Army Awards $50.3M Training Support Contract to Vertex Aerospace LLC, Lacking Competition
Contract Overview
Contract Amount: $50,294,167 ($50.3M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2024-05-01
End Date: 2025-04-30
Contract Duration: 364 days
Daily Burn Rate: $138.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: TRAINING MISSION SUPPORT SERVICES FOR THE US ARMY NATIONAL TRAINING CENTER
Place of Performance
Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310
Plain-Language Summary
Department of Defense obligated $50.3 million to VERTEX AEROSPACE LLC for work described as: TRAINING MISSION SUPPORT SERVICES FOR THE US ARMY NATIONAL TRAINING CENTER Key points: 1. Significant contract value of $50.3 million for essential training support. 2. Sole-source award to Vertex Aerospace LLC raises concerns about price discovery. 3. Engineering services sector (NAICS 541330) often sees competitive bidding. 4. Contract duration of 364 days with a Cost Plus Incentive Fee structure.
Value Assessment
Rating: questionable
The contract's Cost Plus Incentive Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar engineering services contracts is difficult without competitive data, but the award value is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may result in a higher cost to the government than if multiple vendors had competed.
Taxpayer Impact: The lack of competition for a $50.3 million contract raises concerns about taxpayer value. Without competitive pressure, the government may be paying more than necessary for these training support services.
Public Impact
Taxpayers may not be receiving the best value due to the absence of competition. The US Army's National Training Center relies on these services for critical readiness. Vertex Aerospace LLC receives a substantial sole-source award, impacting market dynamics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Incentive Fee structure
- Lack of transparency in price negotiation
Positive Signals
- Essential training support for the Army
- Contract awarded to a single vendor
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector that typically involves complex technical requirements. Spending in this area is crucial for military readiness, but competitive bidding is generally expected to ensure cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, either as prime contractors or subcontractors. Further analysis would be needed to determine potential impacts on small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the contractor is meeting performance expectations under the Cost Plus Incentive Fee structure.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited price transparency
- No indication of small business participation
Tags
engineering-services, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.3 million to VERTEX AEROSPACE LLC. TRAINING MISSION SUPPORT SERVICES FOR THE US ARMY NATIONAL TRAINING CENTER
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 $50.3 million.
What is the period of performance?
Start: 2024-05-01. End: 2025-04-30.
What justification was provided for the sole-source award of this significant training support contract?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source is available or when a compelling urgency exists. Without this information, it's difficult to assess the necessity of bypassing the competitive process and its potential impact on cost.
How does the Cost Plus Incentive Fee (CPIF) structure impact the risk profile of this contract?
A CPIF contract shares both cost and performance risks between the government and the contractor. While it incentivizes the contractor to control costs and meet targets, it also introduces complexity in performance evaluation and fee determination. The government bears some cost risk, and the final price can fluctuate based on performance outcomes.
What is the potential long-term impact of sole-source awards on the competitive landscape for military training support services?
Repeated sole-source awards can stifle competition by discouraging new entrants and potentially leading to complacency among incumbent contractors. This can reduce innovation and drive up prices over time, ultimately diminishing the value proposition for taxpayers and the effectiveness of government procurement strategies.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W900KK24R0013
Offers Received: 1
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: $50,844,167
Exercised Options: $50,844,167
Current Obligation: $50,294,167
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-05-01
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-08-21
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