DoD Awards $32.6M for Aircraft Parts to Rolls-Royce Corporation, Lacking Competition
Contract Overview
Contract Amount: $32,633,042 ($32.6M)
Contractor: Rolls-Royce Corporation
Awarding Agency: Department of Defense
Start Date: 2022-02-28
End Date: 2026-05-31
Contract Duration: 1,553 days
Daily Burn Rate: $21.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GOJ FMS DEPOT INSTALLATION SET
Plain-Language Summary
Department of Defense obligated $32.6 million to ROLLS-ROYCE CORPORATION for work described as: GOJ FMS DEPOT INSTALLATION SET Key points: 1. Significant contract value of $32.6 million awarded. 2. Sole-source award to Rolls-Royce Corporation indicates limited competition. 3. Potential risk associated with lack of competitive bidding. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $32.6 million for aircraft parts is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts in the market.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The lack of competition raises concerns about whether the government achieved the best possible price for these aircraft parts, potentially impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive pricing. The Department of the Navy relies on a single supplier for critical aircraft parts. Limited transparency into the justification for a sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Contract awarded to a known entity (Rolls-Royce Corporation)
- Clear contract duration and end date
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary widely based on defense needs and aircraft fleet maintenance requirements.
Small Business Impact
This contract does not appear to involve small businesses, as it is a sole-source award to a large corporation. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the justification for not competing the contract was robust and in the best interest of the government.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs to taxpayers.
- Risk of supply chain disruption from single provider.
- Limited transparency on justification for sole-source.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.6 million to ROLLS-ROYCE CORPORATION. GOJ FMS DEPOT INSTALLATION SET
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 $32.6 million.
What is the period of performance?
Start: 2022-02-28. End: 2026-05-31.
What was the specific justification for awarding this contract on a sole-source basis instead of conducting a competitive procurement?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's presumed the Department of the Navy determined Rolls-Royce Corporation was the only viable option, potentially due to specialized parts or maintenance requirements for their aircraft fleet.
How does the awarded price compare to industry benchmarks for similar aircraft parts, given the lack of competition?
Without a competitive bidding process, it is challenging to establish a direct comparison to industry benchmarks. The absence of competing offers means the government did not benefit from market forces that typically drive down prices. A thorough review of historical pricing for similar components or alternative suppliers would be needed to assess value.
What is the potential impact on operational readiness if Rolls-Royce Corporation is the sole provider of these critical aircraft parts?
Sole reliance on a single provider for critical aircraft parts can pose a risk to operational readiness. Any supply chain disruptions, production issues, or pricing disputes with Rolls-Royce could directly impact the availability of necessary components, potentially grounding aircraft or delaying maintenance schedules for the Department of the Navy.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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: $32,633,042
Exercised Options: $32,633,042
Current Obligation: $32,633,042
Subaward Activity
Number of Subawards: 28
Total Subaward Amount: $38,391,491
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001919G0013
IDV Type: BOA
Timeline
Start Date: 2022-02-28
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2025-05-07
More Contracts from Rolls-Royce Corporation
- This Contract IS for the Procurement of AE1107C Turboshaft Engines (installs and Spares) — $847.1M (Department of Defense)
- Pbth Contract — $615.2M (Department of Defense)
- AE1107C Turboshaft Engines (installs) — $527.0M (Department of Defense)
- AE1107C Turboshaft Engines — $520.7M (Department of Defense)
- Federal Contract — $340.6M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)