DoD awards $23.3M for mobile sensor support to radar systems, with Vertex Aerospace LLC as prime

Contract Overview

Contract Amount: $23,294,416 ($23.3M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2019-10-31

End Date: 2021-10-31

Contract Duration: 731 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MOBILE SENSORS SUPPORT THE OPERATIONS AND MAINTENANCE OF RADAR SYSTEMS ABOARD SHIPS

Place of Performance

Location: PATRICK AFB, BREVARD County, FLORIDA, 32925

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to VERTEX AEROSPACE LLC for work described as: MOBILE SENSORS SUPPORT THE OPERATIONS AND MAINTENANCE OF RADAR SYSTEMS ABOARD SHIPS Key points: 1. Contract value appears reasonable given the specialized nature of radar system maintenance. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include reliance on a single contractor for critical sensor support. 4. Performance context is tied to operational readiness of naval radar systems. 5. This contract falls within the broader defense sector's IT and technical services category. 6. The fixed-price contract type shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $23.3 million over two years for mobile sensor support for naval radar systems appears within a reasonable range for specialized defense technical services. Benchmarking against similar contracts for radar maintenance or specialized sensor integration would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This approach generally fosters a competitive environment, encouraging lower pricing and better service offerings. The specific number of bidders is not provided, but the method of competition suggests a robust market for these specialized technical services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiaries are the U.S. Navy and other Department of Defense entities requiring operational radar systems. Services delivered include the maintenance and operational support of mobile sensors crucial for radar functionality. The geographic impact is likely concentrated around naval bases and operational areas where these ships are deployed. Workforce implications may involve specialized technicians and engineers in the aerospace and defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not transferable.
Dependence on a single contractor for critical operational support could pose a risk.
Ensuring continued technological relevance of sensors over the contract duration.

Positive Signals

Firm fixed-price contract aligns incentives for cost control.
Full and open competition suggests a competitive market.
Contract supports critical defense operational capabilities.

Sector Analysis

This contract operates within the defense industry's technical services sector, specifically focusing on electronic systems and sensor maintenance. The market for such specialized services is often characterized by a limited number of highly qualified contractors due to the technical expertise and security clearances required. Spending in this area is driven by the need to maintain the operational readiness of complex military hardware like naval radar systems.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large prime contract likely awarded through full and open competition, the primary contractor, Vertex Aerospace LLC, would typically manage the overall service delivery. Opportunities for small businesses may exist further down the supply chain, depending on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would fall under the Department of Defense's contracting and program management structures. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to meet performance standards. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities are often internal to the agency.

Related Government Programs

Naval Radar System Maintenance
Aerospace Technical Services
Defense Electronics Support
Mobile Sensor Technology
Department of Defense IT and Technical Services

Risk Flags

Potential for single-source dependency if competition is limited in future.
Risk of technological obsolescence in sensor technology.
Performance metrics and quality assurance oversight are critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to VERTEX AEROSPACE LLC. MOBILE SENSORS SUPPORT THE OPERATIONS AND MAINTENANCE OF RADAR SYSTEMS ABOARD SHIPS

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 $23.3 million.

What is the period of performance?

Start: 2019-10-31. End: 2021-10-31.

What is Vertex Aerospace LLC's track record with similar Department of Defense contracts, particularly those involving radar systems or sensor maintenance?

Vertex Aerospace LLC has a history of performing various technical and support services for the Department of Defense. While specific details on their past performance with radar systems and sensor maintenance for naval platforms require deeper investigation into contract databases and performance reports, their involvement in this $23.3 million contract suggests they possess the requisite capabilities and security clearances. Analyzing their portfolio for similar contracts, including their success rates, past performance ratings, and any documented issues or commendations, would provide a clearer picture of their reliability and expertise in this specialized domain. It is important to note that contract awards do not always equate to flawless execution, and a comprehensive review would involve examining post-award performance data if available.

How does the $23.3 million contract value compare to the typical costs for similar mobile sensor support services for naval radar systems?

The $23.3 million contract value, spanning approximately two years, translates to an annual spend of roughly $11.65 million. To benchmark this effectively, one would need to compare it against contracts for similar services, considering factors like the specific type of radar system, the complexity of the sensors, the required maintenance frequency, and the geographic deployment of the assets. The defense sector often sees higher costs due to stringent security requirements, specialized personnel, and the critical nature of the equipment. Without access to a database of comparable contracts, it's challenging to definitively state if this represents excellent, fair, or concerning value. However, given the specialized nature of naval radar systems and the firm fixed-price award, the pricing is likely competitive within its niche.

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

Key risks include potential performance failures by the contractor, leading to degraded radar system functionality and impacting naval readiness. There's also a risk of cost overruns if the firm fixed-price contract doesn't adequately account for unforeseen technical challenges, although this risk is primarily borne by the contractor. Technological obsolescence of the sensors or support equipment over the contract's lifespan is another concern. Mitigation strategies likely involve robust contract oversight by the Department of the Air Force, clear performance metrics and deliverables, and potentially contingency planning for alternative support if Vertex Aerospace LLC fails to perform. The firm fixed-price nature itself mitigates the risk of the government incurring unexpected cost increases.

What is the expected program effectiveness or impact of these mobile sensor support services on naval operations?

The program's effectiveness is directly tied to ensuring the continuous and reliable operation of the radar systems aboard naval vessels. Radar systems are critical for navigation, surveillance, target acquisition, and threat detection. Effective mobile sensor support ensures that these systems function optimally, thereby enhancing the overall operational capability and safety of the ships. This directly contributes to the Navy's mission readiness, allowing for accurate situational awareness and effective response to potential threats. The success of this contract is measured by the uptime and performance accuracy of the supported radar systems.

How has federal spending in the 'Other Scientific and Technical Consulting Services' category (NAICS 541690) trended over the past five years, and where does this contract fit?

Federal spending in the 'Other Scientific and Technical Consulting Services' category (NAICS 541690) has generally seen a steady increase over the past five years, driven by demand across various agencies for specialized expertise in areas like engineering, environmental consulting, and management science. This specific $23.3 million contract, awarded by the Department of Defense (Air Force), represents a significant, albeit specific, allocation within this broader category. It highlights the government's reliance on external contractors for highly technical support functions that may not be readily available in-house or require specialized, often temporary, expertise. This contract fits within the defense sub-sector of technical consulting, focusing on operational support for critical military hardware.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA702215R0006

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: $23,294,416

Exercised Options: $23,294,416

Current Obligation: $23,294,416

Actual Outlays: $4,754,188

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA702217D0001

IDV Type: IDC

Timeline