Vertex Aerospace LLC awarded $35.7M for KC-10 Airframe Closeout Support, a firm-fixed-price delivery order

Contract Overview

Contract Amount: $35,706,399 ($35.7M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2017-08-16

End Date: 2019-12-31

Contract Duration: 867 days

Daily Burn Rate: $41.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF KC/KDC-10 AIRFRAME CLS

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $35.7 million to VERTEX AEROSPACE LLC for work described as: IGF::OT::IGF KC/KDC-10 AIRFRAME CLS Key points: 1. Contract value appears reasonable for specialized aircraft sustainment services. 2. Full and open competition suggests a competitive bidding process. 3. Firm-fixed-price contract type mitigates cost overrun risks for the government. 4. Delivery order structure indicates task-based execution within a larger framework. 5. Contract duration of 867 days aligns with project scope for airframe closeout. 6. No small business set-aside was utilized, indicating a focus on large prime contractors.

Value Assessment

Rating: good

The contract value of $35.7 million for KC-10 airframe closeout services seems within a reasonable range for specialized aviation maintenance and support. Benchmarking against similar contracts for aircraft sustainment and decommissioning would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for cost control, assuming the scope was well-defined. The absence of extensive modifications or change orders, if applicable, would further support its good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method typically fosters price discovery and encourages competitive pricing. The government likely sought the best value proposition from a range of aerospace service providers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for essential services.

Public Impact

The Department of Defense benefits through the efficient closeout of KC-10 airframes, freeing up resources and potentially preparing assets for future use or disposal. Specialized services related to aircraft airframe maintenance and decommissioning are delivered. The primary geographic impact is likely at the contractor's facility or designated maintenance depots, potentially within Mississippi where the contractor is located. This contract supports a skilled workforce in aerospace engineering, maintenance, and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if airframe condition is significantly worse than anticipated.
Reliance on a single prime contractor could limit flexibility if unforeseen issues arise.
Ensuring timely completion to meet broader DoD divestment or modernization schedules.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a robust selection process.
Experienced contractor in aerospace services likely ensures quality execution.
Delivery order structure allows for phased execution and payment.

Sector Analysis

The aerospace and defense sector is characterized by high-value, complex contracts requiring specialized technical expertise. This contract for KC-10 airframe closeout fits within the broader category of aircraft sustainment and fleet management. Spending in this area is critical for maintaining operational readiness and managing the lifecycle of aging military assets. Comparable spending benchmarks would involve other contracts for aircraft decommissioning, depot-level maintenance, or modification programs for similar large military aircraft.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses explicitly detailed in the provided data. This suggests the primary award went to a large business capable of handling the full scope of work. The impact on the small business ecosystem would depend on whether Vertex Aerospace LLC utilizes small businesses as subcontractors, which is not specified here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. The firm-fixed-price nature of the contract provides a degree of accountability by capping the government's financial liability. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

KC-10 Extender Sustainment Programs
Air Force Aircraft Decommissioning Contracts
Aerospace Depot Maintenance Services
Defense Logistics Agency Support Contracts

Risk Flags

Potential for unforeseen technical challenges during airframe disassembly.
Risk of schedule delays impacting broader fleet retirement plans.
Ensuring compliance with environmental regulations during disposal.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.7 million to VERTEX AEROSPACE LLC. IGF::OT::IGF KC/KDC-10 AIRFRAME CLS

Who is the contractor on this award?

The obligated recipient is VERTEX AEROSPACE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $35.7 million.

What is the period of performance?

Start: 2017-08-16. End: 2019-12-31.

What is Vertex Aerospace LLC's track record with similar large-scale aircraft sustainment or closeout contracts?

Vertex Aerospace LLC has a history of performing various aviation support services, including maintenance, repair, and overhaul (MRO) for military and commercial aircraft. While specific details on their experience with large-scale airframe closeout for platforms like the KC-10 are not fully elaborated in this data snippet, their general expertise in aerospace sustainment suggests a capability to handle such tasks. A deeper dive into their contract history, client feedback, and performance ratings on similar projects would be necessary to fully assess their track record for this specific type of work. Their ability to secure a full and open competition award indicates they met the government's qualification criteria.

How does the $35.7 million award compare to the estimated cost of decommissioning similar large military aircraft?

The $35.7 million award for the KC-10 airframe closeout represents a significant investment, but its value is best understood in comparison to the complexities involved in decommissioning large, multi-engine military aircraft. Factors such as the aircraft's age, condition, required environmental remediation, and the extent of data/parts recovery can heavily influence costs. Without specific benchmarks for KC-10 closeouts or comparable aircraft types (e.g., C-5, B-52), it's challenging to definitively state if this is high or low. However, given the specialized nature of military aviation logistics and the firm-fixed-price structure, the award suggests a defined scope and expected cost efficiency.

What are the primary risks associated with this firm-fixed-price delivery order for airframe closeout?

The primary risks associated with a firm-fixed-price delivery order for airframe closeout, while generally favorable for cost control, revolve around scope definition and unforeseen conditions. If the actual condition of the KC-10 airframes deviates significantly from what was assessed during the bidding phase, the contractor might face challenges in meeting the fixed price without compromising quality or safety. Another risk is the potential for delays if the contractor encounters issues securing necessary parts, specialized equipment, or regulatory approvals. The government's risk is primarily that the contractor may cut corners to maintain profitability if the fixed price proves too low for the actual work required, necessitating close oversight.

What is the expected program effectiveness and impact of completing the KC-10 airframe closeout?

The program effectiveness of completing the KC-10 airframe closeout is measured by the efficient and compliant retirement or disposal of these aging aircraft. Successful completion ensures that the Department of Defense can divest itself of legacy platforms, potentially reducing long-term sustainment costs and freeing up budget for modernization efforts. The impact includes the orderly transition of air mobility capabilities, the responsible handling of hazardous materials, and the potential reclamation of valuable components or materials. Ultimately, it contributes to the overall readiness and strategic posture of the Air Force by managing its fleet lifecycle effectively.

How has historical spending on KC-10 sustainment and related services trended prior to this award?

Historical spending on KC-10 sustainment and related services has likely been substantial, given the aircraft's long service life and critical role in aerial refueling and strategic airlift. Prior to this specific closeout contract, significant funds would have been allocated towards maintenance, upgrades, spare parts, and operational support. Analyzing past spending trends would reveal patterns in depot-level maintenance, component replacements, and service life extension programs. This closeout contract represents a shift from sustainment to divestment, marking the end of a major spending phase for the KC-10 fleet.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vertex Aerospace Services Corp.

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: $35,706,399

Exercised Options: $35,706,399

Current Obligation: $35,706,399

Actual Outlays: $369,280

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810516D0003

IDV Type: IDC

Timeline