GSA Awards $498.7M W-TRS Contract to Vertex Aerospace for Warfighter Training Solutions

Contract Overview

Contract Amount: $498,665,075 ($498.7M)

Contractor: Vertex Aerospace LLC

Awarding Agency: General Services Administration

Start Date: 2024-08-29

End Date: 2026-08-28

Contract Duration: 729 days

Daily Burn Rate: $684.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: WARFIGHTER TRAINING READINESS SOLUTIONS W-TRS

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $498.7 million to VERTEX AEROSPACE LLC for work described as: WARFIGHTER TRAINING READINESS SOLUTIONS W-TRS Key points: 1. Significant contract value of $498.7 million over 729 days. 2. Vertex Aerospace LLC is the sole awardee under full and open competition. 3. Potential risks include cost overruns given the Cost Plus Award Fee structure. 4. Engineering Services sector, NAICS 541330, indicates a focus on technical solutions.

Value Assessment

Rating: fair

The Cost Plus Award Fee (CPAF) structure allows for contractor reimbursement of costs plus a fee based on performance. This can lead to higher costs compared to fixed-price contracts if not managed tightly, but incentivizes performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the CPAF structure may still allow for cost growth.

Taxpayer Impact: Taxpayer funds are being used for advanced warfighter training solutions, with the potential for cost efficiencies through competitive bidding and performance incentives.

Public Impact

Enhances warfighter readiness through advanced training solutions. Supports critical defense capabilities by providing necessary technical services. Potential for technological advancements in military training methodologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure may lead to higher than anticipated costs.
Contract duration of 729 days requires ongoing oversight.
No small business participation noted.

Positive Signals

Awarded via full and open competition.
Focus on critical warfighter training and readiness.
Performance incentives within CPAF structure.

Sector Analysis

This contract falls within the Engineering Services sector, characterized by complex technical requirements and often significant government investment. Benchmarks for similar large-scale training solutions are difficult to ascertain without more specific service details.

Small Business Impact

The data indicates that small businesses were not involved in this specific award, as the 'sb' field is false. Future opportunities may exist for small businesses as subcontractors or in subsequent contract phases.

Oversight & Accountability

The General Services Administration (GSA) awarded this contract through its Federal Acquisition Service. Ongoing oversight will be crucial to manage performance and costs under the CPAF structure.

Related Government Programs

Engineering Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Cost Plus Award Fee (CPAF) structure can lead to cost overruns.
Long contract duration requires sustained oversight.
No explicit small business participation noted.
Potential for performance slippage if award fee criteria are not strictly managed.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $498.7 million to VERTEX AEROSPACE LLC. WARFIGHTER TRAINING READINESS SOLUTIONS W-TRS

Who is the contractor on this award?

The obligated recipient is VERTEX AEROSPACE LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $498.7 million.

What is the period of performance?

Start: 2024-08-29. End: 2026-08-28.

How will the performance metrics within the CPAF structure be objectively measured to ensure fair and appropriate award fees are paid?

Objective measurement of performance metrics is critical for CPAF contracts. The government will likely establish clear, quantifiable Key Performance Indicators (KPIs) tied to training effectiveness, system uptime, and adherence to schedules. Regular reviews and independent assessments will validate contractor performance against these KPIs, forming the basis for determining the award fee.

What are the specific risks associated with the 'FL' (Florida) location for this training solution, and how are they being mitigated?

The 'FL' designation likely refers to the operational location or base of operations for the training. Risks could include logistical challenges, specific environmental factors, or regional workforce availability. Mitigation strategies would involve detailed logistical planning, contingency measures for unforeseen events, and ensuring adequate local resources or support networks are in place.

Given the $498.7M value, what is the projected return on investment for the government in terms of improved warfighter readiness?

The projected ROI is tied to enhanced warfighter capabilities and mission success rates. Quantifying this precisely involves metrics like reduced training time, improved combat effectiveness scores, and decreased operational errors. The government expects the investment to yield a significant improvement in the overall readiness posture of the forces utilizing these training solutions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA24R0008

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

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: $3,669,000,833

Exercised Options: $1,067,981,657

Current Obligation: $498,665,075

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFCA22D0344

IDV Type: IDC

Timeline