Vertex Aerospace awarded $38.2M for C-26 aircraft support, with 7 bids received

Contract Overview

Contract Amount: $38,230,257 ($38.2M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-03

End Date: 2025-05-31

Contract Duration: 1,823 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FUNDING - AWARD C-26 AIRCRAFT

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $38.2 million to VERTEX AEROSPACE LLC for work described as: FUNDING - AWARD C-26 AIRCRAFT Key points: 1. Contract value appears reasonable given the duration and scope of aircraft support services. 2. Strong competition with 7 bidders suggests a healthy market for this type of service. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period extends over five years, indicating a long-term need for these services. 5. This contract falls within the broader category of aviation support and maintenance. 6. The award is a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The award amount of $38.2 million over approximately five years for C-26 aircraft support appears to be within a reasonable range for specialized aviation services. Benchmarking against similar contracts for aircraft maintenance and logistics support suggests that the pricing is competitive, especially considering the firm-fixed-price nature of the contract which shifts risk to the contractor. The number of bids received also indicates that the pricing was likely attractive to multiple offerors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven bids received. This level of competition is a positive indicator, suggesting that the solicitation was widely disseminated and that multiple capable vendors were interested in providing the required services. The presence of numerous bidders generally leads to more competitive pricing and a wider selection of qualified contractors, benefiting the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received the best value for its investment in C-26 aircraft support.

Public Impact

The Department of the Navy benefits from continued operational readiness of its C-26 aircraft fleet. Services include essential support activities for air transportation, ensuring aircraft are maintained and operational. The contract's performance is primarily located in Mississippi, supporting the local economy and workforce. This contract supports specialized aviation maintenance and logistics jobs within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, despite fixed-price structure.
Dependence on a single contractor for critical support could pose risks if performance falters.
Ensuring consistent quality across the five-year performance period requires diligent oversight.

Positive Signals

Firm-fixed-price contract structure provides cost certainty.
Strong competition indicates a healthy market and potential for good value.
Long-term contract allows for stable planning and resource allocation for aircraft support.
Delivery order structure allows for flexibility in tasking and funding.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government investment. Contracts for aircraft support and maintenance are crucial for maintaining fleet readiness and operational capabilities. This $38.2 million contract for C-26 aircraft support fits within the broader landscape of aviation services, where specialized firms compete to provide maintenance, repair, and overhaul (MRO) services. The market for such services is substantial, driven by the ongoing need to sustain aging aircraft fleets and ensure mission effectiveness.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While Vertex Aerospace LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this specific award. Further analysis would be needed to determine if small business participation is mandated or encouraged through subcontracting opportunities within the broader contract vehicle under which this delivery order was issued.

Oversight & Accountability

Oversight for this contract is managed by the Department of the Navy. As a delivery order under a larger contract, oversight mechanisms would likely be tied to the parent contract's terms and conditions. The firm-fixed-price nature provides a degree of cost control. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance Services
Aviation Logistics Support
Defense Contract Services
Air Transportation Support
Fleet Readiness Programs

Risk Flags

Long-term contract performance risk
Potential for supply chain disruptions
Dependence on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.2 million to VERTEX AEROSPACE LLC. FUNDING - AWARD C-26 AIRCRAFT

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 $38.2 million.

What is the period of performance?

Start: 2020-06-03. End: 2025-05-31.

What is Vertex Aerospace LLC's track record with similar Department of Defense contracts?

Vertex Aerospace LLC has a history of performing contracts for the Department of Defense, particularly in areas related to aircraft maintenance, modification, and support. Their portfolio often includes services for various military aircraft platforms. Analyzing their past performance on similar firm-fixed-price contracts, especially those involving long-term support and delivery orders, would provide insight into their reliability, quality of service, and ability to manage costs effectively. A review of past performance evaluations and any documented issues or commendations would be crucial for a comprehensive assessment of their track record.

How does the awarded amount compare to the estimated value or ceiling of the parent contract vehicle?

The awarded amount of $38,230,256.52 represents a specific delivery order placed against a larger, indefinite-delivery/indefinite-quantity (IDIQ) or similar contract vehicle. To assess value, it's essential to compare this award to the overall ceiling or estimated value of the parent contract. If the parent contract has a high ceiling and this award is a relatively small portion, it suggests flexibility and that the overall program has significant capacity. Conversely, if this award represents a substantial commitment of the parent contract's potential value, it warrants closer scrutiny regarding the initial cost estimations and the overall program's budget.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

While the specific KPIs are not detailed in the provided data, contracts for aircraft support typically include metrics related to aircraft availability, turnaround time for maintenance tasks, adherence to schedules, quality of repairs, and compliance with safety regulations. Performance is usually measured through regular reporting by the contractor, government inspections, and formal performance reviews conducted at specified intervals. The Department of the Navy would establish these KPIs and monitoring procedures to ensure Vertex Aerospace LLC meets the required standards for C-26 aircraft support throughout the contract's duration.

What is the historical spending trend for C-26 aircraft support services within the Department of the Navy?

Analyzing historical spending for C-26 aircraft support by the Department of the Navy would provide context for the current $38.2 million award. This involves examining previous contracts, their values, durations, and the contractors involved. Trends might reveal an increasing or decreasing need for these services, fluctuations in pricing, or shifts in contracting strategies (e.g., moving from sole-source to competitive awards). Understanding this history helps determine if the current award is consistent with past investments or represents a significant change in program funding or scope.

Are there any identified risks associated with Vertex Aerospace LLC's performance on this specific contract?

Based on the provided data, there are no explicit risk flags or negative performance indicators associated with this specific award to Vertex Aerospace LLC. However, general risks inherent in long-term aircraft support contracts include potential for supply chain disruptions, unforeseen technical issues requiring extensive repairs, and contractor performance degradation over time. A thorough risk assessment would involve reviewing Vertex Aerospace's performance history on other contracts, their financial stability, and the specific technical challenges associated with maintaining the C-26 aircraft.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

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: $45,344,931

Exercised Options: $41,343,748

Current Obligation: $38,230,257

Actual Outlays: $232,978

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $2,856,228

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