DoD's $55M BIG SAFARI contract awarded to Vertex Modernization and Sustainment LLC for support services

Contract Overview

Contract Amount: $54,988,975 ($55.0M)

Contractor: Vertex Modernization and Sustainment LLC

Awarding Agency: Department of Defense

Start Date: 2025-04-28

End Date: 2026-09-28

Contract Duration: 518 days

Daily Burn Rate: $106.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BIG SAFARI

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $55.0 million to VERTEX MODERNIZATION AND SUSTAINMENT LLC for work described as: BIG SAFARI Key points: 1. Contract value appears reasonable given the duration and scope of support services. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Potential risks include cost overruns due to the Cost Plus Fixed Fee structure. 4. Performance context is within the Department of the Air Force's broader IT and support services needs. 5. This contract fits within the 'All Other Support Services' sector, indicating a broad range of potential activities. 6. The contract duration of over 1.5 years provides a stable period for service delivery.

Value Assessment

Rating: good

The contract's value of approximately $55 million over 518 days (roughly 1.4 years) suggests a daily rate of about $106,156. Benchmarking this against similar large-scale support service contracts is challenging without more specific service details. However, the fixed fee component aims to control costs, while the cost-plus aspect allows for flexibility in addressing evolving needs. The award to a single entity implies a focus on specialized capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection process and potentially better pricing for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment was sought.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality through a wider pool of potential providers.

Public Impact

The primary beneficiaries are likely the Department of the Air Force units requiring modernization and sustainment support. Services delivered will encompass a broad range of support activities, potentially including IT, logistics, or operational support. The geographic impact is likely concentrated within the operational areas of the Department of the Air Force, with a focus on Ohio (ST). Workforce implications could include the creation or sustainment of jobs within Vertex Modernization and Sustainment LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not closely monitored.
The broad nature of 'All Other Support Services' could lead to scope creep if not clearly defined.
Reliance on a single contractor for sustainment could pose risks if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
The fixed fee component provides some cost certainty for the government.
The contract duration allows for sustained support and potential for building contractor expertise.

Sector Analysis

The 'All Other Support Services' category (NAICS 561990) is broad and encompasses a wide array of non-classified support activities. This contract likely falls within the government's extensive spending on IT modernization, sustainment, and operational support. Comparable spending benchmarks are difficult to establish without more granular detail on the specific services provided, but the overall market for government support services is substantial, running into billions of dollars annually across various agencies.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests the contract was not specifically targeted towards small businesses. However, the prime contractor, Vertex Modernization and Sustainment LLC, may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force contracting officers and program managers. Accountability measures will be defined within the contract's statement of work and performance standards. Transparency is facilitated by the contract award notice, but detailed performance metrics and spending breakdowns would require further inquiry or access to specific reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

BIG SAFARI Program
Department of the Air Force IT Modernization Efforts
Defense-wide Support Services Contracts
Cost-Plus Contracting Vehicles

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of scope creep given the broad service classification.
Dependency on a single contractor for critical sustainment services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.0 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 $55.0 million.

What is the period of performance?

Start: 2025-04-28. End: 2026-09-28.

What is the specific nature of the 'BIG SAFARI' program and how does this contract contribute to its objectives?

The BIG SAFARI (Broad Agency Announcement for Intelligence, Surveillance, Reconnaissance, and Special Operations Forces) program is an initiative by the U.S. Special Operations Command (SOCOM) and other intelligence agencies to rapidly acquire and field capabilities. This specific contract, awarded to Vertex Modernization and Sustainment LLC, likely supports the modernization and sustainment of systems or platforms related to intelligence, surveillance, reconnaissance, or special operations missions. The 'All Other Support Services' designation suggests it could encompass a wide range of activities from technical support and maintenance to operational assistance, all aimed at ensuring the readiness and effectiveness of critical assets within the BIG SAFARI umbrella.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing structures for similar support services, and what are the implications for value?

Cost Plus Fixed Fee (CPFF) contracts are common for services where the scope is not precisely defined at the outset or is expected to evolve, such as research and development or complex sustainment. The government pays the contractor's allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but carries a higher risk of cost overruns if not managed diligently. For value, CPFF can be advantageous when innovation or adaptation is key, as it incentivizes the contractor to perform the work without being overly constrained by a rigid price. However, it requires robust government oversight to ensure costs remain reasonable and the fixed fee provides adequate profit without being excessive.

What are the potential risks associated with the 'All Other Support Services' classification and how might they be mitigated?

The broad nature of 'All Other Support Services' (NAICS 561990) presents a risk of scope creep, where the services required may expand beyond the initial understanding, potentially leading to cost increases and schedule delays. Mitigation strategies include a meticulously detailed Statement of Work (SOW) with clear deliverables, performance metrics, and acceptance criteria. Regular progress reviews, strong contract management by the government, and open communication channels with the contractor are crucial. Defining key performance indicators (KPIs) and establishing a change control process for any modifications to the SOW will help manage expectations and control costs effectively.

Given the contract's duration and value, what level of contractor performance is expected, and how will it be measured?

With a value of approximately $55 million over 518 days, a high level of contractor performance is expected. This includes meeting all technical requirements outlined in the Statement of Work, adhering to delivery schedules, maintaining quality standards, and providing responsive support. Performance measurement will likely involve a combination of methods, such as Contractor Performance Assessment Reporting System (CPARS) evaluations, adherence to specific Key Performance Indicators (KPIs) related to service availability, response times, and issue resolution rates, and potentially milestone-based reviews. The fixed fee component also incentivizes meeting performance targets to ensure the contractor achieves their profit objectives.

What is the historical spending pattern for 'All Other Support Services' within the Department of the Air Force, and how does this contract compare?

The Department of the Air Force, like other major defense agencies, consistently spends significant amounts on 'All Other Support Services' annually, reflecting the diverse operational and administrative needs of a large military branch. This spending encompasses a wide array of services, from IT support and facilities maintenance to specialized operational assistance. Without access to specific historical spending data for NAICS 561990 within the Air Force, a direct comparison is difficult. However, a $55 million contract over approximately 1.4 years for modernization and sustainment is a substantial award, indicating a critical need and likely a significant scope of work within the broader context of Air Force support services spending.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $54,988,975

Exercised Options: $54,988,975

Current Obligation: $54,988,975

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862024GB003

IDV Type: BOA

Timeline