DoD awards $18.6M contract for Iraqi Trainer Program maintenance to Vertex Aerospace, facing limited competition
Contract Overview
Contract Amount: $18,603,882 ($18.6M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2009-03-27
End Date: 2012-09-30
Contract Duration: 1,283 days
Daily Burn Rate: $14.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FMS CASE IQ-D-QAH, CLS MAINTENANCE FOR IRAQI TRAINER PROGRAM
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $18.6 million to VERTEX AEROSPACE LLC for work described as: FMS CASE IQ-D-QAH, CLS MAINTENANCE FOR IRAQI TRAINER PROGRAM Key points: 1. Contract value of $18.6M for CLS maintenance. 2. Vertex Aerospace LLC is the sole awardee. 3. Limited competition raises questions about price discovery. 4. The contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code.
Value Assessment
Rating: fair
The contract's fixed price nature provides some cost certainty. However, without competitive bidding, it's difficult to assess if the $18.6M represents a fair market price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This lack of competition may have led to a higher price than if multiple vendors had bid.
Taxpayer Impact: Taxpayer funds are used for this contract. The absence of competition could mean a less efficient use of these funds.
Public Impact
Supports the Iraqi Trainer Program, contributing to foreign military training efforts. Ensures operational readiness of aircraft used in training. Funds a specific niche in aerospace maintenance services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to limited bidding
Positive Signals
- Supports a critical foreign military training program
- Long-term contract duration
Sector Analysis
This contract is within the aerospace and defense sector, specifically focusing on maintenance for training aircraft. Spending benchmarks for similar specialized maintenance contracts can vary widely based on aircraft type and service scope.
Small Business Impact
The awardee, Vertex Aerospace LLC, is not indicated as a small business. This contract does not appear to have specific provisions for small business participation.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA). Oversight would focus on performance delivery and adherence to contract terms, but the lack of competition limits price oversight effectiveness.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition
- Potential for inflated pricing
- Lack of transparency in award justification
- Dependency on a single contractor for critical maintenance
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ms, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.6 million to VERTEX AEROSPACE LLC. FMS CASE IQ-D-QAH, CLS MAINTENANCE FOR IRAQI TRAINER PROGRAM
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 $18.6 million.
What is the period of performance?
Start: 2009-03-27. End: 2012-09-30.
What was the justification for awarding this contract without full and open competition?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A detailed justification would typically be documented by the agency, outlining reasons such as urgency, specialized capabilities, or existing sole-source relationships that precluded a competitive solicitation process.
How does the contract's fixed price structure mitigate risk in a non-competitive environment?
A firm-fixed-price contract shifts most of the risk to the contractor, Vertex Aerospace LLC. This means the government pays a set price regardless of the contractor's actual costs. While this protects the government from cost overruns, it doesn't guarantee the price itself is optimal without competition.
What is the long-term strategic value of this maintenance contract for US foreign policy objectives?
This contract directly supports the Iraqi Trainer Program, which is crucial for building the capacity of Iraq's security forces. Ensuring the operational readiness of training aircraft contributes to the program's success, indirectly supporting US foreign policy goals related to stability and security in the region.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 555 INDUSTRIAL DR S, MADISON, MS, 03
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,603,882
Exercised Options: $18,603,882
Current Obligation: $18,603,882
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-03-27
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2012-05-17
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