DoD Awards $28M CLS for C-12 Fleet to Vertex Aerospace, Raising Value Concerns
Contract Overview
Contract Amount: $27,953,866 ($28.0M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2018-03-01
End Date: 2018-12-31
Contract Duration: 305 days
Daily Burn Rate: $91.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACTOR LOGISTIC SUPPORT (CLS) FOR C-12 FLEET
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $28.0 million to VERTEX AEROSPACE LLC for work described as: CONTRACTOR LOGISTIC SUPPORT (CLS) FOR C-12 FLEET Key points: 1. Spending of $27.95M on C-12 fleet logistics support. 2. Vertex Aerospace LLC secured the contract. 3. Competition was full and open, but pricing warrants scrutiny. 4. The sector is Defense, specifically air transportation support.
Value Assessment
Rating: questionable
The contract's total value is $27.95M. Benchmarking against similar logistics support contracts is difficult without more granular data on services provided. However, the reported obligated amount of $27.95M for a 305-day period suggests a potentially high cost per day.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the final price and value received require further analysis to ensure it represents fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential military fleet support. Ensuring cost-effectiveness and value for money is crucial to maximize the impact of this spending.
Public Impact
Ensures continued operational readiness of the C-12 aircraft fleet. Supports critical military logistics and transportation capabilities. Impacts personnel and operations relying on C-12 aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential overpricing given the duration and scope.
- Lack of detailed cost breakdown for assessment.
- Limited information on performance metrics.
Positive Signals
- Contract awarded through full and open competition.
- Supports essential military aviation assets.
Sector Analysis
This contract falls within the Defense sector, specifically supporting air transportation logistics. Spending benchmarks for similar CLS contracts can vary widely based on fleet size, aircraft type, and service scope.
Small Business Impact
The contract was awarded to Vertex Aerospace LLC, and there is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
Oversight is managed by the Defense Contract Management Agency (DCMA). Further review of performance reports and payment vouchers would be necessary to assess accountability.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High obligated amount for a single year.
- Lack of detailed service scope.
- Potential for cost creep despite fixed-price.
- Limited transparency on performance metrics.
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 $28.0 million to VERTEX AEROSPACE LLC. CONTRACTOR LOGISTIC SUPPORT (CLS) FOR C-12 FLEET
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 $28.0 million.
What is the period of performance?
Start: 2018-03-01. End: 2018-12-31.
What specific services are included in the CLS for the C-12 fleet, and how do they compare to industry standards for similar aircraft?
The provided data lacks specific details on the services encompassed by the Contractor Logistic Support (CLS) for the C-12 fleet. To assess value, a breakdown of services such as maintenance, repair, parts provisioning, and technical support is needed. Comparing these to industry standards for similar turboprop aircraft would reveal if the $27.95M price tag is justified or inflated.
Given the firm fixed-price structure, what mechanisms were in place to ensure Vertex Aerospace maintained cost efficiency and prevented potential overruns?
A firm fixed-price contract aims to shift cost risk to the contractor. However, effective oversight is still crucial. Mechanisms should include performance monitoring, review of contractor-submitted invoices against deliverables, and potential penalties for non-performance. Without insight into these oversight activities, it's difficult to confirm cost efficiency was actively managed.
How does the operational readiness and performance of the C-12 fleet under this contract compare to previous periods or similar contracts?
Assessing the effectiveness of this contract requires performance data. Key metrics would include aircraft availability rates, mission completion success, turnaround times for maintenance, and overall fleet reliability. Comparing these metrics against historical data or benchmarks for similar DoD aviation contracts would provide a clear picture of the contract's impact on operational 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
Parent Company: Vertex Aerospace Services Corp.
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: $27,953,866
Exercised Options: $27,953,866
Current Obligation: $27,953,866
Actual Outlays: $20,759
Subaward Activity
Number of Subawards: 44
Total Subaward Amount: $5,181,946
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810617D0001
IDV Type: IDC
Timeline
Start Date: 2018-03-01
Current End Date: 2018-12-31
Potential End Date: 2018-12-31 00:00:00
Last Modified: 2023-08-28
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