DoD Awards $200M Sole Source Contract for 240+ Namer Armored Personnel Carrier Power Packs
Contract Overview
Contract Amount: $200,539,963 ($200.5M)
Contractor: Rolls-Royce Solutions America Inc
Awarding Agency: Department of Defense
Start Date: 2021-09-17
End Date: 2026-12-31
Contract Duration: 1,931 days
Daily Burn Rate: $103.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NEW SOLE SOURCE CONTRACT TO RRSA TO ACQUIRE UP TO TWO HUNDRED FORTY (240) FULLY ASSEMBLED (FULL) NAMER ARMORED PERSONNEL CARRIER (APC) NAMER POWER PACKS LESS TRANSMISSIONS (NPPLT), UP TO THIRTY (30) PARTIALLY ASSEMBLED (LITE) NPPLT,
Place of Performance
Location: NOVI, OAKLAND County, MICHIGAN, 48377
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $200.5 million to ROLLS-ROYCE SOLUTIONS AMERICA INC for work described as: NEW SOLE SOURCE CONTRACT TO RRSA TO ACQUIRE UP TO TWO HUNDRED FORTY (240) FULLY ASSEMBLED (FULL) NAMER ARMORED PERSONNEL CARRIER (APC) NAMER POWER PACKS LESS TRANSMISSIONS (NPPLT), UP TO THIRTY (30) PARTIALLY ASSEMBLED (LITE) NPPLT, Key points: 1. Significant investment in specialized vehicle components for the Army. 2. Sole-source award to Rolls-Royce Solutions America Inc. raises competition concerns. 3. High value contract with potential for long-term sustainment needs. 4. Focus on critical defense hardware, impacting armored vehicle readiness.
Value Assessment
Rating: questionable
The contract value of $200.5 million for power packs is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or previous procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.
Public Impact
Enhances armored personnel carrier capabilities for the U.S. Army. Supports critical defense manufacturing and supply chains. Potential for extended deployment and operational readiness of armored units. Sole-source award may limit broader industry participation and innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of publicly available cost breakdowns hinders value assessment.
- Long contract duration (over 5 years) increases risk of cost overruns.
- No indication of small business participation.
Positive Signals
- Acquires critical, specialized defense components.
- Supports a key defense contractor and manufacturing base.
- Addresses a specific, identified need for armored vehicle power packs.
Sector Analysis
This contract falls under the 'Other Motor Vehicle Parts Manufacturing' sector, specifically for defense applications. Benchmarking is difficult without competitive data, but large sole-source defense contracts often carry premium pricing.
Small Business Impact
The data indicates that small business participation was not a factor in this award ('sb': false). There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. Transparency regarding the justification for the sole-source award and cost justification is crucial.
Related Government Programs
- Other Motor Vehicle Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Limited transparency on pricing justification
- No small business participation noted
- Long contract duration
Tags
other-motor-vehicle-parts-manufacturing, department-of-defense, mi, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $200.5 million to ROLLS-ROYCE SOLUTIONS AMERICA INC. NEW SOLE SOURCE CONTRACT TO RRSA TO ACQUIRE UP TO TWO HUNDRED FORTY (240) FULLY ASSEMBLED (FULL) NAMER ARMORED PERSONNEL CARRIER (APC) NAMER POWER PACKS LESS TRANSMISSIONS (NPPLT), UP TO THIRTY (30) PARTIALLY ASSEMBLED (LITE) NPPLT,
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 Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $200.5 million.
What is the period of performance?
Start: 2021-09-17. End: 2026-12-31.
What is the justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of adequate competition. Without detailed documentation, it's presumed the DoD has determined Rolls-Royce Solutions America Inc. is the only source capable of meeting the requirement. Price reasonableness is usually assessed through cost analysis, comparison to similar items, or historical pricing, but the specifics are not publicly available here.
What are the potential risks associated with a sole-source award of this magnitude, particularly concerning long-term sustainment and technological obsolescence?
Sole-source awards carry risks of inflated pricing due to lack of competition and potential vendor lock-in. For long-term sustainment, the government is dependent on a single provider, which can limit negotiation leverage and increase costs. Technological obsolescence is also a risk if the sole provider does not invest in upgrades or if alternative technologies emerge that are not accessible due to the sole-source arrangement.
How does this procurement contribute to the overall effectiveness and readiness of the U.S. Army's armored personnel carrier fleet?
This contract directly addresses the need for power packs for Namer Armored Personnel Carriers, which are crucial components for vehicle operation. By securing a significant quantity of these power packs, the Army aims to ensure the operational readiness and sustainment of its fleet, enabling effective deployment and mission accomplishment.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Parts Manufacturing › Other Motor Vehicle Parts Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV20R0253
Offers Received: 1
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: $200,539,963
Exercised Options: $200,539,963
Current Obligation: $200,539,963
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2021-09-17
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 12:12:00
Last Modified: 2025-10-30
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