DoD Awards $92.3M for Aircraft Engine Maintenance to Rolls-Royce Corporation

Contract Overview

Contract Amount: $92,295,943 ($92.3M)

Contractor: Rolls-Royce Corporation

Awarding Agency: Department of Defense

Start Date: 2025-08-01

End Date: 2026-07-31

Contract Duration: 364 days

Daily Burn Rate: $253.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAINTENANCE & RELATED SERVICES (CNATRA)

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46225

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $92.3 million to ROLLS-ROYCE CORPORATION for work described as: MAINTENANCE & RELATED SERVICES (CNATRA) Key points: 1. Significant contract value for specialized aircraft engine maintenance. 2. Rolls-Royce Corporation is a major player in the aerospace industry. 3. Potential risk associated with sole-source procurement and specialized parts. 4. Spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.

Value Assessment

Rating: fair

The $92.3 million award for maintenance services is substantial. Benchmarking against similar sole-source contracts for specialized aerospace components is difficult due to limited public data, but the duration and scope suggest a fair market price might be challenging to ascertain without competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process. The justification for sole-source is critical for assessing value.

Taxpayer Impact: The lack of competition for this significant contract raises concerns about taxpayer value, as a more competitive process could have potentially secured lower pricing.

Public Impact

Ensures continued operational readiness for Navy aircraft. Supports a critical component of national defense infrastructure. Impacts the aerospace manufacturing and maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
High contract value requires careful oversight.
Dependence on a single supplier for critical maintenance.

Positive Signals

Maintains readiness of essential military assets.
Supports a key defense contractor.

Sector Analysis

This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector, a highly specialized and critical area for defense. Spending benchmarks are difficult to establish due to the proprietary nature of engine maintenance and the limited number of qualified providers.

Small Business Impact

This contract does not appear to involve small business participation, as it is a sole-source award to a large corporation. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight from the Department of the Navy to ensure fair pricing and quality of service. Auditing the contractor's cost structure would be advisable.

Related Government Programs

Aircraft Engine and Engine Parts Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source procurement limits price competition.
Potential for price creep over contract duration.
Dependence on a single supplier for critical maintenance.
Lack of transparency in cost build-up.
Risk of obsolescence if technology evolves rapidly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.3 million to ROLLS-ROYCE CORPORATION. MAINTENANCE & RELATED SERVICES (CNATRA)

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 $92.3 million.

What is the period of performance?

Start: 2025-08-01. End: 2026-07-31.

What is the justification for the sole-source award, and has it been adequately documented to ensure fair pricing?

The justification for a sole-source award is crucial for understanding why competition was not pursued. Without a competitive process, it is challenging to definitively assess fair pricing. The government should have rigorous internal review and documentation processes to validate the necessity of the sole-source approach and ensure the price is reasonable based on available market data or cost analysis.

What are the long-term risks associated with relying on a single provider for critical aircraft engine maintenance?

Long-term reliance on a single provider for critical aircraft engine maintenance poses several risks. These include potential price escalation over time, reduced flexibility in contract terms, and vulnerability to supply chain disruptions affecting the sole provider. It also limits the government's ability to leverage competition for innovation and cost savings in future contracts.

How will the Department of the Navy ensure the effectiveness and quality of maintenance services provided under this sole-source contract?

The Department of the Navy can ensure effectiveness and quality through stringent performance metrics, regular inspections, and clear deliverables outlined in the contract. Establishing key performance indicators (KPIs) related to turnaround time, defect rates, and adherence to technical specifications is vital. Proactive communication and a strong contract management team are essential for monitoring and enforcing service quality.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001921R0016

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: $92,295,943

Exercised Options: $92,295,943

Current Obligation: $92,295,943

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001922D0042

IDV Type: IDC

Timeline