DoD awards Vertex Aerospace $10.6M for aircraft parts under full and open competition
Contract Overview
Contract Amount: $10,648,516 ($10.6M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2006-11-01
End Date: 2008-05-31
Contract Duration: 577 days
Daily Burn Rate: $18.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: SAME AS ABOVE
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $10.6 million to VERTEX AEROSPACE LLC for work described as: SAME AS ABOVE Key points: 1. Contract awarded to Vertex Aerospace LLC for $10.6 million. 2. Procurement falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 3. Competition method was 'Full and Open Competition'. 4. Contract duration is 577 days, ending May 31, 2008.
Value Assessment
Rating: fair
The contract's Time and Materials (T&M) pricing structure, combined with a relatively short duration and lack of specific cost ceilings, raises concerns about potential cost overruns. Benchmarking against similar T&M contracts for aircraft parts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the use of Time and Materials pricing may limit the effectiveness of competition in controlling final costs.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The T&M pricing structure presents a risk of higher-than-anticipated costs, potentially impacting the overall value for taxpayers.
Public Impact
Ensures continued availability of critical aircraft parts for defense operations. Supports a company within the aerospace manufacturing sector. Potential for cost inefficiencies due to T&M pricing structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of detailed cost breakdown
- Short contract duration
Positive Signals
- Full and open competition
- Supports critical defense needs
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this sector is critical for national security, but T&M contracts can be prone to cost escalation if not closely monitored.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Oversight would focus on ensuring timely delivery and monitoring the T&M expenditures to mitigate cost risks.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Risk of cost overruns due to T&M pricing.
- Limited visibility into labor rates and material costs.
- Potential for contractor inefficiencies to inflate costs.
- Short contract duration may not allow for significant economies of scale.
- Lack of explicit cost ceilings increases financial exposure.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ms, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.6 million to VERTEX AEROSPACE LLC. SAME AS ABOVE
Who is the contractor on this award?
The obligated recipient is VERTEX AEROSPACE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $10.6 million.
What is the period of performance?
Start: 2006-11-01. End: 2008-05-31.
What was the average hourly rate for labor and the estimated cost of materials under this Time and Materials contract?
The provided data does not specify the average hourly rates for labor or the estimated costs for materials. This information is crucial for a thorough cost analysis and for understanding the potential value received by the government. Without these details, it's challenging to assess if the $10.6 million award represents a fair price.
Were there any performance metrics or cost ceilings included in the contract to mitigate risks associated with Time and Materials pricing?
The data indicates a Time and Materials (T&M) contract type with no explicit mention of performance metrics or cost ceilings. T&M contracts inherently carry a higher risk of cost overruns as the contractor is reimbursed for actual labor and material costs. The absence of defined ceilings or strict performance indicators increases the potential financial risk to the government.
How did the final cost compare to the initial estimate or the bids received during the full and open competition?
The available data does not provide a comparison between the final awarded amount of $10.6 million and the initial estimates or the bids submitted by competitors. Understanding this comparison is vital for evaluating the effectiveness of the full and open competition in achieving cost savings and for assessing the overall value proposition of the contract.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 8001 MID AMERICA BLVD STE 500, OKLAHOMA CITY, OK, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,648,516
Exercised Options: $10,648,516
Current Obligation: $10,648,516
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3460197D0425
IDV Type: IDC
Timeline
Start Date: 2006-11-01
Current End Date: 2008-05-31
Potential End Date: 2008-05-31 00:00:00
Last Modified: 2011-08-01
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