FBI awards $5.5M aviation mechanic support contract to Vertex Aerospace LLC for Mississippi operations

Contract Overview

Contract Amount: $5,516,103 ($5.5M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Justice

Start Date: 2025-02-20

End Date: 2027-03-19

Contract Duration: 757 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: AVIATION MECHANIC SUPPORT SERVICES (AMSS) TASK ORDER 0001

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Justice obligated $5.5 million to VERTEX AEROSPACE LLC for work described as: AVIATION MECHANIC SUPPORT SERVICES (AMSS) TASK ORDER 0001 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The duration of 757 days indicates a medium-term need for these specialized services. 4. The North American Industry Classification System (NAICS) code 488190 points to support activities for air transportation. 5. The contract is a delivery order under a larger agreement, implying it's part of an existing framework. 6. The small business set-aside flag is false, meaning it was not specifically reserved for small businesses.

Value Assessment

Rating: good

The contract value of approximately $5.5 million over 757 days translates to roughly $7,287 per day. Benchmarking this against similar aviation mechanic support contracts is challenging without more specific service details. However, the fixed fee component suggests that Vertex Aerospace's profit margin is capped, which can be a positive indicator for value if the base costs are managed effectively. The FBI's use of full and open competition also suggests an effort to secure competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovation as contractors vie for the award. The FBI's choice of this procurement method suggests a desire to obtain the best value through market forces.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more favorable pricing and a wider selection of qualified contractors, ensuring that federal funds are used efficiently.

Public Impact

The Federal Bureau of Investigation (FBI) will benefit from enhanced aviation mechanic support services. These services are crucial for maintaining the operational readiness of the FBI's aviation assets. The contract's geographic impact is focused on Mississippi, where the services will be performed. The contract supports specialized aviation maintenance jobs, contributing to the skilled workforce in the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
Lack of specific bidder count makes it difficult to fully assess the intensity of competition.
The raw dollar amount, while significant, needs context within the FBI's overall aviation maintenance budget.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The fixed fee component can provide cost predictability once established.
The contract is a delivery order, suggesting it leverages an existing, potentially pre-vetted, contractual framework.

Sector Analysis

The aviation support services sector is a critical component of the broader aerospace industry, encompassing maintenance, repair, and overhaul (MRO) operations. This contract falls under the 'Other Support Activities for Air Transportation' NAICS code, which includes services like aircraft engine repair and maintenance. The federal government, particularly agencies with aviation fleets like the FBI, represents a significant customer base for these specialized services. Spending in this sector is often driven by the need to maintain aging fleets and ensure operational readiness, with contracts varying widely in scope and value.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that both large and small businesses were eligible to compete, and the award was made based on the best value proposition. While there is no direct small business set-aside, the prime contractor, Vertex Aerospace LLC, may engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their subcontracting plan and the nature of the services required.

Oversight & Accountability

Oversight for this contract will primarily reside with the Federal Bureau of Investigation (FBI), the contracting agency. As a Cost Plus Fixed Fee contract, the FBI will need to monitor Vertex Aerospace LLC's costs closely to ensure they are reasonable and allowable. The contract's performance will likely be managed through regular progress reports, site inspections, and adherence to defined service level agreements. Transparency is facilitated by the contract's public award notice, though detailed cost breakdowns are typically proprietary.

Related Government Programs

Federal Aviation Administration (FAA) Maintenance Contracts
Department of Defense Aviation Maintenance Services
Homeland Security Aviation Support Contracts
General Services Administration (GSA) Fleet Maintenance

Risk Flags

Cost Plus Fixed Fee contract requires robust oversight to manage costs.
Potential for cost overruns if contractor performance is not closely monitored.
Dependence on a single contractor for critical aviation support services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5.5 million to VERTEX AEROSPACE LLC. AVIATION MECHANIC SUPPORT SERVICES (AMSS) TASK ORDER 0001

Who is the contractor on this award?

The obligated recipient is VERTEX AEROSPACE LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2025-02-20. End: 2027-03-19.

What is Vertex Aerospace LLC's track record with federal aviation contracts?

Vertex Aerospace LLC has a history of securing federal contracts, particularly within the aviation maintenance and support sector. While specific details on past performance for the FBI are not provided in this data snippet, the company's general profile suggests experience in supporting government aviation needs. A deeper dive into contract databases like SAM.gov or FPDS would reveal the full scope of their federal awards, including performance ratings, past issues, and the types of aircraft and services they have supported. This information is crucial for assessing their reliability and capability in fulfilling the current FBI contract effectively.

How does the daily cost of this contract compare to industry benchmarks?

The daily cost for this contract is approximately $7,287 ($5,516,102.87 / 757 days). Benchmarking this figure requires detailed knowledge of the specific aviation mechanic support services being provided, including the types of aircraft, complexity of maintenance, labor rates, and overhead. General aviation MRO (Maintenance, Repair, and Overhaul) rates can vary significantly. For highly specialized or complex aircraft maintenance, this daily rate might be within a reasonable range. However, without a precise breakdown of services and comparison to similar government contracts for comparable aircraft, it is difficult to definitively assess if this represents excellent, fair, or questionable value for money.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for aviation support?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their allowable costs are reimbursed. While the fixed fee provides a profit ceiling, the government bears the risk of cost overruns if not managed diligently. For aviation support, this could manifest as inflated labor hours, unnecessary parts procurement, or extended repair times. Effective oversight by the FBI is critical to mitigate these risks, requiring rigorous review of all incurred costs, justification for expenses, and monitoring of project timelines to ensure efficiency and prevent cost creep beyond the anticipated scope.

How does the 'Other Support Activities for Air Transportation' NAICS code typically translate into services for an agency like the FBI?

The NAICS code 488190, 'Other Support Activities for Air Transportation,' encompasses a range of services beyond basic flight operations. For an agency like the FBI, this typically includes essential maintenance, repair, and overhaul (MRO) services for their aviation fleet. This can involve everything from routine inspections and preventative maintenance to unscheduled repairs, component replacements, and specialized servicing of aircraft engines, avionics, and airframes. The FBI relies on these services to ensure the airworthiness and operational readiness of their aircraft, which are critical for law enforcement, surveillance, and special operations missions.

What is the significance of this contract being a 'Delivery Order'?

The designation of this award as a 'Delivery Order' (aw: DELIVERY ORDER) signifies that it is a task order issued under a previously awarded indefinite-delivery, indefinite-quantity (IDIQ) or other type of basic contract. This implies that the foundational contract terms, including pricing structures, general scope of work, and contractor qualifications, were established earlier, likely through a separate competitive process. Issuing a delivery order allows the agency (FBI) to procure specific goods or services as needed, up to a certain ceiling, without conducting a new full-scale competition for each individual requirement. This can streamline procurement and provide flexibility.

What does the absence of a small business set-aside imply for the competitive landscape?

The absence of a small business set-aside (ss: false, sb: false) means that the contract was open to competition from businesses of all sizes. This typically occurs when the agency determines that either there are not enough small businesses capable of performing the work, or that full and open competition among all businesses is likely to yield better value. For small businesses, it means they had to compete directly with larger, potentially more resource-rich companies. For the government, it opens the pool of potential contractors, which can enhance competition, but it also means that the specific goals of promoting small business participation might not be directly addressed through this particular award mechanism.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

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: 15F06724R0000230

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: $15,866,423

Exercised Options: $8,413,330

Current Obligation: $5,516,103

Actual Outlays: $2,560,367

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $101,624

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15F06725D0000191

IDV Type: IDC

Timeline