DoD awards Vertex Aerospace $263.5M for Air Transportation Support, a firm-fixed-price contract
Contract Overview
Contract Amount: $263,545,031 ($263.5M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2000-02-10
End Date: 2016-09-30
Contract Duration: 6,077 days
Daily Burn Rate: $43.4K/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 $263.5 million to VERTEX AEROSPACE LLC for work described as: Key points: 1. Significant contract value of $263.5 million awarded. 2. Competition was full and open, suggesting market engagement. 3. Risk appears moderate given firm-fixed-price structure. 4. Sector is Other Support Activities for Air Transportation.
Value Assessment
Rating: good
The contract value of $263.5 million for 6077 days of service suggests a substantial, long-term engagement. Benchmarking against similar large-scale air transportation support contracts would be necessary for a precise assessment, but the duration and value indicate a significant commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the most competitive pricing and best overall value for the services rendered.
Public Impact
Taxpayers benefit from competitive bidding processes for large defense contracts. Ensures availability of critical air transportation support services for the DoD. Supports economic activity through a major contract award to Vertex Aerospace.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is extensive (6077 days).
- No specific mention of small business participation.
- PSC code is missing, hindering detailed analysis.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract type limits cost overrun risk.
- Long-term contract provides service stability.
Sector Analysis
This contract falls under 'Other Support Activities for Air Transportation,' a critical segment within the defense sector. Spending in this area is often substantial, driven by the operational needs of military aviation. Benchmarks would typically compare contract values against the total DoD budget allocated for aviation logistics and support.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses as part of this large award.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Oversight would focus on adherence to the firm-fixed-price terms and delivery schedules.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Extensive contract duration.
- Lack of small business participation noted.
- Missing Product/Service Code (PSC) hinders detailed analysis.
- Potential for higher initial bid due to FFP structure.
Tags
other-support-activities-for-air-transpo, department-of-defense, ms, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $263.5 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 $263.5 million.
What is the period of performance?
Start: 2000-02-10. End: 2016-09-30.
What specific air transportation support services were included in this contract?
The provided data categorizes the contract under 'Other Support Activities for Air Transportation' but does not detail the specific services. These could range from aircraft maintenance and repair, logistics support, ground handling, air traffic control services, or specialized operational support, depending on the DoD's requirements at the time of award.
What was the rationale for the extensive contract duration of over 16 years?
The extended duration of 6077 days (approximately 16.6 years) likely reflects a long-term strategic need for consistent and reliable air transportation support services by the Department of Defense. Such durations are often established to ensure operational continuity, facilitate long-term planning, and potentially secure economies of scale or specialized capabilities.
How did the firm-fixed-price structure impact the final cost compared to other pricing models?
A firm-fixed-price (FFP) contract shifts most of the risk to the contractor, Vertex Aerospace. This means the price is set and generally not subject to upward adjustment due to contractor cost overruns. While FFP aims to provide cost certainty for the government, it can sometimes lead to higher initial bids to account for contractor risk, potentially impacting the final cost compared to cost-reimbursement contracts.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Vertex Aerospace Services Corp.
Address: 555 INDUSTRIAL DR S, MADISON, MS, 39110
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2000-02-10
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2022-08-24
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