DoD's $65.6M 'BIG SAFARI' Contract Awarded to Vertex Modernization Amidst Limited Competition

Contract Overview

Contract Amount: $65,583,703 ($65.6M)

Contractor: Vertex Modernization and Sustainment LLC

Awarding Agency: Department of Defense

Start Date: 2023-03-13

End Date: 2026-02-20

Contract Duration: 1,075 days

Daily Burn Rate: $61.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: BIG SAFARI

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46219

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $65.6 million to VERTEX MODERNIZATION AND SUSTAINMENT LLC for work described as: BIG SAFARI Key points: 1. The contract, valued at $65.6 million, is for the 'BIG SAFARI' program. 2. Vertex Modernization and Sustainment LLC is the sole awardee, raising questions about competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is Professional, Scientific, and Technical Services, with a focus on IT/Defense support.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type, while flexible, offers less incentive for cost control compared to fixed-price contracts. Benchmarking against similar 'All Other Professional, Scientific, and Technical Services' contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis ('NOT COMPETED'), significantly limiting price discovery and potentially leading to higher costs for taxpayers. The absence of competition means potential vendors were not given an opportunity to offer alternative solutions or pricing.

Taxpayer Impact: The sole-source nature of this award raises concerns about whether the government secured the best possible price and value for taxpayer dollars.

Public Impact

Taxpayers may be paying a premium due to the lack of competitive bidding. The 'BIG SAFARI' program's specific objectives and impact on national security are not detailed, limiting public understanding. The long duration (over 3 years) suggests a significant, ongoing investment of public funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of detailed scope makes value assessment difficult.

Positive Signals

Contract supports Department of the Air Force, indicating a specific defense need.
Awardee has a definitive contract, suggesting a structured agreement.

Sector Analysis

This contract falls under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990), a broad category. Spending in this sector can vary widely depending on the specific services required, but large sole-source awards warrant scrutiny for efficiency.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). This suggests the scope or nature of the work may not be conducive to small business participation, or that larger, specialized firms were sought.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the contractor is delivering on requirements efficiently and that costs are reasonable. Transparency regarding the justification for the sole-source award is crucial for accountability.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks competitive pressure.
Cost Plus Fixed Fee contract type can lead to cost overruns.
Limited transparency on program specifics and justification for sole-sourcing.
Potential for vendor lock-in and reduced future innovation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.6 million to VERTEX MODERNIZATION AND SUSTAINMENT LLC. BIG SAFARI

Who is the contractor on this award?

The obligated recipient is VERTEX MODERNIZATION AND SUSTAINMENT 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 $65.6 million.

What is the period of performance?

Start: 2023-03-13. End: 2026-02-20.

What specific technical capabilities or unique expertise does Vertex Modernization and Sustainment LLC possess that justified a sole-source award for the 'BIG SAFARI' program?

The justification for a sole-source award typically rests on unique capabilities, proprietary technology, or the need for seamless integration with existing systems where only one vendor can meet the requirement. Without specific details on 'BIG SAFARI,' it's presumed Vertex holds critical, non-replicable expertise or assets essential for the program's success, thus bypassing a competitive bidding process.

How will the Department of Defense ensure cost control and value for money under this Cost Plus Fixed Fee contract, given the absence of competition?

Effective oversight is paramount. DoD contracting officers must implement stringent monitoring of incurred costs, regular performance reviews, and potentially establish cost-plus-award-fee structures to incentivize efficiency. Auditing contractor expenditures and ensuring alignment with the fixed fee objectives are critical steps to mitigate risks associated with cost-reimbursement contracts.

What are the long-term strategic implications of awarding a multi-year contract of this magnitude on a sole-source basis for the 'BIG SAFARI' program?

Sole-source awards, especially for extended periods, can stifle innovation by preventing other companies from contributing their solutions and potentially create vendor lock-in. Strategically, it suggests a critical, potentially unique, capability is being sustained. However, it also raises concerns about future competition and the government's ability to adapt to evolving technological landscapes without re-competing.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6125 E 21ST ST, INDIANAPOLIS, IN, 46219

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $66,248,633

Exercised Options: $66,248,633

Current Obligation: $65,583,703

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline