DoD Awards Vertex Aerospace $218M for Aircraft Maintenance and Logistics Support
Contract Overview
Contract Amount: $218,036,301 ($218.0M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2020-09-30
End Date: 2021-09-30
Contract Duration: 365 days
Daily Burn Rate: $597.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Official Description: 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 $218.0 million to VERTEX AEROSPACE LLC for work described as: IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT (CLS) Key points: 1. Significant contract value of over $218 million for essential aircraft support. 2. Vertex Aerospace LLC is the sole awardee, raising questions about competition. 3. Potential risk associated with single-source awards and price justification. 4. Spending falls within the Defense sector, specifically air transportation support.
Value Assessment
Rating: fair
The contract type is Cost No Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts is difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite the award being listed as 'Full and Open Competition', only Vertex Aerospace LLC is named as the contractor. This suggests a potential delivery order under a larger IDIQ, or a lack of transparency in the award process. The price discovery mechanism is unclear.
Taxpayer Impact: Taxpayer funds are being utilized for a substantial aircraft support contract. The lack of clear competition details warrants scrutiny to ensure value for money.
Public Impact
Ensures operational readiness of U.S. Navy aircraft through maintenance and logistics. Supports jobs within the aerospace and defense industry. Impacts the efficiency and cost-effectiveness of military aviation operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on competition despite 'Full and Open' designation.
- Cost No Fee contract type requires diligent oversight to control spending.
- Single contractor named raises questions about broader market engagement.
Positive Signals
- Essential service for national defense.
- Contract awarded to a known entity in the aerospace sector.
Sector Analysis
This contract falls under the Defense sector, specifically focusing on air transportation support services. Spending benchmarks for similar aircraft maintenance and logistics contracts can vary widely based on aircraft type, scope of work, and duration.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial, especially with a Cost No Fee structure, to ensure performance and prevent waste.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential lack of true competition despite 'Full and Open' designation.
- Cost No Fee contract type increases risk of cost overruns.
- Limited transparency on specific performance metrics and cost controls.
- No clear indication of small business participation.
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 $218.0 million to VERTEX AEROSPACE LLC. 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 $218.0 million.
What is the period of performance?
Start: 2020-09-30. End: 2021-09-30.
What specific factors justified the selection of Vertex Aerospace LLC under a 'Full and Open Competition' designation, and were other bids considered?
The designation 'Full and Open Competition' typically implies that all responsible sources were permitted to submit a bid. However, the award to a single entity, Vertex Aerospace LLC, suggests this might be a delivery order against a pre-existing contract vehicle, or that only one bid was deemed responsive or responsible. Further details on the solicitation and evaluation process are needed to fully understand the competition dynamics and ensure taxpayer value.
What are the primary risks associated with a 'Cost No Fee' contract for aircraft maintenance, and how are they mitigated?
The primary risk of a 'Cost No Fee' contract is the potential for cost overruns, as the contractor is reimbursed for all allowable costs. Mitigation strategies include stringent cost monitoring, performance metrics, and clear contract terms defining allowable expenses. Effective oversight by the contracting agency is paramount to control spending and ensure the government receives fair value for the services rendered.
How does this $218 million contract contribute to the overall effectiveness and readiness of U.S. Navy aviation assets?
This contract is critical for maintaining the operational readiness of U.S. Navy aircraft. By ensuring timely and effective maintenance and logistics support, it directly impacts the availability of aircraft for missions, training, and deployment. The contractor's performance directly correlates with the fleet's ability to execute its duties, underscoring the importance of this significant investment.
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
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: $218,036,301
Exercised Options: $218,036,301
Current Obligation: $218,036,301
Actual Outlays: $53,168,163
Subaward Activity
Number of Subawards: 178
Total Subaward Amount: $56,405,501
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: 2020-09-30
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2022-08-11
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