Vertex Aerospace LLC awarded $49.5M for KC/KDC-10 Airframe CLS, with a significant portion allocated to sustainment

Contract Overview

Contract Amount: $49,515,392 ($49.5M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2018-10-01

End Date: 2022-08-31

Contract Duration: 1,430 days

Daily Burn Rate: $34.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 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 $49.5 million to VERTEX AEROSPACE LLC for work described as: KC/KDC-10 AIRFRAME CLS Key points: 1. The contract value of $49.5M for airframe sustainment indicates a substantial investment in maintaining critical aviation assets. 2. Competition dynamics for this contract are assessed as 'full and open', suggesting a potentially competitive bidding process. 3. The contract's duration of 1430 days (approximately 4 years) points to a long-term commitment for airframe services. 4. The fixed-price contract type suggests that cost risks are largely borne by the contractor, Vertex Aerospace LLC. 5. The 'Other Support Activities for Air Transportation' NAICS code places this contract within a specialized segment of the aviation support industry. 6. The award was made by the Defense Contract Management Agency, indicating a focus on defense-related aviation support.

Value Assessment

Rating: good

Benchmarking this contract's value requires specific data on KC/KDC-10 airframe sustainment costs. However, the $49.5M award over approximately four years suggests a significant but potentially reasonable investment for maintaining complex military aircraft. The firm fixed-price nature of the contract implies that Vertex Aerospace LLC has committed to delivering services within a set budget, which can be advantageous for the government if costs are managed effectively. Further analysis would involve comparing per-hour or per-maintenance-event costs against industry standards for similar heavy transport aircraft.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition', indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition was intended and likely achieved, which is a positive sign for price discovery and value for money.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the most advantageous offer, potentially leading to lower prices and better service quality compared to less competitive procurement methods.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating KC/KDC-10 aircraft, ensuring their continued operational readiness. Services delivered include essential airframe sustainment, likely encompassing maintenance, repair, and overhaul activities. The geographic impact is primarily centered around the operational bases of the KC/KDC-10 fleet, with potential support activities extending to Vertex Aerospace's facilities in Mississippi. Workforce implications include the employment of skilled aviation mechanics, technicians, and support staff by Vertex Aerospace LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical issues arise beyond the scope of the fixed-price agreement.
Dependence on a single contractor for critical airframe sustainment could pose a risk if performance falters.
The long contract duration might limit flexibility to adopt newer sustainment technologies or approaches if they emerge.

Positive Signals

The firm fixed-price contract structure incentivizes contractor efficiency and cost control.
Awarding under full and open competition suggests a competitive process that should yield favorable terms.
The contract's duration provides stability and predictability for sustainment operations.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation support services. The market for military aircraft sustainment is characterized by high technical barriers to entry, specialized expertise, and long-term relationships between government agencies and contractors. Spending in this area is critical for maintaining the operational readiness of aging fleets. Comparable spending benchmarks would involve analyzing other sustainment contracts for similar large transport or tanker aircraft operated by the U.S. military.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by Vertex Aerospace LLC. The extent of such subcontracting is not detailed, but large prime contracts often involve a network of smaller suppliers and service providers within the defense industrial base.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded in the firm fixed-price contract terms, requiring Vertex Aerospace LLC to meet specific performance standards. Transparency is facilitated through contract award data, though detailed performance metrics and financial reporting may be subject to specific government access controls.

Related Government Programs

KC-135 Stratotanker Sustainment
C-17 Globemaster III Support
Air Mobility Command Logistics
Defense Aviation Maintenance Contracts

Risk Flags

Contract Duration
Sole Source Potential (if performance issues arise)
Supply Chain Dependencies

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.5 million to VERTEX AEROSPACE LLC. 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 $49.5 million.

What is the period of performance?

Start: 2018-10-01. End: 2022-08-31.

What is Vertex Aerospace LLC's track record with similar large-scale aviation sustainment contracts, particularly for military airframes?

Vertex Aerospace LLC has a history of providing aviation services, including maintenance, repair, and overhaul (MRO) for various aircraft. While specific details on their track record with KC/KDC-10 sustainment prior to this award are not provided in the summary data, their selection for a $49.5M contract suggests they possess the necessary certifications, capabilities, and past performance to be considered a capable provider. Further investigation into their contract history with the Department of Defense and other government agencies, focusing on the scale and complexity of previous sustainment programs, would offer a more comprehensive understanding of their experience and reliability in managing such significant aviation support agreements.

How does the awarded value of $49.5M compare to historical spending on KC/KDC-10 airframe sustainment?

Without specific historical spending data for KC/KDC-10 airframe sustainment, a direct comparison is challenging. However, the $49.5M award over approximately four years (1430 days) suggests an average annual expenditure of roughly $12.4M. This figure should be evaluated against the known operational tempo, age of the fleet, and the scope of sustainment activities (e.g., scheduled maintenance, unscheduled repairs, component replacements). If historical spending has been significantly higher or lower, it could indicate changes in maintenance strategies, fleet condition, or market pricing. Analyzing trends in sustainment costs for similar large military aircraft could provide a broader context for assessing whether this award represents an increase, decrease, or stable level of investment.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for aviation sustainment contracts include aircraft availability rates, turnaround times for maintenance, quality of repairs (e.g., defect rates), and adherence to schedules. Risk mitigation strategies are often built into the contract terms. For this firm fixed-price contract, Vertex Aerospace LLC assumes significant cost risk, incentivizing efficient management. The 'full and open competition' aims to mitigate risks associated with contractor selection by ensuring a competitive landscape. Further details on specific performance metrics and the government's oversight mechanisms would be found in the contract's statement of work and performance work statement.

What is the anticipated impact of this contract on the operational readiness of the KC/KDC-10 fleet?

This contract is expected to have a positive impact on the operational readiness of the KC/KDC-10 fleet by ensuring that these critical aircraft receive necessary airframe sustainment services. By securing a dedicated provider like Vertex Aerospace LLC through a multi-year contract, the Department of Defense aims to maintain the airworthiness and functionality of the aircraft, reducing unexpected downtime due to maintenance issues. Consistent and high-quality sustainment directly contributes to the fleet's ability to perform its missions, whether they involve aerial refueling or strategic airlift, thereby bolstering overall military operational capability.

Are there any specific technological advancements or innovations expected to be incorporated through this sustainment contract?

The provided summary data does not specify whether this contract includes requirements for incorporating new technological advancements or innovations in airframe sustainment. Typically, sustainment contracts focus on maintaining existing systems to established standards. However, depending on the contract's statement of work, Vertex Aerospace LLC might be incentivized or required to propose and implement more efficient maintenance techniques, diagnostic tools, or material management practices. If the contract allows for innovation, it could lead to improved reliability, reduced maintenance costs, or extended airframe life. A review of the detailed contract documents would be necessary to ascertain any specific provisions related to technological upgrades or process innovations.

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

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: $49,515,392

Exercised Options: $49,515,392

Current Obligation: $49,515,392

Actual Outlays: $508,893

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810516D0003

IDV Type: IDC

Timeline