DoD's $138M Aircraft Maintenance Contract with Vertex Aerospace Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $138,342,189 ($138.3M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2016-10-01
End Date: 2022-08-31
Contract Duration: 2,160 days
Daily Burn Rate: $64.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT (CLS)
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $138.3 million to VERTEX AEROSPACE LLC for work described as: IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT (CLS) Key points: 1. The contract awarded to Vertex Aerospace LLC for aircraft maintenance and logistics support is substantial, totaling over $138 million. 2. While listed as 'Full and Open Competition,' the specifics of the price discovery process warrant closer examination. 3. Potential risks include ensuring cost-effectiveness and robust oversight for long-term aviation support services. 4. The sector is critical for national defense, requiring reliable and efficient logistics.
Value Assessment
Rating: fair
The contract's value of $138 million for aircraft maintenance and logistics support appears significant. Benchmarking against similar contracts for aviation support services is needed to definitively assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a broad solicitation process. However, the effectiveness of this competition in driving optimal pricing and ensuring the best value for the government requires further analysis.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense logistics. Ensuring competitive pricing and efficient service delivery is paramount to maximizing the value of this investment.
Public Impact
Ensures operational readiness of U.S. Navy aircraft through essential maintenance and logistics. Supports a key defense contractor, Vertex Aerospace LLC, contributing to the aerospace industry. Potential for job creation and economic impact in Mississippi, where the contract is managed. Highlights the government's reliance on private sector expertise for specialized military support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for services rendered.
- Potential for scope creep in long-term maintenance contracts.
- Ensuring sustained performance and quality over the contract duration.
Positive Signals
- Awarded through full and open competition.
- Contract supports critical U.S. Navy aviation readiness.
- Utilizes a firm fixed-price contract type, providing cost predictability.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aircraft maintenance and logistics support. Spending in this area is crucial for maintaining military readiness and operational capabilities, with benchmarks often tied to fleet size, aircraft type, and service complexity.
Small Business Impact
The data indicates that small business participation was not a stated factor ('sb': false). Further investigation is needed to determine if subcontracting opportunities were offered to small businesses, which could enhance economic impact.
Oversight & Accountability
Oversight is provided by the Defense Contract Management Agency (DCMA). Robust oversight is essential to monitor performance, ensure compliance with contract terms, and manage any potential risks or cost overruns throughout the contract's lifecycle.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns in long-term service contracts.
- Ensuring consistent quality and performance from the contractor.
- Need for detailed cost analysis to validate value for money.
- Limited visibility into small business subcontracting opportunities.
Tags
other-support-activities-for-air-transpo, department-of-defense, ms, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $138.3 million to VERTEX AEROSPACE LLC. IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT (CLS)
Who is the contractor on this award?
The obligated recipient is VERTEX AEROSPACE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $138.3 million.
What is the period of performance?
Start: 2016-10-01. End: 2022-08-31.
What specific maintenance and logistics services are included in this $138M contract, and how do they align with the Navy's operational needs?
The contract covers 'Aircraft Maintenance and Logistics Support (CLS)' for the U.S. Navy. While the exact scope isn't detailed here, CLS typically includes scheduled and unscheduled maintenance, repair, overhaul, parts management, and supply chain support for aircraft. This ensures the Navy's aircraft are mission-ready, addressing critical operational requirements for fleet readiness and deployment.
How effectively did the 'Full and Open Competition' process ensure competitive pricing and identify the most capable provider for these specialized services?
The 'Full and Open Competition' designation suggests a broad solicitation, theoretically maximizing the chance for competitive bids. However, the actual effectiveness depends on the clarity of the solicitation, the number and quality of bids received, and the evaluation criteria used. Without bid data, it's difficult to confirm if this process truly yielded the best value or if specialized market conditions limited robust competition.
What are the primary risks associated with a long-term (2016-2022) aircraft maintenance contract, and what mitigation strategies are in place?
Key risks include potential cost escalation due to unforeseen maintenance needs, technological obsolescence of aircraft or support systems, and contractor performance degradation over time. Mitigation strategies likely involve strong contract management, performance metrics, clear change order processes, and potentially incorporating economic price adjustment clauses cautiously. Regular performance reviews and audits are crucial.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001912R0001
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vertex Aerospace Services Corp.
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: $138,342,189
Exercised Options: $138,342,189
Current Obligation: $138,342,189
Subaward Activity
Number of Subawards: 184
Total Subaward Amount: $37,941,600
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001914D0011
IDV Type: IDC
Timeline
Start Date: 2016-10-01
Current End Date: 2022-08-31
Potential End Date: 2022-08-31 00:00:00
Last Modified: 2022-09-22
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