DoD Awards Vertex Aerospace $134.6M for Aircraft Maintenance and Logistics Support
Contract Overview
Contract Amount: $134,647,417 ($134.6M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2017-09-26
End Date: 2019-07-31
Contract Duration: 673 days
Daily Burn Rate: $200.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT (CLS)
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $134.6 million to VERTEX AEROSPACE LLC for work described as: IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT (CLS) Key points: 1. The contract value of $134.6 million is significant for aircraft maintenance and logistics. 2. Vertex Aerospace LLC is the sole awardee, raising questions about competition. 3. The contract falls under 'Other Support Activities for Air Transportation' within the Defense sector. 4. Risk assessment is needed to understand potential cost overruns or performance issues given the contract type and duration.
Value Assessment
Rating: fair
The contract value of $134.6 million for a 673-day period suggests a substantial per-day cost. Benchmarking against similar aircraft maintenance contracts is necessary to assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically promotes competitive pricing. However, as a delivery order, the specific pricing mechanisms and their effectiveness in achieving value for money require further scrutiny.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense logistics. Ensuring competitive pricing and efficient service delivery is crucial for maximizing the value of this investment.
Public Impact
Ensures continued operational readiness for U.S. Navy aircraft. Supports critical logistics and maintenance functions for national security. Impacts the aerospace and defense industry supply chain. Contributes to the economic activity in Mississippi where the contractor is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price creep in fixed-price contracts over time.
- Dependence on a single contractor for critical support functions.
- Contract duration may not align perfectly with evolving aircraft needs.
Positive Signals
- Awarded under full and open competition.
- Supports essential military operations.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and logistics. Spending benchmarks in this area are highly dependent on aircraft type, age, and operational tempo.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
Oversight is likely managed by the Defense Contract Management Agency (DCMA). Accountability will hinge on performance metrics, adherence to contract terms, and timely delivery of services.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Contract duration may be insufficient for long-term strategic planning.
- Potential for contractor performance issues impacting operational readiness.
- Limited visibility into subcontractor performance.
- Reliance on a single vendor for critical support.
Tags
other-support-activities-for-air-transpo, department-of-defense, ms, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $134.6 million to VERTEX AEROSPACE LLC. IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT (CLS)
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 $134.6 million.
What is the period of performance?
Start: 2017-09-26. End: 2019-07-31.
What is the specific breakdown of services included in the aircraft maintenance and logistics support, and how does this align with industry standards for similar contracts?
The contract encompasses 'Other Support Activities for Air Transportation,' which broadly covers maintenance and logistics. A detailed breakdown of specific services, such as depot-level maintenance, component repair, supply chain management, and technical support, is crucial. Comparing these services against industry benchmarks for similar aircraft types and operational requirements will help determine if the scope is comprehensive and cost-effective.
Given the firm fixed-price structure, what mechanisms are in place to manage potential cost overruns or scope creep if unforeseen issues arise during the contract period?
Firm Fixed Price (FFP) contracts aim to transfer risk to the contractor. However, mechanisms like change order processes, clear definitions of work, and robust oversight are vital. The contract's specific clauses regarding modifications, equitable adjustments, and dispute resolution will dictate how unforeseen issues are managed without significantly impacting the government's budget or the contractor's profitability.
How effectively did the full and open competition process ensure the best value for the government, considering the specific needs and duration of this contract?
While 'full and open competition' suggests a broad solicitation, the effectiveness in achieving best value depends on the evaluation criteria used and the number/quality of bids received. Assessing the competitive landscape, the government's evaluation process, and the final pricing relative to technical merit is key. Understanding if the chosen contractor truly offered the optimal balance of cost and performance is essential for validating the competition's success.
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: N0001912R0001
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: $134,647,417
Exercised Options: $134,647,417
Current Obligation: $134,647,417
Actual Outlays: $1,030,671
Subaward Activity
Number of Subawards: 198
Total Subaward Amount: $53,747,721
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001914D0011
IDV Type: IDC
Timeline
Start Date: 2017-09-26
Current End Date: 2019-07-31
Potential End Date: 2019-07-31 00:00:00
Last Modified: 2023-09-12
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