DoD Awards $13.9M for USMC Engine Repair, Highlighting Rolls-Royce's Role

Contract Overview

Contract Amount: $13,926,570 ($13.9M)

Contractor: Rolls-Royce Corporation

Awarding Agency: Department of Defense

Start Date: 2025-12-12

End Date: 2026-04-13

Contract Duration: 122 days

Daily Burn Rate: $114.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DEPOT LEVEL ENGINE REPAIR USMC ACTIVE

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46225

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to ROLLS-ROYCE CORPORATION for work described as: DEPOT LEVEL ENGINE REPAIR USMC ACTIVE Key points: 1. Significant contract value for specialized depot-level engine repair. 2. Rolls-Royce Corporation is the sole provider, raising competition concerns. 3. Potential risk associated with single-source reliance for critical maintenance. 4. Spending falls within the Aircraft Engine Manufacturing sector.

Value Assessment

Rating: fair

The award amount of $13.9M for depot-level engine repair is substantial. Benchmarking against similar specialized aerospace maintenance contracts is difficult without more detailed scope information, but the lack of competition suggests potential for higher pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While the contract type is listed as 'FULL AND OPEN COMPETITION', the awardee is Rolls-Royce Corporation, suggesting this may be a delivery order against an existing contract or a specific sole-source justification was applied. Further clarity is needed on the competitive process.

Taxpayer Impact: The impact on taxpayers is moderate, given the specialized nature of the service. However, the lack of robust competition could lead to less favorable pricing than a fully competitive scenario.

Public Impact

Ensures operational readiness of USMC aircraft engines. Supports critical defense infrastructure and maintenance capabilities. Impacts the aerospace manufacturing and MRO sector. Highlights reliance on specialized original equipment manufacturers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential lack of robust competition
Reliance on a single provider for critical maintenance
Limited transparency on pricing benchmarks

Positive Signals

Supports critical USMC operational readiness
Contract awarded to a known specialist in engine repair

Sector Analysis

This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a highly specialized area. Spending benchmarks are difficult to establish without knowing the specific engine models and repair scope, but depot-level repairs are typically high-value, complex services.

Small Business Impact

This contract does not appear to directly benefit small businesses, as it is awarded to a large corporation (Rolls-Royce) for specialized, high-value services. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

Oversight will be crucial to ensure the quality and cost-effectiveness of the repairs performed by Rolls-Royce. The Department of the Navy's contracting activity suggests established oversight mechanisms are in place, but monitoring the execution of this delivery order is key.

Related Government Programs

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

Risk Flags

Sole-source reliance risk
Potential for uncompetitive pricing
Lack of detailed scope for benchmarking
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to ROLLS-ROYCE CORPORATION. DEPOT LEVEL ENGINE REPAIR USMC ACTIVE

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 $13.9 million.

What is the period of performance?

Start: 2025-12-12. End: 2026-04-13.

What specific engine models are covered under this depot-level repair contract, and how does the pricing compare to industry standards for similar services?

The provided data does not specify the engine models. To assess value, a detailed comparison of the firm-fixed price against industry benchmarks for the repair of those specific engine types is necessary. Without this, it's difficult to definitively determine if the $13.9M represents a fair price for the services rendered.

Given Rolls-Royce Corporation is the awardee, what was the justification for 'FULL AND OPEN COMPETITION', and were alternative repair providers evaluated?

The classification as 'FULL AND OPEN COMPETITION' alongside a single awardee suggests this might be a delivery order against a pre-existing contract vehicle that was competitively awarded. However, clarification is needed on whether other qualified entities were solicited or considered for this specific order to ensure maximum price discovery and value for the government.

What is the expected impact of this contract on the operational readiness and maintenance backlog for the USMC's aircraft fleet?

This contract is intended to directly address the maintenance needs of USMC aircraft engines, thereby supporting operational readiness. The 122-day duration suggests a focused effort on specific repair requirements. Its success will be measured by the timely return of engines to service and the reduction of any existing maintenance backlogs.

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: $13,926,570

Exercised Options: $13,926,570

Current Obligation: $13,926,570

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001922D0011

IDV Type: IDC

Timeline