DoD awards Vertex Aerospace $23.7M for KC-10 contractor logistics services in FY24
Contract Overview
Contract Amount: $23,755,455 ($23.8M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2024-01-01
End Date: 2024-12-31
Contract Duration: 365 days
Daily Burn Rate: $65.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KC-10 AIRFRAME Q2 FUNDING FOR KC-10 CONTRACTOR LOGISTICS SERVICES
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $23.8 million to VERTEX AEROSPACE LLC for work described as: KC-10 AIRFRAME Q2 FUNDING FOR KC-10 CONTRACTOR LOGISTICS SERVICES Key points: 1. Spending focuses on essential logistics for the KC-10 aircraft fleet. 2. Vertex Aerospace LLC is the sole contractor for these services. 3. The contract is firm-fixed-price, aiming for cost certainty. 4. This spending supports ongoing Air Force readiness and operations.
Value Assessment
Rating: good
The $23.7M award for contractor logistics services appears reasonable given the scope of supporting a major aircraft fleet. Benchmarking against similar long-term sustainment contracts for aging aircraft would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. The firm-fixed-price structure helps control costs, but the specific price discovery mechanism during negotiation is not detailed.
Taxpayer Impact: Taxpayer funds are used to ensure the operational readiness of the KC-10 fleet, a critical asset for aerial refueling and strategic airlift capabilities.
Public Impact
Ensures continued operational capability of the KC-10 tanker fleet. Supports Air Force global reach and power projection missions. Maintains critical maintenance and logistics infrastructure for aging aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 65 / 10
Warning Flags
- Reliance on a single contractor for critical logistics.
- Aging KC-10 fleet may require increasing maintenance costs over time.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Full and open competition suggests potential for competitive pricing.
Sector Analysis
Defense logistics spending is crucial for maintaining military readiness. This contract falls within the broader category of aerospace support services, where costs can fluctuate based on aircraft age and complexity.
Small Business Impact
This contract does not appear to involve small business participation, as Vertex Aerospace LLC is the prime contractor. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) oversees this contract, ensuring compliance with terms and conditions. Regular performance reviews and audits are standard oversight mechanisms for such agreements.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to aging aircraft.
- Dependence on a single contractor for critical support.
- Risk of supply chain disruptions for specialized parts.
- Limited visibility into subcontractor performance.
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 $23.8 million to VERTEX AEROSPACE LLC. KC-10 AIRFRAME Q2 FUNDING FOR KC-10 CONTRACTOR LOGISTICS SERVICES
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 $23.8 million.
What is the period of performance?
Start: 2024-01-01. End: 2024-12-31.
What is the projected cost trend for KC-10 sustainment over the next five years?
Projecting cost trends for KC-10 sustainment requires analyzing historical maintenance data, anticipated component failures, and the overall operational tempo of the fleet. Factors like inflation, spare parts availability, and potential upgrades also influence future costs. A detailed lifecycle cost analysis would be necessary to provide a reliable projection.
What are the key performance indicators (KPIs) used to evaluate Vertex Aerospace's performance?
Key performance indicators for this contract likely include metrics such as on-time delivery of services, quality of maintenance performed, adherence to safety standards, and responsiveness to urgent repair needs. Specific KPIs would be detailed in the contract's performance work statement (PWS) and are crucial for ensuring the contractor meets operational requirements.
How does the cost of these logistics services compare to similar contracts for other aging airframes?
Comparing costs requires identifying contracts for similar services (e.g., airframe sustainment, contractor logistics support) on comparable aging aircraft platforms. Factors like fleet size, aircraft complexity, and contract duration influence per-unit costs. A benchmark analysis would reveal if Vertex's pricing is competitive within the defense aerospace sustainment market.
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: $23,755,455
Exercised Options: $23,755,455
Current Obligation: $23,755,455
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810516D0003
IDV Type: IDC
Timeline
Start Date: 2024-01-01
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-11-05
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