Vertex Aerospace LLC awarded $35.6M for TH-57 helicopter logistics support by Naval Air Systems Command

Contract Overview

Contract Amount: $35,556,787 ($35.6M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2018-11-30

End Date: 2022-07-29

Contract Duration: 1,337 days

Daily Burn Rate: $26.6K/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 $35.6 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 is the primary contractor, responsible for ensuring fleet readiness. 4. The contract duration spans over three years, indicating a significant commitment to ongoing support. 5. The award type is a delivery order, suggesting it's part of a larger contracting vehicle. 6. The total value of $35.6 million reflects the extensive nature of the required support services.

Value Assessment

Rating: good

The contract value of $35.6 million for over three years of logistics support for the TH-57 fleet appears reasonable given the scope of services. Benchmarking against similar aviation logistics contracts is challenging without more specific details on the fleet size and maintenance requirements. However, the cost-no-fee contract type suggests that the contractor's profit is built into the negotiated rates for labor and materials, which can sometimes lead to higher overall costs if not managed tightly. Further analysis would require comparing the labor rates and material markups to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which should theoretically lead to better pricing and value for the government. The open competition suggests that the government sought the best possible solution and price from the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government receives competitive pricing and a wider range of innovative solutions.

Public Impact

The primary beneficiaries are the U.S. Navy aviators and personnel who rely on the TH-57 fleet for training and operations. Services delivered include all logistics support and materials for organizational and depot-level maintenance. The geographic impact is likely concentrated around naval air stations where the TH-57 fleet is operated and maintained. Workforce implications include employment opportunities for logistics specialists, mechanics, and support staff employed by Vertex Aerospace LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not closely monitored due to the cost-no-fee structure.
Dependence on a single contractor for critical logistics support could pose a risk if performance issues arise.
The specific details of the maintenance and logistics plan need to be robust to ensure fleet readiness.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield good value.
Vertex Aerospace LLC's role in providing comprehensive support suggests a commitment to fleet operational readiness.
The contract duration implies a stable and predictable support environment for the TH-57 fleet.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation support services. The market for military aircraft logistics and maintenance is substantial, with numerous companies specializing in providing these critical services to government entities. The TH-57 contract represents a segment of this broader market, ensuring the operational readiness of a specific training or utility aircraft fleet. Comparable spending benchmarks would involve analyzing other contracts for similar aircraft types or fleet sizes, considering factors like age of the aircraft and complexity of the systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor is not a small business (st: MS, which likely refers to Medium-Sized). Therefore, there are no direct small business set-aside implications for this specific award. However, Vertex Aerospace LLC may engage small businesses as subcontractors to fulfill certain aspects of the contract, which would be a positive impact on the small business ecosystem. The extent of subcontracting to small businesses would need further investigation.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures would include performance metrics, delivery schedules, and quality control standards outlined in the contract. Transparency is generally facilitated through contract award databases and reporting requirements, though specific operational details may be sensitive.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of Defense Aviation Support Services
Military Helicopter Fleet Maintenance
Contractor Logistics Support (CLS) Programs
TH-57 Training Aircraft Operations

Risk Flags

Potential for cost growth in Cost-No-Fee contracts.
Contractor performance risk impacting fleet readiness.
Supply chain vulnerability for critical parts.
Dependence on a single provider for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.6 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 $35.6 million.

What is the period of performance?

Start: 2018-11-30. End: 2022-07-29.

What is Vertex Aerospace LLC's track record with similar aviation logistics contracts?

Vertex Aerospace LLC has a history of providing aviation support services, including logistics and maintenance, for various military aircraft. Their experience often involves supporting training aircraft and specialized platforms. While specific details on past performance for contracts of this exact scale and scope are not provided in the summary data, their presence in the defense contracting space suggests they possess the necessary capabilities. A deeper dive into their contract history, past performance reviews, and any reported issues or successes on previous aviation support contracts would provide a more comprehensive understanding of their reliability and effectiveness in fulfilling such requirements.

How does the cost of this contract compare to similar TH-57 fleet support contracts or other training aircraft logistics?

Direct comparison of the $35.6 million cost for this TH-57 contract is difficult without access to historical data for identical or highly similar contracts. The 'cost no fee' (PT: COST NO FEE) contract type means the government reimburses the contractor for allowable costs plus a pre-negotiated fixed fee, which can sometimes lead to higher total costs if cost controls are not stringent. To benchmark effectively, one would need to compare the per-hour labor rates, material overhead, and profit margins against industry averages for similar aviation logistics support services, considering the age and complexity of the TH-57 aircraft and the specific services included (organizational vs. depot level).

What are the primary risks associated with this contract for the Naval Air Systems Command?

Key risks for NAVAIR include potential performance failures by Vertex Aerospace LLC that could impact the operational readiness and training schedules of the TH-57 fleet. Given the 'cost no fee' structure, there's a risk of cost overruns if the contractor's cost management is inefficient, although the fee is fixed. Another risk is the potential for supply chain disruptions affecting the availability of necessary parts and materials. Furthermore, a heavy reliance on a single contractor for critical logistics functions could pose a challenge if the contractor experiences financial instability or significant operational issues.

How effective is the current logistics support in maintaining the operational readiness of the TH-57 fleet?

The effectiveness of the current logistics support in maintaining the operational readiness of the TH-57 fleet is not directly quantifiable from the provided data. The contract's existence and value suggest a recognized need for comprehensive support to ensure the fleet's availability for its intended purpose, likely pilot training. To assess effectiveness, one would need to examine metrics such as aircraft availability rates, mission capable rates, turnaround times for maintenance, and the overall cost per flight hour. Performance reports from the Naval Air Systems Command and any feedback from end-users (e.g., training commands) would be crucial for a thorough evaluation.

What are the historical spending patterns for TH-57 fleet support over the past five years?

The provided data focuses on a single contract award valued at $35.6 million with a duration from November 30, 2018, to July 29, 2022. This represents a significant portion of spending for TH-57 support during that period. However, it does not provide a complete picture of historical spending patterns. To understand the full trend, one would need to aggregate data from all previous contracts, including any base contracts, other delivery orders, and potentially smaller service agreements related to the TH-57 fleet over a longer timeframe. This would reveal whether spending has been consistent, increasing, or decreasing, and identify any shifts in contracting strategies or support providers.

What is the significance of the 'delivery order' award type in this context?

The 'delivery order' (AW: DELIVERY ORDER) award type suggests that this contract is likely a task order issued against a previously established indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. This approach allows the government to procure services incrementally as needed, rather than awarding a single large, fixed-price contract upfront. For the TH-57 CLS requirement, it implies that NAVAIR may have had a broader contract in place for aviation support services, and this specific order defines the scope, duration, and value for the TH-57 fleet support. This method offers flexibility but requires careful management of individual orders to ensure alignment with overall program goals and budget.

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: $35,556,787

Exercised Options: $35,556,787

Current Obligation: $35,556,787

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