Vertex Aerospace LLC awarded $25.18M for C-12 Fleet logistics, a significant portion of Air Force's support activities

Contract Overview

Contract Amount: $25,180,897 ($25.2M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2021-01-01

End Date: 2021-12-31

Contract Duration: 364 days

Daily Burn Rate: $69.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACTOR LOGISTIC SERVICES (CLS) FOR C-12 FLEET

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to VERTEX AEROSPACE LLC for work described as: CONTRACTOR LOGISTIC SERVICES (CLS) FOR C-12 FLEET Key points: 1. The contract value represents a substantial investment in maintaining the C-12 aircraft fleet. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness in aviation support. 3. Performance metrics and delivery timelines are key indicators of contractor reliability. 4. This contract falls within the broader category of aviation maintenance and logistics services for the Air Force. 5. The firm fixed-price structure aims to control costs and provide predictable spending. 6. The duration of the contract suggests a need for sustained logistical support.

Value Assessment

Rating: good

The contract value of $25.18 million for a one-year period appears reasonable for comprehensive logistics services for a fleet of aircraft like the C-12. Benchmarking against similar contracts for aircraft maintenance and support would provide a more precise assessment. The firm fixed-price nature suggests an expectation of cost control by the government. Without specific details on the scope of services, a definitive value-for-money judgment is challenging, but the amount is within expected ranges for such specialized support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This competitive process is designed to foster price discovery and encourage the most advantageous offers for the government. The number of bidders and the specific evaluation criteria would further illuminate the intensity of the competition and its impact on the final price.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by ensuring a wide range of potential providers can offer their services, driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating the C-12 aircraft, ensuring fleet readiness. Services delivered include essential logistics support, maintenance, and potentially parts management for the C-12 fleet. The geographic impact is likely concentrated around Air Force bases where C-12 aircraft are stationed or maintained. Workforce implications include employment opportunities for skilled technicians and logistics personnel within Vertex Aerospace LLC and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond initial estimates.
Dependence on a single contractor for critical fleet support could pose risks if performance falters.
Ensuring consistent quality of maintenance across all C-12 aircraft serviced under this contract.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type helps to lock in costs and manage budget predictability.
The contractor, Vertex Aerospace LLC, likely possesses specialized expertise in aviation logistics.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation support services. The market for military aircraft maintenance and logistics is substantial, driven by the need to maintain aging fleets and ensure operational readiness. Comparable spending benchmarks would involve analyzing other contracts for similar aircraft types or support functions within the Department of Defense. The $25.18 million award is a significant, though not exceptionally large, sum for specialized fleet support over a year.

Small Business Impact

While this contract was awarded under full and open competition and does not explicitly mention small business set-asides, it is important to assess subcontracting opportunities. Large prime contractors often utilize small businesses for specialized services or components. The extent to which Vertex Aerospace LLC engages small businesses as subcontractors will impact the small business ecosystem within the aerospace support industry.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Aircraft Maintenance Contracts
DoD Aviation Logistics Support
C-12 Huron Support Programs
Defense Contract Services
Fleet Readiness Programs

Risk Flags

Potential for performance issues impacting aircraft readiness.
Risk of cost overruns if scope is not clearly defined.
Contractor dependency could lead to supply chain vulnerabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to VERTEX AEROSPACE LLC. CONTRACTOR LOGISTIC SERVICES (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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2021-01-01. End: 2021-12-31.

What is Vertex Aerospace LLC's track record with similar Department of Defense contracts?

Vertex Aerospace LLC has a history of performing various aviation support and maintenance services for the Department of Defense. Analyzing their past performance on contracts of similar size, scope, and complexity, particularly those involving fixed-wing aircraft like the C-12, is crucial. This includes reviewing past performance evaluations, any documented disputes or contract modifications, and their overall reliability in meeting delivery schedules and quality standards. A review of federal procurement data would reveal the types and values of previous contracts awarded to Vertex Aerospace, providing insight into their experience and capabilities in supporting military aviation assets.

How does the awarded amount compare to historical spending on C-12 fleet logistics?

To assess value, the $25.18 million award for one year of C-12 fleet logistics should be compared against historical spending patterns for similar services. This involves examining previous contracts for C-12 support, looking at both the annual cost and the scope of services provided. If previous years saw significantly lower or higher spending for comparable services, it warrants further investigation. Factors such as inflation, changes in fleet size, or evolving maintenance requirements can explain cost variations. A detailed analysis would require access to historical contract data to establish a reliable benchmark for this specific fleet's logistical support costs.

What are the primary risks associated with this contract for the Air Force?

The primary risks associated with this contract include potential performance failures by Vertex Aerospace LLC, leading to aircraft downtime and reduced operational readiness. Another significant risk is cost escalation, particularly if the firm fixed-price contract contains provisions for changes or if unforeseen issues arise that increase the contractor's costs, potentially leading to claims or contract modifications. Dependence on a single provider for critical logistics also presents a risk if the contractor faces financial instability or operational disruptions. Ensuring robust oversight and clear performance metrics are essential to mitigate these risks.

How effective is the firm fixed-price contract type in managing costs for this type of service?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks of cost overruns are relatively low or can be reasonably estimated. For services like C-12 fleet logistics, where requirements can be predictable, FFP shifts the cost risk to the contractor. This incentivizes the contractor to control expenses and perform efficiently to maximize profit. However, if unforeseen technical challenges or scope changes occur, the contractor may seek adjustments, potentially negating some cost control benefits. Robust initial scope definition is key to FFP effectiveness.

What is the significance of the C-12 aircraft type in the context of this contract?

The C-12 is a versatile twin-engine turboprop aircraft used by the U.S. military for various roles, including utility transport, liaison, and light cargo. Its widespread use across different branches and commands means that maintaining its operational readiness through effective logistics support is crucial for numerous missions. Contracts like this one for the C-12 fleet are vital for ensuring these aircraft remain airworthy and available for their intended purposes, supporting personnel and equipment movement globally. The specific logistics requirements for the C-12 are driven by its operational tempo and maintenance needs.

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

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: $25,180,897

Exercised Options: $25,180,897

Current Obligation: $25,180,897

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $3,530,380

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