DoD's $60M integrator ROR service contract awarded to Vertex Aerospace LLC

Contract Overview

Contract Amount: $60,000,000 ($60.0M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-05

End Date: 2025-05-31

Contract Duration: 360 days

Daily Burn Rate: $166.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: INTEGRATOR ROR SERVICE -

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $60.0 million to VERTEX AEROSPACE LLC for work described as: INTEGRATOR ROR SERVICE - Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and 360-day duration. 2. Full and open competition suggests a healthy market for these specialized technical services. 3. The contract's duration and fixed-price nature may mitigate some performance risks. 4. This contract supports critical readiness operations within the Department of the Navy. 5. The professional, scientific, and technical services sector is broad, making direct comparisons challenging without more detail. 6. The award amount of $60M is substantial, indicating a significant need for these services.

Value Assessment

Rating: good

The contract's total value is $60 million over approximately one year. Benchmarking this against similar 'All Other Professional, Scientific, and Technical Services' contracts is difficult without specific service details. However, the firm-fixed-price (FFP) award type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The estimated annual value is around $60 million, which seems within a reasonable range for complex technical integration services, though a more precise comparison would require detailed service scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of the Navy solicited proposals from all responsible sources. The specific number of bidders is not provided, but the use of full and open competition generally suggests a competitive environment. This approach allows the government to leverage the widest possible range of capabilities and potentially secure more favorable pricing through robust bidding.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the potential for competitive pricing and ensures that the government is not limited to a single provider, which could lead to inflated costs.

Public Impact

The primary beneficiaries are the Department of the Navy and its operational readiness, ensuring critical systems function effectively. The services delivered are described as 'INTEGRATOR ROR SERVICE', implying support for integration, readiness, operations, and sustainment of key defense assets. The geographic impact is likely concentrated within areas where the Navy operates or maintains its assets, with a specific mention of Virginia as the state of the contractor. Workforce implications could include specialized technical personnel employed by Vertex Aerospace LLC, contributing to the skilled labor market in defense support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on 'ROR' (Readiness, Operations, Readiness?) makes it hard to assess the true scope and potential for cost overruns if not tightly managed.
The fixed-price nature, while good, relies on accurate initial cost estimations by the contractor; any unforeseen complexities could strain the contractor's resources.
Dependence on a single contractor for critical integration services, even if competed, carries inherent risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a robust market and potential for competitive pricing.
Firm-fixed-price contract type shifts cost risk to the contractor, incentivizing efficient performance.
The contract duration of 360 days provides a defined period for service delivery and performance evaluation.
The contractor, Vertex Aerospace LLC, is likely experienced in providing such technical services, given the award value and scope.

Sector Analysis

The contract falls under the broad category of Professional, Scientific, and Technical Services (NAICS 541990). This sector is diverse, encompassing a wide range of specialized support functions for government and commercial clients. Spending in this sector is significant across federal agencies, particularly within defense, where complex technical integration, analysis, and support are crucial for maintaining operational readiness and technological superiority. Comparable spending benchmarks are difficult without knowing the specific 'ROR' services, but $60 million for a year of specialized technical integration support is substantial.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The focus appears to be on securing the best solution through full and open competition, rather than specifically targeting small business participation. Any involvement of small businesses would likely be through subcontracting opportunities offered by the prime contractor, Vertex Aerospace LLC, at their discretion.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. As a delivery order under a larger contract vehicle (implied by 'AW': DELIVERY ORDER), oversight might also be influenced by the terms of the parent contract. Transparency is facilitated by the public award notice, but detailed performance metrics and oversight reports are typically internal unless mandated by specific regulations or Inspector General investigations. The contract type (FFP) inherently requires monitoring for performance and compliance rather than cost.

Related Government Programs

Defense Readiness Support Services
Aerospace Technical Services
Military Logistics and Sustainment Contracts
Department of Defense IT and Engineering Support
Naval Aviation Support Contracts

Risk Flags

Potential for undefined scope ('ROR' acronym).
Reliance on contractor's cost estimation accuracy for fixed-price contract.
Need for clear performance metrics to ensure readiness impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.0 million to VERTEX AEROSPACE LLC. INTEGRATOR ROR SERVICE -

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 Navy).

What is the total obligated amount?

The obligated amount is $60.0 million.

What is the period of performance?

Start: 2024-06-05. End: 2025-05-31.

What specific 'ROR' services does Vertex Aerospace LLC provide under this contract, and how do they contribute to the Navy's readiness?

The acronym 'ROR' in 'INTEGRATOR ROR SERVICE' is not explicitly defined in the provided data. However, based on the context of defense contracts and the term 'integrator,' it likely refers to services related to Readiness, Operations, and potentially Sustainment or Repair. These services could involve integrating new technologies into existing naval platforms, ensuring operational systems are functioning optimally, and providing technical support to maintain readiness levels. The specific contribution to the Navy's readiness would depend on which platforms or systems these services are applied to. Without further clarification on 'ROR,' a precise assessment of their contribution is limited. It is crucial for the Navy to have clear performance metrics tied to these services to ensure they directly impact and improve operational readiness.

How does the $60 million award value compare to historical spending on similar integrator services by the Department of the Navy?

Comparing the $60 million award value to historical spending on similar integrator services by the Department of the Navy requires access to historical contract databases and the ability to filter for comparable service descriptions and contractor types. The provided data classifies this under NAICS code 541990 (All Other Professional, Scientific, and Technical Services), which is very broad. To make a meaningful comparison, one would need to identify past contracts with similar scopes, such as 'aerospace system integration,' 'readiness support,' or 'operational technical services' for naval aviation or other platforms. Anecdotally, $60 million for a one-year contract for specialized technical integration services is a significant sum, suggesting a high level of complexity or criticality. However, without specific historical data points for directly comparable services, it's difficult to definitively state whether this represents an increase, decrease, or stable level of spending.

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

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a contract described as 'INTEGRATOR ROR SERVICE' with a firm-fixed-price structure, typical KPIs would likely focus on aspects such as on-time delivery of integrated solutions, system performance metrics post-integration, adherence to technical specifications, and potentially response times for operational support. Given the 'Readiness, Operations' implication, KPIs might also include measurable improvements in system uptime, mission capability rates, or reduction in operational failures. The Department of the Navy's contracting officers and program managers are responsible for establishing and monitoring these KPIs to ensure Vertex Aerospace LLC meets the contract's objectives and delivers the expected value. The effectiveness of oversight will depend on the clarity and measurability of these undefined KPIs.

What is Vertex Aerospace LLC's track record with the Department of the Navy and other federal agencies for similar technical integration services?

Vertex Aerospace LLC has a history of contracting with the Department of Defense, including the Department of the Navy. Publicly available data indicates they have received numerous awards for aviation support, logistics, and technical services. Their track record often involves supporting aircraft readiness, maintenance, and modernization programs. For instance, they have been involved in contracts related to aircraft sustainment and component repair. While this specific 'INTEGRATOR ROR SERVICE' contract is a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a specific task, Vertex's broader experience in aerospace and defense technical services suggests they possess relevant capabilities. A deeper dive into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their reliability for this specific type of integration work.

Are there any identified risks associated with Vertex Aerospace LLC's ability to perform this $60 million contract effectively?

The primary risks associated with Vertex Aerospace LLC performing this $60 million contract are not explicitly detailed in the award notice. However, general risks for a contract of this nature and value include potential technical challenges in integrating complex systems, unforeseen operational requirements that may strain the defined scope, and the contractor's capacity to manage resources effectively over the 360-day period. Given the firm-fixed-price structure, a key risk for the contractor is underestimating costs or encountering unexpected technical hurdles, which could impact their profitability or ability to deliver. For the government, risks include potential performance deficiencies if the contractor struggles, or if the 'ROR' services are not clearly defined, leading to scope disputes. The full and open competition award suggests a competitive vetting process, which should mitigate some contractor-specific risks, but ongoing performance monitoring remains crucial.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6700420R0007

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: $60,000,000

Exercised Options: $60,000,000

Current Obligation: $60,000,000

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $4,340,685

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6700421D0002

IDV Type: IDC

Timeline