DoD's $45M Vertex Aerospace Contract for Aircraft Parts Lacks Competition, Raises Oversight Concerns
Contract Overview
Contract Amount: $44,963,365 ($45.0M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2017-08-16
End Date: 2022-08-19
Contract Duration: 1,829 days
Daily Burn Rate: $24.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACTOR FIELD TEAM
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $45.0 million to VERTEX AEROSPACE LLC for work described as: CONTRACTOR FIELD TEAM Key points: 1. Significant spending on aircraft parts by the Department of the Navy. 2. Vertex Aerospace LLC is the sole contractor, indicating a lack of competition. 3. The contract duration is substantial, spanning over five years. 4. Potential for taxpayer funds to be mismanaged due to limited oversight.
Value Assessment
Rating: questionable
The contract value of $44.96 million over 1829 days suggests a high per-unit cost is possible given the lack of competitive bidding. Without benchmarks, it's difficult to assess true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition and potential for inflated pricing directly impacts taxpayer value, as funds may not be used as efficiently as possible.
Public Impact
Taxpayers may be overpaying for essential aircraft parts due to the absence of competitive bidding. The long contract duration could lock the government into a potentially suboptimal pricing arrangement. Limited transparency in sole-source contracts can obscure potential inefficiencies or waste.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency
- Potential for overpayment
Positive Signals
- Contract awarded to Vertex Aerospace LLC
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military readiness, but competitive procurement is key to ensuring cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, suggesting a missed opportunity for small business participation and economic development.
Oversight & Accountability
The sole-source nature of this contract raises concerns about oversight. Without competitive pressure, ensuring accountability for performance and cost control becomes more challenging.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for inflated costs due to lack of competitive bidding.
- Long contract duration may not reflect current market conditions.
- Limited transparency in sole-source procurements.
- No apparent small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ms, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.0 million to VERTEX AEROSPACE LLC. CONTRACTOR FIELD TEAM
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 Navy).
What is the total obligated amount?
The obligated amount is $45.0 million.
What is the period of performance?
Start: 2017-08-16. End: 2022-08-19.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. However, without detailed documentation, it's impossible to assess if fair pricing was achieved. The government should have conducted a thorough market analysis and negotiation process to mitigate the risks associated with non-competitive procurement.
What are the specific performance metrics and quality control measures in place for Vertex Aerospace LLC?
Given this is a sole-source contract for aircraft parts, robust performance metrics and quality control are crucial. The government should have clearly defined deliverables, acceptance criteria, and penalties for non-performance. Regular audits and inspections are necessary to ensure the parts meet stringent military specifications and safety standards.
How does the per-unit cost of these parts compare to similar components procured competitively by other military branches or agencies?
A direct comparison of per-unit costs is essential for evaluating value. If this sole-source contract's pricing is significantly higher than comparable competitively procured parts, it indicates a potential loss of taxpayer funds. The Department of Defense should maintain internal benchmarks and conduct post-award price analyses to identify such discrepancies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001917R0068
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vertex Aerospace Services Corp.
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: $47,007,474
Exercised Options: $44,963,365
Current Obligation: $44,963,365
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $293,114
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-08-16
Current End Date: 2022-08-19
Potential End Date: 2022-08-19 00:00:00
Last Modified: 2023-03-28
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