Vertex Aerospace LLC contract for aircraft production support valued at over $76 million

Contract Overview

Contract Amount: $76,192,523 ($76.2M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2008-01-09

End Date: 2017-10-31

Contract Duration: 3,583 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: AIRCRAFT PRODUCTION SUPPORT

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $76.2 million to VERTEX AEROSPACE LLC for work described as: AIRCRAFT PRODUCTION SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a robust bidding process. 2. The contract spans nearly a decade, indicating a long-term need for these services. 3. Services fall under Administrative Management and General Management Consulting, a broad category. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. Awarded by the Department of the Army, highlighting a significant defense-related expenditure. 6. The contract was issued as a delivery order, implying it's part of a larger framework agreement.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contracts. The Time and Materials pricing structure can lead to costs exceeding initial estimates if not managed carefully. The total value of over $76 million over nearly 10 years suggests a substantial investment, but the value-for-money depends heavily on the efficiency and effectiveness of the services provided by Vertex Aerospace LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to drive better pricing and service quality. The fact that it was a delivery order suggests it might have been awarded against a pre-existing indefinite-delivery indefinite-quantity (IDIQ) contract, which itself would have undergone a competitive process.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can lead to lower prices and more innovative solutions, maximizing the return on public funds.

Public Impact

The Department of the Army benefits from sustained aircraft production support services. Services likely contribute to the readiness and operational capability of military aircraft. The contract's impact is primarily within the defense sector, supporting military logistics and maintenance. Workforce implications may include specialized technical and administrative roles within Vertex Aerospace LLC and potentially at Army facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
The long duration of the contract may reduce flexibility to adopt newer technologies or approaches.
Lack of specific service details makes it difficult to assess the true value and performance.
Potential for scope creep given the broad nature of administrative and management consulting services.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Long contract duration suggests a stable, ongoing need and a reliable service provider.
The contract supports critical Department of Defense operations, contributing to national security.
Vertex Aerospace LLC's long-term engagement implies a level of established performance and trust.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. The federal government is a significant consumer of these services, particularly within the Department of Defense, to support complex operations, logistics, and program management. Comparable spending benchmarks would typically be found within broader categories of defense support services or management consulting contracts awarded to large aerospace and defense firms.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the large contract value and the nature of aerospace production support, it is likely that larger, established firms like Vertex Aerospace LLC are the primary recipients. The absence of small business participation metrics suggests limited direct benefit to the small business ecosystem through this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of the Army. Transparency is facilitated through contract databases like FPDS, which provide basic award details. Accountability measures would be tied to performance metrics and deliverables outlined in the contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Maintenance and Repair
Aerospace Engineering Services
Defense Logistics Support
Government Management Consulting
Military Production Support

Risk Flags

Time and Materials contract type carries inherent cost risk.
Broad service category lacks specific performance indicators in summary data.
Long contract duration may limit adaptability to future technological changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.2 million to VERTEX AEROSPACE LLC. AIRCRAFT PRODUCTION SUPPORT

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 $76.2 million.

What is the period of performance?

Start: 2008-01-09. End: 2017-10-31.

What specific aircraft production support services does Vertex Aerospace LLC provide under this contract?

The provided data indicates the contract is for 'AIRCRAFT PRODUCTION SUPPORT' under NAICS code '541611' (Administrative Management and General Management Consulting Services). However, the specific nature of the support is not detailed. This could range from logistical planning, supply chain management, process optimization, technical documentation, program management, to direct support roles in the production lifecycle of military aircraft. Without further details, it's difficult to ascertain the precise services rendered, which impacts a granular assessment of value and performance.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?

Time and Materials contracts are often used when the scope of work is not clearly defined or is expected to change. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. For services like aircraft production support, where predictability is often desired, fixed-price or cost-plus contracts might offer better cost control, provided the scope can be well-defined.

What is Vertex Aerospace LLC's track record with similar government contracts?

Vertex Aerospace LLC has a history of receiving government contracts, particularly within the defense sector. While this specific contract is substantial, assessing their overall track record requires examining past performance on similar T&M or administrative support contracts. Key indicators would include on-time delivery, adherence to budget (especially relevant for T&M), quality of service, and any past performance issues or awards. A deeper dive into their contract history, including contract closeouts and any disputes, would provide a more comprehensive view of their reliability and effectiveness.

What is the historical spending trend for aircraft production support within the Department of the Army?

The provided data only reflects a single contract award. To understand historical spending trends for aircraft production support within the Department of the Army, one would need to analyze aggregate spending data over multiple fiscal years. This would involve querying federal procurement databases for contracts categorized under relevant NAICS codes (like 541611, or others related to aerospace manufacturing support) and filtering by the Department of the Army. Analyzing this trend would reveal whether spending in this area is increasing, decreasing, or remaining stable, and identify major contractors and contract types utilized.

Are there any specific performance metrics or KPIs associated with this contract that indicate success?

The provided summary data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, government contracts, especially those of this magnitude and duration, will have defined performance standards, deliverables, and evaluation criteria. Success would be measured against these criteria, which could include factors like aircraft availability rates, turnaround times for repairs or modifications, cost efficiency achieved, or adherence to production schedules. Without access to the contract's statement of work and performance clauses, assessing success is limited to the fact that it was awarded and presumably fulfilled over its term.

What is the potential impact of this contract on the broader aerospace support market?

A contract of over $76 million awarded to a single entity like Vertex Aerospace LLC can have a significant impact on the aerospace support market. It signifies a substantial portion of the available work in this niche, potentially influencing market competition and pricing. For Vertex Aerospace, it represents a major revenue stream and a testament to their capabilities. For competitors, it highlights the scale of opportunities and the level of expertise required to secure such awards. It also underscores the government's reliance on specialized contractors for critical defense functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vertex Aerospace Services Corp.

Address: 555 INDUSTRIAL DR S, MADISON, MS, 39110

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $76,192,523

Exercised Options: $76,192,523

Current Obligation: $76,192,523

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F0328N

IDV Type: FSS

Timeline