Vertex Aerospace LLC awarded $30.7M for aircraft maintenance and logistics support, highlighting strong performance in a critical defense sector

Contract Overview

Contract Amount: $30,742,205 ($30.7M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2017-12-13

End Date: 2018-09-30

Contract Duration: 291 days

Daily Burn Rate: $105.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT (CLS)

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $30.7 million to VERTEX AEROSPACE LLC for work described as: IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT (CLS) Key points: 1. The contract demonstrates Vertex Aerospace's capability in providing essential aircraft maintenance and logistics, crucial for operational readiness. 2. Awarded under full and open competition, this contract suggests a competitive environment for specialized aerospace support services. 3. The contract's duration and value indicate a significant, albeit specific, role within the broader defense logistics ecosystem. 4. Performance context is key; the success of this contract hinges on meeting stringent military aviation standards. 5. The 'Other Support Activities for Air Transportation' NAICS code places this within a specialized segment of the aerospace industry.

Value Assessment

Rating: good

Benchmarking this contract's value is challenging without specific performance metrics or comparable contracts for identical services. However, the $30.7 million award for approximately nine months of service suggests a substantial per-month expenditure, indicative of the complexity and criticality of military aircraft maintenance and logistics. The cost-no-fee (CNF) contract type implies that the contractor is expected to perform the work for a fixed fee, with costs being reimbursed, but the fee itself is not subject to adjustment based on cost overruns. This structure can incentivize cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process where multiple companies likely vied for the opportunity. The presence of competition is generally favorable for price discovery and ensuring the government receives competitive pricing for the services rendered. The specific number of bidders is not provided, but the designation implies a market with more than one capable provider.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received. It ensures that the government is not locked into a single provider, allowing for better negotiation leverage.

Public Impact

The primary beneficiaries are the U.S. Navy units relying on the supported aircraft for their missions. Services delivered include critical aircraft maintenance and logistics support, ensuring aircraft are mission-ready. The geographic impact is likely concentrated around the naval air stations or operational areas where the supported aircraft are deployed. Workforce implications include employment opportunities for skilled aviation mechanics, technicians, and logistics personnel employed by Vertex Aerospace.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed fee structure does not adequately account for unforeseen maintenance complexities.
Dependence on a single contractor for critical support could pose risks if performance falters or if the contractor faces financial instability.
Ensuring consistent quality and adherence to stringent military specifications across all maintenance tasks requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially favorable pricing.
The contractor, Vertex Aerospace LLC, has experience in aerospace support, indicating a level of established capability.
The contract type (Cost No Fee) can incentivize efficient performance and cost management by the contractor.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and logistics support. This is a critical sub-sector that ensures the operational readiness of military aviation assets. The market for such services is characterized by high technical barriers to entry, stringent regulatory requirements, and significant government spending. Comparable spending benchmarks would involve analyzing other contracts for similar CLS (Contractor Logistics Support) for naval aviation platforms, which often represent substantial investments due to the complexity and operational tempo of military aircraft.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. However, Vertex Aerospace, as a prime contractor, may still engage small businesses as subcontractors for various components or services, contributing to the broader small business ecosystem. The absence of a set-aside suggests that the competition was geared towards larger, established firms with the capacity to handle such a significant defense contract.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are embedded within the contract's performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Aviation Maintenance Programs
Contractor Logistics Support (CLS)
Defense Logistics Agency (DLA) Contracts
Aircraft Component Maintenance
Airframe Repair and Overhaul Services

Risk Flags

Performance Risk
Cost Control in CNF Contracts
Dependence on Single Contractor
Quality Assurance for Military Specs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.7 million to VERTEX AEROSPACE LLC. IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT (CLS)

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 $30.7 million.

What is the period of performance?

Start: 2017-12-13. End: 2018-09-30.

What is Vertex Aerospace LLC's track record with similar defense contracts, particularly in aircraft maintenance and logistics?

Vertex Aerospace LLC has a history of performing various aviation support services for the U.S. military. While specific details on all past contracts are not provided in this data snippet, their involvement in aircraft maintenance and logistics support, as indicated by this award, suggests experience in handling complex aviation requirements. Analyzing their broader contract portfolio, including past performance evaluations and any prior awards for similar services to the Navy or other branches, would provide a more comprehensive understanding of their capabilities and reliability. Their ability to secure this $30.7 million contract through full and open competition implies a demonstrated capacity to meet the stringent requirements of defense aviation support.

How does the $30.7 million award compare to the average cost of similar aircraft maintenance and logistics support contracts for the U.S. Navy?

Directly comparing the $30.7 million award to an 'average' cost is difficult without a standardized benchmark for 'similar' contracts. The scope, duration (approximately 9 months), type of aircraft supported, and specific services rendered (maintenance, logistics) significantly influence contract value. However, this award represents a substantial investment, typical for comprehensive Contractor Logistics Support (CLS) for naval aviation platforms, which are complex and require specialized, high-tempo maintenance. To provide a precise comparison, one would need to analyze other recent Navy CLS contracts for comparable aircraft types and service levels, considering factors like fleet size, operational tempo, and required turnaround times. The Cost No Fee (CNF) structure also plays a role, as it focuses on a fixed fee rather than cost-plus arrangements.

What are the primary risk indicators associated with this specific contract award to Vertex Aerospace LLC?

Key risk indicators for this contract include the inherent complexities of military aircraft maintenance, where unforeseen technical issues can arise, potentially impacting schedules and costs, although the CNF structure aims to mitigate cost overruns for the government. Dependence on a single contractor for critical support functions presents a performance risk; any disruption in Vertex Aerospace's operations could affect naval readiness. Furthermore, ensuring consistent adherence to stringent military specifications and quality standards across all maintenance tasks requires robust oversight from the Defense Contract Management Agency (DCMA). The relatively short duration (9 months) might also indicate a need for rapid mobilization and performance, adding a layer of execution risk.

How effective is the 'full and open competition' approach in ensuring value for money for this type of specialized aerospace service?

The 'full and open competition' approach is generally considered effective in ensuring value for money for specialized aerospace services like aircraft maintenance and logistics. By allowing all responsible sources to bid, it fosters a competitive environment that encourages contractors to offer their best pricing and technical solutions. This process helps the government identify the most capable provider at a competitive price, reducing the risk of overpayment compared to sole-source or limited competition awards. The presence of multiple bidders typically leads to better price discovery and incentivizes contractors to propose efficient and cost-effective methods to win the contract. However, the ultimate value for money also depends on the clarity of the solicitation requirements and the effectiveness of the evaluation process.

What are the historical spending patterns for aircraft maintenance and logistics support within the Department of Defense, and how does this contract fit?

Spending on aircraft maintenance and logistics support within the Department of Defense (DoD) is consistently substantial, reflecting the high operational tempo and complexity of military aviation. The DoD allocates billions annually to ensure the readiness and sustainment of its vast aircraft fleets across all branches. This $30.7 million contract with Vertex Aerospace represents a specific, focused investment within that larger spending picture, likely supporting a particular set of aircraft or a specific operational requirement for the U.S. Navy. It fits into the broader pattern of relying on both organic military capabilities and contractor support (Contractor Logistics Support - CLS) to maintain aircraft readiness efficiently. Analyzing historical DoD spending trends in this category would reveal consistent demand for such services, driven by the need to keep advanced platforms operational.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001912R0001

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vertex Aerospace Services Corp. (UEI: 081292432)

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: $30,742,205

Exercised Options: $30,742,205

Current Obligation: $30,742,205

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $9,526,581

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001914D0011

IDV Type: IDC

Timeline