DOJ's DEA Spends $37.5M on Aviation Support Services Bridge Contract with Vertex Aerospace

Contract Overview

Contract Amount: $37,519,164 ($37.5M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Justice

Start Date: 2018-07-01

End Date: 2019-06-30

Contract Duration: 364 days

Daily Burn Rate: $103.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TOTAL AVIATION SUPPORT SERVICES - BRIDGE

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Justice obligated $37.5 million to VERTEX AEROSPACE LLC for work described as: TOTAL AVIATION SUPPORT SERVICES - BRIDGE Key points: 1. The contract, valued at $37.5 million, was awarded to Vertex Aerospace LLC. 2. This was a sole-source award, indicating limited competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is related to aircraft manufacturing and aviation support.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation. Without competitive benchmarking, assessing the value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, suggesting a lack of market research or a specific justification for a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive bidding process.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. The DEA's operational capabilities could be impacted if aviation support is not cost-effectively procured. Reliance on a single vendor for critical support services poses a risk to continuity of operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition

Positive Signals

Contract awarded to a specific vendor

Sector Analysis

This contract falls within the aviation support services sector, which is crucial for government agencies like the DEA. Spending benchmarks for similar services can vary widely based on scope and duration, but competitive procurement is key to achieving fair pricing.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting missed opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure proper justification and that taxpayer funds were used efficiently. Further review of the procurement process is recommended.

Related Government Programs

Aircraft Manufacturing
Department of Justice Contracting
Drug Enforcement Administration Programs

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition
Potential for cost overruns
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $37.5 million to VERTEX AEROSPACE LLC. TOTAL AVIATION SUPPORT SERVICES - BRIDGE

Who is the contractor on this award?

The obligated recipient is VERTEX AEROSPACE LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $37.5 million.

What is the period of performance?

Start: 2018-07-01. End: 2019-06-30.

What was the justification for awarding this contract on a sole-source basis instead of competing it?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services, or in cases of urgent need. Without this information, it's impossible to fully assess the necessity and fairness of the procurement.

What are the potential cost risks associated with a Cost Plus Fixed Fee contract for aviation support?

Cost Plus Fixed Fee (CPFF) contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. This structure can incentivize contractors to incur costs, as their fee remains constant regardless of the total cost. For aviation support, this could lead to higher overall expenditures if cost controls are not rigorously monitored by the agency.

How does the lack of competition impact the overall effectiveness and value for money for the DEA?

The absence of competition limits the DEA's ability to secure the best possible pricing and service terms. A competitive process would likely drive down costs and encourage innovation from multiple vendors. This sole-source award may mean the DEA is not receiving optimal value for its investment in aviation support services.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15DDHQ18R00000014

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 555 INDUSTRIAL DR S, MADISON, MS, 39110

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,042,066

Exercised Options: $40,042,066

Current Obligation: $37,519,164

Actual Outlays: $272,918

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline