DoD awards $69.7M for aircraft engine maintenance to Rolls-Royce Corporation, a sole-source contract
Contract Overview
Contract Amount: $69,685,328 ($69.7M)
Contractor: Rolls-Royce Corporation
Awarding Agency: Department of Defense
Start Date: 2018-03-29
End Date: 2018-09-30
Contract Duration: 185 days
Daily Burn Rate: $376.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MAINTENANCE AND RELATED SERVICES AT
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46225
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $69.7 million to ROLLS-ROYCE CORPORATION for work described as: MAINTENANCE AND RELATED SERVICES AT Key points: 1. Significant contract value of $69.7 million for essential maintenance services. 2. Sole-source award to Rolls-Royce Corporation raises questions about competition and potential price inflation. 3. Risk of overpayment due to lack of competitive bidding. 4. The contract falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $69.7 million for maintenance services needs comparison against similar sole-source contracts for Rolls-Royce engines to assess pricing fairness. Without competitive benchmarks, it's difficult to definitively determine if the price is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Rolls-Royce Corporation. This lack of competition limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The absence of competition could result in taxpayers paying a premium for these maintenance services.
Public Impact
Ensures continued operational readiness of critical aircraft engines. Potential for higher costs due to lack of competitive bidding. Limited transparency on pricing mechanisms for sole-source awards. Supports a key defense contractor's maintenance capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
Positive Signals
- Ensures critical maintenance
- Supports operational readiness
Sector Analysis
This contract for aircraft engine maintenance falls under the broader aerospace and defense manufacturing sector. Spending in this sector is often characterized by high R&D costs, long product lifecycles, and significant government reliance on a few key suppliers.
Small Business Impact
This contract does not appear to involve small businesses as prime contractors. Analysis of subcontracting opportunities for small businesses is not available from the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable, and that the contractor is meeting all performance requirements. Further review of the justification for the sole-source award is recommended.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns without competitive pressure.
- Lack of transparency in pricing justification.
- Dependence on a single supplier for critical maintenance.
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 $69.7 million to ROLLS-ROYCE CORPORATION. MAINTENANCE AND RELATED SERVICES AT
Who is the contractor on this award?
The obligated recipient is ROLLS-ROYCE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $69.7 million.
What is the period of performance?
Start: 2018-03-29. End: 2018-09-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves situations where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without specific documentation, the exact reason remains unclear, but it implies a lack of viable alternatives for this particular maintenance.
How does the awarded price compare to industry benchmarks for similar engine maintenance contracts?
Benchmarking the awarded price is challenging without access to proprietary cost data or a competitive bidding process. However, a comparison against publicly available data for similar sole-source maintenance contracts for comparable engine types and service scopes could reveal potential overpricing. The absence of competition inherently makes price validation more difficult.
What measures are in place to ensure the effectiveness and quality of the maintenance services provided by Rolls-Royce?
Effectiveness and quality are typically ensured through contract performance clauses, service level agreements, and rigorous inspection and acceptance procedures by the Defense Contract Management Agency (DCMA). Regular performance reviews and audits would be standard practice to monitor adherence to specifications and identify any deficiencies in the maintenance provided.
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: N0001913R2005
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $69,685,328
Exercised Options: $69,685,328
Current Obligation: $69,685,328
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001914D0016
IDV Type: IDC
Timeline
Start Date: 2018-03-29
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2023-06-01
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