DoD Awards $32.25M for Aircraft Engine Parts to Rolls-Royce Corporation Under Full and Open Competition
Contract Overview
Contract Amount: $32,252,288 ($32.3M)
Contractor: Rolls-Royce Corporation
Awarding Agency: Department of Defense
Start Date: 2021-05-01
End Date: 2023-05-12
Contract Duration: 741 days
Daily Burn Rate: $43.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USMC&USMCR YR5
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46225
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $32.3 million to ROLLS-ROYCE CORPORATION for work described as: USMC&USMCR YR5 Key points: 1. Significant award to a major aerospace manufacturer, indicating demand for specialized engine components. 2. Full and open competition suggests a robust market, though specific part availability may be limited. 3. Risk is moderate, tied to supply chain reliability and potential for cost overruns on complex parts. 4. Spending falls within the 'Aircraft Engine and Engine Parts Manufacturing' sector, a critical defense area.
Value Assessment
Rating: good
The award amount of $32.25M for aircraft engine parts appears reasonable given the supplier and the nature of the components. Benchmarking against similar complex aerospace parts contracts would provide a more precise assessment.
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 had the opportunity to compete. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a fair market price for these critical aircraft engine parts.
Public Impact
Ensures continued operational readiness for USMC and USMCR aircraft by securing essential engine parts. Supports a key defense contractor, potentially impacting jobs and technological advancements in aerospace. Highlights the ongoing need for specialized manufacturing capabilities within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions affecting delivery timelines.
- Complexity of aircraft engine parts may lead to unforeseen technical challenges.
- Reliance on a single awardee for specific components could pose future supply risks.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Secures critical components for military aviation readiness.
- Supports established industry leader with proven manufacturing capabilities.
Sector Analysis
This spending is within the Aircraft Engine and Engine Parts Manufacturing sector, which is vital for national defense. Benchmarks for similar complex component procurements would be necessary for a detailed cost analysis.
Small Business Impact
The data does not indicate any specific involvement of small businesses in this particular delivery order. Further analysis would be needed to determine if small businesses were subcontractors or if opportunities were missed.
Oversight & Accountability
The award was made under a delivery order against a larger contract, suggesting existing oversight mechanisms are in place. Monitoring performance and adherence to contract terms will be crucial for accountability.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential supply chain disruptions.
- Limited number of qualified suppliers for specialized parts.
- Risk of price increases in future delivery orders.
- Dependence on a single contractor for critical components.
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 $32.3 million to ROLLS-ROYCE CORPORATION. USMC&USMCR YR5
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 $32.3 million.
What is the period of performance?
Start: 2021-05-01. End: 2023-05-12.
What is the specific type of aircraft engine part being procured, and how does its complexity influence cost and availability?
The specific aircraft engine part is not detailed in the provided data, but its classification under 'Aircraft Engine and Engine Parts Manufacturing' suggests it is a complex, high-value component. The complexity directly impacts manufacturing costs due to specialized materials, precision engineering, and rigorous quality control. Availability can be constrained by limited manufacturers with the necessary expertise and certifications, potentially leading to longer lead times and higher prices.
What are the potential risks associated with relying on Rolls-Royce Corporation for these critical engine parts, particularly concerning long-term sustainment?
Potential risks include supply chain vulnerabilities, as global events can impact raw material availability and logistics. Dependence on a single supplier for critical components could lead to price escalation or reduced negotiation leverage for future contracts. Furthermore, technological obsolescence or the need for upgrades could necessitate significant future investments if the current parts are not designed for adaptability.
How effectively does the 'full and open competition' process ensure value for money for this specific procurement, considering the specialized nature of aircraft engine parts?
Full and open competition is designed to maximize value by encouraging multiple bids. However, for highly specialized components like aircraft engine parts, the pool of qualified bidders might be limited. While competition is beneficial, the government must ensure that the evaluation criteria adequately assess technical capability and long-term reliability, not just the lowest price, to guarantee true value for money.
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: $32,252,288
Exercised Options: $32,252,288
Current Obligation: $32,252,288
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $7,312,797
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001917D0090
IDV Type: IDC
Timeline
Start Date: 2021-05-01
Current End Date: 2023-05-12
Potential End Date: 2023-05-12 00:00:00
Last Modified: 2024-10-15
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