16--LRIP AE1107C ENGINE CONTRACT RESTRUCTURE & EXTENSION
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The contract involves a notice of intent to negotiate exclusively with Rolls Royce Corporation to restructure and extend the existing contract N00019-95-C-0209 by three years. This extension addresses the impacts on performance caused by the V-22 Program’s reduced production quantities and suspension of flight operations, without adding new work beyond the original contract scope. The extended contract period covers fiscal years 2004 through 2006 and includes production of the AE1107C engines as well as intermediate and depot level engine repair and spare parts support, all under Rolls Royce’s commercial Power by the Hour maintenance agreement. The restructure will slow and reallocate the production of approximately 165 AE1107C engines over fiscal years 2003 to 2006, effectively prolonging the contractor’s commitments and the related PBTH maintenance contract by three years. This procurement will be conducted under FAR Part 6.302-1 as a sole source acquisition since Rolls Royce is the exclusive designer, developer, and manufacturer of the AE1107C engine, and no other supplier can meet the agency’s requirements. The Naval Air Systems Command within the Department of Defense is overseeing this effort, with work focused on maintaining the engine support essential to the V-22 program.
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