DoD's $5.58M Rolls-Royce Engine Repair Contract Awarded Under Full and Open Competition

Contract Overview

Contract Amount: $5,584,244 ($5.6M)

Contractor: Rolls-Royce Corporation

Awarding Agency: Department of Defense

Start Date: 2026-01-15

End Date: 2026-05-15

Contract Duration: 120 days

Daily Burn Rate: $46.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DEPOT LEVEL ENGINE REPAIR FMS

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46225

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $5.6 million to ROLLS-ROYCE CORPORATION for work described as: DEPOT LEVEL ENGINE REPAIR FMS Key points: 1. Contract awarded to Rolls-Royce Corporation for depot-level engine repair services. 2. The contract utilizes a firm-fixed-price structure, providing cost certainty. 3. Full and open competition was employed, suggesting a competitive bidding process. 4. The contract duration is 120 days, indicating a focused scope of work. 5. The award falls under the Aircraft Engine and Engine Parts Manufacturing NAICS code. 6. This contract supports the Department of the Navy's operational readiness.

Value Assessment

Rating: good

The contract value of $5.58 million for depot-level engine repair appears reasonable given the specialized nature of aircraft engine maintenance. Benchmarking against similar depot-level repair contracts for complex aviation systems would provide further insight into value for money. The firm-fixed-price structure helps mitigate cost overrun risks for the government. Without specific details on the scope of work for this particular repair, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the open competition suggests a robust process aimed at achieving fair market prices and selecting the most capable contractor.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and higher quality services through market forces, ensuring the government receives the best value.

Public Impact

The primary beneficiaries are the Department of the Navy, ensuring the operational readiness of its aircraft fleet. Services delivered include depot-level repair for aircraft engines, a critical maintenance function. The geographic impact is primarily centered around the contractor's facilities in Indiana. Workforce implications include skilled technicians and support staff involved in complex engine repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders in the full and open competition.
Absence of detailed performance metrics or historical performance data for Rolls-Royce Corporation on similar contracts.
Limited information on the specific engine models or types of repairs covered under this contract.
The relatively short duration of the contract (120 days) may indicate a specific, time-bound repair need rather than ongoing maintenance.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
Contractor is Rolls-Royce Corporation, a known entity in aircraft engine manufacturing and support.
Contract supports critical depot-level maintenance for naval aviation assets.

Sector Analysis

This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a specialized segment of the aerospace industry. The market for depot-level engine repair is characterized by high technical barriers to entry and significant capital investment. Major engine manufacturers often provide these specialized services for their own products. Spending in this sector is driven by defense procurement and commercial aviation needs, with contracts often being long-term and high-value due to the complexity and criticality of the equipment.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is Rolls-Royce Corporation, a large entity, there is no explicit information regarding subcontracting plans or requirements for small business involvement. Further analysis would be needed to determine if small businesses are indirectly engaged through the supply chain or if specific subcontracting goals were established but not detailed in this summary.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which holds the contractor responsible for delivering the specified repairs within the agreed-upon price. Transparency is facilitated by the contract award process, particularly since it was competed openly. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Engine Maintenance
Depot Level Maintenance and Repair
Naval Aviation Support Contracts
Rolls-Royce Defense Contracts
Aerospace Manufacturing and Repair

Risk Flags

Potential for sole-source dependency in future repairs.
Risk of unforeseen technical challenges impacting cost and schedule.
Dependence on specialized components and skilled labor.
Impact of delays on operational readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.6 million to ROLLS-ROYCE CORPORATION. DEPOT LEVEL ENGINE REPAIR FMS

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 $5.6 million.

What is the period of performance?

Start: 2026-01-15. End: 2026-05-15.

What is the historical spending pattern for depot-level engine repair services by the Department of the Navy with Rolls-Royce Corporation?

Analyzing historical spending patterns for depot-level engine repair services by the Department of the Navy with Rolls-Royce Corporation is crucial for understanding long-term investment and identifying trends. While this specific contract is valued at $5.58 million for a 120-day period, a broader review of past contracts would reveal the frequency and total value of similar repair services procured over several fiscal years. This analysis could highlight whether spending is increasing, decreasing, or remaining stable, and whether this contract represents a typical or an outlier in terms of cost and duration. Understanding these patterns helps in forecasting future needs and budgeting effectively. Without access to a comprehensive database of past contracts and their specific details, a precise historical spending analysis is not possible from the provided data alone. However, the existence of this contract suggests a recurring need for such specialized maintenance services.

How does the pricing of this Rolls-Royce engine repair contract compare to similar contracts awarded to other engine manufacturers for comparable services?

Benchmarking the pricing of this $5.58 million Rolls-Royce engine repair contract against similar services from other major engine manufacturers like General Electric or Pratt & Whitney is essential for assessing value for money. Such a comparison would involve identifying contracts with similar scope, complexity, engine types, and service levels (e.g., depot-level overhaul vs. component repair). Factors like the firm-fixed-price structure, contract duration (120 days), and the specific engine models being serviced would need to be standardized for a fair comparison. If this contract's per-unit cost or overall price is significantly higher or lower than comparable contracts, it could indicate potential issues with pricing, competition, or the specific technical requirements. The fact that this contract was awarded under full and open competition suggests an attempt to achieve competitive pricing, but without comparative data, the exact value proposition remains partially obscured.

What are the specific risks associated with this contract, considering the contractor and the nature of the service?

The specific risks associated with this $5.58 million depot-level engine repair contract for Rolls-Royce Corporation include potential performance issues, schedule delays, and cost overruns if unforeseen technical challenges arise, despite the firm-fixed-price structure. Given that Rolls-Royce is the original equipment manufacturer (OEM), there's a potential for sole-source dependency in future repairs or parts, which could limit competition and increase long-term costs. The specialized nature of aircraft engine repair means that a lack of qualified personnel or critical component shortages could impact timely completion. Furthermore, the 120-day duration might indicate a critical repair need, where any delay could have significant operational impacts on naval aviation readiness. Ensuring robust quality control and adherence to stringent aerospace standards are also key risk mitigation areas.

What is the expected impact of this contract on the operational readiness of the Department of the Navy's aircraft fleet?

This contract is expected to have a positive impact on the operational readiness of the Department of the Navy's aircraft fleet by ensuring that critical engines receive necessary depot-level repairs. Depot-level maintenance is a comprehensive overhaul process that restores engines to a condition that meets or exceeds original specifications, extending their service life and ensuring reliability. By outsourcing this specialized work to Rolls-Royce Corporation, the Navy can maintain a higher percentage of its aircraft in an 'mission-capable' status. The timely completion of these repairs, as stipulated within the 120-day period, is crucial for minimizing aircraft downtime and ensuring that the fleet is available for training, deployment, and operational missions. This contract directly supports the sustainment of naval aviation power projection capabilities.

What is the track record of Rolls-Royce Corporation in fulfilling similar depot-level engine repair contracts for the Department of Defense?

Rolls-Royce Corporation has a well-established and extensive track record in fulfilling depot-level engine repair contracts for the Department of Defense, particularly for its own engine models used in various military aircraft. As a major OEM, the company possesses the proprietary knowledge, specialized tooling, and certified personnel required for these complex maintenance tasks. Historically, Rolls-Royce has been a key partner for the DoD in sustaining engines for platforms like the C-130J Super Hercules (AE 2100D3 engines) and potentially other naval aviation assets. While specific performance metrics for past contracts are not detailed here, the continued award of such critical maintenance work suggests a generally satisfactory performance history. However, like any large contractor, occasional reviews of past performance data, including any past issues or successes, would provide a more complete picture.

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: $5,584,244

Exercised Options: $5,584,244

Current Obligation: $5,584,244

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001922D0011

IDV Type: IDC

Timeline