DoD Awards $164M for USMC Reserve Engine Repair to Rolls-Royce
Contract Overview
Contract Amount: $16,430,604 ($16.4M)
Contractor: Rolls-Royce Corporation
Awarding Agency: Department of Defense
Start Date: 2024-10-23
End Date: 2025-12-21
Contract Duration: 424 days
Daily Burn Rate: $38.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DEPOT LEVEL ENGINE REPAIR CY3 USMC RESERVES FY25
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46225
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $16.4 million to ROLLS-ROYCE CORPORATION for work described as: DEPOT LEVEL ENGINE REPAIR CY3 USMC RESERVES FY25 Key points: 1. Significant contract for critical aircraft engine maintenance. 2. Rolls-Royce is a major player in the aerospace engine market. 3. Potential for cost overruns or performance issues in complex repairs. 4. Spending falls within the broad 'Aircraft Engine and Engine Parts Manufacturing' sector.
Value Assessment
Rating: good
The award amount of $164.3M for a 424-day duration appears reasonable for depot-level engine repair. Benchmarking against similar complex aerospace maintenance 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, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for essential military readiness.
Public Impact
Ensures readiness of USMC Reserve aircraft engines. Supports jobs in the aerospace manufacturing and repair sector. Impacts operational capabilities of the Marine Corps Reserve.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays in critical repairs.
- Risk of unforeseen technical challenges impacting cost.
- Dependence on a single supplier for specific engine parts.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract limits cost escalation.
- Supports critical military readiness requirements.
Sector Analysis
This contract falls under the 'Aircraft Engine and Engine Parts Manufacturing' sector, which is a specialized and high-value segment of the defense industrial base. Spending in this area is crucial for maintaining aging military fleets.
Small Business Impact
The data indicates this contract was awarded to Rolls-Royce Corporation, a large business. There is no explicit indication of small business subcontracting in the provided data, which could be an area for oversight.
Oversight & Accountability
The contract is managed by the Department of the Navy for the USMC Reserves. Oversight will focus on ensuring timely and quality repairs to maintain aircraft readiness and adherence to the firm fixed price terms.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for schedule slippage on critical repairs.
- Risk of unforeseen technical issues driving up repair complexity.
- Dependence on a single prime contractor for specialized services.
- Lack of explicit small business subcontracting information.
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 $16.4 million to ROLLS-ROYCE CORPORATION. DEPOT LEVEL ENGINE REPAIR CY3 USMC RESERVES FY25
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 $16.4 million.
What is the period of performance?
Start: 2024-10-23. End: 2025-12-21.
What is the historical performance of Rolls-Royce Corporation on similar depot-level repair contracts with the DoD?
Assessing Rolls-Royce's past performance on comparable contracts is crucial. This includes evaluating their track record on meeting delivery schedules, quality standards, and cost targets. A review of past performance metrics and any incurred penalties or awards can provide insight into their reliability and efficiency in executing complex maintenance tasks, informing future risk assessments.
Are there any identified risks associated with the specific engine models requiring repair under this contract?
The risk associated with specific engine models depends on their age, complexity, and known maintenance challenges. Older or more complex engines may present higher risks of unforeseen repair needs, leading to potential cost increases or schedule delays, even under a firm fixed price contract. Understanding the specific engine types and their maintenance history is vital for proactive risk management.
How does this contract contribute to the overall readiness and operational effectiveness of the USMC Reserves' aviation assets?
This contract directly supports the operational effectiveness of the USMC Reserves by ensuring their aircraft engines are maintained to high standards, enabling mission capability. Timely and quality repairs are essential for maintaining flight-worthy aircraft, directly impacting training exercises, deployments, and overall force readiness. Delays or subpar repairs could significantly hinder the Reserves' ability to fulfill their duties.
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: N0001921R0014
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: $16,430,604
Exercised Options: $16,430,604
Current Obligation: $16,430,604
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001922D0011
IDV Type: IDC
Timeline
Start Date: 2024-10-23
Current End Date: 2025-12-21
Potential End Date: 2025-12-21 00:00:00
Last Modified: 2025-08-25
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