DoD Awards Vertex Aerospace $63M for VFA-122 Squadron Maintenance Support
Contract Overview
Contract Amount: $63,062,587 ($63.1M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2020-08-01
End Date: 2023-06-30
Contract Duration: 1,063 days
Daily Burn Rate: $59.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: O-LEVEL, LIMITED I AND D-LEVEL MAINTENANCE SUPPORT OF THE VFA-122 SQUADRON AT NAS LEMOORE, CA.
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $63.1 million to VERTEX AEROSPACE LLC for work described as: O-LEVEL, LIMITED I AND D-LEVEL MAINTENANCE SUPPORT OF THE VFA-122 SQUADRON AT NAS LEMOORE, CA. Key points: 1. Significant contract value for specialized aircraft maintenance. 2. Vertex Aerospace is a key player in aerospace support services. 3. Potential risks include performance dependencies and specialized skill requirements. 4. Spending falls within the broader Defense sector's maintenance and repair category.
Value Assessment
Rating: good
The contract value of $63M over approximately three years suggests a reasonable price for specialized O- and D-level maintenance. Benchmarking against similar long-term, high-complexity aircraft support contracts would provide further validation.
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. This method generally promotes price discovery and ensures the government receives competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for essential military readiness and operational support, with competition aiming to optimize value for money.
Public Impact
Ensures operational readiness of critical Navy fighter squadrons. Supports high-skilled jobs in aerospace maintenance. Contributes to the overall defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Dependency on a single contractor for critical maintenance.
- Potential for cost overruns if unforeseen technical issues arise.
- Geographic concentration of support at NAS Lemoore.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type limits cost risk.
- Long-term support ensures consistent readiness.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aircraft maintenance and support. Spending benchmarks for similar specialized aviation maintenance contracts are typically high due to the complexity and critical nature of the services.
Small Business Impact
While the prime contractor is Vertex Aerospace LLC, the data does not indicate specific subcontracting efforts with small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract is managed by the Department of the Air Force, which is responsible for oversight and ensuring performance standards are met. Delivery orders under a larger contract structure allow for phased execution and monitoring.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Performance dependency on a single contractor.
- Potential for scope creep in maintenance requirements.
- Reliance on specialized technical expertise.
- Geographic concentration of support.
Tags
aircraft-manufacturing, department-of-defense, ms, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.1 million to VERTEX AEROSPACE LLC. O-LEVEL, LIMITED I AND D-LEVEL MAINTENANCE SUPPORT OF THE VFA-122 SQUADRON AT NAS LEMOORE, CA.
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 $63.1 million.
What is the period of performance?
Start: 2020-08-01. End: 2023-06-30.
What is the specific breakdown of O-level versus D-level maintenance tasks and their associated costs?
The provided data does not detail the specific allocation of funds between O-level (Organizational) and D-level (Depot) maintenance. O-level typically involves field-level repairs and servicing, while D-level is more in-depth, often requiring specialized facilities. Understanding this breakdown is crucial for assessing the true cost drivers and ensuring appropriate resource allocation for each maintenance tier.
What are the key performance indicators (KPIs) used to evaluate Vertex Aerospace's performance under this contract?
Key performance indicators likely focus on aircraft availability rates, turnaround times for maintenance tasks, quality of repairs, and adherence to safety protocols. Effective KPIs are essential for ensuring the contractor meets the stringent readiness requirements of the VFA-122 squadron and for holding them accountable for performance, ultimately impacting mission capability.
How does the cost of this contract compare to historical spending on similar maintenance support for Navy fighter squadrons?
A comprehensive comparison requires access to historical spending data for comparable Navy fighter squadrons and maintenance contracts. Factors such as aircraft type, age, operational tempo, and specific maintenance requirements influence costs. Benchmarking against similar contracts awarded through full and open competition would provide a clearer picture of whether this $63M award represents efficient use of taxpayer funds.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
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: $63,062,587
Exercised Options: $63,062,587
Current Obligation: $63,062,587
Actual Outlays: $23,013,864
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810817D0014
IDV Type: IDC
Timeline
Start Date: 2020-08-01
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2023-11-18
More Contracts from Vertex Aerospace LLC
- T45 CLS Cmmars Task Order, Materials - Aircraft Maintenance — $1.5B (Department of Defense)
- Lccs Services for Army Fleet of C-12/Rc-12/Uc-35 Aircraft AT Worldwide Locations Includes Maintenance, Upgrades and Elective Improvements — $1.3B (Department of Defense)
- T-1 Contractor Operated and Maintained Base Supply (combs) — $734.8M (Department of Defense)
- Field and Sustainment Level Maintenance in Support of Aircraft Deployed in the Usarcent AOR — $728.3M (Department of Defense)
- E-6B Contractor Logistics Support (CLS) Follow-On Task Order — $650.8M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)