DoD's $47.5M BIG SAFARI contract awarded to Vertex Modernization and Sustainment LLC for support services

Contract Overview

Contract Amount: $47,475,359 ($47.5M)

Contractor: Vertex Modernization and Sustainment LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-15

End Date: 2026-08-14

Contract Duration: 760 days

Daily Burn Rate: $62.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BIG SAFARI

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $47.5 million to VERTEX MODERNIZATION AND SUSTAINMENT LLC for work described as: BIG SAFARI Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. The contract was not competed, raising questions about price discovery and potential value. 3. Limited competition may lead to higher prices for taxpayers. 4. The contract duration of 760 days suggests a significant, ongoing need for services. 5. Awarded to a single vendor, Vertex Modernization and Sustainment LLC, highlighting a lack of market breadth. 6. The contract is for 'All Other Support Services,' a broad category that can obscure specific performance metrics.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and broad service category. The cost-plus-fixed-fee structure inherently carries more risk for the government compared to fixed-price contracts, as costs can escalate. Without competitive bids, it's difficult to ascertain if the fixed fee adequately reflects the effort required or if it includes a premium due to the lack of competition. Further analysis would require understanding the specific services rendered and comparing them to industry standards for similar support functions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically reserved for situations where only one vendor can provide the required services, often due to unique capabilities, existing infrastructure, or national security concerns. The lack of competition means that the government did not benefit from a range of proposals and price points that would typically emerge from a full and open competition, potentially impacting the final price.

Taxpayer Impact: Sole-source awards limit the government's ability to negotiate the best possible price, potentially leading to higher costs for taxpayers. Without competitive pressure, there is less incentive for the contractor to offer the most cost-effective solution.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving essential support services. The contract supports the BIG SAFARI program, which likely involves complex technological or operational requirements. Services are being delivered in Ohio, indicating a specific geographic focus for this contract. The contract likely supports a workforce involved in specialized support services, though the exact number is not specified.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated costs for taxpayers.
Cost-plus-fixed-fee contracts can incentivize cost overruns if not managed tightly.
The broad 'All Other Support Services' category makes it difficult to assess specific performance and value.
Sole-source awards can limit innovation by excluding potential new entrants to the market.

Positive Signals

Awarded to a single, presumably capable, vendor for critical support services.
The contract duration suggests a stable, long-term need being met.
The fixed fee component of the contract provides some level of cost predictability for the contractor's profit.

Sector Analysis

The 'All Other Support Services' category (NAICS 561990) encompasses a wide array of non-professional, non-technical support activities. This contract likely falls within the broader government contracting sector focused on operational and administrative support. Comparable spending in this sector can vary widely depending on the specific services. However, the sole-source nature and the substantial dollar value suggest a critical or specialized function within the Department of Defense's operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The prime contractor, Vertex Modernization and Sustainment LLC, is not explicitly identified as a small business. The absence of a small business set-aside means opportunities for small business participation are not mandated by this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Given the sole-source nature and cost-plus-fixed-fee structure, robust oversight is crucial to monitor costs, ensure performance, and prevent waste. The contract's duration and value suggest it may be subject to review by the Government Accountability Office (GAO) or the Department of Defense's Inspector General if performance or cost issues arise. Transparency is limited due to the lack of competitive bidding.

Related Government Programs

BIG SAFARI Program
Department of Defense Support Services Contracts
Air Force IT and Support Services

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Broad service category ('All Other Support Services')

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.5 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 $47.5 million.

What is the period of performance?

Start: 2024-07-15. End: 2026-08-14.

What specific services are included under the 'All Other Support Services' category for this contract?

The specific services encompassed by 'All Other Support Services' (NAICS 561990) for the BIG SAFARI program under this contract are not detailed in the provided data. This broad category can include a wide range of activities such as facilities support, logistics support, mail services, document preparation, and other miscellaneous support functions. To understand the precise nature of the services, one would need to consult the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Without this detail, it is difficult to assess the contractor's performance or the value received.

What is the track record of Vertex Modernization and Sustainment LLC with the Department of Defense?

Information regarding Vertex Modernization and Sustainment LLC's specific track record with the Department of Defense is not provided in the initial data. A comprehensive assessment would require reviewing past performance on similar contracts, including their timeliness, quality of service, and adherence to budget. Databases like the Federal Procurement Data System (FPDS) or contract award histories would need to be consulted to gauge their experience and reliability. Understanding their history is crucial, especially for a sole-source award, to ensure they possess the necessary expertise and capacity to fulfill the BIG SAFARI program's requirements effectively.

How does the cost-plus-fixed-fee structure compare to other contract types for similar support services?

Cost-plus-fixed-fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there is significant uncertainty in the costs involved, such as in research and development or complex system integration. For routine support services, fixed-price contracts (like Firm-Fixed-Price or Fixed-Price Incentive) are generally preferred as they shift more risk to the contractor and provide greater cost certainty for the government. CPFF contracts can lead to higher overall costs if not managed diligently, as the government bears the risk of cost overruns while the contractor is guaranteed a fixed profit. Benchmarking against similar support service contracts awarded on a fixed-price basis would reveal potential cost inefficiencies.

What are the potential risks associated with awarding a $47.5 million contract on a sole-source basis?

Awarding a contract of this magnitude on a sole-source basis carries several risks. Primarily, it eliminates the potential for competitive bidding, which is the government's primary mechanism for ensuring fair and reasonable pricing and achieving best value. This lack of competition can lead to higher costs for taxpayers, as the contractor faces less pressure to be efficient or offer competitive rates. Furthermore, it can stifle innovation by preventing other capable vendors from proposing alternative solutions or demonstrating their capabilities. There's also a risk that the government may not be aware of all available solutions or vendors, potentially leading to suboptimal choices. Robust justification and documentation are essential to mitigate these risks.

What is the historical spending pattern for 'All Other Support Services' within the Department of the Air Force?

Historical spending on 'All Other Support Services' (NAICS 561990) within the Department of the Air Force is likely substantial, given the broad nature of the category and the Air Force's extensive operational needs. Analyzing past spending would involve examining FPDS data for similar contracts awarded over several fiscal years. This would help establish a baseline for typical contract values, durations, and the types of services procured. Understanding this historical context is crucial for evaluating whether the current $47.5 million award is consistent with past trends or represents an anomaly, particularly given its sole-source nature.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: GUIDED MISSLES

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $57,906,024

Exercised Options: $48,355,600

Current Obligation: $47,475,359

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862024GB003

IDV Type: BOA

Timeline