Vertex Aerospace LLC awarded $80.7M for aircraft support, with 5 bidders in a full and open competition

Contract Overview

Contract Amount: $80,761,320 ($80.8M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2020-07-20

End Date: 2026-01-19

Contract Duration: 2,009 days

Daily Burn Rate: $40.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: RESET REPAIR/OVERHAUL/FCF NEW RIVER

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $80.8 million to VERTEX AEROSPACE LLC for work described as: RESET REPAIR/OVERHAUL/FCF NEW RIVER Key points: 1. The contract value of $80.7 million represents a significant investment in maintaining critical aviation assets. 2. A competitive landscape with 5 bidders suggests a healthy market for these specialized support services. 3. The Time and Materials contract type introduces potential cost variability, requiring diligent oversight. 4. This award falls under the 'Other Support Activities for Air Transportation' category, indicating a focus on operational readiness. 5. The contract duration extends to January 2026, providing long-term support for the specified needs. 6. The award was made by the Department of the Navy, highlighting its importance for naval aviation operations.

Value Assessment

Rating: good

Benchmarking the $80.7 million contract value against similar aircraft support services is challenging without specific scope details. However, the presence of 5 bidders in a full and open competition suggests that Vertex Aerospace's pricing was competitive. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not managed effectively. Further analysis would require comparing the labor rates and material markups to industry standards for similar technical services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The participation of 5 bidders suggests a robust level of competition for these specialized aircraft support services. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions, benefiting the government.

Taxpayer Impact: The full and open competition with multiple bidders is favorable for taxpayers, as it likely drove down prices and ensured the government received the best value. This competitive environment reduces the risk of overpayment and encourages efficiency from the awarded contractor.

Public Impact

The primary beneficiaries are the Department of the Navy, which will receive essential support for its aircraft fleet, ensuring operational readiness. Services delivered include reset, repair, overhaul, and field-level modification (FCF) for aircraft, crucial for maintaining airworthiness. The contract's geographic impact is centered in Mississippi, where Vertex Aerospace is located, potentially supporting local jobs and the regional economy. Workforce implications include the potential for skilled technicians and support staff to be employed or retained by Vertex Aerospace to fulfill this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored, as labor hours and material costs are billed directly.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's historical performance or potential risks.
The PSC code is not specified, which could limit the ability to compare this contract to similar services across different agencies or programs.

Positive Signals

The contract was awarded through a full and open competition with 5 bidders, indicating a competitive process that likely yielded a fair price.
The contract duration extends for several years, suggesting a stable and long-term need for these services, which can foster contractor expertise.
Vertex Aerospace's involvement implies a recognized capability in providing aircraft support and maintenance services.

Sector Analysis

The aerospace and defense sector is characterized by complex supply chains and specialized technical requirements. This contract for aircraft support activities fits within the broader MRO (Maintenance, Repair, and Overhaul) segment of the industry. Spending in this area is critical for maintaining the operational readiness of military fleets. Comparable spending benchmarks would typically involve analyzing other MRO contracts for similar aircraft types or service scopes within the Department of Defense.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Therefore, the primary impact on the small business ecosystem would be indirect, potentially through subcontracting opportunities if Vertex Aerospace chooses to engage small businesses for specific components or services, though this is not explicitly stated.

Oversight & Accountability

Oversight for this Time and Materials contract would typically be managed by the contracting officer and their representatives (CORs) within the Department of the Navy. Accountability measures would involve monitoring labor hours, material costs, and adherence to the contract's scope of work. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Aircraft Maintenance and Repair Services
Aviation Logistics Support
Defense Readiness Contracts
Air Transportation Support Services
Military Aircraft Overhaul

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for robust oversight to manage labor hours and material costs.
Limited insight into contractor's historical performance without further data.
Scope definition clarity is crucial for T&M contract success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.8 million to VERTEX AEROSPACE LLC. RESET REPAIR/OVERHAUL/FCF NEW RIVER

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 $80.8 million.

What is the period of performance?

Start: 2020-07-20. End: 2026-01-19.

What is Vertex Aerospace LLC's track record with the Department of Defense, particularly for similar aircraft support contracts?

Assessing Vertex Aerospace LLC's track record requires a deeper dive into historical contract data beyond this single award. While this $80.7 million contract indicates a level of trust and capability recognized by the Department of the Navy, it doesn't provide a complete picture. Information on past performance, including on-time delivery, quality of work, and adherence to budget on previous contracts, would be crucial. Analyzing their award history for similar services, such as aircraft reset, repair, and overhaul, and examining any past performance reviews or disputes would offer a more comprehensive understanding of their reliability and expertise within the defense sector. Without this granular data, it's difficult to definitively gauge their established performance history.

How does the $80.7 million contract value compare to the average cost of similar aircraft support services for the Navy?

Directly comparing the $80.7 million contract value to an 'average cost' for similar Navy aircraft support services is complex without detailed scope and service level information. The value is influenced by the specific aircraft types supported, the extent of the services (e.g., depot-level maintenance vs. field support), the duration of the contract, and the prevailing market rates for labor and parts. The fact that this contract was awarded under full and open competition with five bidders suggests that Vertex Aerospace's proposed price was deemed competitive within the market. To establish a true benchmark, one would need to analyze the unit costs (e.g., cost per labor hour, cost per repair action) against historical Navy contracts for comparable services, adjusting for inflation and specific technical requirements.

What are the primary risks associated with the Time and Materials (T&M) contract type for this aircraft support service?

The primary risk associated with the Time and Materials (T&M) contract type for this aircraft support service is the potential for cost escalation. Unlike fixed-price contracts, T&M agreements allow the contractor to bill for actual labor hours and material costs incurred, plus a fixed fee or rate. If not managed diligently, this can lead to the government paying more than anticipated, especially if work is inefficiently performed, scope creep occurs without proper controls, or material costs are higher than projected. Effective oversight, including detailed tracking of labor hours, verification of material costs, and clear definition of allowable expenses, is critical to mitigate these risks and ensure value for taxpayer money.

How effective is the competition level (5 bidders) in ensuring optimal value for taxpayers on this contract?

A competition level of five bidders is generally considered healthy and is likely effective in ensuring optimal value for taxpayers on this contract. A larger pool of qualified bidders typically drives down prices as companies compete to win the award. It also increases the likelihood that the government will receive a technically superior solution at a competitive price. This level of competition reduces the government's reliance on a single provider and provides leverage during negotiations. The full and open nature of the competition further ensures that a wide range of potential providers had the opportunity to participate, maximizing the chances of securing the best possible deal.

What is the historical spending pattern for 'Other Support Activities for Air Transportation' by the Department of the Navy?

Analyzing the historical spending pattern for 'Other Support Activities for Air Transportation' by the Department of the Navy requires access to comprehensive federal procurement data over multiple fiscal years. This category likely encompasses a range of services beyond just repair and overhaul, potentially including logistics, training support, and facility operations related to air transportation. Understanding this pattern would involve identifying trends in annual spending, major contract awards within this category, and the primary contractors involved. Significant fluctuations could indicate changes in operational tempo, fleet readiness initiatives, or shifts in contracting strategies. This context helps determine if the current $80.7 million award is consistent with historical investment levels or represents a notable deviation.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

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: $137,322,508

Exercised Options: $106,516,774

Current Obligation: $80,761,320

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,010,957

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: N6134019D1010

IDV Type: IDC

Timeline