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Pentagon issues 90-day stop-work order on GE-Rolls engine

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The U.S. Defense Department on Thursday directed General Electric Co. and Rolls-Royce Group Plc to halt work on a second engine for the F-35 Joint Strike Fighter until there is more explicit direction in the fiscal 2012 budget.

About 2,500 jobs—including hundreds in Indiana—are tied to the engine's development. If GE and Rolls-Royce reach their projected peak production, that figure could increase to as many as 4,300 jobs, according to Rick Kennedy a spokesman for GE Aviation.

The Pentagon in a statement said the stop-work order applied immediately for 90-days, halting the expenditure of $1 million a day for an engine the military has said consistently since fiscal 2007 it does not want. The order doesn’t terminate the program, however, the Pentagon said.

Stopping the expenditure is “now the correct course” of action, the Pentagon said. The stop-work orders stays in place “pending final resolution” by Congress of the program’s future, the Pentagon said in a short statement.

There is no money for the alternative engine in any of the various pending legislation to fund operations this fiscal year.

The House voted last month to strip $450 million for the second engine from the fiscal 2011 Pentagon spending bill, which Congress has not yet passed.

More than half of the new Republicans in the U.S. House of Representatives joined in the 233-198 vote to kill funding

If the program is not funded, the decision could have a big impact on the Indianapolis operations of Rolls-Royce, which is the city’s second-largest manufacturer behind Eli Lilly and Co., with about 4,300 employees. Company officials estimated the engine program could have supported hundreds of jobs in Indiana.

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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