPOLE !MA!02081!72460!021!25!WALPOLE !NORFOLK !MASS !+000003540556!N!N!000000000000!AJ93!RDTE/OTHER SCIENCES - ADV TECH DEV !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!002!B! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: WALPOLE, NORFOLK County, MASSACHUSETTS, 02081

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to ROLLS-ROYCE MARINE NORTH AMERICA INC. for work described as: 200209!001592!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001401C0439 !A!N! !N! !20020625!20040624!001006311!001006311!210908687!N!ROLLS-ROYCE NAVAL MARINE INC !110 NORFOLK STREET !WALPOLE !MA!02081!72460!021!25!WALPOLE !NORFO… Key points: 1. Significant contract value of $16.3 million awarded to Rolls-Royce. 2. Primary contractor is Rolls-Royce Marine North America Inc., with a specific NAICS code of 541710. 3. Contract duration is extensive, spanning 3313 days (over 9 years). 4. The contract falls under 'Research and Development in the Physical, Engineering, and Life Sciences' sector. 5. The competition method is listed as 'FULL AND OPEN COMPETITION', but further details are needed.

Value Assessment

Rating: questionable

The contract value of $16.3 million for over 9 years suggests a substantial investment. Benchmarking against similar R&D contracts in naval marine technology is difficult without more specific project details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While listed as 'FULL AND OPEN COMPETITION', the lack of specific details on the bidding process raises questions about the true level of competition and price discovery achieved. The extensive duration could also limit new entrants.

Taxpayer Impact: The significant value of this contract means taxpayer funds are being allocated to advanced naval technology development. Ensuring competitive pricing and effective use of funds is crucial.

Public Impact

Advancement of naval technology through research and development. Potential for innovation in marine propulsion and systems. Economic impact through contract with a major aerospace and defense supplier. Long-term commitment of resources to a specific technological area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition justification
Extensive contract duration
Limited public information on specific deliverables

Positive Signals

Award to a well-established company in the sector
Focus on critical R&D for national defense

Sector Analysis

This contract is within the Research and Development sector, specifically focusing on advanced technologies for naval applications. Spending in this area is critical for maintaining technological superiority but requires careful oversight to ensure value for money.

Small Business Impact

The contract does not indicate any specific set-asides or participation goals for small businesses. Given the nature of advanced R&D, it's possible that larger, specialized firms are primary recipients.

Oversight & Accountability

The contract's extensive duration and the 'FULL AND OPEN COMPETITION' designation warrant further scrutiny to ensure ongoing oversight and accountability for the use of taxpayer funds and the achievement of R&D objectives.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Competition method clarity
Long contract duration risks
Lack of specific R&D deliverables
Potential for cost overruns in CPFF contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to ROLLS-ROYCE MARINE NORTH AMERICA INC.. 200209!001592!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001401C0439 !A!N! !N! !20020625!20040624!001006311!001006311!210908687!N!ROLLS-ROYCE NAVAL MARINE INC !110 NORFOLK STREET !WALPOLE !MA!02081!72460!021!25!WALPOLE !NORFOLK !MASS !+000003540556!N!N!000000000000!AJ93!RDTE/OTHER SCIENCES - ADV TECH DEV !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is ROLLS-ROYCE MARINE NORTH AMERICA INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2002-06-25. End: 2011-07-21.

What specific technological advancements are expected from this $16.3 million R&D contract, and how will their success be measured?

The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences' for naval applications. Specific deliverables and success metrics are not publicly detailed. Expected outcomes likely include improvements in naval propulsion, energy efficiency, or operational capabilities. Further information from the Office of Naval Research would be needed to ascertain precise technological goals and evaluation criteria.

Given the 'FULL AND OPEN COMPETITION' designation, what was the process to ensure maximum competition and prevent potential vendor lock-in over the contract's long duration?

The designation 'FULL AND OPEN COMPETITION' suggests a broad solicitation process. However, the lack of detailed public information makes it difficult to assess the effectiveness of this competition. For long-duration contracts, agencies typically employ phased reviews and milestone-based payments to maintain oversight and allow for adjustments, but the specific mechanisms used here are not evident.

How does the cost structure (COST PLUS FIXED FEE) align with achieving cost-effectiveness for advanced R&D, and what controls are in place?

Cost Plus Fixed Fee (CPFF) contracts are common for R&D where the scope is not fully defined. The government pays allowable costs plus a fixed fee representing profit. While this encourages innovation, it can lead to cost overruns if not tightly managed. Oversight typically involves detailed cost tracking, regular reviews, and negotiation of the fixed fee to ensure it reflects the risk and effort involved.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Rolls-Royce Holdings PLC (UEI: 217127290)

Address: 110 NORFOLK STREET, WALPOLE, MA, 08

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline