Naval Air Systems Command awarded $25.2M for TH-57 helicopter logistics support to Vertex Aerospace LLC

Contract Overview

Contract Amount: $25,218,055 ($25.2M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2017-12-12

End Date: 2018-05-31

Contract Duration: 170 days

Daily Burn Rate: $148.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: THE NAVAL AIR SYSTEMS COMMAND (NAVAIR) HAS A REQUIREMENT TO PROVIDE TH-57 CONTRACTOR LOGISTICS SUPPORT (CLS), WHICH CONSISTS OF ALL LOGISTICS SERVICES AND MATERIALS FOR ORGANIZATIONAL AND DEPOT LEVEL SERVICES REQUIRED TO SUPPORT AND MAINTAIN THE TH-57 FLEET.

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to VERTEX AEROSPACE LLC for work described as: THE NAVAL AIR SYSTEMS COMMAND (NAVAIR) HAS A REQUIREMENT TO PROVIDE TH-57 CONTRACTOR LOGISTICS SUPPORT (CLS), WHICH CONSISTS OF ALL LOGISTICS SERVICES AND MATERIALS FOR ORGANIZATIONAL AND DEPOT LEVEL SERVICES REQUIRED TO SUPPORT AND MAINTAIN THE TH-57 FLEET. Key points: 1. Contract provides comprehensive logistics services for the TH-57 fleet, encompassing organizational and depot-level maintenance. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Vertex Aerospace LLC, the contractor, is responsible for maintaining the operational readiness of the TH-57 aircraft. 4. The contract duration was relatively short, spanning approximately 170 days. 5. The award type was a delivery order, indicating it was part of a larger contract vehicle. 6. The contract's value of $25.2 million reflects the significant resources required for specialized aircraft support.

Value Assessment

Rating: fair

The contract value of $25.2 million for a 170-day period for TH-57 helicopter logistics support appears substantial. Benchmarking against similar specialized aviation support contracts is difficult without more detailed service breakdowns. The cost-plus-no-fee (CPNF) contract type suggests that the government reimburses the contractor for allowable costs plus a fixed fee, which can sometimes lead to less cost control compared to fixed-price contracts. However, CPNF can be appropriate for complex services where cost estimation is challenging.

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 a bid. This suggests a robust bidding environment, which typically benefits price discovery and can lead to more competitive pricing. The number of bidders is not specified, but the 'full and open' designation implies that multiple proposals were likely considered.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the services rendered, potentially reducing overall expenditure compared to non-competitive awards.

Public Impact

The primary beneficiaries are the U.S. Navy pilots and aircrews who rely on the TH-57 helicopter for training and operations. The contract ensures the continued availability and airworthiness of the TH-57 fleet, crucial for naval aviation readiness. Services are likely concentrated at naval air stations where the TH-57 fleet is based, primarily in Florida. The contract supports a specialized workforce of logistics, maintenance, and technical personnel within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-no-fee contract type may offer less incentive for cost efficiency compared to fixed-price arrangements.
Short contract duration could indicate a stop-gap measure or a specific project phase, requiring potential future re-competition.
Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.

Positive Signals

Awarded under full and open competition, indicating a fair and transparent procurement process.
Contract ensures critical logistics support for a vital naval training aircraft.
Vertex Aerospace LLC's involvement suggests a capable provider in the aerospace logistics domain.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation logistics and support services. The market for such services is characterized by specialized technical expertise, stringent regulatory requirements, and long-term relationships between government agencies and contractors. Comparable spending benchmarks would involve analyzing other contracts for fleet support, depot maintenance, and supply chain management for military aircraft, which often represent significant investments due to the complexity and criticality of the assets.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB is false). There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Vertex Aerospace LLC voluntarily engages small businesses for specific support roles not detailed in this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are inherent in the contract's cost-plus-no-fee structure, requiring the contractor to justify all costs. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported, though detailed performance data may be less accessible.

Related Government Programs

Naval Aviation Training
Aircraft Maintenance and Repair
Logistics Support Services
Defense Contract Management

Risk Flags

Cost-plus contract type
Aging aircraft platform
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to VERTEX AEROSPACE LLC. THE NAVAL AIR SYSTEMS COMMAND (NAVAIR) HAS A REQUIREMENT TO PROVIDE TH-57 CONTRACTOR LOGISTICS SUPPORT (CLS), WHICH CONSISTS OF ALL LOGISTICS SERVICES AND MATERIALS FOR ORGANIZATIONAL AND DEPOT LEVEL SERVICES REQUIRED TO SUPPORT AND MAINTAIN THE TH-57 FLEET.

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 $25.2 million.

What is the period of performance?

Start: 2017-12-12. End: 2018-05-31.

What is the historical spending trend for TH-57 helicopter logistics support?

Analyzing historical spending for TH-57 logistics support requires accessing detailed contract data over multiple years. The provided data point represents a single delivery order valued at $25.2 million, awarded in late 2017 and ending in mid-2018. To understand trends, one would need to aggregate spending across all contracts and delivery orders related to TH-57 CLS over several fiscal years. This would involve searching databases like FPDS for all awards associated with the TH-57 platform and its logistics requirements. Factors influencing spending trends could include fleet size, aircraft age, operational tempo, and changes in maintenance philosophies or technology. Without a broader dataset, it's impossible to determine if this $25.2 million award represents an increase, decrease, or stable level of spending compared to previous periods.

How does Vertex Aerospace LLC's performance on this contract compare to industry benchmarks?

Assessing Vertex Aerospace LLC's performance on this specific TH-57 CLS contract against industry benchmarks is challenging with the provided data. Key performance indicators (KPIs) such as aircraft availability rates, maintenance turnaround times, and cost variance are typically tracked but are not detailed here. To conduct a comparison, one would need access to the contractor's performance reports, quality assurance reviews, and any associated award fee determinations. Industry benchmarks for helicopter logistics support vary significantly based on aircraft type, age, mission profile, and the scope of services provided (e.g., organizational vs. depot level). A comprehensive analysis would involve comparing metrics like Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), and fleet readiness percentages against similar contracts awarded to other providers for comparable aircraft types within the DoD or commercial aviation sectors.

What are the primary risks associated with this TH-57 logistics support contract?

The primary risks associated with this TH-57 Contractor Logistics Support (CLS) contract include potential cost overruns, schedule delays, and performance deficiencies. Given the Cost Plus No Fee (CPNF) contract type, there's an inherent risk that costs could exceed initial estimates if not managed diligently by the government. Schedule delays could arise from supply chain disruptions, unforeseen technical issues with the aircraft, or resource limitations. Performance deficiencies could manifest as reduced aircraft availability, lower operational readiness rates, or inadequate maintenance quality, impacting pilot training. Furthermore, the aging nature of the TH-57 fleet itself presents sustainment risks, potentially requiring more extensive and costly maintenance than anticipated. The short duration of this specific delivery order also introduces risk related to continuity of support and potential gaps if follow-on contracts are not secured promptly.

What is the strategic importance of the TH-57 helicopter fleet and its logistics support?

The TH-57 Sea Ranger helicopter plays a critical role in naval aviation, primarily serving as a training platform for helicopter pilots. Its logistics support is therefore strategically important for maintaining the readiness of the naval aviator pipeline. Ensuring the availability and airworthiness of the TH-57 fleet directly impacts the Navy's ability to train sufficient numbers of qualified helicopter pilots, who are essential for various operational roles including anti-submarine warfare, search and rescue, and special operations. The reliability of the logistics support ensures that training schedules are met, minimizing disruptions and optimizing the efficiency of the training command. Consequently, robust and effective logistics support for the TH-57 is fundamental to the long-term operational capability and readiness of the U.S. Navy's aviation forces.

How does the $25.2 million contract value compare to the total lifecycle cost of the TH-57 program?

The $25.2 million contract value represents a specific delivery order for Contractor Logistics Support (CLS) for the TH-57 fleet, covering a period from December 2017 to May 2018 (approximately 170 days). This figure is a snapshot and does not represent the total lifecycle cost of the TH-57 program. The total lifecycle cost encompasses all expenses from acquisition, sustainment (including maintenance, spare parts, personnel, and logistics support like this contract), and eventual disposal of the aircraft. The TH-57, being an older platform, likely has significant sustainment costs associated with keeping it operational for training purposes. Estimating the total lifecycle cost would require data on the entire fleet's operational lifespan, including all previous and subsequent sustainment contracts, modifications, and program-related overhead. This single contract value is a component of the overall sustainment cost, not the total program cost.

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: N0001910R0097

Pricing Type: COST NO FEE (S)

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: $25,218,055

Exercised Options: $25,218,055

Current Obligation: $25,218,055

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $42,456,453

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001913D0007

IDV Type: IDC

Timeline