Vertex Aerospace LLC awarded $24.3M for logistics support at Fort Stewart, a 3-year contract

Contract Overview

Contract Amount: $24,287,302 ($24.3M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2013-04-01

End Date: 2016-03-31

Contract Duration: 1,095 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LOGISTICS SUPPORT SERVICES, FORT STEWART

Place of Performance

Location: FORT STEWART, LIBERTY County, GEORGIA, 31314

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to VERTEX AEROSPACE LLC for work described as: LOGISTICS SUPPORT SERVICES, FORT STEWART Key points: 1. The contract value represents a significant investment in maintaining operational readiness at a key military installation. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and potential for cost savings. 3. Risk indicators are evaluated based on contract type, performance history, and potential for cost overruns. 4. Performance context is established by comparing this award to similar logistics support contracts. 5. The contract positions Vertex Aerospace as a key provider of essential services within the defense sector. 6. The firm-fixed-price structure aims to provide cost certainty for the government.

Value Assessment

Rating: good

The total award of $24.3 million over three years for logistics support services at Fort Stewart appears reasonable given the scope of operations. Benchmarking against similar contracts for base operations and logistics at large installations suggests that the pricing is competitive. The firm-fixed-price contract type further supports value for money by shifting cost risk to the contractor. However, a detailed analysis of the specific services rendered and their unit costs would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 6 bidders suggests a healthy level of competition for this type of service. A competitive bidding process generally leads to more favorable pricing for the government and encourages contractors to offer their best value propositions.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. This approach maximizes the opportunity to secure the best possible price for the required logistics support.

Public Impact

The primary beneficiaries are the U.S. Army personnel and operations at Fort Stewart, Georgia, ensuring seamless logistical functions. Services delivered include comprehensive logistics support, crucial for maintaining the operational readiness of the base. The geographic impact is concentrated at Fort Stewart, Georgia, supporting a major military installation. Workforce implications include the creation or sustainment of jobs related to logistics and facility support within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical logistics functions could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty and limits the government's exposure to cost overruns.
Contract duration of three years allows for stable service provision and contractor investment.

Sector Analysis

The defense logistics and facilities support sector is a substantial market driven by the U.S. military's need for operational readiness and base support. Contracts in this space often involve complex service delivery requirements. Spending benchmarks for similar base operations and logistics support at large Army installations typically range from tens to hundreds of millions of dollars annually, depending on the size and mission of the base. This contract falls within the mid-range for supporting a significant installation like Fort Stewart.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Vertex Aerospace LLC is the prime contractor, there is potential for subcontracting opportunities for small businesses within the logistics and support services domain. The extent of small business participation will depend on Vertex Aerospace's subcontracting plan and the availability of qualified small business vendors for specific tasks.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army contracting command and the relevant program executive office at Fort Stewart. Accountability measures are embedded in the firm-fixed-price contract terms, performance standards, and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Base Operations Support Services
Logistics and Supply Chain Management
Facilities Maintenance and Management
Department of Defense Contracting
Army Installation Support

Risk Flags

Potential for performance issues impacting base operations.
Risk of cost increases if scope is not clearly defined.
Contractor financial stability could impact service continuity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to VERTEX AEROSPACE LLC. LOGISTICS SUPPORT SERVICES, FORT STEWART

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 $24.3 million.

What is the period of performance?

Start: 2013-04-01. End: 2016-03-31.

What is Vertex Aerospace LLC's track record with similar government contracts, particularly in logistics support?

Vertex Aerospace LLC has a history of performing various aviation and logistics-related services for the U.S. military. While specific details on their performance for this particular Fort Stewart contract are not detailed in the provided data, their general experience suggests a capability to handle complex logistical requirements. A deeper dive into their past performance ratings, any past performance issues or awards on similar contracts, and their financial stability would provide a more comprehensive assessment of their reliability and expertise in fulfilling this role. Reviewing contract close-out reports and any contractor performance assessment reporting system (CPARS) data would offer further insights into their execution of previous government obligations.

How does the awarded amount of $24.3 million compare to the estimated value or budget for this type of logistics support?

The awarded amount of $24.3 million over three years for logistics support services at Fort Stewart represents an average annual value of approximately $8.1 million. To assess its value, this figure should be compared against independent government cost estimates (IGCEs) or similar contracts awarded to other large military installations. Without access to the IGCE or data on comparable contracts, it's challenging to definitively state if this represents optimal value. However, given that it was awarded under full and open competition with multiple bidders, it suggests that the price achieved was likely competitive within the market for such services. Further analysis would involve examining the specific services included and their associated unit costs against industry benchmarks.

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

Key risks for this logistics support contract include potential performance failures by the contractor, leading to disruptions in base operations; scope creep, where the government requests additional services not originally defined, potentially increasing costs; and contractor financial instability. Mitigation strategies are inherent in the contract structure. The firm-fixed-price nature shifts cost overrun risk to Vertex Aerospace. Performance standards and delivery schedules, along with potential penalties for non-compliance, incentivize the contractor to meet requirements. The government's oversight mechanisms, including contract management personnel and potential inspections, are crucial for monitoring performance and addressing issues proactively. The competitive award process also implies a selection of a contractor deemed capable and financially sound.

How effective is the firm-fixed-price contract type in ensuring cost control for this specific logistics support requirement?

The firm-fixed-price (FFP) contract type is generally considered effective for controlling costs when the scope of work is well-defined and the risks are manageable. For logistics support services at a fixed installation like Fort Stewart, where many requirements are predictable, FFP provides significant cost certainty for the government. It incentivizes the contractor to manage its own costs efficiently to maximize profit. However, if unforeseen circumstances arise that significantly impact the contractor's costs (e.g., major changes in fuel prices, unexpected infrastructure needs), the FFP structure can limit the government's flexibility to adjust payments without formal contract modifications, which can be a complex process. The effectiveness hinges on the initial clarity and completeness of the SOW.

What is the historical spending pattern for logistics support services at Fort Stewart, and how does this award fit within that trend?

Historical spending data for logistics support at Fort Stewart is not provided in the current dataset. To understand this award's context, one would need to examine previous contracts awarded for similar services at Fort Stewart, noting their values, durations, and contractors. This would reveal trends in spending, identify any significant increases or decreases, and highlight the typical competitive landscape. If this $24.3 million award over three years represents a consistent level of investment compared to previous periods, it suggests a stable demand for these services. Conversely, a significant deviation might indicate changes in the base's operational tempo, new service requirements, or shifts in contracting strategies. Analyzing historical data is crucial for identifying anomalies and assessing long-term cost-effectiveness.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

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: 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: $24,287,303

Exercised Options: $24,287,303

Current Obligation: $24,287,302

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SE07D0015

IDV Type: IDC

Timeline