DoD's $28M Air Force Logistics Contract with Vertex Aerospace Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $27,951,136 ($28.0M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2022-01-01
End Date: 2022-12-31
Contract Duration: 364 days
Daily Burn Rate: $76.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: C-12 CONTRACTOR LOGISTIC SUPPORT SERVICES
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: C-12 CONTRACTOR LOGISTIC SUPPORT SERVICES Key points: 1. The contract awarded to Vertex Aerospace LLC for $27.95 million represents a significant expenditure for logistics support. 2. Competition was full and open, but the specific pricing and value proposition require deeper analysis. 3. Potential risks include ensuring cost-effectiveness and long-term sustainment value for taxpayer dollars. 4. The sector is Other Support Activities for Air Transportation, a critical but often complex area of defense spending.
Value Assessment
Rating: fair
The contract's value of $27.95 million for a one-year period needs further benchmarking against similar logistics support contracts. Without detailed cost breakdowns, it's difficult to definitively assess if the price reflects optimal value for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the specific bidding process and the number of competitors are not detailed, leaving questions about the intensity of the competition and its impact on the final price.
Taxpayer Impact: The impact on taxpayers hinges on whether the competitive process yielded the best possible price for the required logistics services. Further analysis is needed to confirm cost-effectiveness.
Public Impact
Ensures critical logistics support for Air Force operations. Supports a key defense contractor, potentially impacting regional employment. Taxpayer funds are allocated for essential military readiness and sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for value assessment.
- Need for deeper analysis on price discovery effectiveness.
- Potential for cost overruns if not closely monitored.
Positive Signals
- Awarded under full and open competition.
- Supports critical Air Force operational needs.
Sector Analysis
This contract falls within the 'Other Support Activities for Air Transportation' sector, which is vital for maintaining military aviation readiness. Benchmarking against similar contracts in this specialized area is crucial for assessing value.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Analysis of subcontracting opportunities for small businesses within this large contract would be beneficial to understand broader economic impact.
Oversight & Accountability
Oversight of this contract by the Department of the Air Force is essential to ensure performance standards are met and that funds are used efficiently. Regular performance reviews and audits are key accountability mechanisms.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed cost breakdown.
- Need for benchmarking against similar contracts.
- Potential for performance issues.
- Limited visibility into subcontracting opportunities.
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. C-12 CONTRACTOR LOGISTIC SUPPORT SERVICES
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 $28.0 million.
What is the period of performance?
Start: 2022-01-01. End: 2022-12-31.
How does the per-unit cost of services under this contract compare to industry benchmarks for similar Air Force logistics support?
Without specific per-unit cost data for the services provided, a direct comparison to industry benchmarks is challenging. However, the total contract value of $27.95 million for one year suggests a significant investment. A detailed cost analysis, breaking down expenses by service type, would be necessary to establish a meaningful benchmark and assess cost-effectiveness against similar contracts.
What are the primary risks associated with relying on Vertex Aerospace for these critical logistics services, and how are they being mitigated?
Key risks include potential performance failures, supply chain disruptions, and cost overruns. Mitigation strategies likely involve performance metrics, clear contract terms, and regular oversight by the Air Force. The effectiveness of these mitigation efforts depends on robust contract management and communication channels with Vertex Aerospace.
To what extent does this contract contribute to the overall effectiveness and readiness of the Air Force's air transportation capabilities?
This contract is designed to ensure the effective functioning of Air Force logistics, which is directly tied to operational readiness. By providing necessary support services, it enables aircraft to be maintained and deployed efficiently. The true measure of effectiveness lies in the contractor's performance and its impact on mission accomplishment.
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: $27,951,136
Exercised Options: $27,951,136
Current Obligation: $27,951,136
Actual Outlays: $1,003,848
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $3,640,622
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: 2022-01-01
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2025-06-13
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