DoD awards $21.8M for T63-A-720 Turbine Engine Overhaul to Rolls-Royce Corporation
Contract Overview
Contract Amount: $21,812,619 ($21.8M)
Contractor: Rolls-Royce Corporation
Awarding Agency: Department of Defense
Start Date: 2008-11-20
End Date: 2009-12-31
Contract Duration: 406 days
Daily Burn Rate: $53.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: OVERHAUL, CONSISTING OF TEARDOWN, ANALYSIS, REBUILD, TEST, AND REPAIR T63-A-720 TURBINE ENGINES.
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46241
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $21.8 million to ROLLS-ROYCE CORPORATION for work described as: OVERHAUL, CONSISTING OF TEARDOWN, ANALYSIS, REBUILD, TEST, AND REPAIR T63-A-720 TURBINE ENGINES. Key points: 1. The contract focuses on comprehensive overhaul services for T63-A-720 turbine engines. 2. Rolls-Royce Corporation, a major aerospace manufacturer, is the sole awardee. 3. The contract was awarded as 'NOT COMPETED', raising potential concerns about price discovery. 4. The sector is Aircraft Engine and Engine Parts Manufacturing, a specialized field.
Value Assessment
Rating: fair
The contract value of $21.8 million for engine overhauls appears substantial. Without specific details on the scope of work per engine and the number of engines, a direct comparison to similar contracts is difficult. Benchmarking would require more granular data on the services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may not ensure the best value for taxpayers. The absence of competition could lead to higher costs than if multiple vendors had submitted bids.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the most cost-effective solution for engine overhauls.
Public Impact
Ensures continued operational readiness of T63-A-720 turbine engines for military aircraft. Supports a critical component of the defense supply chain through specialized maintenance. Potential for higher costs due to the sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency in the procurement process.
Positive Signals
- Award to a known manufacturer with expertise in turbine engines.
- Contract ensures critical maintenance for defense assets.
Sector Analysis
The Aircraft Engine and Engine Parts Manufacturing sector is highly specialized, often dominated by a few key players. Spending in this area is critical for national defense, but competition can be limited due to technical expertise and proprietary technology requirements.
Small Business Impact
This contract was awarded to Rolls-Royce Corporation, a large business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement was sound and that the pricing is reasonable. Accountability for taxpayer funds is crucial in such awards.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Potential for inflated pricing due to lack of competition
- Limited transparency in procurement
- High contract value
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, in, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.8 million to ROLLS-ROYCE CORPORATION. OVERHAUL, CONSISTING OF TEARDOWN, ANALYSIS, REBUILD, TEST, AND REPAIR T63-A-720 TURBINE ENGINES.
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 Army).
What is the total obligated amount?
The obligated amount is $21.8 million.
What is the period of performance?
Start: 2008-11-20. End: 2009-12-31.
What was the justification for awarding this contract on a sole-source basis, and was a market survey conducted to explore potential competition?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. A thorough market survey should be conducted to confirm the absence of other capable sources and to ensure fair and reasonable pricing, even without direct competition.
How does the per-unit cost of this engine overhaul compare to industry benchmarks or previous contracts for similar services?
Without specific details on the scope of work per engine and the number of engines included in this $21.8 million contract, a precise per-unit cost benchmark is not feasible. Comparing this to industry standards or historical data would require access to detailed service line items and the total number of engines serviced.
What is the expected impact on the operational readiness of the T63-A-720 turbine engines and the aircraft they power?
The overhaul contract is intended to restore and maintain the T63-A-720 turbine engines to optimal operational condition. This directly supports the readiness of the aircraft that utilize these engines, ensuring they are available for their intended military missions. The effectiveness relies on the quality of Rolls-Royce's overhaul process.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rolls-Royce Holdings PLC (UEI: 217127290)
Address: 2355 S TIBBS AVE, INDIANAPOLIS, IN, 07
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $21,812,619
Exercised Options: $21,812,619
Current Obligation: $21,812,619
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-11-20
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2009-11-21
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