DoD Awards Vertex Aerospace $650M E-6B Contractor Logistics Support Task Order
Contract Overview
Contract Amount: $650,770,641 ($650.8M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2021-02-01
End Date: 2027-01-31
Contract Duration: 2,190 days
Daily Burn Rate: $297.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: E-6B CONTRACTOR LOGISTICS SUPPORT (CLS) FOLLOW-ON TASK ORDER
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $650.8 million to VERTEX AEROSPACE LLC for work described as: E-6B CONTRACTOR LOGISTICS SUPPORT (CLS) FOLLOW-ON TASK ORDER Key points: 1. Significant contract value for specialized aircraft support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Risk appears moderate given the long duration and specialized nature of the support. 4. The contract falls under 'Other Support Activities for Air Transportation' within the Defense sector.
Value Assessment
Rating: good
The contract value of $650.77M over approximately 6 years suggests a substantial but potentially reasonable price for specialized logistics support. Benchmarking against similar long-term, high-complexity aviation support contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified vendors to bid, theoretically driving down costs and ensuring fair market value.
Taxpayer Impact: Taxpayer funds are being utilized for essential military aircraft sustainment. The competitive nature of the award aims to maximize value for the investment.
Public Impact
Ensures continued operational readiness of critical E-6B aircraft. Supports specialized maintenance and logistics, preventing potential mission delays. Impacts the defense industrial base through sustained contracts for aerospace services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases potential for cost overruns or scope creep.
- Reliance on a single contractor for critical support could pose supply chain risks.
- Firm Fixed Price contract may not fully account for unforeseen material cost fluctuations.
Positive Signals
- Full and open competition promotes market efficiency.
- Contract aims to ensure operational readiness of a key asset.
- Clear performance period and defined scope.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on air transportation support. Spending benchmarks in this area are highly variable, depending on aircraft type, age, and complexity of required services.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as Vertex Aerospace LLC is the prime contractor. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of Defense, specifically the Department of the Navy, is overseeing this contract. Standard oversight mechanisms for large defense contracts, including performance reviews and financial audits, are expected to be in place.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to long contract duration.
- Dependency on a single contractor for critical support.
- Firm Fixed Price may not fully adapt to market volatility.
- Lack of explicit small business subcontracting data.
- Potential for scope creep over the contract's lifecycle.
Tags
other-support-activities-for-air-transpo, department-of-defense, ok, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $650.8 million to VERTEX AEROSPACE LLC. E-6B CONTRACTOR LOGISTICS SUPPORT (CLS) FOLLOW-ON TASK ORDER
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 $650.8 million.
What is the period of performance?
Start: 2021-02-01. End: 2027-01-31.
What is the historical cost performance of similar E-6B CLS contracts or comparable aircraft support agreements?
Historical cost performance data for similar E-6B CLS contracts or comparable aircraft support agreements is crucial for a robust value assessment. Without this benchmark, it's difficult to definitively state if $650.77M represents excellent, good, or fair value. Analysis should consider inflation, scope changes, and contractor performance on previous agreements.
What are the specific risks associated with the long duration (approx. 6 years) and firm-fixed-price nature of this contract?
The long duration of this firm-fixed-price contract presents risks of potential cost escalation for materials and labor beyond the contractor's initial projections, which could lead to reduced profit margins or requests for modification. Conversely, it could also lock in favorable pricing if costs decrease. The government bears the risk if unforeseen technical issues arise requiring extensive, costly solutions not initially scoped.
How effectively does this contract ensure the long-term operational readiness and modernization of the E-6B fleet?
This contract is designed to ensure the immediate operational readiness of the E-6B fleet through sustained logistics support. However, its effectiveness in addressing long-term modernization needs depends on whether the scope includes provisions for upgrades or if separate contracts will address future technological advancements. The firm-fixed-price nature might incentivize maintaining current systems rather than investing in future-proofing.
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
Solicitation ID: N0001920R0036
Offers Received: 3
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: $949,055,811
Exercised Options: $757,745,895
Current Obligation: $650,770,641
Subaward Activity
Number of Subawards: 1057
Total Subaward Amount: $150,554,591
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
Start Date: 2021-02-01
Current End Date: 2027-01-31
Potential End Date: 2027-02-01 00:00:00
Last Modified: 2026-01-14
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