DoD Awards $46M KC-10 Contractor Logistics Support to Vertex Aerospace LLC

Contract Overview

Contract Amount: $46,075,370 ($46.1M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2020-10-02

End Date: 2024-06-20

Contract Duration: 1,357 days

Daily Burn Rate: $34.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: KC-10 CONTRACTOR LOGISTICS SUPPORT

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $46.1 million to VERTEX AEROSPACE LLC for work described as: KC-10 CONTRACTOR LOGISTICS SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting market availability. 2. Vertex Aerospace LLC, a new prime contractor for this specific support, faces initial performance risks. 3. The contract's duration of 1357 days (approx. 3.7 years) indicates a significant, long-term commitment. 4. Focus on logistics support for KC-10 aircraft highlights critical defense sustainment needs.

Value Assessment

Rating: fair

The contract value of $46M over nearly four years averages around $12.4M annually. Benchmarking this against similar aircraft logistics support contracts is difficult without more specific service details, but it appears within a reasonable range for specialized aviation maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors could bid. This method generally promotes competitive pricing and allows the government to select the best value offer. The specific price discovery mechanism within the bidding process is not detailed.

Taxpayer Impact: Taxpayer funds are utilized for essential military aircraft sustainment. Competitive bidding aims to ensure efficient use of these funds, but ongoing monitoring is needed to confirm value.

Public Impact

Ensures continued operational readiness of the KC-10 fleet, vital for refueling and strategic airlift missions. Supports jobs within the aerospace and defense sector, particularly in Mississippi where Vertex Aerospace is located. Potential for cost savings through competitive procurement, benefiting taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

New prime contractor for this specific support, potential performance ramp-up issues.
Reliance on a single delivery order for a significant duration.
Limited visibility into specific performance metrics and cost controls.

Positive Signals

Awarded through full and open competition, promoting market efficiency.
Supports critical national defense asset sustainment.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and logistics. Spending in this area is crucial for maintaining military readiness. Benchmarks for similar large-scale aircraft sustainment contracts vary widely based on aircraft type and scope of services.

Small Business Impact

While Vertex Aerospace LLC is the prime contractor, the data does not indicate if small businesses are involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Standard oversight mechanisms for contract performance, quality assurance, and payment should be in place.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Performance risk associated with a new prime contractor for this specific support.
Potential for cost overruns if scope creep occurs or unforeseen technical issues arise.
Dependence on a single delivery order for a long-term requirement.
Lack of detailed public information on specific performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.1 million to VERTEX AEROSPACE LLC. KC-10 CONTRACTOR LOGISTICS 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $46.1 million.

What is the period of performance?

Start: 2020-10-02. End: 2024-06-20.

What is the specific scope of 'Contractor Logistics Support' for the KC-10, and how does it compare to organic military support capabilities?

Contractor Logistics Support typically encompasses a range of services including maintenance, repair, overhaul, supply chain management, and technical support for aircraft systems. For the KC-10, this likely involves ensuring the airworthiness and operational readiness of the fleet through specialized expertise and resources that may exceed organic military capabilities or capacity. The specific division of labor between contractor and military personnel is key to assessing value.

What are the key performance indicators (KPIs) used to measure Vertex Aerospace's performance under this contract, and what are the penalties for non-performance?

The contract details likely include specific KPIs related to aircraft availability, turnaround time for repairs, parts delivery, and adherence to maintenance schedules. While the contract is firm fixed price, performance clauses and potential penalties for failing to meet critical KPIs should be outlined. Without access to the full contract, the exact KPIs and penalties remain unknown, posing a potential risk if not adequately defined.

How does the cost of this contractor logistics support compare to historical spending on KC-10 sustainment or similar aircraft types, and what drives any significant variances?

Comparing this $46M contract to historical KC-10 sustainment costs or similar aircraft requires detailed historical data and an understanding of the specific services included. Variances could be driven by inflation, changes in operational tempo, evolving maintenance requirements, or the competitive landscape at the time of award. A thorough cost analysis comparing this contract's unit costs and overall value against benchmarks is essential for determining cost-effectiveness.

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: $46,075,370

Exercised Options: $46,075,370

Current Obligation: $46,075,370

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810516D0003

IDV Type: IDC

Timeline