Vertex Aerospace LLC contract for flight operations support at Vance AFB totals over $372M, awarded via full and open competition

Contract Overview

Contract Amount: $372,554,628 ($372.6M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2014-10-01

End Date: 2022-09-30

Contract Duration: 2,921 days

Daily Burn Rate: $127.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CL,CT::IGF VANCE AFB FLIGHT OPERATIONS SUPPORT

Place of Performance

Location: ENID, GARFIELD County, OKLAHOMA, 73705

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $372.6 million to VERTEX AEROSPACE LLC for work described as: IGF::CL,CT::IGF VANCE AFB FLIGHT OPERATIONS SUPPORT Key points: 1. The contract's value of over $372 million over its nearly 8-year duration suggests a significant and ongoing need for flight operations support. 2. Awarded through full and open competition, this contract likely benefited from a competitive bidding process, potentially leading to better pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor, Vertex Aerospace LLC, which is generally favorable for the government. 4. The contract's duration of 2921 days (approximately 8 years) indicates a long-term requirement for these services. 5. The North American Industry Classification System (NAICS) code 488190 points to 'Other Support Activities for Air Transportation,' a specialized sector. 6. The absence of small business set-aside flags suggests the primary award was not specifically targeted to small businesses.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging without specific details on the scope of 'flight operations support' and comparable contracts. However, a total value exceeding $372 million over nearly eight years for a single base's flight operations support indicates a substantial investment. The firm-fixed-price structure is a positive indicator for value, as it incentivizes contractor efficiency. Further analysis would require comparing the per-unit costs of services rendered against industry standards or similar contracts at other Air Force bases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit a bid. This suggests a robust bidding environment, likely involving multiple interested parties. The presence of four bidders (no) indicates a reasonable level of competition, which typically helps in achieving competitive pricing and ensuring the government receives fair market value for the services provided.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation from contractors seeking to win the bid.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Vance Air Force Base, ensuring the continuity and efficiency of flight training and operations. The services delivered likely encompass a range of support activities essential for air transportation, such as ground support, maintenance coordination, air traffic control support, and logistical services. The geographic impact is localized to Vance Air Force Base in Oklahoma, directly supporting its mission and personnel. Workforce implications include direct and indirect employment opportunities for individuals with specialized skills in aviation support and logistics, both within the contractor's organization and potentially supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for all potential operational complexities.
Risk of contractor performance issues impacting critical flight operations if not managed closely.
Dependence on a single contractor for a significant period could lead to reduced leverage in future negotiations.
The broad NAICS code 'Other Support Activities for Air Transportation' may obscure specific service details, making granular performance assessment difficult.

Positive Signals

The firm-fixed-price contract type transfers significant performance risk to the contractor.
Award through full and open competition suggests a competitive process that likely yielded a fair price.
The contractor, Vertex Aerospace LLC, has a track record that can be reviewed for performance history.
The contract duration indicates a stable, long-term requirement, allowing for efficient resource planning by both the government and the contractor.

Sector Analysis

The contract falls within the broader aerospace and defense services sector, specifically focusing on aviation support. This sector is characterized by high technical requirements, stringent regulatory oversight, and significant government spending. Contracts for base support services like flight operations are crucial for maintaining military readiness and operational capabilities. Comparable spending benchmarks would involve analyzing other contracts for similar support services at different military installations, considering factors like base size, operational tempo, and specific service requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contract was awarded to a large business, Vertex Aerospace LLC. While there is no direct indication of subcontracting plans for small businesses within the provided data, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses to meet federal goals. The absence of a specific small business set-aside does not preclude small business participation through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, specifically the contracting and program management offices responsible for Vance Air Force Base. Accountability measures are typically embedded within the contract's performance work statement (PWS), with defined metrics and reporting requirements. Transparency is facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Air Force Base Operations Support Contracts
Aviation Services Contracts
Logistics and Maintenance Support Contracts
Defense Support Services
Flight Training Support Services

Risk Flags

Long-term contract duration may reduce future negotiation leverage.
Firm-fixed-price contracts can lead to performance issues if contractor cost management is poor.
Broad NAICS code may limit transparency on specific service details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $372.6 million to VERTEX AEROSPACE LLC. IGF::CL,CT::IGF VANCE AFB FLIGHT OPERATIONS SUPPORT

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 $372.6 million.

What is the period of performance?

Start: 2014-10-01. End: 2022-09-30.

What is the specific scope of 'Other Support Activities for Air Transportation' covered under this contract?

The provided data uses the NAICS code 488190, 'Other Support Activities for Air Transportation.' This broad category typically includes services such as airport operations, air traffic control support, aircraft ground support, cargo handling, and other essential services required for the smooth functioning of air transportation operations. For this specific contract at Vance AFB, it likely encompasses a range of activities critical to supporting flight training and operations, potentially including but not limited to: aircraft fueling coordination, ground handling services, maintenance scheduling support, air traffic control tower operations assistance, weather monitoring services, and logistical support for flight crews and aircraft. A detailed review of the contract's Performance Work Statement (PWS) would be necessary to ascertain the precise deliverables and scope of services.

How does the per-unit cost of services under this contract compare to industry benchmarks or similar Air Force contracts?

Direct comparison of per-unit costs is not possible with the provided summary data. The total contract value of $372,554,628.15 over approximately 2921 days (nearly 8 years) offers a high-level view, averaging roughly $47.7 million per year. However, without specific line items detailing the cost of individual services (e.g., per flight hour support, per aircraft serviced, per hour of air traffic control assistance), benchmarking against industry rates or similar contracts at other bases is speculative. The firm-fixed-price nature suggests the contractor is responsible for managing these costs. A detailed cost-volume-profit analysis or comparison with contracts for similar support at bases like Laughlin AFB or Columbus AFB, adjusted for scale and specific mission requirements, would be needed for a robust benchmark.

What is Vertex Aerospace LLC's track record with similar government contracts, particularly within the Department of Defense?

Vertex Aerospace LLC has a history of performing various support services for the Department of Defense. While specific details on their performance metrics for this particular Vance AFB contract are not provided in the summary, their ability to secure a contract of this magnitude and duration suggests a level of established capability and past performance that met the Air Force's requirements. A deeper dive into federal procurement databases (like FPDS-NG or SAM.gov) would reveal other contracts awarded to Vertex Aerospace, their performance ratings (if available), and any significant issues or accolades received. Examining their portfolio of aviation support, maintenance, and logistics contracts would provide a clearer picture of their experience and reliability in serving military aviation needs.

What are the potential risks associated with a long-term, firm-fixed-price contract for flight operations support?

Long-term, firm-fixed-price (FFP) contracts, while generally favorable for price certainty, carry specific risks. For flight operations support, potential risks include: 1) Inadequate initial pricing: If Vertex Aerospace underestimated the operational complexities or future cost increases (e.g., labor, fuel, parts), they might struggle to maintain profitability, potentially leading to performance degradation or requests for modification. 2) Scope creep: Uncontrolled changes or additions to the scope of work without corresponding price adjustments can strain the contractor's resources. 3) Contractor complacency: Over an extended period, a contractor might become less innovative or efficient if competition is perceived as low post-award. 4) Technological obsolescence: If the support relies on specific equipment or processes that become outdated, the contractor may face challenges in maintaining optimal service levels without significant investment. The government's oversight and contract management are crucial to mitigating these risks.

How has federal spending on 'Other Support Activities for Air Transportation' evolved, and where does this contract fit within that trend?

Federal spending on 'Other Support Activities for Air Transportation' (NAICS 488190) has historically been substantial, driven by the operational needs of the Department of Defense and other agencies reliant on air transport. While specific year-over-year trends for this exact NAICS code are best analyzed through detailed budget reports, it's understood that such services are critical for maintaining military readiness and infrastructure. This $372 million contract represents a significant, long-term investment within this category, reflecting the ongoing requirement for comprehensive support at a major training installation like Vance AFB. Its duration suggests a stable, albeit substantial, allocation of resources rather than a fluctuating or short-term expenditure pattern. This contract likely aligns with consistent federal spending priorities on maintaining and operating air bases.

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: FA300213R0008

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

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: $426,926,526

Exercised Options: $400,209,169

Current Obligation: $372,554,628

Actual Outlays: $12,959,809

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $288,358

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline