DoD Awards $75M KC-10 Airframe Order to Vertex Aerospace LLC Under Full and Open Competition
Contract Overview
Contract Amount: $74,994,035 ($75.0M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2023-01-01
End Date: 2024-01-01
Contract Duration: 365 days
Daily Burn Rate: $205.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KC-10 AIRFRAME ORDER
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $75.0 million to VERTEX AEROSPACE LLC for work described as: KC-10 AIRFRAME ORDER Key points: 1. Significant contract value for airframe support. 2. Vertex Aerospace LLC is the sole awardee. 3. Full and open competition was utilized. 4. Contract duration is one year.
Value Assessment
Rating: fair
The contract value of $75,000,000 for a one-year duration appears reasonable given the specialized nature of airframe support. Benchmarking against similar large-scale airframe maintenance contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive bidding process, aiming to secure the best value for the KC-10 airframe support.
Public Impact
Ensures continued operational readiness for the KC-10 fleet. Supports critical aerial refueling capabilities for the U.S. Air Force. Impacts the aerospace maintenance and support sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation in future contract periods.
- Dependence on a single contractor for this specific airframe support.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and scope.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aircraft maintenance and support. Spending benchmarks for similar large airframe support contracts can vary widely based on aircraft type and required services.
Small Business Impact
The awardee, Vertex Aerospace LLC, is not identified as a small business. The contract does not appear to have specific set-asides for small businesses, indicating a focus on large prime contractors for this requirement.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The contract's fixed-price nature and defined period of performance should facilitate accountability.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Contract awarded to a single entity.
- Potential for sole-source follow-on contracts.
- Limited transparency on specific service details.
- No explicit small business participation noted.
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 $75.0 million to VERTEX AEROSPACE LLC. KC-10 AIRFRAME ORDER
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 $75.0 million.
What is the period of performance?
Start: 2023-01-01. End: 2024-01-01.
What is the specific scope of 'Airframe Order' services to ensure value for money?
The 'Airframe Order' likely encompasses a range of maintenance, repair, and overhaul services critical for the KC-10 aircraft's structural integrity and operational readiness. Detailed specifications within the contract would define tasks such as inspections, component replacements, corrosion control, and structural repairs. Understanding the precise scope is crucial for assessing if the $75 million price tag represents fair value and avoids unnecessary costs.
What are the potential risks associated with relying on Vertex Aerospace for KC-10 airframe support?
Potential risks include contractor performance issues, such as delays or quality deficiencies, which could impact KC-10 availability. There's also a risk of price increases in subsequent contract periods if competition is not maintained or if unforeseen technical challenges arise. Furthermore, a sole reliance on one contractor could create vulnerabilities if the contractor faces financial instability or operational disruptions.
How does this contract contribute to the overall effectiveness of the KC-10 fleet?
This contract is essential for maintaining the airworthiness and operational readiness of the KC-10 Extender fleet, which provides vital aerial refueling capabilities. By ensuring the airframes are in optimal condition, the contract directly supports the Air Force's ability to project power and sustain long-range missions. Effective airframe support is a foundational element for the fleet's overall mission accomplishment and strategic value.
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: $74,994,035
Exercised Options: $74,994,035
Current Obligation: $74,994,035
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810516D0003
IDV Type: IDC
Timeline
Start Date: 2023-01-01
Current End Date: 2024-01-01
Potential End Date: 2024-01-01 00:00:00
Last Modified: 2024-12-02
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