DoD's $4.05M contract for ammunition manufacturing interface control documents awarded to Vertex Aerospace LLC

Contract Overview

Contract Amount: $4,052,067 ($4.1M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2023-10-02

End Date: 2026-03-31

Contract Duration: 911 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: COMMON STORES MAINTENANCE INTERFACE CONTROL DOCUMENT (CSMICD)

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $4.1 million to VERTEX AEROSPACE LLC for work described as: COMMON STORES MAINTENANCE INTERFACE CONTROL DOCUMENT (CSMICD) Key points: 1. Contract awarded for technical documentation support, not direct ammunition production. 2. Vertex Aerospace LLC, a new entrant in this specific contract category, will provide interface control documents. 3. The contract duration of 911 days suggests a need for ongoing technical support. 4. Awarded under full and open competition, indicating a competitive bidding process. 5. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed profit. 6. This contract is a small portion of overall Department of Defense spending on ammunition-related services.

Value Assessment

Rating: fair

The contract's value of $4.05 million over approximately 2.5 years is moderate. Benchmarking against similar contracts for technical documentation and interface control documents is challenging due to the specialized nature of the deliverable. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed, plus a fixed fee, which can lead to cost overruns if not managed carefully. Without specific performance metrics or comparisons to industry standards for similar documentation, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The data indicates two bids were received. While this indicates some level of competition, the low number of bidders could suggest a niche market or limited awareness among potential contractors. Further analysis would be needed to determine if the competition adequately drove down prices.

Taxpayer Impact: A competitive process, even with a limited number of bidders, is generally favorable for taxpayers as it encourages vendors to offer competitive pricing to secure the contract.

Public Impact

The Department of the Air Force benefits from updated and standardized interface control documents for ammunition systems. This contract supports the maintenance and potential future upgrades of ammunition systems. The primary service delivered is technical documentation, crucial for system integration and interoperability. The geographic impact is primarily within Florida, where Vertex Aerospace LLC is located, but the ultimate impact is on Air Force operations nationwide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize higher spending if not closely monitored.
Limited competition (2 bidders) may not have resulted in the most cost-effective pricing.
The specialized nature of interface control documents might limit the pool of qualified contractors.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
The contract aims to standardize critical technical documentation for ammunition systems.
Vertex Aerospace LLC's role in providing these documents supports operational readiness.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing support sector, specifically focusing on technical documentation for ammunition systems. The market for specialized technical documentation services is competitive, with many firms offering expertise in areas like interface control documents, system engineering, and technical writing. The Department of Defense is a major consumer of such services, requiring detailed and accurate documentation to ensure the interoperability, maintenance, and safety of complex weapon systems. Spending benchmarks for similar documentation contracts can vary widely based on complexity and scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Vertex Aerospace LLC, is likely a larger entity, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures would include adherence to the contract's statement of work, delivery schedules, and cost controls. Transparency is facilitated through contract award databases, but detailed internal oversight processes are not publicly disclosed. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Ammunition Manufacturing
Defense Logistics
Technical Documentation Services
Aerospace Engineering Support
Interface Control Documents
Department of Defense Procurement

Risk Flags

Cost Plus Fixed Fee contract type requires careful cost monitoring.
Limited number of bidders may indicate potential for higher pricing.
Specialized nature of the deliverable could limit contractor pool.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.1 million to VERTEX AEROSPACE LLC. COMMON STORES MAINTENANCE INTERFACE CONTROL DOCUMENT (CSMICD)

Who is the contractor on this award?

The obligated recipient is VERTEX AEROSPACE 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 $4.1 million.

What is the period of performance?

Start: 2023-10-02. End: 2026-03-31.

What is Vertex Aerospace LLC's track record with similar interface control document contracts for the Department of Defense?

Based on the provided data, Vertex Aerospace LLC is awarded this contract for Common Stores Maintenance Interface Control Document (CSMICD). However, the data does not provide historical information on Vertex Aerospace LLC's specific track record with interface control documents or similar technical documentation for the Department of Defense. Further research into contract databases and company profiles would be necessary to assess their past performance in this niche area. The fact that this is a specific award suggests it might be a new area of focus or a contract where their qualifications were specifically met.

How does the $4.05 million contract value compare to similar interface control document contracts?

Comparing the $4.05 million contract value for interface control documents is challenging without more specific data points on comparable contracts. The nature of interface control documents can vary significantly in complexity, scope, and the systems they pertain to. Contracts for such specialized technical documentation can range from tens of thousands to millions of dollars depending on the depth of analysis, the number of interfaces, and the required level of detail. This particular contract, awarded over approximately 2.5 years, appears to be a moderate-sized engagement for specialized technical support within the defense sector.

What are the primary risks associated with this Cost Plus Fixed Fee contract?

The primary risks associated with this Cost Plus Fixed Fee (CPFF) contract revolve around cost control and potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses, up to the contract ceiling. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk. Additionally, ensuring the contractor maintains efficiency and avoids unnecessary expenditures is paramount to achieving value for money.

How effective is the 'full and open competition' strategy for this type of specialized technical documentation?

The 'full and open competition' strategy is generally the most effective approach for ensuring a broad range of potential contractors can bid, thereby fostering price competition and innovation. For specialized technical documentation like interface control documents, its effectiveness depends on whether the market has a sufficient number of qualified vendors. In this case, with two bids received, it suggests a degree of competition, but it's not as robust as if there were numerous bidders. The government's ability to define clear requirements and evaluation criteria is key to making this strategy successful in securing the best value, even in niche markets.

What is the historical spending pattern for interface control documents within the Department of the Air Force?

The provided data focuses on a single contract award and does not offer historical spending patterns for interface control documents within the Department of the Air Force. To analyze historical spending, one would need to query contract databases for similar contract types (e.g., technical documentation, engineering support, system integration) related to interface control documents over several fiscal years. This would involve identifying the relevant Product Service Codes (PSCs) and North American Industry Classification System (NAICS) codes and examining spending trends, average contract values, and the number of awards to understand the typical investment in this area.

What are the implications of the contract duration (911 days) on project management and cost?

A contract duration of 911 days (approximately 2.5 years) for interface control documents suggests a need for sustained effort and potentially evolving requirements over the contract period. This extended duration allows for a more thorough development and refinement process, which can be beneficial for complex technical documentation. However, it also increases the risk of cost escalation, especially under a Cost Plus Fixed Fee structure, if not managed diligently. Effective project management will be crucial to ensure milestones are met, costs are controlled, and the final documentation remains relevant throughout its lifecycle. Regular reviews and potential contract modifications may be necessary.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA865823RA012

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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: $5,053,397

Exercised Options: $4,052,067

Current Obligation: $4,052,067

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865622DA004

IDV Type: IDC

Timeline