DoD awards $20.8M contract for V-22 engine repair to Rolls-Royce Corporation
Contract Overview
Contract Amount: $20,812,021 ($20.8M)
Contractor: Rolls-Royce Corporation
Awarding Agency: Department of Defense
Start Date: 2007-04-20
End Date: 2008-12-31
Contract Duration: 621 days
Daily Burn Rate: $33.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TEARDOWN, INSPECTION AND REPAIR OF EXCLUDED ENGINES IN SUPPORT OF THE V-22 PROGRAM.
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46241
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $20.8 million to ROLLS-ROYCE CORPORATION for work described as: TEARDOWN, INSPECTION AND REPAIR OF EXCLUDED ENGINES IN SUPPORT OF THE V-22 PROGRAM. Key points: 1. Contract awarded to a single, established manufacturer. 2. Focus on specialized repair services for a critical defense platform. 3. Potential for high per-unit costs due to specialized nature. 4. Sector: Defense, specifically aircraft engine parts manufacturing.
Value Assessment
Rating: fair
The contract value of $20.8M for engine repair services appears substantial. Benchmarking against similar specialized aerospace repair contracts would be necessary to determine if the pricing is competitive, given the unique nature of V-22 engines.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific nature of the repair and the manufacturer's proprietary knowledge may limit the number of capable bidders.
Taxpayer Impact: Taxpayer funds are supporting the maintenance of critical military aircraft, ensuring operational readiness. The competitive award aims to secure fair pricing for these essential services.
Public Impact
Ensures continued operational readiness of the V-22 Osprey fleet. Supports a critical component of U.S. defense capabilities. Potential impact on defense budget allocation for aircraft maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Specialized nature of repair may limit competition.
- Reliance on a single manufacturer for critical parts/services.
Positive Signals
- Awarded under full and open competition.
- Supports a vital defense program.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a specialized area within defense manufacturing. Spending benchmarks in this niche are difficult to establish without specific comparable contracts, but high costs are typical for advanced aerospace components.
Small Business Impact
The contract was awarded to Rolls-Royce Corporation, a large business. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Standard oversight procedures for defense contracts would apply to ensure performance and compliance.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns if repair complexity increases.
- Dependence on a single source for critical repair services.
- Limited transparency into specific repair costs and processes.
- Long-term sustainment strategy for V-22 engines.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, in, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.8 million to ROLLS-ROYCE CORPORATION. TEARDOWN, INSPECTION AND REPAIR OF EXCLUDED ENGINES IN SUPPORT OF THE V-22 PROGRAM.
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 $20.8 million.
What is the period of performance?
Start: 2007-04-20. End: 2008-12-31.
What is the typical cost range for similar specialized aircraft engine repair services, and how does this contract's pricing compare?
Determining a precise cost range for specialized V-22 engine repairs is challenging without access to proprietary data and specific service details. However, complex aerospace engine maintenance typically incurs significant costs due to intricate engineering, specialized tooling, and rigorous quality control. Benchmarking against other high-value military aircraft engine repair contracts would be the most relevant comparison, though direct equivalents may be scarce.
What are the potential risks associated with relying on a single manufacturer for the repair of critical V-22 aircraft engines?
Reliance on a single manufacturer, even with full and open competition, poses risks such as potential price escalation over time, limited negotiation leverage, and vulnerability to supply chain disruptions affecting that specific manufacturer. If Rolls-Royce were to face production issues or significant price increases, it could directly impact the V-22 program's operational readiness and budget.
How effectively does this contract contribute to the overall readiness and long-term sustainment of the V-22 Osprey program?
This contract is crucial for the immediate readiness of the V-22 fleet by ensuring that essential engines are repaired and returned to service. Its effectiveness in long-term sustainment depends on the ongoing availability of competitive repair options and the manufacturer's commitment to supporting the platform throughout its lifecycle. Proactive planning for future repair needs and potential alternative providers is key.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001904R0121
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,838,691
Exercised Options: $20,838,691
Current Obligation: $20,812,021
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001904G0015
IDV Type: IDC
Timeline
Start Date: 2007-04-20
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2011-09-20
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