DOJ's $175M Aviation Support Contract with Vertex Aerospace Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $174,729,673 ($174.7M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Justice

Start Date: 2008-01-01

End Date: 2012-12-31

Contract Duration: 1,826 days

Daily Burn Rate: $95.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TOTAL AVIATION SUPPORT SERVICES

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $174.7 million to VERTEX AEROSPACE LLC for work described as: TOTAL AVIATION SUPPORT SERVICES Key points: 1. The contract awarded to Vertex Aerospace LLC for $174.7 million represents a significant expenditure in aviation support services. 2. Competition details are limited, raising questions about the effectiveness of the 'Full and Open Competition' method used. 3. The Cost Plus Award Fee structure introduces potential for cost overruns and requires robust oversight. 4. The 'Other Airport Operations' category suggests a broad scope, potentially impacting various aspects of aviation support.

Value Assessment

Rating: questionable

The contract's Cost Plus Award Fee structure, coupled with a lack of detailed performance metrics, makes a direct value assessment difficult. Benchmarking against similar aviation support contracts is challenging due to the specific nature of the services provided by Vertex Aerospace.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While advertised as 'Full and Open Competition', the limited information available on the bidding process and the subsequent award to a single entity raises concerns about the true level of competition. This could potentially impact price discovery and lead to suboptimal pricing.

Taxpayer Impact: The substantial value of this contract means that any inefficiencies or lack of competitive pressure could result in millions of taxpayer dollars being spent unnecessarily.

Public Impact

Taxpayers may be overpaying for aviation support services due to potential weaknesses in the competitive bidding process. The broad nature of 'Other Airport Operations' could mean funds are allocated to services not directly related to core law enforcement needs. Lack of transparency in the award and performance monitoring could hinder accountability for the significant federal investment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure
Limited transparency in competition
Broad service category
Long contract duration

Positive Signals

Contract awarded under 'Full and Open Competition'
Vertex Aerospace is a known entity in aviation support

Sector Analysis

The aviation support sector is critical for government operations, encompassing a wide range of services from maintenance to logistics. Spending benchmarks vary widely based on the specific services and scale of operations, but $175 million is a substantial investment for a single contract.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine if opportunities for small business participation were overlooked.

Oversight & Accountability

The Cost Plus Award Fee contract type necessitates rigorous oversight to ensure performance standards are met and costs are managed effectively. The Department of Justice and the Drug Enforcement Administration must actively monitor Vertex Aerospace's performance and expenditures.

Related Government Programs

Other Airport Operations
Department of Justice Contracting
Drug Enforcement Administration Programs

Risk Flags

Potential for overpayment due to Cost Plus Award Fee structure
Lack of clarity on the competitive process
Broad service category may not be cost-optimized
Long contract duration without clear performance reviews
No apparent small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $174.7 million to VERTEX AEROSPACE LLC. TOTAL AVIATION SUPPORT SERVICES

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 $174.7 million.

What is the period of performance?

Start: 2008-01-01. End: 2012-12-31.

What specific metrics were used to determine the 'award fee' for Vertex Aerospace, and how do these align with the DEA's operational needs?

The specific metrics for the award fee are not detailed in the provided data. A thorough review would require access to the contract's performance work statement and the criteria used for evaluating Vertex Aerospace's performance. Understanding these metrics is crucial to assessing whether the award fee truly incentivized efficient and effective service delivery aligned with the DEA's mission.

Given the 'Full and Open Competition' designation, what was the competitive landscape, and why was Vertex Aerospace selected?

The designation of 'Full and Open Competition' suggests multiple bidders were theoretically allowed. However, the limited information necessitates further investigation into the number of proposals received, the evaluation criteria, and the specific reasons Vertex Aerospace was deemed the best value. Understanding the competitive dynamics is key to assessing if the government secured the best possible pricing and service.

How does the $174.7 million expenditure for 'Other Airport Operations' compare to similar contracts for aviation support services within other federal agencies?

Benchmarking this contract against similar 'Other Airport Operations' contracts across federal agencies is essential for a comprehensive value assessment. Without comparative data, it's difficult to ascertain if the pricing is competitive or if potential cost efficiencies have been missed. This comparison would highlight potential areas for cost savings or identify unique aspects of the DEA's requirements.

Industry Classification

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

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: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vertex Aerospace Services Corp. (UEI: 081292432)

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: $174,801,132

Exercised Options: $174,801,132

Current Obligation: $174,729,673

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline