NAVAIR Awards $39.5M for TH-57 Contractor Logistics Support to Vertex Aerospace

Contract Overview

Contract Amount: $39,479,733 ($39.5M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2018-05-24

End Date: 2018-11-30

Contract Duration: 190 days

Daily Burn Rate: $207.8K/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 $39.5 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 focuses on comprehensive logistics services and materials for the TH-57 fleet. 2. Vertex Aerospace LLC is the sole awardee for this delivery order. 3. The contract falls under 'Other Support Activities for Air Transportation' (NAICS 488190). 4. This award represents a significant investment in maintaining critical aviation assets.

Value Assessment

Rating: good

The total award amount is $39,479,732.67. Without specific cost breakdowns or benchmarks for similar CLS contracts, a precise per-unit cost assessment is difficult. However, the contract type (COST NO FEE) suggests a focus on cost reimbursement rather than fixed pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust process for soliciting bids. The delivery order structure suggests it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, allowing for flexibility but potentially impacting price discovery over time.

Taxpayer Impact: Taxpayer funds are being utilized to ensure the operational readiness of the TH-57 fleet through contracted logistics support.

Public Impact

Ensures continued operational readiness of the TH-57 aircraft fleet. Supports military training and readiness by providing essential maintenance and logistics. Impacts the aerospace and defense sector through contract awards and service provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for per-unit analysis.
Potential for cost overruns with 'COST NO FEE' contract type if not managed closely.

Positive Signals

Awarded through full and open competition.
Supports critical military aviation assets.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation support services. Spending benchmarks for similar Contractor Logistics Support (CLS) contracts can vary widely based on aircraft type, age, and required services. The $39.5M award for a specific fleet's CLS is substantial.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The Department of Defense, through NAVAIR and supported by the Defense Contract Management Agency, is responsible for overseeing this contract. Standard oversight mechanisms would apply to ensure performance and financial accountability.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost overruns due to 'COST NO FEE' structure.
Dependence on a single contractor for critical logistics support.
Limited visibility into detailed cost performance metrics.
Contract duration and potential for scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.5 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 $39.5 million.

What is the period of performance?

Start: 2018-05-24. End: 2018-11-30.

What is the projected cost per flight hour or per maintenance action for the TH-57 CLS contract?

The provided data does not include specific metrics like cost per flight hour or per maintenance action. To assess value effectively, these granular cost details would be necessary. Such information is typically found in detailed contract performance reports or cost-reimbursement breakdowns, which are not available in this summary.

What are the key performance indicators (KPIs) for Vertex Aerospace's logistics support, and how are they measured?

Key performance indicators for this contract are not detailed in the provided data. Typically, CLS contracts include metrics related to aircraft availability, response times for parts and services, and quality of maintenance. Oversight by NAVAIR and DCMA would involve monitoring these KPIs to ensure Vertex Aerospace meets its contractual obligations.

How does the cost of this TH-57 CLS contract compare to historical spending on similar aircraft maintenance programs?

A direct comparison to historical spending is challenging without specific historical data for the TH-57 program or comparable aircraft. The 'COST NO FEE' structure implies costs are reimbursed, making it crucial to monitor expenditures against initial estimates and industry benchmarks to ensure cost-effectiveness over the contract's duration.

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: $39,479,733

Exercised Options: $39,479,733

Current Obligation: $39,479,733

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $4,614,291

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