DoD awards $41.6M for Aircraft Engine Parts to Rolls-Royce Corporation under Full and Open Competition
Contract Overview
Contract Amount: $41,564,940 ($41.6M)
Contractor: Rolls-Royce Corporation
Awarding Agency: Department of Defense
Start Date: 2020-05-01
End Date: 2021-04-30
Contract Duration: 364 days
Daily Burn Rate: $114.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USMC&USMCR YR4
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46225
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $41.6 million to ROLLS-ROYCE CORPORATION for work described as: USMC&USMCR YR4 Key points: 1. Significant contract value of $41.6 million for aircraft engine components. 2. Rolls-Royce Corporation is a major player in the aerospace manufacturing sector. 3. Full and open competition suggests a potentially competitive pricing environment. 4. Contract duration of one year indicates a focused procurement need.
Value Assessment
Rating: good
The contract value of $41.6 million for aircraft engine parts appears reasonable given the supplier and the nature of the goods. Benchmarking against similar large-scale aerospace component contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition aims to secure favorable pricing, maximizing taxpayer value for essential defense procurement.
Public Impact
Ensures continued operational readiness for USMC & USMCR aircraft. Supports a key segment of the aerospace manufacturing industry. Provides critical components for advanced aircraft engines.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation in future contract periods.
- Dependence on a single supplier for critical components.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and delivery period.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending in this sector is often substantial due to the high cost and complexity of aerospace technology.
Small Business Impact
The data does not indicate any specific participation or benefit for small businesses in this particular contract award. Further analysis would be needed to determine if subcontracting opportunities exist.
Oversight & Accountability
The contract was awarded by the Department of the Navy for the USMC & USMCR, indicating established oversight within the Department of Defense. The delivery order structure suggests it's part of a larger framework agreement.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Full and open competition
- Established supplier
- Clear contract period
- Favorable pricing structure (FIRM FIXED PRICE)
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 $41.6 million to ROLLS-ROYCE CORPORATION. USMC&USMCR YR4
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 $41.6 million.
What is the period of performance?
Start: 2020-05-01. End: 2021-04-30.
What is the historical pricing trend for similar aircraft engine parts procured by the DoD?
Analyzing historical pricing data for comparable aircraft engine parts is crucial. This involves comparing the current award price against previous contracts for similar components, considering inflation, technological advancements, and market fluctuations. Understanding these trends helps assess if the current $41.6 million award represents fair and reasonable pricing over time and identifies potential areas for cost savings in future procurements.
What are the specific risks associated with relying on Rolls-Royce Corporation for these critical engine parts?
Risks include potential supply chain disruptions, single-source dependency issues if Rolls-Royce faces production challenges, and the possibility of price increases in subsequent contract periods. Geopolitical factors affecting global supply chains or the company's financial stability could also pose risks. Mitigation strategies might involve diversifying suppliers or negotiating long-term agreements with price adjustment clauses.
How effectively does this contract contribute to the overall operational readiness and mission capabilities of the USMC & USMCR?
This contract directly supports the operational readiness of USMC & USMCR aircraft by ensuring the availability of essential engine parts. Consistent and timely delivery of high-quality components is vital for maintaining aircraft serviceability, minimizing downtime, and ensuring that these critical assets are available for training and deployment, thereby directly impacting mission capabilities.
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: $41,564,940
Exercised Options: $41,564,940
Current Obligation: $41,564,940
Actual Outlays: $55,191
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001917D0090
IDV Type: IDC
Timeline
Start Date: 2020-05-01
Current End Date: 2021-04-30
Potential End Date: 2021-04-30 00:00:00
Last Modified: 2024-07-16
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