Coast Guard's $3.1M 16,000-hour overhaul of USCGC JAMES awarded to Rolls-Royce Solutions America Inc

Contract Overview

Contract Amount: $3,144,339 ($3.1M)

Contractor: Rolls-Royce Solutions America Inc

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-26

End Date: 2026-04-20

Contract Duration: 84 days

Daily Burn Rate: $37.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USCGC JAMES MPDE 16,000 HOUR OVERHAUL

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405

State: South Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.1 million to ROLLS-ROYCE SOLUTIONS AMERICA INC for work described as: USCGC JAMES MPDE 16,000 HOUR OVERHAUL Key points: 1. The contract's value of $3.14 million for a 16,000-hour overhaul suggests a significant investment in maintaining critical Coast Guard assets. 2. Awarded on a sole-source basis, the lack of competition may limit price discovery and potentially increase costs for taxpayers. 3. The short performance period (84 days) indicates a focused and potentially urgent repair or maintenance task. 4. The contract is for a specific vessel, the USCGC JAMES, highlighting its importance to Coast Guard operations. 5. The North American Industry Classification System (NAICS) code 336611 points to the shipbuilding and repairing sector, a specialized industry.

Value Assessment

Rating: fair

Benchmarking the value of this specific overhaul is challenging without comparable data for similar 16,000-hour overhauls on Coast Guard vessels. The firm-fixed-price contract type provides cost certainty for the government, but the absence of competition means there's no direct comparison to assess if the pricing is competitive. The awarded amount of $3.14 million needs further analysis against industry standards for such extensive maintenance to determine true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach is often used when a specific contractor possesses unique capabilities, proprietary technology, or when urgency precludes a competitive process. The lack of multiple bidders means the government did not benefit from a competitive bidding environment, which typically drives down prices and encourages innovation.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the most economical price is achieved.

Public Impact

The primary beneficiary is the U.S. Coast Guard, which will receive a critical overhaul for the USCGC JAMES, ensuring its operational readiness. The services delivered include extensive maintenance and repair work, specifically a 16,000-hour overhaul, crucial for the longevity and performance of the vessel. The geographic impact is localized to where the USCGC JAMES is stationed and where the overhaul is performed, likely within the United States. The contract supports specialized labor within the shipbuilding and repairing industry, potentially impacting a skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
Sole-source awards can limit opportunities for other qualified businesses to compete for government contracts.
The specific nature of the overhaul may require specialized expertise, but the absence of competition makes it difficult to verify if this is the most cost-effective solution.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government, mitigating the risk of cost overruns.
The award to Rolls-Royce Solutions America Inc. suggests a reliance on established expertise for critical vessel maintenance.
The focus on a specific vessel's overhaul indicates a commitment to maintaining the operational capability of the Coast Guard fleet.

Sector Analysis

The shipbuilding and repairing sector (NAICS 336611) is a specialized industry focused on the construction, repair, and conversion of ships and marine vessels. This contract represents a specific instance of maintenance within this sector. Comparable spending benchmarks for vessel overhauls can vary widely based on vessel size, type, and the scope of work required. The U.S. government, particularly agencies like the Coast Guard and Navy, are significant clients in this sector, often requiring highly specialized and costly maintenance services.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of a 16,000-hour vessel overhaul and the sole-source award, it is unlikely that subcontracting opportunities for small businesses would be a primary consideration or requirement within this specific contract. Further analysis would be needed to determine if the prime contractor has existing small business subcontracting plans that might indirectly benefit small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Coast Guard, a component of the Department of Homeland Security. Accountability measures are inherent in the contract terms, particularly the firm-fixed-price structure which obligates the contractor to deliver specified services within the agreed-upon cost. Transparency is limited due to the sole-source nature of the award, but contract details are generally available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

US Coast Guard Vessel Maintenance Contracts
Department of Homeland Security Ship Repair
Rolls-Royce Defense Contracts
Maritime Vessel Overhaul Services

Risk Flags

Sole-source award lacks competitive pricing validation.
Potential for higher costs due to lack of competition.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.1 million to ROLLS-ROYCE SOLUTIONS AMERICA INC. USCGC JAMES MPDE 16,000 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 $3.1 million.

What is the period of performance?

Start: 2026-01-26. End: 2026-04-20.

What is the track record of Rolls-Royce Solutions America Inc. with the U.S. Coast Guard and similar maritime overhaul contracts?

Rolls-Royce Solutions America Inc. has a history of providing propulsion and power systems for various maritime applications, including naval and coast guard vessels. Their involvement in extensive overhauls, such as the 16,000-hour service specified, suggests a capability to handle complex maintenance tasks. However, specific details on their past performance with the U.S. Coast Guard for similar large-scale overhauls would require a deeper dive into contract databases and performance reviews. It's important to assess if they have successfully completed comparable projects on time and within budget to gauge their reliability for this current contract.

How does the $3.14 million cost compare to industry benchmarks for a 16,000-hour vessel overhaul?

Determining precise industry benchmarks for a 16,000-hour overhaul is complex due to variations in vessel size, type, age, and the specific components requiring service. However, such extensive maintenance typically involves significant labor and specialized parts, making it a substantial investment. Without access to proprietary cost data or detailed scope of work for comparable overhauls, a direct cost comparison is difficult. The firm-fixed-price nature of this contract suggests the government has negotiated a set price, but the lack of competition makes it hard to ascertain if this price is truly competitive against market rates.

What are the primary risks associated with a sole-source award for this vessel overhaul?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive bidding. Without competing offers, the government may not secure the most cost-effective solution. Another risk is the potential for reduced innovation, as there is less incentive for the sole provider to offer novel or more efficient approaches. Furthermore, it limits opportunities for other qualified contractors to demonstrate their capabilities and potentially secure future work, impacting the broader market.

What is the expected impact of this overhaul on the operational effectiveness of the USCGC JAMES?

A 16,000-hour overhaul is a major maintenance event designed to significantly extend the operational life and enhance the reliability of the USCGC JAMES. This type of service typically addresses critical systems, including engines, power generation, and structural components, ensuring they meet performance standards. By completing this overhaul, the Coast Guard aims to prevent unexpected breakdowns, reduce future repair costs, and maintain the vessel's readiness to perform its diverse missions, such as search and rescue, law enforcement, and national security operations.

What has been the historical spending pattern for similar vessel overhauls by the U.S. Coast Guard?

Historical spending on U.S. Coast Guard vessel overhauls can vary significantly based on the size and class of the vessels, the extent of the work required, and the prevailing economic conditions. Major overhauls for cutters can range from hundreds of thousands to several million dollars. Analyzing past contracts for similar classes of vessels or maintenance events can provide context for the $3.14 million awarded for the USCGC JAMES. However, direct comparisons are often limited by the unique specifications and conditions of each overhaul project.

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: $3,144,339

Exercised Options: $3,144,339

Current Obligation: $3,144,339

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08526DLREP0003

IDV Type: IDC

Timeline