Vertex Aerospace LLC awarded $73.6M for Depot Level Maintenance, Aircraft Manufacturing services

Contract Overview

Contract Amount: $73,651,690 ($73.7M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2009-05-01

End Date: 2011-09-30

Contract Duration: 882 days

Daily Burn Rate: $83.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: DEPOT LEVEL MAINTENANCE

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $73.7 million to VERTEX AEROSPACE LLC for work described as: DEPOT LEVEL MAINTENANCE Key points: 1. Contract awarded for depot level maintenance, a critical function for aircraft readiness. 2. Services provided under a Time and Materials contract type. 3. The contract duration was 882 days. 4. Awarded by the Department of the Navy, indicating a focus on naval aviation assets. 5. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, suggesting a broad scope of work. 6. The contract was awarded under full and open competition, implying a competitive bidding process.

Value Assessment

Rating: fair

The total award amount of $73.6 million for depot level maintenance over approximately two years appears within a reasonable range for such complex services. However, without specific details on the scope of work, labor hours, and material costs, a precise value-for-money assessment is challenging. Benchmarking against similar depot maintenance contracts for naval aircraft would provide better context for pricing efficiency. The Time and Materials (T&M) contract type can sometimes lead to higher costs if not closely managed, as it reimburses direct labor and material costs plus a fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable vendors were solicited and allowed to bid. The presence of two bids indicates a degree of competition, though the exact number of interested parties and the rigor of the evaluation process are not detailed. A competitive process generally helps in achieving fair market prices and encourages contractors to offer their best value.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices through market forces, ensuring that the government receives the best possible value for its investment in critical aircraft maintenance.

Public Impact

Naval aviation personnel and aircraft benefit from the depot level maintenance ensuring operational readiness. The services delivered contribute to the overall effectiveness and longevity of naval aircraft fleets. The contract's geographic impact is centered in California, a key hub for naval aviation activities. Workforce implications include skilled labor in aircraft manufacturing and maintenance within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
Limited insight into the specific scope of 'depot level maintenance' and 'aircraft manufacturing' makes it hard to fully assess value.
The benchmark of 83505 (likely a dollar value or metric) is not clearly defined, hindering direct comparison.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract addresses a critical need for aircraft maintenance, supporting military readiness.
The contractor, Vertex Aerospace LLC, is established in the aerospace sector.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft maintenance and potentially manufacturing support. The aerospace industry is characterized by high technical barriers to entry, significant R&D investment, and stringent quality requirements. Depot-level maintenance is a specialized segment requiring extensive facilities, skilled labor, and adherence to strict regulatory standards. Comparable spending benchmarks for aircraft maintenance contracts can vary widely based on aircraft type, age, and the complexity of the required services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if pursued by the prime contractor. Further investigation into Vertex Aerospace LLC's subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be embedded in the contract's terms and conditions, including performance standards, delivery schedules, and quality requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Depot Maintenance
Aerospace Manufacturing Services
Naval Aviation Support Contracts
Defense Logistics Agency Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Ambiguity in the scope of 'Depot Level Maintenance' and 'Aircraft Manufacturing' hinders full value assessment.
Limited competition indicated by only two bids, potentially impacting price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.7 million to VERTEX AEROSPACE LLC. DEPOT LEVEL MAINTENANCE

Who is the contractor on this award?

The obligated recipient is VERTEX AEROSPACE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $73.7 million.

What is the period of performance?

Start: 2009-05-01. End: 2011-09-30.

What is the specific breakdown of services included under 'Depot Level Maintenance' and 'Aircraft Manufacturing' for this contract?

The provided data offers limited detail on the specific services encompassed by 'Depot Level Maintenance' and 'Aircraft Manufacturing.' Depot level maintenance typically involves extensive repair, overhaul, and modification of aircraft, often requiring specialized facilities and expertise beyond the capabilities of field-level maintenance. Aircraft manufacturing, in this context, could refer to the production of specific aircraft components, sub-assemblies, or even limited production runs, depending on the contract's scope. Without access to the full contract statement of work (SOW), it is difficult to ascertain the precise nature and extent of these services. This ambiguity makes it challenging to benchmark costs accurately or assess the full value delivered.

How does the awarded amount of $73.6 million compare to historical spending on similar depot maintenance contracts for naval aircraft?

Comparing the $73.6 million award to historical spending requires access to a broader dataset of similar contracts. Factors such as the specific aircraft type (e.g., fighter jets, transport planes, helicopters), their age, the complexity of the required maintenance (e.g., scheduled overhauls, major repairs, upgrades), and the duration of the contract significantly influence costs. For instance, depot maintenance for advanced fighter aircraft is typically more expensive than for older, simpler trainer aircraft. The Time and Materials (T&M) nature of this contract also means the final cost can fluctuate based on actual labor hours and material used. A comprehensive analysis would involve identifying contracts with similar aircraft platforms, service scopes, and contract types awarded over comparable timeframes to establish a relevant benchmark.

What were the key performance indicators (KPIs) and quality standards stipulated in the contract, and how was Vertex Aerospace LLC's performance measured against them?

The provided summary data does not detail the specific Key Performance Indicators (KPIs) or quality standards established for this contract. Typically, depot maintenance contracts include metrics related to turnaround time for repairs, adherence to technical specifications, defect rates, and overall aircraft availability post-maintenance. Performance measurement would likely involve regular reviews by the Department of the Navy's quality assurance representatives and contracting officers. Vertex Aerospace LLC's performance would be evaluated against these contractual requirements, with potential consequences for non-compliance ranging from corrective action requests to financial penalties or impacting future contract awards. Access to performance reports or contract close-out documentation would be necessary for a thorough assessment.

What is Vertex Aerospace LLC's track record with the Department of Defense, particularly in performing depot level maintenance services?

Vertex Aerospace LLC has a history of performing various aviation-related services for the Department of Defense. While this specific contract focuses on depot level maintenance and aircraft manufacturing, the company's broader portfolio often includes aircraft modification, repair, and logistics support. Assessing their track record would involve reviewing past contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past performance issues or disputes, and their experience with similar complex maintenance programs. A positive track record with successful delivery of services on time and within budget for comparable contracts would indicate a lower performance risk for this award.

Given the Time and Materials (T&M) contract type, what measures were in place to control costs and prevent potential overruns?

Time and Materials (T&M) contracts, while offering flexibility, carry inherent risks of cost overruns if not managed stringently. For this contract, the Department of the Navy would have likely implemented several control measures. These could include establishing ceiling prices for labor rates and material costs, requiring detailed timesheets and invoices, implementing robust oversight by contracting officers' representatives (CORs) to monitor labor hours and material usage, and potentially incorporating cost-plus-fixed-fee elements for certain aspects. Regular audits and reviews of the contractor's cost accounting practices would also be crucial. The effectiveness of these measures depends heavily on the diligence of the government oversight team in managing the T&M aspects of the contract.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6893605R0090

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 555 INDUSTRIAL DR S, MADISON, MS, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $73,776,417

Exercised Options: $73,776,417

Current Obligation: $73,651,690

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6893606D0024

IDV Type: IDC

Timeline