DoD awards Vertex Aerospace $58.8M for aircraft parts, utilizing full and open competition
Contract Overview
Contract Amount: $58,783,436 ($58.8M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2006-08-18
End Date: 2011-08-25
Contract Duration: 1,833 days
Daily Burn Rate: $32.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $58.8 million to VERTEX AEROSPACE LLC for work described as: Key points: 1. Significant contract value of $58.8 million. 2. Awarded under full and open competition, suggesting market availability. 3. Contract duration of 1833 days indicates a long-term need. 4. Sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.
Value Assessment
Rating: fair
The contract is Time and Materials, which can lead to cost overruns if not managed carefully. The award amount is substantial, but without specific unit cost data, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple bidders to offer their best prices.
Public Impact
Ensures continued availability of critical aircraft parts for the Department of Defense. Supports the aerospace manufacturing sector and associated jobs. Potential for cost savings due to competitive bidding process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can inflate costs.
- Lack of specific unit cost data for benchmarking.
- Long contract duration increases risk of scope creep or obsolescence.
Positive Signals
- Full and open competition promotes competitive pricing.
- Established contract with a defined end date.
- Awarded to a single entity, potentially streamlining management.
Sector Analysis
This contract falls within the aerospace manufacturing sector, specifically focusing on aircraft parts. Spending in this sector is critical for national defense and requires ongoing investment to maintain fleet readiness.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, suggesting established oversight mechanisms. However, the Time and Materials nature requires diligent monitoring to control costs.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Time and Materials contract type.
- Lack of detailed unit cost data.
- Potential for cost overruns.
- Long contract duration.
- Unknown 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 $58.8 million to VERTEX AEROSPACE LLC. See the official description on USAspending.
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 $58.8 million.
What is the period of performance?
Start: 2006-08-18. End: 2011-08-25.
What is the average per-unit cost for the specific aircraft parts being procured under this contract, and how does it compare to industry benchmarks?
Without specific unit cost data for the aircraft parts, a direct comparison to industry benchmarks is not possible. The Time and Materials contract type makes it challenging to isolate unit costs as they are tied to labor hours and material expenses, which can fluctuate. Further investigation into the contract's line item details would be necessary to perform a meaningful unit cost analysis.
What are the primary risks associated with a Time and Materials contract for aircraft parts, and what mitigation strategies are in place?
The primary risk of a Time and Materials contract is the potential for cost escalation due to undefined scope or inefficient labor. Mitigation strategies typically include robust oversight, detailed tracking of labor hours and material costs, clear task definitions, and potentially establishing cost ceilings or fixed-price components for specific deliverables to control overall expenditure.
How effectively does this contract ensure the long-term availability and technological relevance of critical aircraft parts for the DoD?
The contract's long duration (1833 days) suggests an intent to ensure sustained availability. However, its effectiveness in maintaining technological relevance depends on the specific parts procured and the contractor's ability to adapt to evolving requirements or obsolescence issues. Regular reviews and potential contract modifications would be crucial to ensure the parts remain current and functional.
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: 2006-08-18
Current End Date: 2011-08-25
Potential End Date: 2011-08-25 00:00:00
Last Modified: 2011-03-21
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