Vertex Aerospace LLC receives $112.8M for aircraft production support, awarded via full and open competition

Contract Overview

Contract Amount: $112,782,443 ($112.8M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2011-04-29

End Date: 2014-10-28

Contract Duration: 1,278 days

Daily Burn Rate: $88.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: Defense

Official Description: AIRCRAFT PRODUCTION SUPPORT SERVICES (DIRECT)

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $112.8 million to VERTEX AEROSPACE LLC for work described as: AIRCRAFT PRODUCTION SUPPORT SERVICES (DIRECT) Key points: 1. Contract value of $112.8M over approximately 3.5 years suggests a significant but not excessive annual spend. 2. Awarded under full and open competition, indicating a potentially competitive pricing environment. 3. The contract's duration and scope require careful monitoring for performance and cost overruns. 4. Vertex Aerospace's role in aircraft production support highlights its specialization in a critical defense sector. 5. The administrative management and general management consulting services NAICS code suggests a focus on operational efficiency and support. 6. The contract's value falls within a moderate range for large-scale defense support services.

Value Assessment

Rating: good

The contract value of $112.8M for aircraft production support services over 3.5 years averages approximately $32.2M annually. Benchmarking this against similar large-scale defense support contracts is crucial. Without specific comparable contract data, it's difficult to definitively assess value for money. However, the use of full and open competition suggests an effort to achieve competitive pricing. The contract type (Labor Hours) can sometimes lead to cost variability, necessitating strong oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 5 bidders (no) indicates a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring the government receives the best possible value for its investment in aircraft production support.

Public Impact

The U.S. Department of the Army benefits from enhanced aircraft production support, ensuring readiness and operational capabilities. Services delivered likely include a range of administrative, management, and consulting functions critical to maintaining aircraft production lines. The contract's impact is primarily within the defense industrial base, supporting the aerospace sector. Workforce implications may include the employment of skilled administrative, management, and technical personnel by Vertex Aerospace.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to the 'Labor Hours' contract type if not closely managed.
Ensuring consistent performance quality across the entire contract duration is essential.
Dependency on a single contractor for critical production support functions could pose a risk if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contractor, Vertex Aerospace, is established in the aerospace and defense sector.
The contract supports a critical function for the Department of the Army, contributing to national security.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically supporting aircraft production. The administrative management and general management consulting services (NAICS 541611) indicate a focus on operational efficiency, logistics, and program management within this complex industry. The total contract value of $112.8M over 3.5 years represents a significant investment in maintaining and enhancing the capabilities of the U.S. Army's aircraft fleet and production infrastructure. Comparable spending benchmarks would typically be found within large-scale defense sustainment and production support contracts.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a small business set-aside (ss: false, sb: false). Therefore, direct benefits to small businesses through this specific award are unlikely. However, Vertex Aerospace may engage small businesses as subcontractors to fulfill portions of the contract requirements, contributing indirectly to the small business ecosystem within the aerospace and defense industry.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing payments. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to 'Labor Hours' contract type.
Ensuring consistent quality of administrative and management services.
Dependency on contractor for critical production support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $112.8 million to VERTEX AEROSPACE LLC. AIRCRAFT PRODUCTION SUPPORT SERVICES (DIRECT)

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 $112.8 million.

What is the period of performance?

Start: 2011-04-29. End: 2014-10-28.

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

Vertex Aerospace LLC has a history of performing contracts for the Department of Defense, particularly in areas related to aircraft sustainment, modification, and support services. Their experience often includes managing complex logistics, providing technical expertise, and ensuring operational readiness for military aviation assets. Analyzing their past performance on contracts of similar size and scope, including any performance ratings or past performance evaluations, would provide further insight into their capabilities and reliability. A review of their contract history can reveal patterns in successful delivery, adherence to schedules, and cost management, which are critical indicators for assessing their suitability for ongoing and future engagements.

How does the awarded price compare to market rates for aircraft production support services?

The awarded value of $112.8 million over approximately 3.5 years, averaging around $32.2 million annually, needs to be benchmarked against prevailing market rates for similar aircraft production support services. This comparison should consider the specific services rendered, the complexity of the aircraft involved, and the geographic location of the support. Factors such as the labor hours utilized, the overhead rates applied by Vertex Aerospace, and the profit margins negotiated are key components in assessing value. Without access to detailed cost breakdowns or a robust database of comparable contract pricing, a precise market rate comparison is challenging. However, the full and open competition award suggests an attempt to align pricing with market competitiveness.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential cost overruns due to the 'Labor Hours' contract type, performance degradation over the contract's duration, and contractor dependency. Mitigation strategies likely involve stringent oversight by the Department of the Army, including regular performance reviews, detailed cost tracking, and clear performance metrics. The competitive nature of the award itself serves as a risk mitigation factor, as the government selected a contractor based on a perceived ability to meet requirements effectively. Furthermore, contingency planning and robust contract management by the government are essential to address any unforeseen challenges that may arise during the contract period.

How effective has Vertex Aerospace been in delivering aircraft production support services in the past?

Assessing the effectiveness of Vertex Aerospace in delivering aircraft production support services requires a review of their past performance data, including contract close-out reports, performance evaluations (e.g., CPARS), and any documented instances of exceptional performance or deficiencies. Their track record in the aerospace and defense sector suggests a level of competence, but specific metrics related to on-time delivery, quality of service, and adherence to technical specifications for similar contracts would provide a more definitive answer. The fact that they were awarded this significant contract implies a positive past performance assessment by the Department of the Army, but ongoing monitoring is crucial to ensure continued effectiveness.

What are the historical spending patterns for aircraft production support services by the Department of the Army?

Historical spending patterns for aircraft production support services by the Department of the Army are typically substantial, reflecting the significant investment required to maintain and modernize a large and complex aviation fleet. This spending can fluctuate based on modernization programs, operational tempo, and budget allocations. Analyzing historical data reveals trends in contract types (e.g., fixed-price vs. cost-reimbursement, labor hours), competition levels, and the prime contractors most frequently awarded these types of services. Understanding these patterns helps contextualize the current $112.8 million award, indicating whether it aligns with or deviates from established spending trends for similar support requirements.

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: 5

Pricing Type: LABOR HOURS (Z)

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: $112,782,443

Exercised Options: $112,782,443

Current Obligation: $112,782,443

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0328N

IDV Type: FSS

Timeline