DoD Awards $38.6M for Aircraft Engines to Rolls-Royce, Highlighting Firm Fixed Price Contract
Contract Overview
Contract Amount: $38,606,656 ($38.6M)
Contractor: Rolls-Royce Corporation
Awarding Agency: Department of Defense
Start Date: 2019-05-01
End Date: 2020-04-30
Contract Duration: 365 days
Daily Burn Rate: $105.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USMC&USMCR YR3
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46225
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $38.6 million to ROLLS-ROYCE CORPORATION for work described as: USMC&USMCR YR3 Key points: 1. Significant award to a major defense contractor, Rolls-Royce. 2. Firm Fixed Price contract type suggests price certainty for the government. 3. Full and Open Competition was utilized, indicating a competitive bidding process. 4. The contract duration is one year, suggesting a need for ongoing support or specific project timeline.
Value Assessment
Rating: good
The $38.6 million award for aircraft engines appears reasonable given the supplier and contract type. Benchmarking against similar firm fixed-price contracts for specialized aerospace components would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of Full and Open Competition suggests a robust price discovery process. This method allows multiple qualified bidders to compete, potentially driving down costs and ensuring fair market value.
Taxpayer Impact: The competitive nature of this award is expected to benefit taxpayers by securing engines at a fair price.
Public Impact
Ensures operational readiness for USMC & USMCR aircraft. Supports a critical component of military aviation infrastructure. Impacts the aerospace manufacturing sector and associated supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-source reliance on Rolls-Royce for specific engine parts.
- Risk of price escalation in future contract renewals if competition diminishes.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Full and Open Competition indicates a competitive market.
- Award supports essential military aviation capabilities.
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Engine and Engine Parts Manufacturing. Spending in this area is critical for maintaining military readiness and technological superiority, with significant investments typically made in specialized components and MRO services.
Small Business Impact
While the primary awardee is a large corporation, the contract may indirectly benefit small businesses through subcontracts for parts or services. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, indicating established oversight mechanisms. The firm fixed-price structure and competitive award process also contribute to accountability.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Dependence on a single large supplier.
- Potential for long-term sustainment costs.
- Risk of obsolescence if technology rapidly advances.
- Geopolitical risks associated with international suppliers.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.6 million to ROLLS-ROYCE CORPORATION. USMC&USMCR YR3
Who is the contractor on this award?
The obligated recipient is ROLLS-ROYCE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $38.6 million.
What is the period of performance?
Start: 2019-05-01. End: 2020-04-30.
What is the specific type of aircraft engine being procured and its criticality to USMC/USMCR operations?
The data indicates the contract is for Aircraft Engine and Engine Parts Manufacturing, with the NAICS code 336412. While the specific engine model isn't detailed, its procurement by the USMC & USMCR suggests it's vital for their aviation fleet's operational readiness and mission accomplishment. Understanding the engine's role would clarify the strategic importance of this $38.6 million investment.
What were the key factors that led to Rolls-Royce Corporation being selected under full and open competition?
Under full and open competition, Rolls-Royce was likely selected due to offering the best value, which encompasses technical capabilities, past performance, and price. Their established expertise in aircraft engines and potentially unique technological offerings for the specified requirements could have made them the most advantageous bidder, even against other potential competitors.
How does the $38.6 million award compare to historical spending on similar aircraft engine contracts for the USMC/USMCR?
To assess the effectiveness of this $38.6 million award, a comparison with historical spending on similar aircraft engine contracts for the USMC/USMCR is crucial. Benchmarking against previous procurements, considering inflation and technological advancements, would reveal if this contract represents a cost-effective acquisition or if there are potential areas for savings in future solicitations.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
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
Solicitation ID: N0001916R0013
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: $38,606,656
Exercised Options: $38,606,656
Current Obligation: $38,606,656
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001917D0090
IDV Type: IDC
Timeline
Start Date: 2019-05-01
Current End Date: 2020-04-30
Potential End Date: 2020-04-30 00:00:00
Last Modified: 2024-07-08
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