DoD's $24.25M 'BIG SAFARI' Contract Awarded to Vertex Modernization Amidst Limited Competition

Contract Overview

Contract Amount: $24,250,874 ($24.3M)

Contractor: Vertex Modernization and Sustainment LLC

Awarding Agency: Department of Defense

Start Date: 2024-11-01

End Date: 2026-05-30

Contract Duration: 575 days

Daily Burn Rate: $42.2K/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 $24.3 million to VERTEX MODERNIZATION AND SUSTAINMENT LLC for work described as: BIG SAFARI Key points: 1. The Department of the Air Force awarded a $24.25 million contract for 'BIG SAFARI'. 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 primarily IT support services, a critical area for defense operations.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with limited competition, suggests potential for higher-than-necessary costs. Benchmarking against similar IT support services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and potentially increases the cost to the government.

Taxpayer Impact: The absence of competitive bidding may result in taxpayers paying a premium for these support services.

Public Impact

Taxpayers may be overpaying due to the lack of a competitive bidding process. The reliance on a single vendor for critical support services could pose a risk if the vendor underperforms or faces issues. The specific nature of 'BIG SAFARI' is unclear, limiting public understanding of the services procured.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Cost Plus Fixed Fee contract type
  • Lack of transparency on 'BIG SAFARI' details

Positive Signals

  • Contract supports critical Air Force operations
  • Defined period of performance

Sector Analysis

This contract falls under Other Support Services, often encompassing IT and specialized technical support crucial for modern defense operations. Benchmarks for such services vary widely based on complexity and scope.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and adequate performance. Transparency regarding the 'BIG SAFARI' program's objectives and costs is essential for accountability.

Related Government Programs

  • All Other Support Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Lack of competition
  • Potential for cost overruns (CPFF)
  • Limited public information on program scope
  • No small business participation evident

Tags

all-other-support-services, department-of-defense, in, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 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 $24.3 million.

What is the period of performance?

Start: 2024-11-01. End: 2026-05-30.

What specific IT modernization and sustainment services does 'BIG SAFARI' encompass, and how do these align with current Air Force needs?

The 'BIG SAFARI' program likely refers to a specific initiative within the Air Force, potentially related to intelligence, surveillance, reconnaissance, or advanced technology development. Without further details, it's difficult to ascertain the exact services. However, given the 'All Other Support Services' NAICS code, it suggests a broad range of technical and logistical support critical for maintaining and upgrading complex systems.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically stems from unique capabilities, urgent needs, or specific program requirements that only one vendor can meet. The Department of the Air Force would need to provide documentation justifying this approach. Ensuring fair and reasonable pricing in such cases often involves detailed cost analysis, comparison with historical data, and independent government cost estimates.

What are the potential risks associated with a Cost Plus Fixed Fee contract for IT support, and how are these risks being mitigated?

Cost Plus Fixed Fee contracts carry the risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies include robust government oversight, detailed cost tracking, clear definition of scope, and performance incentives. For IT support, this means ensuring efficient resource allocation and preventing scope creep without proper modification and pricing adjustments.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesOther Support ServicesAll Other Support 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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,862,684

Exercised Options: $24,862,684

Current Obligation: $24,250,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862024GB003

IDV Type: BOA

Timeline

Start Date: 2024-11-01

Current End Date: 2026-05-30

Potential End Date: 2026-05-30 00:00:00

Last Modified: 2026-02-18

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