Coast Guard awards $2.1M overhaul for USCGC MIDGETT MPDE to Rolls-Royce Solutions America Inc

Contract Overview

Contract Amount: $2,059,182 ($2.1M)

Contractor: Rolls-Royce Solutions America Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-11-17

End Date: 2026-02-15

Contract Duration: 90 days

Daily Burn Rate: $22.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USCGC MIDGETT (WMSL-757) MPDE 8,000 HOUR OVERHAUL

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96819

State: Hawaii Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.1 million to ROLLS-ROYCE SOLUTIONS AMERICA INC for work described as: USCGC MIDGETT (WMSL-757) MPDE 8,000 HOUR OVERHAUL Key points: 1. The contract is for an 8,000-hour overhaul of the main propulsion diesel engine (MPDE). 2. Rolls-Royce Solutions America Inc. is the sole awardee, raising questions about competition. 3. The firm fixed price contract aims to control costs for this specialized maintenance. 4. This expenditure falls within the Ship Building and Repairing sector.

Value Assessment

Rating: fair

The contract value of $2.1M for an 8,000-hour overhaul of a major engine component appears within a reasonable range for specialized maritime equipment. However, without specific benchmarks for this exact engine model and overhaul scope, a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process. The justification for sole-source is not provided.

Taxpayer Impact: Taxpayer funds are used for this specialized maintenance, and the lack of competition may result in a less cost-effective outcome.

Public Impact

Ensures operational readiness of a key Coast Guard asset. Supports specialized maritime maintenance capabilities. Impacts the operational capacity of the USCGC MIDGETT. Funds critical infrastructure maintenance for national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Potential for higher costs due to lack of competitive bidding.
No justification provided for sole-source award.

Positive Signals

Addresses critical maintenance for a vital asset.
Firm fixed price contract provides cost certainty.
Scheduled completion within a defined timeframe.

Sector Analysis

This contract falls under the Ship Building and Repairing sector, which involves specialized and often high-value maintenance for maritime vessels. Spending in this sector is critical for maintaining national maritime assets and infrastructure.

Small Business Impact

The awardee, Rolls-Royce Solutions America Inc., is a large business. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.

Oversight & Accountability

The contract is managed by the U.S. Coast Guard, part of the Department of Homeland Security. Oversight would focus on ensuring the overhaul meets technical specifications and is completed on time and within budget.

Related Government Programs

Ship Building and Repairing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.1 million to ROLLS-ROYCE SOLUTIONS AMERICA INC. USCGC MIDGETT (WMSL-757) MPDE 8,000 HOUR OVERHAUL

Who is the contractor on this award?

The obligated recipient is ROLLS-ROYCE SOLUTIONS AMERICA INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2025-11-17. End: 2026-02-15.

What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The provided data does not include the justification for the sole-source award. Typically, agencies must demonstrate that only one responsible source can provide the required supplies or services. Without this justification, it's difficult to assess if fair and reasonable pricing was achieved through alternative means, such as historical data or independent cost estimates.

What is the historical performance and reliability of Rolls-Royce MPDEs, and how does this overhaul impact the long-term operational readiness of the USCGC MIDGETT?

Rolls-Royce is a well-established manufacturer of marine propulsion systems. The 8,000-hour overhaul is a significant maintenance event designed to restore the engine to optimal performance and extend its service life. Successful completion is crucial for the USCGC MIDGETT's sustained operational readiness and mission capability.

Are there any alternative or future maintenance strategies that could be considered to increase competition or reduce costs for similar engine overhauls?

Exploring options like performance-based contracts, multi-year agreements with potential competition, or developing in-house maintenance capabilities could foster competition and potentially reduce costs for future overhauls. Additionally, standardizing engine types across the fleet could create larger, more competitive maintenance markets.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rolls-Royce Holdings PLC

Address: 39525 MACKENZIE DR, NOVI, MI, 48377

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: $2,059,182

Exercised Options: $2,059,182

Current Obligation: $2,059,182

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08526DLREP0003

IDV Type: IDC

Timeline