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Navy Awards $385M in Contracts to Rolls-Royce, GE for KC-130J Aircraft System Engineering, Logistics Services

The U.S. Navy has awarded approximately $385.3 million in two indefinite-delivery/indefinite-quantity contracts for engineering and logistics services in support of KC-130J aerial refueling aircraft systems.

Rolls-Royce will sustain and support the tanker’s propulsion system under a $228.1 million firm-fixed-price contract while General Electric‘s aerospace business (NYSE: GE) will work on the KC-130J R391 propeller platform under a $157.2 million IDIQ, the Department of Defense said Tuesday.

The KC-130J is a Lockheed Martin-made (NYSE: LMT) aerial refueling tanker deployed by the Navy, Marine Corps and other foreign military sales customers to support global operations of tactical and tiltrotor aircraft and helicopters.

Rolls-Royce will conduct nearly 93 percent of propulsion sustainment activities at its Indianapolis, Indiana site while the remaining efforts will be done in other U.S. locations as well as in Japan and Kuwait. Services are expected to wrap up by November 2027.

GE Aviation Systems, on the other hand, will perform propeller system support work in Sterling, Virginia, and other domestic and international locations through November 2026.

The Naval Air Systems Command will obligate funds per issuance of individual orders on the noncompetitive contract awards.

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