Vertex Aerospace LLC awarded $129.5M for aircraft parts and materials, supporting Navy aviation

Contract Overview

Contract Amount: $129,479,116 ($129.5M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2026-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $88.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Defense

Official Description: PARTS AND MATERIALS

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $129.5 million to VERTEX AEROSPACE LLC for work described as: PARTS AND MATERIALS Key points: 1. Contract value of $129.5M for parts and materials suggests significant operational support needs. 2. Full and open competition indicates a potentially competitive bidding process for this requirement. 3. Delivery order award type implies this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. Contract duration of 4 years (Oct 2022 - Sep 2026) points to sustained support requirements. 5. The 'Other Support Activities for Air Transportation' NAICS code suggests a broad range of potential services. 6. Focus on 'Parts and Materials' highlights the critical supply chain aspect of aviation readiness.

Value Assessment

Rating: good

The contract value of $129.5 million for parts and materials appears reasonable given the 4-year duration and the nature of supporting Department of the Navy aviation. Without specific benchmarks for comparable contracts for similar aircraft types or support levels, a precise value-for-money assessment is challenging. However, the fact that it was awarded under full and open competition suggests that pricing was likely scrutinized against market alternatives. The award amount should be viewed in the context of the extensive supply chain and logistical requirements inherent in maintaining military aircraft fleets.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 2 bids suggests a moderate level of competition for this requirement. While more bidders could potentially drive prices lower, two bids still provide a basis for price comparison and negotiation, suggesting a degree of market responsiveness. The agency's decision to use full and open competition implies confidence that a competitive environment could be established for these parts and materials.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing achieved through a full and open solicitation process, which aims to prevent inflated costs and ensure fair market value.

Public Impact

The Department of the Navy benefits from the reliable supply of essential parts and materials for its aircraft fleet. This contract supports the operational readiness and maintenance of naval aviation assets. The primary service delivered is the provision of critical components and materials for aircraft upkeep. The geographic impact is likely nationwide, supporting various naval air stations and maintenance depots. Workforce implications may include logistics, procurement, and technical support roles within the supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Risk of price escalation for specialized or sole-sourced components within the broader contract.
Ensuring quality control and compliance for all delivered parts and materials.

Positive Signals

Awarded under full and open competition, suggesting a robust market for these parts.
Long-term contract duration provides stability for supply chain planning and execution.
Vertex Aerospace LLC's role as a provider indicates established capabilities in aerospace support.

Sector Analysis

The aerospace and defense sector is characterized by complex supply chains and high-value components. This contract falls within the 'Other Support Activities for Air Transportation' category, which encompasses a wide array of services related to maintaining and operating aircraft. Spending in this area is crucial for national defense and the operational readiness of military branches. Comparable spending benchmarks would typically involve analyzing other contracts for aircraft parts and materials awarded by the Department of Defense or other federal agencies to similar types of contractors.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false) or indicate specific subcontracting goals for small businesses (sb=false). Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal. However, Vertex Aerospace LLC, as the prime contractor, may engage small businesses as subcontractors for specialized parts or services, which would indirectly benefit the small business sector. Further analysis of subcontracting reports would be needed to confirm any such impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing payments. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected. Regular performance reviews and audits are standard oversight mechanisms for such significant contracts.

Related Government Programs

Aircraft Parts and Materials Procurement
Aerospace Maintenance and Repair Services
Department of Defense Supply Chain Management
Naval Aviation Support Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Potential for supply chain vulnerabilities
Price volatility of raw materials
Ensuring quality and airworthiness of parts
Dependence on a limited number of bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $129.5 million to VERTEX AEROSPACE LLC. PARTS AND MATERIALS

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 $129.5 million.

What is the period of performance?

Start: 2022-10-01. End: 2026-09-30.

What is Vertex Aerospace LLC's track record with the Department of Defense, particularly in supplying aircraft parts and materials?

Vertex Aerospace LLC has a history of contracts with the Department of Defense, often related to aviation support, maintenance, and logistics. Their performance on previous contracts, including those for parts and materials, would be a key indicator of their reliability and capability. Reviewing past performance evaluations, any contract disputes, or awards for similar services would provide a comprehensive understanding of their track record. Specific data on their past performance ratings and the types of aircraft or systems they have supported would offer further insight into their suitability for this $129.5 million award.

How does the $129.5 million contract value compare to similar contracts for aircraft parts and materials awarded by the Navy or other military branches?

Benchmarking this $129.5 million contract requires comparing it against similar awards for aircraft parts and materials within the Department of Defense. Factors such as the specific types of aircraft supported, the complexity of the parts, the duration of the contract, and the number of bidders influence pricing. If this contract value is significantly higher or lower than comparable awards for similar scope and duration, it could indicate either exceptional value or potential overpricing. Analyzing historical data for contracts with similar NAICS codes (488190) and service descriptions would provide a clearer picture of its relative value.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential supply chain disruptions, price volatility for raw materials or specialized components, and ensuring the quality and airworthiness of all delivered parts. Mitigation strategies likely involve robust supplier vetting, inventory management, quality assurance protocols, and contingency planning for alternative sourcing. The contract's duration and the competitive award process may also help mitigate risks by fostering supplier commitment and allowing for price adjustments based on market conditions. The Department of the Navy's oversight mechanisms are crucial for identifying and addressing emerging risks.

How effective is the 'full and open competition' approach in ensuring cost-effectiveness for aircraft parts and materials?

Full and open competition is generally considered an effective method for ensuring cost-effectiveness as it allows the widest possible range of qualified contractors to bid, fostering a competitive environment that can drive down prices. For aircraft parts and materials, this approach helps ensure that the government receives fair market value by exposing requirements to multiple suppliers. The presence of two bidders in this case indicates a degree of competition, but a higher number of bids could potentially lead to even greater price discovery and savings for taxpayers. The agency's evaluation criteria and negotiation strategies also play a significant role in realizing cost savings.

What is the historical spending pattern for 'Other Support Activities for Air Transportation' by the Department of the Navy?

Historical spending patterns for 'Other Support Activities for Air Transportation' by the Department of the Navy reveal consistent investment in maintaining aviation readiness. This category typically encompasses a broad range of services, including parts, materials, maintenance, repair, and logistical support for naval aircraft. Analyzing past spending trends can indicate whether this $129.5 million award is in line with historical levels, or if there's a significant increase or decrease, which might warrant further investigation into changing operational needs or market dynamics. Such analysis helps contextualize current spending within the broader budgetary framework for naval aviation.

What are the implications of the 'Parts and Materials' focus for the overall readiness and maintenance of Navy aircraft?

The explicit focus on 'Parts and Materials' within this contract underscores its critical role in the day-to-day operational readiness and long-term maintenance of Navy aircraft. A consistent and reliable supply of high-quality components is fundamental to minimizing aircraft downtime, ensuring flight safety, and extending the service life of the fleet. This contract directly addresses a core logistical requirement, ensuring that maintenance crews have the necessary resources to perform repairs and routine upkeep. The value and duration of the award suggest a significant and ongoing need for these essential supplies.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6134018R1199

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

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: $275,457,800

Exercised Options: $160,731,338

Current Obligation: $129,479,116

Actual Outlays: $42,183,603

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,159,227

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: N6134019D1010

IDV Type: IDC

Timeline