Vertex Aerospace contract for aircraft services awarded by NASA at $22.3M, utilizing full and open competition
Contract Overview
Contract Amount: $22,267,789 ($22.3M)
Contractor: Vertex Aerospace LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2010-04-01
End Date: 2016-10-31
Contract Duration: 2,405 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: AIRCRAFT AND AIRFIELD RELATED SERVICES
Place of Performance
Location: MOFFETT FIELD, SANTA CLARA County, CALIFORNIA, 94035
Plain-Language Summary
National Aeronautics and Space Administration obligated $22.3 million to VERTEX AEROSPACE LLC for work described as: AIRCRAFT AND AIRFIELD RELATED SERVICES Key points: 1. The contract value of $22.3M over its period of performance suggests a significant investment in aircraft and airfield support. 2. Full and open competition was utilized, indicating a potentially robust bidding process that could drive competitive pricing. 3. The contract type (Cost Plus Fixed Fee) can sometimes lead to cost overruns if not managed carefully, posing a potential risk. 4. The duration of the contract (2405 days) suggests a long-term need for these services, implying stability in demand. 5. The North American Industry Classification System (NAICS) code 488190 points to specialized support activities within the air transportation sector. 6. The award was made to Vertex Aerospace LLC, a key player in this specialized service area.
Value Assessment
Rating: fair
Benchmarking the value of this $22.3M contract is challenging without specific details on the scope of services provided. However, the duration of over 2000 days suggests a substantial, long-term requirement. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, carries inherent risks of cost escalation if not meticulously managed. Comparing this to similar contracts for aircraft and airfield services would require detailed service descriptions and performance metrics to ascertain true value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. The presence of two bidders (as indicated by 'no': 2) implies a degree of competition, though the exact number of proposals received and the rigor of the evaluation process are not detailed. This competitive approach is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: A full and open competition process, even with a limited number of bidders, generally benefits taxpayers by encouraging multiple companies to vie for the contract, potentially leading to lower prices and better service offerings.
Public Impact
The primary beneficiaries are likely NASA's aviation programs and personnel who rely on these aircraft and airfield services for operations and research. Services delivered likely encompass maintenance, repair, ground support, and potentially flight operations for NASA's fleet. The geographic impact is centered around NASA facilities in California, where the contract was awarded. The contract supports a specialized workforce within the aerospace and aviation services industry, particularly in California.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit, requiring robust oversight.
- Limited competition (2 bidders) may not have fully explored the market, potentially missing out on more competitive pricing.
- The long duration of the contract could lead to scope creep or outdated service requirements if not actively managed and reviewed.
Positive Signals
- Awarded through full and open competition, indicating a structured and transparent procurement process.
- The contract supports critical aviation infrastructure and services for a major government agency (NASA).
- Vertex Aerospace LLC is a known entity in the aerospace services sector, suggesting a level of established capability.
Sector Analysis
This contract falls within the broader aerospace and defense services sector, specifically focusing on aircraft and airfield support. The market for such services is characterized by specialized technical expertise, stringent regulatory compliance, and long-term relationships with government agencies. NASA's spending in this area is crucial for its research, development, and operational missions, often involving unique aircraft and specialized airfield requirements not met by commercial aviation standards. Comparable spending benchmarks would typically be found within other government agencies (e.g., DoD) that operate significant aviation fleets.
Small Business Impact
The provided data indicates that small business participation was not a specific set-aside (ss: false) nor was there a specific subcontracting goal mentioned (sb: false). This suggests the primary award was not targeted towards small businesses, and the prime contractor, Vertex Aerospace LLC, would likely manage subcontracting based on project needs and its own business strategy, rather than specific set-aside requirements for this particular contract.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA), specifically the contracting officer and program managers responsible for the aviation services. Accountability measures would be embedded in the contract's performance work statement (PWS) and key performance indicators (KPIs). Transparency is generally facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- NASA Aviation Programs
- Aerospace Research and Development Contracts
- Airfield Operations and Maintenance Services
- Government Aviation Fleet Support
Risk Flags
- Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
- Limited competition (2 bidders) may not represent the full market potential.
- Long contract duration increases risk of scope creep and performance degradation if not actively managed.
Tags
aircraft-services, airfield-services, nasa, vertex-aerospace-llc, cost-plus-fixed-fee, full-and-open-competition, california, definitive-contract, long-term-contract, aerospace, aviation-support, government-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $22.3 million to VERTEX AEROSPACE LLC. AIRCRAFT AND AIRFIELD RELATED SERVICES
Who is the contractor on this award?
The obligated recipient is VERTEX AEROSPACE LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $22.3 million.
What is the period of performance?
Start: 2010-04-01. End: 2016-10-31.
What specific types of aircraft and airfield services were included in this $22.3M contract?
The contract, valued at approximately $22.3 million, was awarded to Vertex Aerospace LLC by NASA for 'AIRCRAFT AND AIRFIELD RELATED SERVICES'. While the specific details are not fully elaborated in the provided data, this category typically encompasses a range of activities essential for maintaining and operating aircraft and their associated ground facilities. This could include, but is not limited to, aircraft maintenance, repair, and overhaul (MRO), modification services, component repair, logistics support for aircraft parts, ground support equipment operation and maintenance, airfield pavement maintenance, air traffic control support services, and potentially specialized flight operations support. The duration of the contract (2405 days, or over 6.5 years) suggests a comprehensive and ongoing need for these services, likely supporting NASA's unique research, experimental, or operational flight missions.
How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact the final cost and Vertex Aerospace's profit?
The Cost Plus Fixed Fee (CPFF) contract type is designed to provide flexibility when the exact costs are difficult to predict. In this structure, Vertex Aerospace LLC is reimbursed for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee, which represents their profit. This fee is fixed and does not change regardless of the actual costs. While the fixed fee provides Vertex Aerospace with a predictable profit margin, the 'cost-plus' element means that the government bears the risk of cost overruns. If the actual costs exceed the initial estimates, the government pays the higher amount. This necessitates robust oversight from NASA to ensure that costs are reasonable, allocable, and allowable, and that the contractor is not incentivized to incur unnecessary expenses simply because the fee is fixed.
What does the 'full and open competition' with only two bidders imply for the government and taxpayers?
The award under 'full and open competition' signifies that the solicitation was made available to all responsible sources, and the contract was awarded based on the best value to the government. However, the indication of only two bidders ('no': 2) presents a mixed picture. On one hand, competition did occur, which is generally preferable to a sole-source award and likely resulted in a more competitive price than if only one bidder had participated. On the other hand, a limited number of bidders might suggest potential barriers to entry in this specialized market, or perhaps a niche requirement that naturally attracts fewer specialized contractors. For taxpayers, this means that while competition likely yielded a reasonable price, there's a possibility that a broader field of bidders could have driven the price even lower or offered innovative solutions not presented by the two participants. NASA's evaluation process would be critical in ensuring the selected offer represented the best overall value.
What is the significance of the NAICS code 488190 in understanding this contract's scope?
The North American Industry Classification System (NAICS) code 488190, 'Other Support Activities for Air Transportation,' provides crucial context for this contract. This code encompasses establishments primarily engaged in providing specialized services to air transportation, but not operating airports or airfields themselves. This includes services like aircraft engine repair and overhaul, aircraft parts and auxiliary equipment repair, and other aircraft support activities. For NASA, this code suggests the contract likely focuses on the technical maintenance, repair, and support of their specialized aircraft fleet, rather than the operation of airfields or air traffic control. It highlights the specialized nature of the services required, often involving highly skilled technicians and specific certifications, differentiating it from general aviation services.
How does the contract's duration (2405 days) influence risk assessment and performance management?
A contract duration of 2405 days (approximately 6.6 years) is substantial and significantly influences risk assessment and performance management. For NASA, such a long-term commitment implies a stable, ongoing requirement for the specified aircraft and airfield services. However, it also introduces risks related to technological obsolescence, potential changes in mission requirements, and the contractor's sustained performance over an extended period. Effective performance management requires NASA to implement rigorous oversight mechanisms, including regular performance reviews, milestone tracking, and potentially contract modifications to adapt to evolving needs. For Vertex Aerospace, the long duration offers revenue stability but also demands consistent quality and adaptability. Risks include potential underestimation of long-term costs or challenges in maintaining workforce expertise throughout the contract's life.
What does the 'st': 'CA' designation mean for the contract's location and potential economic impact?
The 'st': 'CA' designation indicates that the contract's primary place of performance or award is in California. This has several implications. Economically, it means that the funds associated with this $22.3 million contract will likely flow into the Californian economy, supporting jobs within Vertex Aerospace LLC and potentially its subcontractors located in the state. California has a significant aerospace and defense industry presence, so this contract contributes to that ecosystem. From an oversight perspective, it means that state-level regulations and economic factors might play a role. Furthermore, it suggests that NASA's operational or support needs related to this contract are situated within California, potentially linked to specific NASA centers or facilities located there, such as those involved in aeronautics research or flight testing.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: RESEARCH AND DEVELOPMENT › Transportation R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
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: $25,426,744
Exercised Options: $25,426,744
Current Obligation: $22,267,789
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-04-01
Current End Date: 2016-10-31
Potential End Date: 2016-10-31 00:00:00
Last Modified: 2023-07-13
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