DoD awards Vertex Aerospace $531M for aircraft parts under full and open competition
Contract Overview
Contract Amount: $531,386,502 ($531.4M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 1999-12-08
End Date: 2009-11-30
Contract Duration: 3,645 days
Daily Burn Rate: $145.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $531.4 million to VERTEX AEROSPACE LLC for work described as: Key points: 1. Significant contract value of $531M awarded to Vertex Aerospace. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans nearly 10 years, indicating a long-term need. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests predictable costs. Benchmarking against similar long-term aircraft parts contracts would be necessary for a definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which typically drives competitive pricing and ensures the government receives the best value. The extensive duration suggests multiple price adjustments or renewals may have occurred.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure favorable pricing over the contract's lifespan.
Public Impact
Ensures continued supply of critical aircraft parts for the Department of Defense. Supports jobs within the aerospace manufacturing sector. Long-term contract provides stability for the awarded vendor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is exceptionally long (nearly 10 years).
- No specific small business set-aside mentioned.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the aerospace manufacturing sector, specifically for aircraft parts. Spending in this area is critical for defense readiness and can be subject to fluctuations based on military needs and technological advancements.
Small Business Impact
The data indicates this was not a small business set-aside. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, implying standard oversight. The long duration warrants ongoing monitoring for performance and cost control.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration may mask potential cost overruns or inefficiencies.
- Lack of specific small business participation noted.
- No clear indication of performance metrics or quality assurance details.
- Potential for price escalation if contract allowed for adjustments.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ms, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $531.4 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 $531.4 million.
What is the period of performance?
Start: 1999-12-08. End: 2009-11-30.
What was the average annual spending under this contract?
With a total award of $531,386,501.59 over approximately 3645 days (nearly 10 years), the average annual spending would be roughly $53.1 million. This provides a clearer picture of the consistent investment in these aircraft parts.
Were there any performance issues or contract modifications during its 10-year span?
Given the contract's extensive duration from 1999 to 2009, it is highly probable that modifications occurred to adjust for scope, pricing, or technical requirements. A review of contract modification history would reveal any performance-related changes or disputes.
How did the final price compare to initial projections or bids?
As a firm fixed price contract awarded under full and open competition, the expectation is that the final price reflects the agreed-upon terms from the competitive bidding process. However, without access to the bid data and any subsequent modifications, a direct comparison is not possible.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 555 INDUSTRIAL DR S, MADISON, MS, 39110
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 1999-12-08
Current End Date: 2009-11-30
Potential End Date: 2009-11-30 00:00:00
Last Modified: 2016-03-23
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