DoD's $241M Mission Support Contract for National Training Center Operations Awarded to Vertex Aerospace LLC

Contract Overview

Contract Amount: $240,967,087 ($241.0M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2018-07-31

End Date: 2024-04-30

Contract Duration: 2,100 days

Daily Burn Rate: $114.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: MISSION SUPPORT SERVICES REQUIRED TO EXECUTES THE TRAINING MISSION AT THE NATIONAL TRAINING CENTER. SERVICES REQUIRED TO SUPPORT THE ROTATIONAL TRAINING EVENTS AT FT. IRWIN CA.

Place of Performance

Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $241.0 million to VERTEX AEROSPACE LLC for work described as: MISSION SUPPORT SERVICES REQUIRED TO EXECUTES THE TRAINING MISSION AT THE NATIONAL TRAINING CENTER. SERVICES REQUIRED TO SUPPORT THE ROTATIONAL TRAINING EVENTS AT FT. IRWIN CA. Key points: 1. Contract provides essential support for rotational training events at Fort Irwin, California. 2. Vertex Aerospace LLC, the contractor, is responsible for executing the training mission. 3. The contract type is Cost Plus Incentive Fee, suggesting performance-based incentives. 4. Duration of the contract is 2100 days, indicating a long-term commitment. 5. The contract was awarded under full and open competition, promoting a competitive bidding process. 6. The base value is approximately $115 million, with significant potential for growth. 7. Services are categorized under Engineering Services (NAICS 541330).

Value Assessment

Rating: good

The contract's base value of $114.7 million over approximately 5.75 years suggests a significant investment in training support. While a direct comparison to similar contracts is challenging without more specific service details, the cost-plus-incentive-fee structure implies an effort to control costs while incentivizing performance. The total obligated amount of $241 million indicates potential for substantial growth or scope expansion beyond the initial base, which warrants monitoring for value realization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely considered. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The fact that it was competed openly suggests that the agency sought the best value from a broad range of potential providers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages innovation among contractors.

Public Impact

Service members benefit from realistic and effective training scenarios at the National Training Center. The contract supports the execution of critical training missions for the U.S. Army. Geographic impact is concentrated at Fort Irwin, California, a key training facility. Workforce implications include employment opportunities for personnel involved in mission support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if not managed closely.
Long contract duration could lead to contractor complacency if performance is not continuously monitored.
Dependence on a single contractor for critical training mission support could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Incentive fee structure encourages contractor performance and efficiency.
Long-term contract provides stability for training operations at the National Training Center.

Sector Analysis

This contract falls within the Defense sector, specifically supporting military training operations. The market for mission support services at large training installations is specialized, often involving a mix of logistics, facility management, and simulation support. Benchmarking spending in this niche requires comparison to similar large-scale training facility operations, which are relatively few. The total value of $241 million over its duration places it as a significant contract within this specialized segment.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside provisions. However, the prime contractor, Vertex Aerospace LLC, may engage small businesses as subcontractors, which would be detailed in their subcontracting plan if applicable.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Performance monitoring, financial audits, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Training Support Services
Base Operations Support Contracts
Department of Defense Readiness Contracts
National Training Center Operations
Engineering and Technical Services

Risk Flags

Cost Overrun Risk
Performance Degradation Over Time
Technological Obsolescence
Contractor Complacency
Dependence on Single Provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $241.0 million to VERTEX AEROSPACE LLC. MISSION SUPPORT SERVICES REQUIRED TO EXECUTES THE TRAINING MISSION AT THE NATIONAL TRAINING CENTER. SERVICES REQUIRED TO SUPPORT THE ROTATIONAL TRAINING EVENTS AT FT. IRWIN CA.

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 Army).

What is the total obligated amount?

The obligated amount is $241.0 million.

What is the period of performance?

Start: 2018-07-31. End: 2024-04-30.

What is Vertex Aerospace LLC's track record with similar large-scale Department of Defense contracts?

Vertex Aerospace LLC has a history of performing various aviation and defense-related services for the Department of Defense. While specific details on their track record for large-scale mission support at training centers like the National Training Center require deeper investigation into their contract portfolio, their existence as a prime contractor on a $241 million award suggests they possess the necessary capabilities and experience. Further analysis would involve examining past performance evaluations, any past disputes or contract terminations, and the scale and complexity of their previous DoD engagements to fully assess their suitability for this critical role.

How does the Cost Plus Incentive Fee (CPIF) structure compare to other contract types for mission support services, and what are its implications for value?

The Cost Plus Incentive Fee (CPIF) contract type allows the contractor to incur costs up to a ceiling, with the final negotiated total cost being adjusted based on whether the final cost is below or above a target cost, sharing the difference between the government and contractor. This structure is often used when the final costs are uncertain but can be reasonably estimated, and it incentivizes the contractor to control costs and meet performance targets. Compared to fixed-price contracts, CPIF offers more flexibility for the government if scope changes or unforeseen issues arise, but it carries a higher risk of cost overruns if not managed diligently. For mission support services, CPIF can be effective in driving efficiency and performance, but requires robust government oversight to ensure value for money and prevent excessive costs.

What are the primary risks associated with a long-duration contract (2100 days) for critical training mission support?

A long-duration contract like this one presents several risks. Firstly, there's the risk of contractor complacency; if performance is not continuously monitored and managed, the contractor might reduce efforts over time, impacting the quality of training support. Secondly, technological advancements or changes in military doctrine could render current support methods obsolete, requiring costly modifications or contract renegotiations. Thirdly, the long timeframe increases the potential for unforeseen economic fluctuations (inflation, labor cost increases) that could impact the contractor's ability to maintain service levels within the negotiated terms, potentially leading to requests for equitable adjustments. Finally, a prolonged reliance on a single contractor can reduce market responsiveness and make it harder to adapt to evolving mission requirements.

How does the $241 million total value compare to historical spending on similar mission support services at large military installations?

The $241 million total value for mission support services at the National Training Center is substantial and indicative of the scale and complexity of operations at such a critical military installation. While direct comparisons are difficult without granular data on specific services and installation sizes, this figure aligns with the significant investments required to maintain readiness and provide realistic training environments for large military forces. Historical spending on similar large-scale base operations and training support contracts across the DoD often runs into hundreds of millions of dollars over several years. This contract's value is consistent with the high operational tempo and extensive requirements of a premier training facility like Fort Irwin.

What performance metrics or key performance indicators (KPIs) are likely being used to manage this contract and ensure mission success?

Given the CPIF structure and the critical nature of training support, this contract likely employs a range of Key Performance Indicators (KPIs) focused on operational readiness, service delivery, and efficiency. These could include metrics related to the availability and functionality of training facilities and equipment, timeliness of logistical support, responsiveness to training exercise needs, safety incident rates, and adherence to schedules. The incentive fee component suggests that achieving or exceeding specific performance targets tied to these KPIs would result in financial bonuses for the contractor, while failure to meet minimum standards could lead to penalties or reduced profit margins, directly linking contractor compensation to mission success.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W900KK18R0015

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $258,923,269

Exercised Options: $258,923,269

Current Obligation: $240,967,087

Subaward Activity

Number of Subawards: 72

Total Subaward Amount: $147,265,913

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline