DoD Awards Rolls-Royce $2.4M for Advanced Corrosion-Resistant Material Research

Contract Overview

Contract Amount: $2,408,668 ($2.4M)

Contractor: Rolls-Royce Corporation

Awarding Agency: Department of Defense

Start Date: 2024-01-24

End Date: 2026-11-30

Contract Duration: 1,041 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NEW CORROSION RESISTANT MATERIAL (P675) MATERIAL PROPERTY AND LIFING TESTING

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46225

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $2.4 million to ROLLS-ROYCE CORPORATION for work described as: NEW CORROSION RESISTANT MATERIAL (P675) MATERIAL PROPERTY AND LIFING TESTING Key points: 1. This contract focuses on material science R&D, a critical area for defense applications. 2. Rolls-Royce is a significant player in aerospace and defense, suggesting strong technical capability. 3. The primary risk lies in the inherent uncertainty of R&D outcomes and potential cost overruns. 4. Spending in the R&D sector can vary widely based on technological advancements and national priorities.

Value Assessment

Rating: fair

The contract value of $2.4M for R&D is moderate. Benchmarking against similar material science research contracts is difficult without more specific cost breakdowns, but the pricing appears within a reasonable range for specialized research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for research and development.

Public Impact

Advancement in material science could lead to more durable and longer-lasting military equipment. Potential for improved performance and reduced maintenance costs for naval assets. Investment in cutting-edge technology supports U.S. military readiness and technological superiority.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

R&D projects carry inherent uncertainty in achieving desired outcomes.
Cost-plus contracts can sometimes lead to cost overruns if not closely monitored.
Specific performance metrics and deliverables need careful tracking.

Positive Signals

Awarded under full and open competition.
Focus on critical material science for defense applications.
Experienced contractor with a strong track record.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is driven by the need for technological innovation and maintaining a competitive edge, with significant government investment.

Small Business Impact

The contract was awarded to Rolls-Royce Corporation, a large business. There is no indication of small business participation in this specific award, which is common for highly specialized R&D contracts.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The cost-plus-fixed-fee structure requires diligent monitoring of costs and progress to ensure value for money and adherence to research objectives.

Related Government Programs

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

Risk Flags

Uncertainty inherent in R&D projects.
Potential for cost overruns with Cost Plus Fixed Fee contracts.
Dependence on a single large contractor for specialized research.
Need for robust oversight to ensure research objectives are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.4 million to ROLLS-ROYCE CORPORATION. NEW CORROSION RESISTANT MATERIAL (P675) MATERIAL PROPERTY AND LIFING TESTING

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 Navy).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2024-01-24. End: 2026-11-30.

What are the specific performance metrics for the new corrosion-resistant material, and how will success be measured?

Success will be measured by the material's performance in rigorous testing simulating operational environments, focusing on its resistance to corrosion and its overall lifespan. Specific metrics will likely include tensile strength, fatigue life, and resistance to various corrosive agents, benchmarked against existing materials and defined by the contract's Statement of Work.

What is the potential risk of the research not yielding a viable material, and what are the mitigation strategies?

The primary risk is that the research may not result in a material meeting the required specifications or proving superior to existing options. Mitigation strategies include phased research objectives, regular technical reviews, and flexibility within the contract to pivot research directions based on early findings.

How does this material research align with broader DoD modernization goals and potential long-term cost savings?

This research aligns with modernization goals by seeking to enhance the durability and reduce the lifecycle costs of naval assets through advanced materials. If successful, the material could significantly reduce maintenance, repair, and replacement expenses, leading to substantial long-term savings and improved operational readiness.

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: N0001423SB001

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

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: $2,666,834

Exercised Options: $2,666,834

Current Obligation: $2,408,668

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline