DoD awards $27M for T-1A trainer aircraft supply services to Vertex Aerospace LLC

Contract Overview

Contract Amount: $26,987,537 ($27.0M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2025-05-23

End Date: 2026-04-30

Contract Duration: 342 days

Daily Burn Rate: $78.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE PURPOSE OF THIS ACQUISITION IS TO PROCURE CONTRACTOR OPERATED AND MAINTAINED BASE SUPPLY (COMBS) SERVICES FOR THE T-1A TRAINER AIRCRAFT FLEET OF 0-72 AIRCRAFT THAT ARE CURRENTLY ASSIGNED TO THREE (3) BASES.

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to VERTEX AEROSPACE LLC for work described as: THE PURPOSE OF THIS ACQUISITION IS TO PROCURE CONTRACTOR OPERATED AND MAINTAINED BASE SUPPLY (COMBS) SERVICES FOR THE T-1A TRAINER AIRCRAFT FLEET OF 0-72 AIRCRAFT THAT ARE CURRENTLY ASSIGNED TO THREE (3) BASES. Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration is approximately one year, suggesting a short-term operational need. 3. Services include contractor-operated and maintained base supply (COMBS) for a fleet of 72 aircraft. 4. The acquisition supports three distinct bases, implying a distributed operational footprint. 5. This award represents a significant investment in maintaining the readiness of training aircraft. 6. The North American Industry Classification System (NAICS) code 488190 points to support activities for air transportation.

Value Assessment

Rating: fair

The contract value of $26.99 million for approximately one year of COMBS services for 72 aircraft appears to be within a reasonable range for such specialized support. However, without direct benchmarks for COMBS contracts of this specific scope and duration, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty, but the absence of competition limits the opportunity for price discovery and potential savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific justification for this approach is not detailed in the provided data. Sole-source awards can sometimes lead to higher prices due to the lack of competitive pressure. Without information on the bidding process or the number of potential bidders considered, it's difficult to fully assess the impact on price discovery.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. This could mean that a portion of the contract value might have been higher than if multiple companies had vied for the work.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations relying on the T-1A trainer aircraft. Services delivered include the contractor-operated and maintained base supply (COMBS) essential for aircraft readiness. The geographic impact is concentrated at the three bases where the T-1A trainer aircraft fleet is assigned. Workforce implications include the potential for direct employment by Vertex Aerospace LLC at these bases for supply chain and maintenance operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
Sole-source awards can limit transparency and make it harder to benchmark against industry standards.
The short contract duration might indicate a need for future re-competition or potential instability for the contractor.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The contract directly supports the operational readiness of a critical training aircraft fleet.
Vertex Aerospace LLC is the selected contractor, implying they meet specific qualifications for this specialized service.

Sector Analysis

The aerospace and defense sector is characterized by complex supply chains and specialized maintenance requirements. Contracts for base supply and logistics support are crucial for ensuring aircraft availability and operational readiness. The market for such services is often specialized, with a limited number of firms possessing the necessary expertise and security clearances. Benchmarking this contract's value against similar COMBS contracts would require access to proprietary data or detailed public solicitations for comparable services.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss) for this contract. This suggests that the primary award was not directed towards small businesses. Further analysis would be needed to determine if Vertex Aerospace LLC has subcontracting plans that include small businesses, which could still provide some benefit to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which holds the contractor responsible for delivering services within the agreed-upon cost. Transparency is limited by the sole-source nature of the award; however, contract performance data and any associated Inspector General reports would provide further insight into oversight effectiveness.

Related Government Programs

Aircraft Maintenance Services
Base Operations Support
Logistics and Supply Chain Management
Defense Training Programs
Aerospace Component Support

Risk Flags

Sole-source award
Lack of competition
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to VERTEX AEROSPACE LLC. THE PURPOSE OF THIS ACQUISITION IS TO PROCURE CONTRACTOR OPERATED AND MAINTAINED BASE SUPPLY (COMBS) SERVICES FOR THE T-1A TRAINER AIRCRAFT FLEET OF 0-72 AIRCRAFT THAT ARE CURRENTLY ASSIGNED TO THREE (3) BASES.

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 $27.0 million.

What is the period of performance?

Start: 2025-05-23. End: 2026-04-30.

What is Vertex Aerospace LLC's track record with similar COMBS contracts for military aircraft?

Vertex Aerospace LLC has a history of providing aviation services, including maintenance, repair, and overhaul (MRO), and supply chain management for various military aircraft. While specific details on their performance with COMBS contracts for trainer aircraft fleets like the T-1A are not explicitly provided in this data snippet, their selection suggests they possess the requisite experience and capabilities. A deeper dive into their contract history with the Department of Defense and other agencies would reveal their performance metrics, past issues, and overall reliability in managing complex aviation logistics and support operations. Examining past performance evaluations and any reported disputes or corrective actions would offer a more comprehensive understanding of their suitability for this role.

How does the $27 million contract value compare to similar COMBS contracts for trainer aircraft?

Benchmarking the $26.99 million contract value for approximately one year of COMBS services for 72 T-1A trainer aircraft against similar contracts is challenging without access to a comprehensive database of defense logistics contracts. COMBS contracts can vary significantly based on the specific aircraft type, fleet size, number of bases supported, scope of services (e.g., parts management, repair, inventory control), and contract duration. Given the sole-source nature of this award, direct price comparisons are difficult. However, the firm-fixed-price structure suggests that the government has negotiated a set price for the defined scope. Further analysis would require identifying comparable contracts, adjusting for differences in scope and duration, and assessing the competitive landscape at the time of award.

What are the primary risks associated with this sole-source contract award?

The primary risk associated with this sole-source contract award is the potential for suboptimal pricing due to the lack of competition. Without multiple bidders vying for the contract, Vertex Aerospace LLC may not have been incentivized to offer the most competitive price, potentially leading to higher costs for the government and taxpayers. Another risk is the potential for reduced innovation or service quality, as there is less pressure to outperform competitors. Furthermore, the absence of a competitive process can sometimes mask underlying issues with the contractor's capabilities or past performance, making it harder for the government to identify and mitigate risks proactively. Transparency is also reduced, making it more difficult to assess the true value being received.

How effective is the COMBS model in ensuring the readiness of the T-1A trainer aircraft fleet?

The Contractor Operated and Maintained Base Supply (COMBS) model is designed to enhance the readiness and efficiency of military aircraft fleets by outsourcing critical supply chain and maintenance functions to specialized contractors. For the T-1A trainer aircraft fleet, this model aims to ensure that necessary parts, inventory management, and potentially some maintenance support are readily available, thereby minimizing aircraft downtime and maximizing training hours. The effectiveness of the COMBS model hinges on the contractor's performance, the clarity of the contract's scope of work, and the government's oversight. If Vertex Aerospace LLC effectively manages the supply chain and meets performance metrics, the COMBS model should contribute positively to the T-1A fleet's operational readiness. However, the success is contingent on robust contract management and performance monitoring by the Air Force.

What are the historical spending patterns for T-1A trainer aircraft support services?

Historical spending patterns for T-1A trainer aircraft support services are not detailed in the provided data. To understand these patterns, one would need to access historical contract awards for the T-1A fleet, including previous COMBS contracts or similar support agreements. Analyzing past expenditures would reveal trends in contract values, durations, and the types of services procured. It would also be important to identify the contractors involved in previous support efforts and their performance. Understanding historical spending can help in assessing whether the current $27 million award represents an increase, decrease, or stable level of investment compared to previous periods, and whether the shift to a sole-source award deviates from prior competitive procurement strategies.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $26,987,537

Exercised Options: $26,987,537

Current Obligation: $26,987,537

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810625DB003

IDV Type: IDC

Timeline