16--LRIP AE1107C ENGINE CONTRACT RESTRUCTURE & EXTENSION

This is a notice of intent to negotiate with Rolls Royce Corporation, 2001 South Tibbs Avenue, Indianapolis, IN 46206-0420 on an other than full and open competitive basis to restructure and extend contract N00019-95-C-0209 three years in order to accommodate performance impacts resulting from the V-22 Program's reduced production quantities and suspension of flight operations. The proposed extension does not provide for new work above or beyond what was originally contracted for; its purpose is to provide additional time to fulfill the original contract's requirements. The extended period of performance includes FY04 through FY06 AE1107C engine production and related intermediate and depot level engine repair and spare parts support under Rolls Royce's commercial Power by the Hour (PBTH) maintenance arrangement. The prospective restructure/extension contract modification slows and re-allocates engine production of approximately 165 AE1107C engines over FYs 03-06, thereby extending the original commercial contract and the concurrent PBTH commercial maintenance agreement for three additional years. This requirement will be procured in accordance with FAR Part 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements. Rolls Royce Corporation is the designer, developer and sole producer of the AE1107C engine. NOTE 22 Applicable to this synopsis (Sole Source)