Vertex Aerospace LLC awarded $58.6M for administrative management services, highlighting a competitive procurement

Contract Overview

Contract Amount: $58,638,252 ($58.6M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2010-02-24

End Date: 2017-10-31

Contract Duration: 2,806 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DUAL ENTRY CLERKS

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $58.6 million to VERTEX AEROSPACE LLC for work described as: DUAL ENTRY CLERKS Key points: 1. Contract awarded through full and open competition, suggesting a robust marketplace. 2. The contract duration of 2806 days indicates a long-term need for these services. 3. Fixed-price contract type suggests predictable costs for the government. 4. The award was a delivery order, implying it was part of a larger contract vehicle. 5. Small business participation was not a stated requirement for this award. 6. The North American Industry Classification System (NAICS) code 541611 points to management consulting services.

Value Assessment

Rating: good

The total award amount of $58.6 million over approximately 7.7 years suggests a significant investment in administrative management services. Benchmarking this against similar contracts for management consulting services would require access to a broader dataset of government procurements. However, the firm fixed-price nature of the contract provides cost certainty. The contract was awarded as a delivery order, which can sometimes indicate a more favorable pricing structure compared to standalone contracts, depending on the terms of the base contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of only one bid (no: 1) is noteworthy and could suggest potential limitations in the market's responsiveness or the specific requirements of the solicitation. While full and open competition is generally preferred, a single bid warrants further investigation into market conditions and the solicitation's attractiveness to potential offerors.

Taxpayer Impact: A single bid in a full and open competition may indicate that the government did not receive the best possible price discovery. Taxpayers may have benefited from a more competitive environment with multiple bids.

Public Impact

The primary beneficiaries are likely Department of the Army personnel and operations requiring administrative management support. Services delivered fall under administrative management and general management consulting. The contract was awarded to a vendor located in Texas (TX), suggesting potential regional economic impact. Workforce implications could include the creation or maintenance of jobs related to administrative support and consulting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single bid received under full and open competition raises questions about market competitiveness and potential price optimization.
The long contract duration (2806 days) could lead to vendor lock-in if not managed effectively.
Lack of explicit small business set-aside or subcontracting requirements may limit opportunities for smaller firms.

Positive Signals

Awarded through full and open competition, adhering to principles of broad market access.
Firm fixed-price contract type provides budget predictability and cost control for the government.
The contract was a delivery order, potentially leveraging existing contract vehicles for efficiency.

Sector Analysis

The administrative management and general management consulting services sector (NAICS 541611) is a significant component of the federal contracting landscape. This contract, valued at $58.6 million, represents a substantial award within this category. The federal government frequently procures these services to support a wide range of agency operations, from strategic planning to operational efficiency improvements. Comparable spending benchmarks would typically involve analyzing the average award values and contract durations for similar management consulting services across various federal agencies.

Small Business Impact

This contract does not appear to have been specifically set aside for small businesses (ss: false, sb: false). The award to Vertex Aerospace LLC, without explicit small business participation goals mentioned, suggests that subcontracting opportunities for small businesses may not be a primary focus of this particular award. Further analysis would be needed to determine if Vertex Aerospace LLC has a history of subcontracting with small businesses on other contracts.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army contracting officers and program managers. Accountability measures are inherent in the firm fixed-price structure, requiring Vertex Aerospace LLC to deliver services within the agreed-upon cost. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Department of Defense Contracts
Army Procurement

Risk Flags

Single bid received in full and open competition.
Long contract duration.
No explicit small business set-aside.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.6 million to VERTEX AEROSPACE LLC. DUAL ENTRY CLERKS

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 $58.6 million.

What is the period of performance?

Start: 2010-02-24. End: 2017-10-31.

What is Vertex Aerospace LLC's track record with the federal government, particularly in administrative management services?

Vertex Aerospace LLC has a history of federal contracting, primarily within the Department of Defense. While specific details on their performance for this particular $58.6 million administrative management contract are not detailed in the provided data, their involvement suggests they are a recognized entity within the defense contracting space. Further investigation into past performance reviews, contract modifications, and any disputes or terminations associated with their previous federal awards would provide a more comprehensive understanding of their track record. Analyzing their portfolio of awarded contracts can reveal patterns in the types of services they provide and their success rates in competitive bidding and contract execution.

How does the $58.6 million award compare to typical spending on administrative management consulting services by the Department of the Army?

The $58.6 million award for administrative management and general management consulting services represents a significant investment. To benchmark this against typical spending, one would need to analyze historical data for NAICS code 541611 awards made by the Department of the Army over similar timeframes. Factors such as contract duration, scope of work, and the specific services required heavily influence award values. Without access to a comprehensive database of historical Army procurements for this specific service category, it is difficult to definitively state whether this award is high, low, or average. However, multi-year, multi-million dollar contracts are common for complex management support needs within large federal agencies.

What are the primary risks associated with a firm fixed-price contract of this duration (2806 days)?

The primary risks associated with a long-term firm fixed-price contract like this one (2806 days) include potential cost overruns for the contractor if market conditions change unfavorably (e.g., labor costs increase significantly) and the government potentially overpaying if market rates decrease. For the government, a key risk is that the contractor may have less incentive to innovate or improve efficiency beyond the contract's scope once the price is fixed. There's also a risk of scope creep, where the contractor might be hesitant to perform additional work without a contract modification and price adjustment, potentially leading to disputes. Contractor performance degradation over a long period is another concern, as is the risk of the contractor becoming financially unstable, impacting service delivery.

What does the fact that this was a delivery order, not a standalone contract, imply about the procurement strategy?

The fact that this award was a delivery order (aw: DELIVERY ORDER) implies it was issued under a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. This procurement strategy is often used to streamline the acquisition process for services that are needed repeatedly but with varying quantities or specific task requirements over time. It allows the government to establish a contract with pre-negotiated terms and pricing, and then issue individual delivery orders as needs arise. This can lead to faster delivery times and potentially better pricing due to the overall volume commitment established in the base contract. It also suggests that the initial competition for the base contract was more extensive.

Given the single bid, what are the implications for price discovery and taxpayer value?

A single bid in a full and open competition raises concerns about the effectiveness of price discovery. Ideally, multiple bids create a competitive environment where offerors vie to provide the best value at the lowest price. With only one bidder, the government lacks the crucial market intelligence that comes from comparing competing proposals. This can lead to a situation where the awarded price may not be the most competitive achievable. For taxpayers, this means there's a higher risk that they may not be receiving the best possible value for their money, as the absence of competition could allow the sole bidder to propose a higher price than they might have in a more robustly contested procurement. It also signals a potential issue with the market's ability or willingness to respond to the government's needs.

What is the significance of the NAICS code 541611 (Administrative Management and General Management Consulting Services) in the context of this award?

The North American Industry Classification System (NAICS) code 541611 signifies that the services procured under this contract fall within the domain of management consulting. This includes providing advice and assistance on organization, planning, and control, as well as management problems, typically to other businesses and organizations. For the Department of the Army, this could encompass a wide range of support, such as improving operational efficiency, strategic planning, organizational restructuring, human capital management, or implementing new management technologies. Awards under this code are common across federal agencies as they seek external expertise to enhance their effectiveness and efficiency in various operational and administrative 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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3 Technologies, Inc. (UEI: 008898884)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $58,638,252

Exercised Options: $58,638,252

Current Obligation: $58,638,252

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS10F0328N

IDV Type: FSS

Timeline