DoD awards $78.8M for aircraft structural component repair, with competition impacting price
Contract Overview
Contract Amount: $25,043,415 ($25.0M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2005-10-06
End Date: 2011-03-01
Contract Duration: 1,972 days
Daily Burn Rate: $12.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200606!000367!5700!FA8108!OC-ALC/LAD CFT !F3460197D0425 !A!N! !N!0279 ! !20051006!20070930!788547347!091441089!008898843!N!L-3 COMMUNICATIONS VERTEX AER!8001 MID AMERICA BLVD STE !OKLAHOMA CITY !OK!73135!86660!057!39!WRIGHT PATTERSON AFB!GREENE !OHIO !+000018905000!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336413!E! !5!B!M! !A! !99990909!B! ! !A! !A!U!Y!2!004!B! !C!Y!Z! ! !N!C!N! ! ! !C!A!A!A!000!A!C!N! ! ! ! !2100! !0001! !
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $25.0 million to VERTEX AEROSPACE LLC for work described as: 200606!000367!5700!FA8108!OC-ALC/LAD CFT !F3460197D0425 !A!N! !N!0279 ! !20051006!20070930!788547347!091441089!008898843!N!L-3 COMMUNICATIONS VERTEX AER!8001 MID AMERICA BLVD STE !OKLAHOMA CITY !OK!73135!86660!057!39!WRIGHT PATTERSON AFB!GREE… Key points: 1. Contract awarded to Vertex Aerospace LLC for $78.8 million. 2. Focuses on maintenance and repair of aircraft structural components. 3. Full and open competition was utilized. 4. The contract duration is 1972 days, ending in 2011.
Value Assessment
Rating: good
The contract value of $78.8 million for aircraft structural component repair appears reasonable given the 1972-day duration. Benchmarking against similar contracts for complex aerospace maintenance is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of Time and Materials pricing, however, can introduce cost uncertainty if not carefully managed.
Taxpayer Impact: Full and open competition is expected to yield a fair price for taxpayers, but the Time and Materials structure warrants monitoring to control overall expenditure.
Public Impact
Ensures continued operational readiness for critical aircraft structural components. Supports the aerospace manufacturing and repair sector. Provides employment opportunities within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure can lead to cost overruns if not managed effectively.
- Contract duration is long, increasing the potential for scope creep or unforeseen issues.
Positive Signals
- Full and open competition utilized, promoting a competitive environment.
- Awarded to a single vendor, potentially streamlining management.
Sector Analysis
This contract falls within the Defense sector, specifically related to aircraft parts and maintenance. Spending in this area is crucial for maintaining military readiness and supporting the aerospace industrial base.
Small Business Impact
While the primary awardee is Vertex Aerospace LLC, the contract's full and open competition nature may have allowed for subcontracts to small businesses, though this is not explicitly detailed.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, indicating standard oversight procedures. The long duration necessitates ongoing monitoring to ensure performance and cost control.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Long contract duration increases risk of scope creep and performance degradation.
- Dependence on a single vendor for critical repair services.
- Lack of explicit detail on small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ok, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.0 million to VERTEX AEROSPACE LLC. 200606!000367!5700!FA8108!OC-ALC/LAD CFT !F3460197D0425 !A!N! !N!0279 ! !20051006!20070930!788547347!091441089!008898843!N!L-3 COMMUNICATIONS VERTEX AER!8001 MID AMERICA BLVD STE !OKLAHOMA CITY !OK!73135!86660!057!39!WRIGHT PATTERSON AFB!GREENE !OHIO !+000018905000!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336413!E! !5!B!M! !A! !999
Who is the contractor on this award?
The obligated recipient is VERTEX AEROSPACE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $25.0 million.
What is the period of performance?
Start: 2005-10-06. End: 2011-03-01.
What was the total cost savings achieved through the full and open competition process compared to a sole-source or limited competition scenario for this contract?
Quantifying exact savings from competition is challenging without a baseline comparison. However, full and open competition generally drives down prices by allowing multiple qualified vendors to bid, fostering a more cost-effective environment. This process likely resulted in a more competitive bid from Vertex Aerospace than would have been achieved otherwise, benefiting taxpayers.
What specific risks were identified and mitigated regarding the Time and Materials (T&M) pricing structure over the contract's nearly five-year duration?
T&M contracts carry inherent risks of cost escalation. Mitigation strategies likely included establishing clear labor categories, setting ceiling prices, requiring detailed cost reporting, and implementing robust oversight by the contracting officer's representative. Regular reviews of hours and materials billed would be crucial to prevent overcharging and ensure fair value.
How effectively did Vertex Aerospace maintain the structural integrity and airworthiness of the aircraft components under this contract, and what metrics were used to assess this?
Effectiveness would be measured through performance metrics such as on-time delivery, defect rates, adherence to technical specifications, and successful component testing post-repair. The Defense Contract Management Agency (DCMA) would likely conduct quality assurance inspections and audits to ensure compliance with stringent aerospace standards and maintain airworthiness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment 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
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 8001 MID AMERICA BLVD STE 500, OKLAHOMA CITY, OK, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3460197D0425
IDV Type: IDC
Timeline
Start Date: 2005-10-06
Current End Date: 2011-03-01
Potential End Date: 2011-03-01 00:00:00
Last Modified: 2011-03-21
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