DoD awards Vertex Aerospace $34.1M for C-12 Fleet CLS, raising questions on value and competition
Contract Overview
Contract Amount: $34,127,626 ($34.1M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2023-01-01
End Date: 2023-12-31
Contract Duration: 364 days
Daily Burn Rate: $93.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACTOR LOGISTICS SUPPORT(CLS)SERVICES FOR THE AF C-12 FLEET
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $34.1 million to VERTEX AEROSPACE LLC for work described as: CONTRACTOR LOGISTICS SUPPORT(CLS)SERVICES FOR THE AF C-12 FLEET Key points: 1. The contract value of $34.1M for CLS services on the C-12 fleet is significant, requiring careful scrutiny. 2. Competition details are limited, with the award type being a delivery order, suggesting potential for less robust price discovery. 3. Risk factors include the firm fixed price structure, which could lead to cost overruns if not managed effectively. 4. The sector is Defense, specifically aviation support, which often involves complex and specialized services.
Value Assessment
Rating: questionable
The $34.1M award for CLS services on the C-12 fleet appears high without further benchmarking against similar aviation support contracts. The firm fixed price structure could lead to contractor profit maximization at government expense if not closely monitored.
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 sign for price discovery. However, as a delivery order, the specific pricing for this task order may not have undergone the same level of detailed negotiation as a new prime contract.
Taxpayer Impact: The firm fixed price contract aims to control costs, but the overall value suggests a substantial taxpayer investment requiring efficient service delivery.
Public Impact
Taxpayers are funding essential logistics support for military aircraft, ensuring operational readiness. The contract supports jobs within the aerospace and defense industry. Effective contract management is crucial to ensure the government receives value for its investment and that aircraft are maintained efficiently.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for the $34.1M award.
- Potential for contractor profit overruns on a firm fixed price contract.
- Limited insight into the specific competitive landscape for this delivery order.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty if managed well.
- Supports critical military aviation assets.
Sector Analysis
This contract falls within the Defense sector, specifically aviation maintenance and logistics support. Spending benchmarks in this area can vary widely based on aircraft type, age, and complexity of required services.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract. Robust oversight is necessary to ensure Vertex Aerospace meets performance requirements and that the firm fixed price remains advantageous throughout the contract period.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High contract value requires diligent oversight.
- Firm fixed price can incentivize cost-cutting at the expense of quality if not monitored.
- Limited transparency on specific service components and their pricing.
- Potential for contractor profit inflation without robust 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 $34.1 million to VERTEX AEROSPACE LLC. CONTRACTOR LOGISTICS SUPPORT(CLS)SERVICES FOR THE AF 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 $34.1 million.
What is the period of performance?
Start: 2023-01-01. End: 2023-12-31.
What specific services are included in the CLS for the C-12 fleet, and how do they compare to industry standards for similar aircraft?
CLS typically encompasses maintenance, repair, overhaul, and logistical support for aircraft. For the C-12 fleet, this likely includes scheduled and unscheduled maintenance, parts management, and technical support. A detailed breakdown of services and comparison to industry benchmarks for similar turboprop military aircraft would be necessary to assess if the $34.1M price reflects fair market value and efficient service delivery.
Given the firm fixed price structure, what mechanisms are in place to mitigate the risk of contractor overpricing or reduced service quality?
While a firm fixed price contract offers cost certainty, it shifts risk to the contractor. Mitigation strategies include strong performance metrics, clear deliverables, and regular government oversight. The DCMA must actively monitor service quality and adherence to the contract's scope to prevent potential price gouging or degradation of essential support, ensuring the government receives the contracted value.
How effective was the 'full and open competition' in achieving competitive pricing for this specific delivery order on the C-12 fleet?
Full and open competition is generally the best method for achieving competitive pricing. However, the effectiveness for this specific delivery order depends on the number and capability of bidders responding to the solicitation. Without more information on the bidding process and the number of proposals received, it's difficult to definitively assess the price discovery achieved. The award being a delivery order suggests it might be part of a larger, pre-competed contract vehicle.
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: $34,127,626
Exercised Options: $34,127,626
Current Obligation: $34,127,626
Actual Outlays: $444,852
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $2,010,771
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: 2023-01-01
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2025-11-05
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