Air Force awards $301.5M contract for aircraft maintenance, highlighting sustained demand for specialized training support

Contract Overview

Contract Amount: $301,549,808 ($301.5M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2012-10-26

End Date: 2019-09-30

Contract Duration: 2,530 days

Daily Burn Rate: $119.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COLUMBUS AFB AIRCRAFT MAINTENANCE SERVICES FOR T-1A, T-6A, T-38 SUPT AND T-38 IFF.

Place of Performance

Location: COLUMBUS, LOWNDES County, MISSISSIPPI, 39710

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $301.5 million to VERTEX AEROSPACE LLC for work described as: COLUMBUS AFB AIRCRAFT MAINTENANCE SERVICES FOR T-1A, T-6A, T-38 SUPT AND T-38 IFF. Key points: 1. Contract value indicates significant, long-term investment in maintaining critical training aircraft fleets. 2. Sole contractor for an extended period suggests potential for vendor lock-in and limited price negotiation. 3. Fixed-price contract structure shifts performance risk to the contractor, potentially impacting service quality if not managed. 4. Geographic concentration in Mississippi may offer local economic benefits but limits broader regional competition. 5. The sustained need for these services points to the ongoing importance of pilot training programs.

Value Assessment

Rating: fair

The contract's total value of over $300 million over seven years suggests a substantial investment. Benchmarking this against similar aircraft maintenance contracts for training fleets is challenging without more specific data on the scope of services and aircraft types. However, the duration and scale imply a significant expenditure. The firm fixed-price nature aims to control costs, but the lack of multiple bids in later stages could indicate less competitive pricing over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was initially awarded under full and open competition, suggesting a robust bidding process at its inception. However, the data does not specify the number of bidders for subsequent modifications or renewals, making it difficult to assess the current level of competition. If competition has waned over the contract's life, it could lead to less favorable pricing for the government.

Taxpayer Impact: Initial competition likely secured a reasonable price. However, a lack of ongoing competition could mean taxpayers are not benefiting from the most cost-effective solutions in later years.

Public Impact

Pilots training at Columbus AFB benefit from reliable aircraft availability. The contract supports specialized aircraft maintenance services crucial for T-1A, T-6A, and T-38 aircraft. The primary geographic impact is in Mississippi, supporting local jobs and the regional economy. Workforce implications include skilled aviation mechanics and support personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases if competition diminishes over the contract's life.
Risk of service quality degradation if contractor faces financial or operational challenges.
Dependence on a single provider could limit flexibility in adopting new maintenance technologies.

Positive Signals

Firm fixed-price structure provides cost certainty for the government.
Initial full and open competition suggests a competitive award process.
Long-term contract provides stability for essential training operations.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation support services. The market for military aircraft maintenance is substantial, driven by the need to maintain readiness for diverse fleets. Comparable spending benchmarks would involve analyzing other large-scale maintenance contracts for training or operational aircraft across different military branches.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the prime contractor is Vertex Aerospace LLC, there is no explicit information on subcontracting plans or performance related to small businesses. The absence of a small business set-aside suggests that the primary focus was on securing specialized capabilities from larger, established firms.

Oversight & Accountability

Oversight is typically managed by the contracting officer's representative (COR) within the Department of the Air Force, ensuring compliance with contract terms and performance standards. Accountability measures are embedded in the firm fixed-price structure, which incentivizes the contractor to meet specifications. Transparency is generally maintained through contract databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Air Force Pilot Training Programs
Aircraft Maintenance Services
Defense Readiness Contracts
Aerospace Support Services

Risk Flags

Potential for reduced competition over contract duration.
Lack of detailed cost breakdown hinders precise value assessment.
Limited public information on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $301.5 million to VERTEX AEROSPACE LLC. COLUMBUS AFB AIRCRAFT MAINTENANCE SERVICES FOR T-1A, T-6A, T-38 SUPT AND T-38 IFF.

Who is the contractor on this award?

The obligated recipient is VERTEX AEROSPACE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $301.5 million.

What is the period of performance?

Start: 2012-10-26. End: 2019-09-30.

What is the historical spending trend for aircraft maintenance services at Columbus AFB?

The provided data focuses on a single definitive contract awarded in 2012 and ending in 2019, totaling approximately $301.5 million. This represents a significant but specific investment during that period. To understand the broader historical spending trend, one would need to examine all contracts related to aircraft maintenance at Columbus AFB across various fiscal years, including any preceding or subsequent contracts for similar services. Analyzing these trends would reveal fluctuations in spending, identify periods of increased or decreased investment, and potentially highlight shifts in the types of aircraft or services procured over time. Without this broader dataset, it's difficult to establish a comprehensive historical spending pattern beyond this single contract's lifecycle.

How does the per-unit cost of maintaining T-1A, T-6A, and T-38 aircraft under this contract compare to industry benchmarks?

Determining a precise per-unit cost benchmark for this contract is challenging due to the aggregated nature of the total award amount ($301.5 million) and the lack of detailed breakdowns by aircraft type or specific maintenance task. The contract covers multiple aircraft (T-1A, T-6A, T-38) and various support activities over a seven-year period. To establish a meaningful comparison, we would need data on the number of flight hours, maintenance hours, or specific repair actions performed per aircraft type. Industry benchmarks for similar training aircraft maintenance can vary significantly based on factors like fleet age, operational tempo, and the specific services included (e.g., scheduled vs. unscheduled maintenance, parts, labor rates). Without granular data from the contract and comparable industry cost-per-hour or cost-per-maintenance-event figures, a direct per-unit cost comparison is not feasible.

What are the key performance indicators (KPIs) used to evaluate Vertex Aerospace LLC's performance under this contract?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided summary data, typical KPIs for aircraft maintenance contracts include metrics related to aircraft availability, mission capable rates, turnaround time for repairs, quality of workmanship (e.g., defect rates), adherence to maintenance schedules, and safety compliance. For a firm fixed-price contract, the government would likely monitor these KPIs closely to ensure Vertex Aerospace LLC is meeting its contractual obligations effectively and efficiently. Performance evaluations would assess whether the contractor is maintaining the required readiness levels for the T-1A, T-6A, and T-38 aircraft, ensuring pilots have reliable platforms for training. Failure to meet critical KPIs could result in contractual remedies or impact future contract awards.

What is the potential impact of this contract on the small business ecosystem in Mississippi?

This contract, awarded under full and open competition and not specifically set aside for small businesses, has a limited direct impact on the small business ecosystem in terms of prime contract awards. However, Vertex Aerospace LLC, as the prime contractor, may engage small businesses as subcontractors for specialized services, parts, or support functions. The extent of this impact depends on the contractor's subcontracting plan and opportunities within the Mississippi region. If Vertex Aerospace actively seeks out and utilizes local small businesses, it can provide them with valuable revenue streams and experience. Conversely, if the prime contractor relies heavily on its own resources or larger, non-local firms, the direct benefit to Mississippi's small business ecosystem might be minimal, beyond the general economic activity generated by the contract.

How has the competition level for aircraft maintenance services at Columbus AFB evolved over time?

The provided data indicates that the initial award for these aircraft maintenance services was made under 'FULL AND OPEN COMPETITION'. This suggests a robust bidding process at the outset, likely involving multiple interested parties vying for the contract. However, the data does not specify the number of bidders for subsequent modifications or renewals of this definitive contract, which spanned from October 2012 to September 2019. Without information on subsequent competitive rounds, it's impossible to definitively state how the competition level has evolved. It is possible that while the initial award was competitive, follow-on work or contract extensions may have seen reduced competition, potentially leading to less favorable pricing dynamics for the government over the contract's lifespan.

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: FA300211R0007

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vertex Aerospace Services Corp.

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: $307,554,974

Exercised Options: $312,404,564

Current Obligation: $301,549,808

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $4,782,771

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline