Vertex Aerospace LLC awarded $177.8M for aircraft maintenance and logistics support, with a 547-day duration

Contract Overview

Contract Amount: $177,804,759 ($177.8M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-26

End Date: 2020-03-26

Contract Duration: 547 days

Daily Burn Rate: $325.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

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

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $177.8 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. Contract value appears reasonable given the scope of aircraft maintenance and logistics services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration of 547 days provides a stable period for service delivery. 4. Performance context is critical to assess the actual value derived from this significant award. 5. This contract falls within the broader Defense sector, specifically supporting air transportation activities.

Value Assessment

Rating: good

The contract value of $177.8 million for aircraft maintenance and logistics support over 547 days appears to be within a reasonable range for such services. Benchmarking against similar large-scale aviation support contracts would provide a more precise assessment of value for money. The 'COST NO FEE' contract type suggests that the government reimburses the contractor for allowable costs, with no additional fee, which can be a cost-effective structure if managed properly.

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. This method generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competition.

Taxpayer Impact: A competitive bidding process like full and open competition is beneficial for taxpayers as it typically drives down costs and encourages innovation, ensuring the government receives the best possible value for its investment.

Public Impact

The U.S. Navy benefits from enhanced aircraft maintenance and logistics capabilities, ensuring operational readiness. Services delivered include critical maintenance and logistical support for aircraft, crucial for defense operations. The contract's geographic impact is likely concentrated around the operational bases or maintenance facilities where Vertex Aerospace LLC operates. Workforce implications include the potential for job creation and retention within the aerospace and logistics sectors supporting this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not closely monitored under the 'COST NO FEE' structure.
Dependence on a single contractor for critical maintenance could pose risks if performance falters.
Ensuring consistent quality of maintenance across all aircraft supported under this contract.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract type ('COST NO FEE') can be cost-effective for the government when managed appropriately.
The significant value indicates a substantial need and potential for long-term partnership.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation support services. The market for aircraft maintenance and logistics is substantial, driven by government and commercial aviation needs. This award represents a significant portion of spending dedicated to maintaining military aviation assets, ensuring their operational readiness and extending their service life. Comparable spending benchmarks would involve analyzing other large-scale contracts for depot-level maintenance and supply chain management within the Department of Defense.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, Vertex Aerospace LLC may still engage small businesses as subcontractors based on their operational needs and supply chain strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the contract terms, including performance standards and payment clauses. Transparency is facilitated through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance Services
Logistics Support Services
Defense Aviation Support
Military Aircraft Sustainment
Aerospace Maintenance Contracts

Risk Flags

Cost Control Risk
Performance Dependency
Supply Chain Vulnerability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $177.8 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 $177.8 million.

What is the period of performance?

Start: 2018-09-26. End: 2020-03-26.

What is the track record of Vertex Aerospace LLC in performing similar aircraft maintenance and logistics support contracts for the U.S. military?

Vertex Aerospace LLC has a history of performing aviation maintenance, repair, and overhaul (MRO) services. While specific details on past performance for this exact type of large-scale logistics support contract would require deeper analysis of their contract history, the company is known to operate in this space. Evaluating past performance would involve reviewing contract awards, performance evaluations (e.g., CPARS), and any documented issues or successes on previous government contracts. A strong track record in similar complex aviation support roles would indicate a lower risk for this current contract.

How does the awarded amount of $177.8 million compare to similar aircraft maintenance and logistics support contracts awarded by the Department of Defense?

The $177.8 million award for 547 days of aircraft maintenance and logistics support is a substantial contract. To benchmark its value, one would compare it to other contracts for similar services, considering factors like the type of aircraft, the scope of maintenance (e.g., depot-level vs. line maintenance), the duration, and the specific military branch. For instance, contracts for maintaining large fleets of aircraft or complex systems like helicopters often run into hundreds of millions of dollars over several years. Without specific comparable contract data, it's difficult to definitively state if this is high or low, but it aligns with the significant investment required for military aviation readiness.

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

Key risks include potential cost overruns, especially under a cost-reimbursement contract type (though this is 'COST NO FEE', which has specific cost control implications), performance failures leading to aircraft downtime, and supply chain disruptions. Mitigation strategies typically involve robust oversight by the contracting agency (DCMA), clear performance metrics and deliverables in the contract, regular progress reviews, and contingency planning for supply chain issues. The 'COST NO FEE' structure itself aims to control costs by reimbursing only allowable expenses, but requires diligent auditing.

How effective is the 'COST NO FEE' contract type in ensuring value for money for this type of service?

The 'COST NO FEE' (CNF) contract type is designed to reimburse the contractor for all allowable costs incurred in performing the contract, but without any additional profit or fee. This structure can be effective in ensuring value for money when the primary goal is to ensure the availability of services or supplies, and the costs are difficult to estimate accurately upfront. However, it places a strong emphasis on the government's ability to audit and control costs effectively. If not managed diligently, there's a risk of cost escalation without a direct contractor incentive to minimize expenses beyond what is necessary for performance. The government must have strong financial oversight to ensure costs are reasonable and allocable.

What are the historical spending patterns for aircraft maintenance and logistics support within the Department of Defense, and how does this contract fit?

The Department of Defense consistently allocates significant portions of its budget to aircraft maintenance and logistics support, often running into billions of dollars annually across all branches. These expenditures are critical for maintaining the readiness and operational capability of the U.S. military's air assets. This $177.8 million contract represents one component of that larger spending picture, likely supporting a specific fleet or set of aircraft for a defined period. Historical patterns show a continuous need for these services, with contract values fluctuating based on fleet size, modernization programs, and operational tempo.

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: COST NO FEE (S)

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: $177,804,759

Exercised Options: $177,804,759

Current Obligation: $177,804,759

Actual Outlays: $6,304,078

Subaward Activity

Number of Subawards: 319

Total Subaward Amount: $101,163,545

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