DoD's $51.6M contract with Vertex Aerospace for air transportation support lacked competition
Contract Overview
Contract Amount: $51,603,919 ($51.6M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2010-06-25
End Date: 2017-03-01
Contract Duration: 2,441 days
Daily Burn Rate: $21.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DBOX-QTY-ERROR
Plain-Language Summary
Department of Defense obligated $51.6 million to VERTEX AEROSPACE LLC for work described as: DBOX-QTY-ERROR Key points: 1. Significant spending on air transportation support services. 2. Sole-source award raises questions about price discovery. 3. Long contract duration (2010-2017) may impact cost-effectiveness. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract's value of $51.6 million over its period is substantial. Without competitive bidding, it's difficult to assess if this represents a fair market price compared to similar support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating no competition. This limits the government's ability to leverage market forces for better pricing and potentially leads to higher costs.
Taxpayer Impact: The absence of competition likely resulted in taxpayers paying more than they would have under a fully competitive procurement.
Public Impact
Taxpayers may have overpaid due to lack of competition. Limited visibility into the necessity and cost-effectiveness of these specific air transportation support services. Potential for improved service delivery if competition were encouraged in the future.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of small business participation
- Long contract duration
Positive Signals
- Definitive contract awarded
- Firm fixed price contract type
Sector Analysis
This contract falls under Other Support Activities for Air Transportation. Spending in this sector can be critical for military readiness but is also prone to cost overruns if not managed competitively.
Small Business Impact
The contract data indicates that small businesses were not involved in this award (ss=false, sb=false). This represents a missed opportunity to support small businesses and potentially gain from their specialized capabilities.
Oversight & Accountability
The sole-source nature of this award warrants further review to ensure the Department of Defense received fair value and that competition was appropriately considered or justified.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Lack of transparency regarding competition justification.
- Potential for inflated costs due to lack of market pressure.
- No indication of small business participation.
- Long contract duration may reduce cost-effectiveness over time.
Tags
other-support-activities-for-air-transpo, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.6 million to VERTEX AEROSPACE LLC. DBOX-QTY-ERROR
Who is the contractor on this award?
The obligated recipient is VERTEX AEROSPACE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $51.6 million.
What is the period of performance?
Start: 2010-06-25. End: 2017-03-01.
What was the justification for the sole-source award, and was it adequately documented?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a justification existed. However, without access to the specific justification documentation, it's impossible to assess its validity or whether alternative approaches were explored to foster competition. This lack of transparency is a concern for accountability.
How does the cost of these air transportation support services compare to industry benchmarks for similar services?
Given the sole-source nature of the award and the absence of a specific per-unit cost benchmark, a direct comparison is challenging. A thorough analysis would require access to detailed cost breakdowns and market research data to determine if the $51.6 million paid was reasonable compared to what could have been achieved through competitive bidding.
What was the impact of the long contract duration on the overall cost and effectiveness of the services provided?
A contract spanning from 2010 to 2017 (2441 days) is quite lengthy. While long-term contracts can offer stability, they also risk price escalation and reduced incentive for innovation or efficiency improvements over time, especially without periodic re-competition or robust performance metrics.
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: 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, 39110
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,603,919
Exercised Options: $51,603,919
Current Obligation: $51,603,919
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2010-06-25
Current End Date: 2017-03-01
Potential End Date: 2017-03-01 00:00:00
Last Modified: 2017-04-10
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