Vertex Aerospace LLC awarded $20.5M for aviation support, with a significant portion for NAS Pensacola and Corpus Christi

Contract Overview

Contract Amount: $20,500,299 ($20.5M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-30

End Date: 2021-02-18

Contract Duration: 507 days

Daily Burn Rate: $40.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: AIMD SUPPORT - NAS PENSACOLA AND NAS CORPUS CHRISTI

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to VERTEX AEROSPACE LLC for work described as: AIMD SUPPORT - NAS PENSACOLA AND NAS CORPUS CHRISTI Key points: 1. The contract value represents a substantial investment in aviation support infrastructure. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness. 3. Performance metrics and delivery timelines will be key risk indicators. 4. The duration of the contract provides context for the scope of services. 5. This contract positions Vertex Aerospace within the broader defense aviation support sector.

Value Assessment

Rating: fair

The total award of $20.5 million for aviation support services appears moderate given the scope. Benchmarking against similar contracts for base support and aircraft maintenance is necessary to fully assess value. The 'COST NO FEE' contract type suggests that the government reimburses allowable costs plus a fixed fee, which can sometimes lead to less price sensitivity from the contractor if not managed tightly. Further analysis of the cost components and comparison to industry standards for similar services would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to drive better pricing and service quality. The number of bids received and the evaluation criteria used would provide further insight into the effectiveness of the competition. A robust competitive environment typically leads to a more favorable outcome for the government.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it promotes a competitive marketplace, potentially leading to lower prices and better value for the services rendered.

Public Impact

The Department of Defense benefits from enhanced aviation support capabilities at key naval air stations. Services delivered likely include maintenance, repair, and logistical support for aircraft and related infrastructure. The geographic impact is concentrated at NAS Pensacola and NAS Corpus Christi, supporting critical military operations. Workforce implications may include direct and indirect employment opportunities within the aerospace and support services sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns under the 'COST NO FEE' structure if not rigorously monitored.
Dependence on a single contractor for critical aviation support functions.
Risk of performance degradation if contractor resources are stretched thin across multiple contracts.
Challenges in ensuring consistent service quality across different locations.
Potential for scope creep if contract requirements are not clearly defined and managed.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Contractor has experience in aerospace support, indicated by their presence in the sector.
Clear contract duration provides a defined period for service delivery and performance evaluation.
The contract type, while requiring oversight, allows for flexibility in addressing unforeseen costs.
Focus on specific naval air stations suggests a targeted approach to meeting critical needs.

Sector Analysis

The aerospace and defense support services sector is a critical component of national security, encompassing a wide range of activities from aircraft maintenance to base operations. This contract falls within the 'Other Support Activities for Air Transportation' NAICS code, indicating specialized services. The market for such services is competitive, with numerous firms vying for government contracts. Spending in this area is often driven by military readiness requirements and the need to maintain aging fleets and infrastructure.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. Further investigation into the contract's subcontracting plan would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.

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. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases and public reporting, although specific operational details may remain sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Station Operations Support
Aircraft Maintenance Services
Logistics and Supply Chain Management for Defense
Base Operations Support Contracts
Aerospace Engineering and Technical Services

Risk Flags

Cost Control Risk (Cost No Fee)
Performance Monitoring
Contractor Capability Assessment
Dependency on Key Personnel
Geographic Concentration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to VERTEX AEROSPACE LLC. AIMD SUPPORT - NAS PENSACOLA AND NAS CORPUS CHRISTI

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 $20.5 million.

What is the period of performance?

Start: 2019-09-30. End: 2021-02-18.

What is Vertex Aerospace LLC's track record with similar government contracts, particularly within the Department of Defense?

Vertex Aerospace LLC has a history of performing various support services for the Department of Defense and other government agencies. Their portfolio often includes aircraft maintenance, modification, and logistics support. Analyzing their past performance on contracts of similar size and scope, including any reported issues or commendations, is crucial for assessing their capability to fulfill the requirements of this $20.5 million award. A review of their contract history would reveal their experience with different contract types (e.g., cost-plus, fixed-price) and their ability to meet delivery schedules and quality standards. Specific details on past performance metrics, such as on-time delivery rates and customer satisfaction, would provide a more robust understanding of their reliability.

How does the awarded amount of $20.5 million compare to the estimated value or benchmark for similar aviation support contracts?

The $20.5 million award for aviation support services needs to be benchmarked against comparable contracts to ascertain its value for money. Factors such as the specific services included (e.g., depot-level maintenance, line maintenance, component repair, logistics), the types of aircraft supported, the duration of the contract, and the geographic locations of service delivery all influence pricing. Without access to a comprehensive database of similar contracts, a precise comparison is difficult. However, generally, contracts of this magnitude for specialized aviation support at major naval air stations suggest a significant scope of work. A detailed cost breakdown and comparison with industry pricing for similar services would be necessary for a definitive value assessment.

What are the primary risk indicators associated with this contract, considering its 'COST NO FEE' type and duration?

The 'COST NO FEE' contract type presents a primary risk related to cost control. While the government reimburses allowable costs, the contractor's fee is fixed, which can incentivize cost efficiency. However, without robust oversight, there's a risk of inflated costs or less stringent cost management by the contractor if they believe the government will absorb most expenses. The contract duration of 507 days (approximately 1.4 years) is moderate, but it still requires sustained performance monitoring. Other risk indicators include potential contractor performance issues, reliance on key personnel, cybersecurity vulnerabilities if IT systems are involved, and the possibility of unforeseen operational challenges at NAS Pensacola and NAS Corpus Christi. Effective risk mitigation will depend on strong government oversight, clear performance metrics, and proactive management.

What is the expected program effectiveness and impact of these aviation support services on naval readiness?

The expected program effectiveness hinges on Vertex Aerospace LLC's ability to deliver timely and high-quality aviation support services. These services are critical for maintaining the operational readiness of aircraft and ensuring the smooth functioning of naval air stations. Effective support directly contributes to the availability of aircraft for training, deployment, and other missions, thereby enhancing overall naval readiness. The impact is measured by factors such as reduced aircraft downtime, improved maintenance turnaround times, and the successful execution of complex repair and logistical tasks. Consistent performance under this contract should translate into a more reliable and capable naval aviation force.

How has federal spending in the 'Other Support Activities for Air Transportation' category evolved over the past five years, and where does this contract fit?

Federal spending in the 'Other Support Activities for Air Transportation' category (NAICS 488190) can fluctuate based on defense priorities, aircraft modernization programs, and the operational tempo of military branches. Historically, this sector sees consistent investment due to the essential nature of air transportation support for both military and civilian purposes. This $20.5 million contract represents a specific allocation within this broader category, likely tied to specific operational needs at the named naval air stations. Analyzing historical spending trends in this NAICS code would reveal whether this award is in line with previous investment levels or represents a significant shift. Such analysis helps contextualize the contract's financial scale within the government's overall spending patterns for air transportation support.

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: TWO STEP

Solicitation ID: N0001915R0079

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

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: $22,532,538

Exercised Options: $22,532,538

Current Obligation: $20,500,299

Actual Outlays: $5,192,169

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134017D0005

IDV Type: IDC

Timeline