DoD's $33.2M Firm Fixed Price Contract for Aircraft Manufacturing Labor Awarded to Vertex Aerospace LLC
Contract Overview
Contract Amount: $33,217,819 ($33.2M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2012-11-01
End Date: 2014-12-31
Contract Duration: 790 days
Daily Burn Rate: $42.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FFP LABOR
Place of Performance
Location: OAK HARBOR, ISLAND County, WASHINGTON, 98278
Plain-Language Summary
Department of Defense obligated $33.2 million to VERTEX AEROSPACE LLC for work described as: FFP LABOR Key points: 1. Significant contract value of $33.2 million for aircraft manufacturing labor. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risk associated with firm fixed-price contracts if scope creep occurs. 4. The contract falls within the Aircraft Manufacturing sector, a critical area for defense.
Value Assessment
Rating: good
The contract's firm fixed-price structure aims to control costs. The benchmark of $42,048 per delivery order suggests a reasonable pricing strategy given the contract's duration and scope.
Cost Per Unit: $42,048
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing all responsible sources to submit bids. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for the aircraft manufacturing labor services.
Public Impact
Ensures the Air Force receives necessary labor for aircraft manufacturing. Supports the defense industrial base and associated jobs. Transparency in awarding contracts through open competition builds public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if contract scope changes without adjustment.
- Reliance on a single contractor for a significant portion of labor.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract provides cost certainty.
- Contract duration of 790 days allows for project stability.
Sector Analysis
This contract is within the Aircraft Manufacturing sector, which is vital for national defense. Spending benchmarks in this sector can vary widely based on complexity and technology.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific contract award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The award process under full and open competition suggests a degree of oversight. However, ongoing monitoring of performance and adherence to the firm fixed-price terms is crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for scope creep impacting fixed price.
- Contract duration may not align with long-term strategic needs.
- Lack of detail on small business subcontracting.
- Performance metrics not provided in the data.
Tags
aircraft-manufacturing, department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.2 million to VERTEX AEROSPACE LLC. FFP LABOR
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 Air Force).
What is the total obligated amount?
The obligated amount is $33.2 million.
What is the period of performance?
Start: 2012-11-01. End: 2014-12-31.
What was the specific nature of the aircraft manufacturing labor provided under this contract?
The contract focused on providing labor for aircraft manufacturing. While the exact tasks are not detailed, it likely encompassed skilled labor for assembly, repair, modification, or production of aircraft components and systems. The firm fixed-price nature suggests a well-defined scope of work was established upfront to manage costs effectively.
What are the primary risks associated with this firm fixed-price contract for aircraft manufacturing labor?
The main risk is scope creep. If the Department of the Air Force requires additional labor or changes the scope of work beyond what was initially defined, Vertex Aerospace LLC could face increased costs. Without proper change order management, this could lead to disputes or impact the contractor's profitability, potentially affecting long-term performance.
How effectively does this contract leverage competition to ensure value for taxpayer money?
The contract was awarded under full and open competition, which is a strong indicator of effective competition. This process allows multiple bidders to submit proposals, driving down prices and ensuring the government receives competitive rates. The firm fixed-price structure further enhances value by capping costs, provided the scope remains well-defined.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 8001 MID AMERICA BLVD #500, OKLAHOMA CITY, OK, 73135
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $33,217,819
Exercised Options: $33,217,819
Current Obligation: $33,217,819
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810809D0005
IDV Type: IDC
Timeline
Start Date: 2012-11-01
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2018-10-17
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