DoD Awards $16.7M for KC-10 Support to Vertex Aerospace, Highlighting Potential for Cost Savings
Contract Overview
Contract Amount: $16,762,739 ($16.8M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2021-10-07
End Date: 2024-09-30
Contract Duration: 1,089 days
Daily Burn Rate: $15.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KC-10
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $16.8 million to VERTEX AEROSPACE LLC for work described as: KC-10 Key points: 1. Vertex Aerospace secured a significant contract for KC-10 support, indicating a competitive market for aviation services. 2. The contract's firm-fixed-price structure aims to mitigate cost overruns, a common risk in defense procurement. 3. While specific performance metrics are not detailed, the duration suggests a need for sustained operational support. 4. The award falls within the broader defense sector, which consistently represents a large portion of federal spending.
Value Assessment
Rating: good
The contract's firm-fixed-price (FFP) type suggests a clear pricing structure. Benchmarking against similar FFP contracts for aircraft sustainment would be necessary for a definitive value assessment, but the award amount appears reasonable for the scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives the best value. The use of a delivery order under a larger contract suggests a streamlined procurement process.
Taxpayer Impact: Full and open competition generally leads to more efficient use of taxpayer funds by fostering a competitive environment that can drive down costs.
Public Impact
Ensures continued operational readiness for the KC-10 fleet, a critical asset for aerial refueling and strategic airlift. Supports jobs within the aerospace sector, contributing to the defense industrial base. The contract's duration implies a long-term commitment to maintaining these aircraft, reflecting their ongoing importance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics.
- Potential for scope creep if not managed tightly.
- Dependence on a single contractor for this specific support.
Positive Signals
- Awarded through full and open competition.
- Firm-fixed-price contract type.
- Long contract duration indicating sustained need.
Sector Analysis
This contract falls within the aerospace and defense sector, a significant area of federal expenditure. Benchmarks for similar aircraft sustainment contracts vary widely based on aircraft type, age, and required services, but this award appears within a typical range for specialized support.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting opportunities.
Oversight & Accountability
The Department of Defense, through its various agencies like the Defense Contract Management Agency, is responsible for overseeing contract performance. Robust oversight is crucial to ensure Vertex Aerospace meets its obligations and taxpayer funds are used effectively.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of specific performance metrics.
- Potential for cost overruns if scope is not managed.
- Limited visibility into subcontracting opportunities for small businesses.
- Dependence on a single vendor for critical support.
Tags
other-support-activities-for-air-transpo, department-of-defense, ms, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to VERTEX AEROSPACE LLC. KC-10
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 $16.8 million.
What is the period of performance?
Start: 2021-10-07. End: 2024-09-30.
What specific services are included in the KC-10 support, and how do they align with the contract value?
The contract details are limited, but it likely encompasses maintenance, repair, and logistical support for the KC-10 aircraft. The $16.7 million value over approximately three years suggests a comprehensive package. A detailed breakdown of services would be needed to fully assess value for money and ensure alignment with the allocated funds.
What are the key performance indicators (KPIs) for this contract, and how will Vertex Aerospace's performance be measured?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Effective oversight requires clearly defined metrics related to aircraft availability, turnaround times for repairs, and quality of service. Without these, assessing contractor performance and ensuring mission readiness is challenging.
How does the cost of this contract compare to historical spending on similar KC-10 sustainment efforts?
Direct comparison is difficult without historical data specific to KC-10 sustainment contracts. However, the firm-fixed-price structure and full and open competition suggest an effort to control costs. Benchmarking against similar support contracts for other large military aircraft would provide a broader perspective on 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: $16,762,739
Exercised Options: $16,762,739
Current Obligation: $16,762,739
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810516D0003
IDV Type: IDC
Timeline
Start Date: 2021-10-07
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-12-11
More Contracts from Vertex Aerospace LLC
- T45 CLS Cmmars Task Order, Materials - Aircraft Maintenance — $1.5B (Department of Defense)
- Lccs Services for Army Fleet of C-12/Rc-12/Uc-35 Aircraft AT Worldwide Locations Includes Maintenance, Upgrades and Elective Improvements — $1.3B (Department of Defense)
- T-1 Contractor Operated and Maintained Base Supply (combs) — $734.8M (Department of Defense)
- Field and Sustainment Level Maintenance in Support of Aircraft Deployed in the Usarcent AOR — $728.3M (Department of Defense)
- E-6B Contractor Logistics Support (CLS) Follow-On Task Order — $650.8M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)