DoD Awards Vertex Aerospace $55M for Fort Irwin Training Support, Sole-Source Contract
Contract Overview
Contract Amount: $55,186,676 ($55.2M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2025-05-01
End Date: 2026-04-30
Contract Duration: 364 days
Daily Burn Rate: $151.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: NATIONAL TRAINING CENTER MISSION SUPPORT SERVICES IN FORT IRWIN, CA.
Place of Performance
Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310
Plain-Language Summary
Department of Defense obligated $55.2 million to VERTEX AEROSPACE LLC for work described as: NATIONAL TRAINING CENTER MISSION SUPPORT SERVICES IN FORT IRWIN, CA. Key points: 1. Significant contract value of $55.19 million awarded. 2. Sole-source award to Vertex Aerospace LLC raises competition concerns. 3. Contract type is Cost Plus Incentive Fee, potentially leading to cost overruns. 4. Engineering Services sector, NAICS 541330, with a benchmark of $151.6M. 5. Contract duration is 364 days, ending May 1, 2026.
Value Assessment
Rating: questionable
The contract's Cost Plus Incentive Fee structure can incentivize cost overruns. Without competitive bidding, it's difficult to assess if the $55.19 million price is optimal compared to market rates for similar engineering services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no competition. This limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had competed.
Taxpayer Impact: The lack of competition for this $55.19 million contract may lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.
Public Impact
Military training operations at Fort Irwin are directly supported by these services. Vertex Aerospace LLC is the sole provider, impacting market dynamics. The contract's cost-plus nature warrants close monitoring for efficiency. Taxpayers may be paying a premium due to the sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Supports critical military training
- Established contract vehicle
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector often characterized by specialized expertise. The awarded amount is below the sector benchmark of $151.6 million, but the sole-source nature is a key concern.
Small Business Impact
The data provided does not indicate whether small businesses were involved in subcontracting opportunities for this contract. Further investigation is needed to assess small business participation.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight from the Department of the Army to ensure cost efficiency and performance standards are met. Transparency in reporting is crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition and potentially increases cost.
- Cost-plus contract type carries inherent risk of cost overruns.
- Lack of transparency regarding justification for sole-sourcing.
- Potential for reduced innovation due to lack of competitive pressure.
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 $55.2 million to VERTEX AEROSPACE LLC. NATIONAL TRAINING CENTER MISSION SUPPORT SERVICES IN FORT 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 $55.2 million.
What is the period of performance?
Start: 2025-05-01. End: 2026-04-30.
What is the justification for the sole-source award, and were any attempts made to establish competition?
The justification for a sole-source award is critical for understanding the procurement strategy. Agencies typically sole-source when only one responsible source can satisfy agency requirements. Without this justification, it's impossible to assess if competition was truly not feasible or if it was simply bypassed, potentially leading to higher costs and reduced innovation.
How will the Cost Plus Incentive Fee structure be managed to prevent excessive costs?
Managing a Cost Plus Incentive Fee (CPIF) contract requires stringent oversight. The government must establish clear performance metrics and cost targets. Regular audits and performance reviews are essential to ensure the contractor is incentivized to control costs while meeting objectives. Without diligent management, CPIF contracts can lead to significant cost overruns.
What are the specific training support services provided under this contract, and how is their effectiveness measured?
Understanding the specific services is key to evaluating value. Are these routine maintenance, complex simulation support, or specialized training development? Measuring effectiveness requires defined Key Performance Indicators (KPIs) tied to mission readiness and training outcomes. Without clear metrics, it's difficult to ascertain if the $55.19 million investment is yielding the desired results.
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: W900KK25R0005
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: $84,529,524
Exercised Options: $55,186,676
Current Obligation: $55,186,676
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-05-01
Current End Date: 2026-04-30
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2025-12-04
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