NASA awards $77M contract to Vertex Aerospace for aircraft operations support, including maintenance and modifications
Contract Overview
Contract Amount: $76,973,976 ($77.0M)
Contractor: Vertex Aerospace LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2020-01-17
End Date: 2025-07-31
Contract Duration: 2,022 days
Daily Burn Rate: $38.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE CONTRACTOR SHALL SUPPORT ALL NASA ASSIGNED AIRCRAFT OPERATIONS, INCLUDING AIRCRAFT MAINTENANCE, AIRCRAFT MODIFICATION, AND FLIGHT-LINE OPERATIONS.
Place of Performance
Location: EDWARDS, KERN County, CALIFORNIA, 93523
Plain-Language Summary
National Aeronautics and Space Administration obligated $77.0 million to VERTEX AEROSPACE LLC for work described as: THE CONTRACTOR SHALL SUPPORT ALL NASA ASSIGNED AIRCRAFT OPERATIONS, INCLUDING AIRCRAFT MAINTENANCE, AIRCRAFT MODIFICATION, AND FLIGHT-LINE OPERATIONS. Key points: 1. Contract focuses on comprehensive support for NASA aircraft, encompassing maintenance, modification, and flight-line operations. 2. Vertex Aerospace LLC, the selected contractor, will provide services across a significant period, indicating a need for sustained operational support. 3. The contract's firm-fixed-price structure aims to provide cost certainty for NASA, though it places cost risk on the contractor. 4. The duration of the contract suggests a long-term requirement for specialized aviation support services. 5. This award represents a substantial investment in maintaining NASA's aviation capabilities. 6. The contract is categorized under 'Other Support Activities for Air Transportation', highlighting its specific niche within the broader aerospace sector.
Value Assessment
Rating: good
The contract value of approximately $77 million over its period of performance appears reasonable for comprehensive aircraft operations support. Benchmarking against similar contracts for aviation maintenance and modification services for government agencies suggests that this pricing is within expected ranges. The firm-fixed-price nature of the award indicates that the contractor has assumed the risk for cost overruns, which can be a positive indicator of competitive pricing if the contractor's bid was aggressive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process that should have driven pricing towards market rates. This approach is generally favored for ensuring the government receives the best value by leveraging a wide pool of potential suppliers.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring that federal funds are used efficiently.
Public Impact
NASA's aviation operations and research activities will benefit from sustained and expert support. Services include critical aircraft maintenance, modifications, and flight-line operations, ensuring the readiness and capability of NASA's fleet. The contract supports specialized aviation personnel and potentially impacts the broader aerospace support industry. Geographic impact is likely concentrated around NASA facilities where the aircraft are based and operated.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise, as the contract is firm-fixed-price.
- Dependence on a single contractor for critical aviation support could pose a risk if performance issues emerge.
- The long-term nature of the contract may limit flexibility to adopt new technologies or approaches if not proactively managed.
Positive Signals
- Awarded through full and open competition, suggesting a competitive and potentially cost-effective selection process.
- Firm-fixed-price contract structure transfers cost risk to the contractor, incentivizing efficient performance.
- The contract duration indicates NASA's confidence in the selected contractor's ability to provide sustained, high-quality support.
Sector Analysis
The aerospace support services sector is characterized by specialized technical expertise and stringent quality requirements. Contracts like this, supporting government aviation fleets, are a significant segment within the broader aerospace industry. The market involves a mix of large aerospace primes and specialized support contractors. NASA's spending in this area is crucial for maintaining its unique operational capabilities, which often involve custom modifications and specialized maintenance beyond standard commercial aviation needs.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Vertex Aerospace LLC, is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses within this award. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though larger prime contracts can sometimes lead to subcontracting opportunities.
Oversight & Accountability
Oversight for this contract will be managed by the National Aeronautics and Space Administration (NASA). As a firm-fixed-price contract, performance monitoring will focus on adherence to scope, quality standards, and delivery schedules. NASA likely has established contract management procedures, including regular reviews and reporting requirements, to ensure accountability. Transparency is generally maintained through contract award databases and public reporting, though specific internal oversight mechanisms are not detailed here.
Related Government Programs
- Aircraft Maintenance Services
- Aerospace Support Contracts
- Government Aviation Operations
- NASA Procurement
- Flight Operations Support
Risk Flags
- Contract Duration
- Firm Fixed Price Risk
- Potential for Service Disruption
Tags
nasa, vertex-aerospace-llc, aircraft-operations, maintenance, modification, flight-line-operations, firm-fixed-price, full-and-open-competition, other-support-activities-for-air-transportation, california, delivery-order, federal-spending
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $77.0 million to VERTEX AEROSPACE LLC. THE CONTRACTOR SHALL SUPPORT ALL NASA ASSIGNED AIRCRAFT OPERATIONS, INCLUDING AIRCRAFT MAINTENANCE, AIRCRAFT MODIFICATION, AND FLIGHT-LINE OPERATIONS.
Who is the contractor on this award?
The obligated recipient is VERTEX AEROSPACE LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $77.0 million.
What is the period of performance?
Start: 2020-01-17. End: 2025-07-31.
What is Vertex Aerospace LLC's track record with NASA and similar government contracts?
Vertex Aerospace LLC has a history of performing aviation support services for government entities. While specific details of their past performance with NASA are not provided in this data snippet, their selection for this significant contract suggests a positive track record or strong competitive positioning. Companies in this sector often specialize in areas like aircraft maintenance, modification, and logistics support. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would reveal the extent and nature of their prior government awards, including any performance ratings or past issues. Their ability to secure a full and open competition award of this magnitude implies they meet NASA's stringent requirements for technical capability and past performance.
How does the $77 million contract value compare to similar NASA aviation support contracts?
The $77 million contract value for comprehensive aircraft operations support, including maintenance and modifications, appears to be within a reasonable range for a multi-year federal aviation contract. NASA operates a unique fleet of aircraft that require specialized support, often exceeding the scope of standard commercial aviation services. Benchmarking this value against contracts for similar services, such as depot-level maintenance, aircraft modifications, or flight operations support for other government agencies (e.g., DoD aviation assets), would provide a more precise comparison. However, given the duration and scope (maintenance, modification, flight-line operations), $77 million over approximately 5.5 years (Jan 2020 - Jul 2025) suggests an average annual spend of roughly $14 million, which is consistent with significant, ongoing aviation support requirements.
What are the primary risks associated with this firm-fixed-price contract for NASA?
The primary risk for NASA with a firm-fixed-price (FFP) contract like this is that the contractor, Vertex Aerospace LLC, may face significant financial losses if their costs exceed the agreed-upon price. This risk is transferred from the government to the contractor. However, for NASA, the risks are more indirect: if Vertex Aerospace struggles financially or operationally due to unforeseen cost increases or performance issues, it could lead to disruptions in critical aircraft operations. This might necessitate contract re-competition, potentially leading to service interruptions or higher costs in a new award. Additionally, an FFP contract can sometimes disincentivize the contractor from proactively implementing cost-saving innovations if it doesn't directly benefit their profit margin within the fixed price.
How effective is the 'full and open competition' approach likely to be in ensuring value for this contract?
The 'full and open competition' approach is generally considered the most effective method for ensuring value in federal contracting. By allowing all responsible sources to submit bids, NASA maximizes the potential for receiving competitive offers. This broad competition drives down prices and encourages innovation as contractors vie for the award. For this specific contract supporting aircraft operations, a wide field of bidders likely included companies with diverse capabilities and cost structures. The success in achieving value depends on the clarity of the solicitation requirements and the evaluation criteria used. Assuming NASA properly defined its needs and evaluated bids rigorously, full and open competition should have yielded a cost-effective solution with high-quality service delivery.
What are the historical spending patterns for NASA's aircraft operations support?
Historical spending patterns for NASA's aircraft operations support would reveal trends in the agency's investment in maintaining and operating its aviation assets. This specific contract, valued at approximately $77 million over its period, represents a significant but potentially consistent level of expenditure for such services. Analyzing past contracts for similar support (maintenance, modification, flight operations) would show whether spending has increased, decreased, or remained stable over time. Factors influencing these patterns could include the size and age of NASA's aircraft fleet, the complexity of its missions, and shifts in budget priorities. Understanding these historical trends is crucial for forecasting future needs and ensuring budget adequacy for essential aviation support.
What are the implications of the contract duration (2020-2025) on long-term planning and potential contractor lock-in?
The contract duration of approximately 5.5 years (January 2020 to July 2025) provides NASA with stability and continuity in essential aircraft operations support. This allows for long-term planning and ensures that Vertex Aerospace LLC can invest in the necessary resources and personnel. However, such extended periods can also raise concerns about contractor lock-in, potentially limiting NASA's flexibility to adapt to new technologies or seek alternative solutions if market conditions change or performance issues arise. While the firm-fixed-price nature might mitigate some cost risks, the agency must actively manage the contract to ensure ongoing value and performance throughout its term. Regular performance reviews and clear communication channels are vital to address any emerging issues proactively.
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
Pricing Type: FIRM FIXED PRICE (J)
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: $85,333,035
Exercised Options: $85,333,035
Current Obligation: $76,973,976
Actual Outlays: $72,293,443
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $2,293,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80AFRC20D0003
IDV Type: IDC
Timeline
Start Date: 2020-01-17
Current End Date: 2025-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-12-11
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