Coast Guard awards $5.2M for USCGC Stratton MPDE overhaul, a sole-source contract

Contract Overview

Contract Amount: $5,227,583 ($5.2M)

Contractor: Rolls-Royce Solutions America Inc

Awarding Agency: Department of Homeland Security

Start Date: 2026-03-24

End Date: 2026-07-02

Contract Duration: 100 days

Daily Burn Rate: $52.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USCGC STRATTON MPDE 24,000 HOUR OVERHAUL

Place of Performance

Location: ALAMEDA, ALAMEDA County, CALIFORNIA, 94501

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.2 million to ROLLS-ROYCE SOLUTIONS AMERICA INC for work described as: USCGC STRATTON MPDE 24,000 HOUR OVERHAUL Key points: 1. The contract value represents a significant investment in maintaining critical Coast Guard assets. 2. Sole-source award suggests limited market availability or specialized contractor expertise. 3. The short performance period indicates a focused, high-priority maintenance task. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. This overhaul is essential for the operational readiness of a key maritime security vessel.

Value Assessment

Rating: fair

Benchmarking the value of this specific overhaul is challenging due to the sole-source nature and the specialized equipment involved. The contract value of approximately $5.2 million for a 24,000-hour overhaul of the Marine Diesel Engine (MPDE) on the USCGC Stratton appears to be within a reasonable range for such complex marine engineering work. However, without competitive bids or data on similar overhauls for comparable vessels, a definitive value-for-money assessment is difficult. The firm-fixed-price contract type provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor, Rolls-Royce Solutions America Inc., was solicited. This approach is typically used when a product or service is available only from a single source, often due to proprietary technology, unique expertise, or urgent needs where competition is not feasible. The lack of competition means the government did not benefit from price discovery through multiple bids, potentially leading to a higher price than if it had been competed.

Taxpayer Impact: The absence of competition limits the government's ability to secure the lowest possible price for this essential overhaul, potentially increasing costs for taxpayers.

Public Impact

The primary beneficiary is the U.S. Coast Guard, ensuring the operational readiness of the USCGC Stratton. The service delivered is a critical overhaul of the vessel's main propulsion diesel engines (MPDE). The geographic impact is focused on the USCGC Stratton's operational area, which is vital for maritime security and law enforcement. Workforce implications include specialized marine engineers and technicians required for the overhaul, likely employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Lack of transparency in the procurement process due to non-competitive nature.
Potential for cost overruns if unforeseen issues arise, despite fixed-price contract.

Positive Signals

Ensures critical maintenance is performed by a likely specialized provider (Rolls-Royce).
Firm-fixed-price contract provides budget certainty for this specific scope of work.
Supports the operational readiness of a key national security asset (USCGC Stratton).

Sector Analysis

The marine engine and repair sector is highly specialized, with major manufacturers often being the primary providers of maintenance and overhaul services for their own complex equipment. Rolls-Royce Solutions America Inc. is a key player in this niche market, particularly for large marine diesel engines. The market size for such specialized overhauls is difficult to quantify precisely but is tied to the operational fleets of naval, coast guard, and commercial vessels requiring high-performance propulsion systems. This contract fits within the broader defense and maritime industrial base, focusing on sustainment and readiness.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award to a large, specialized provider, it is unlikely to directly benefit small businesses through prime contract opportunities. The focus is on specialized technical services rather than broad procurement where small businesses typically participate.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices. As a sole-source award, the justification for this procurement method would be subject to review. Transparency is limited due to the non-competitive nature. There is no specific mention of an Inspector General (IG) investigation related to this particular award, but the Department of Homeland Security's Office of Inspector General would have jurisdiction over potential fraud, waste, or abuse within the Coast Guard's contracting activities.

Related Government Programs

US Coast Guard Vessel Maintenance Contracts
Marine Propulsion System Overhauls
Department of Homeland Security Ship Repair Contracts
Rolls-Royce Defense Contracts

Risk Flags

Sole-source procurement
Lack of competitive bidding
Specialized equipment maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.2 million to ROLLS-ROYCE SOLUTIONS AMERICA INC. USCGC STRATTON MPDE 24,000 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 $5.2 million.

What is the period of performance?

Start: 2026-03-24. End: 2026-07-02.

What is the specific scope of work included in the 24,000-hour overhaul for the USCGC Stratton's MPDE?

The provided data indicates a '24,000 HOUR OVERHAUL' for the Marine Diesel Engine (MPDE) of the USCGC Stratton. While the exact technical specifications are not detailed in the summary, a 24,000-hour overhaul typically involves extensive maintenance and refurbishment of the engine's core components. This often includes disassembly, inspection, cleaning, repair or replacement of worn parts (such as pistons, liners, bearings, valves), reassembly, testing, and certification. The goal is to restore the engine to optimal performance and reliability, ensuring it meets its designed operational lifespan and safety standards. Given the contractor is Rolls-Royce Solutions America Inc., the overhaul would likely adhere to the manufacturer's specific service bulletins and recommended procedures for their engines.

Why was this contract awarded on a sole-source basis instead of being competed?

The contract was awarded on a sole-source basis because Rolls-Royce Solutions America Inc. is likely the only entity capable of performing the required overhaul due to proprietary knowledge, specialized tooling, unique expertise, or specific certifications related to the Marine Diesel Engines installed on the USCGC Stratton. Major engine manufacturers often maintain exclusive rights or possess the most comprehensive understanding of their own complex systems. The Coast Guard would have had to justify this sole-source procurement, likely citing reasons such as the need for original manufacturer parts, specialized diagnostic equipment, or the unique technical skills held by Rolls-Royce technicians to ensure the integrity and performance of the propulsion system. This ensures the overhaul meets stringent quality and safety standards.

How does the firm-fixed-price contract type benefit the U.S. Coast Guard in this scenario?

A firm-fixed-price (FFP) contract structure benefits the U.S. Coast Guard by providing cost certainty for the defined scope of work. Under an FFP contract, the contractor, Rolls-Royce Solutions America Inc., assumes the primary risk for any cost overruns. This means the total price paid by the Coast Guard will not exceed the agreed-upon $5,227,582.89, provided the scope of work remains unchanged. This is particularly advantageous for specialized maintenance like a major engine overhaul, where unforeseen issues can sometimes arise. It allows the Coast Guard to budget accurately and protects taxpayer funds from unexpected increases in labor or material costs associated with the project.

What is the significance of the USCGC Stratton and its MPDE to Coast Guard operations?

The USCGC Stratton (WMSL-752) is a Legend-class National Security Cutter (NSC), one of the largest and most technologically advanced vessels in the U.S. Coast Guard fleet. These cutters are the backbone of the Coast Guard's offshore presence, designed for extended deployments in harsh environments. The Marine Diesel Engines (MPDE) are critical components for propulsion, enabling the vessel to perform its diverse missions, which include maritime security, drug and migrant interdiction, search and rescue, and fisheries enforcement, often far from shore. Ensuring the MPDE is in optimal condition through regular, comprehensive overhauls like this 24,000-hour service is paramount to maintaining the Stratton's operational readiness and its ability to fulfill these vital national security roles.

Are there any comparable sole-source overhauls for similar vessels within the federal government?

Sole-source overhauls for major propulsion systems on large government vessels, such as Coast Guard cutters or Navy ships, are not uncommon, especially when dealing with proprietary technology from specific manufacturers like Rolls-Royce. Comparable situations often arise for specialized equipment where only the original equipment manufacturer (OEM) or an authorized service provider possesses the necessary technical data, tooling, and certified personnel. While specific contract values vary widely based on vessel class, engine type, and scope of work, the $5.2 million awarded for the USCGC Stratton's MPDE overhaul is consistent with the high costs associated with maintaining complex, high-performance marine propulsion systems on capital assets. The justification for sole-sourcing typically centers on ensuring technical integrity, safety, and performance standards are met.

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: $5,361,333

Exercised Options: $5,361,333

Current Obligation: $5,227,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08526DLREP0003

IDV Type: IDC

Timeline