Innovative In-Service Support Contract to Safeguard Customer Requirements

Company: Europrop International (EPI) is a consortium of the four largest European engine manufacturers: MTU Aero Engines, Safran Aircraft Engines, Rolls-Royce, and Industria de Turbo Propulsores sited in Madrid, Spain

Situation: The military procurement agency OCCAR for the Airbus A400 has commissioned technical support for the TP400 turboprop engines to EPI. During the negotiation process, there were heavy disagreements regarding performance and costs.

Objective: Rapid agreement on a maintenance and in-service support contract to ensure a successful start of the In-Servie Phase of the engines.

Measures:

  • On-site leadership of working groups at EPI in Madrid, Spain.
  • Clarification of various maintenance and service contract philosophies.
  • Analysis of the pros and cons, both financially and technically, for “time and material” and “Flight Hour Agreement.”
  • Multistep approach:
    • Resolution within the 4-national consortium.
    • Coordination with Airbus Military based in Spain and France.
    • Negotiation with the procurement agency.

Result: The goal of an In-Service Support contract was achieved. Synergies between two fundamentally different contract structures were leveraged to combine their respective advantages.

  • Timeframe for the utilization of the first engine commissioning was met.
  • Customer’s cost targets were achieved on a higher level.
  • Economic viability of the consortium was secured.