$ervice’s Bottom Line: The T56 Engine Example, 2013 – 2019
There’s a lot of focus on the latest programs and purchases. It’s certainly justified given the sums at stake, but it can lead casual observers to ignore a major source of funding and profits: service and support for existing equipment.
In September 2013, Rolls-Royce Corp. in Indianapolis, IN received a 6-year, maximum $406 million fixed-price contract to support the T56 turboprop engines that equip many US military C-130 Hercules transports, as well as Navy P-3C Orion sea control planes, EP-3 Aries ELINT planes, E-2C Hawkeye AWACS aircraft, and related C-2 Greyhound carrier cargo planes. Some of those planes have served for well over 30 years. In this case, C-130B/E/H operators Poland, Jordan, and the Philippines are also part of the contract.
This contract was a sole-source acquisition, with an economic-price-adjustment clause to cover any sharp jumps in costs for raw materials. Work will be performed in Indiana until Sept 30/19, the end of FY 2019. The Defense Logistics Agency Aviation in Richmond, VA manages this contract (SPE4A2-13-D-0003).