DoD awards Vertex Aerospace $48.4M for aircraft maintenance and logistics support in Mississippi
Contract Overview
Contract Amount: $48,363,977 ($48.4M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2021-10-01
End Date: 2021-12-31
Contract Duration: 91 days
Daily Burn Rate: $531.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Official Description: IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT (CLS)
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $48.4 million to VERTEX AEROSPACE LLC for work described as: IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT (CLS) Key points: 1. Significant contract value for specialized aviation support services. 2. Vertex Aerospace is a key player in aerospace logistics. 3. Potential risks include performance variability and supply chain disruptions. 4. Spending concentrated in the Defense sector, specifically aviation support.
Value Assessment
Rating: good
The contract value of $48.4M for a 91-day period suggests a high per-diem rate. Benchmarking against similar, longer-term contracts would be necessary for a precise assessment, but the value is substantial for the duration.
Cost Per Unit: $531,472
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical defense support services.
Public Impact
Ensures operational readiness of U.S. Navy aircraft. Supports critical logistics and maintenance functions for aviation assets. Impacts personnel and resources at naval air stations. Contributes to the defense industrial base in Mississippi.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration may lead to follow-on contract uncertainty.
- Reliance on a single awardee for critical support.
- Potential for cost overruns if unforeseen maintenance issues arise.
Positive Signals
- Awarded through full and open competition.
- Addresses essential aircraft maintenance and logistics needs.
- Supports a key defense contractor.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aircraft maintenance and logistics. Spending benchmarks for similar support contracts can vary widely based on aircraft type, scope of work, and contract duration.
Small Business Impact
The data indicates the prime contractor is Vertex Aerospace LLC, a large business. There is no explicit information on small business subcontracting participation in this award notice.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Standard oversight mechanisms for contract performance and financial management are expected to be in place.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High per-unit cost.
- Short contract duration.
- Potential for sole-source follow-on.
- Lack of small business participation noted.
Tags
other-support-activities-for-air-transpo, department-of-defense, ms, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.4 million to VERTEX AEROSPACE LLC. 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 $48.4 million.
What is the period of performance?
Start: 2021-10-01. End: 2021-12-31.
What is the historical performance of Vertex Aerospace LLC on similar contracts?
Assessing Vertex Aerospace's past performance on comparable aircraft maintenance and logistics contracts is crucial. Reviewing past CPARS (Contractor Performance Assessment Reporting System) reports and any documented issues or successes would provide insight into their reliability, quality of service, and ability to meet deadlines and budget constraints.
How does the per-unit cost benchmark compare to industry standards for similar aircraft maintenance?
The provided per-unit cost benchmark of $531,472 needs context. Comparing this figure against industry averages for maintaining similar types of U.S. Navy aircraft, considering the specific services included (maintenance, logistics, parts), is essential to determine if it represents fair and reasonable pricing.
What are the potential risks associated with the short 91-day duration of this contract?
The short 91-day duration presents risks such as potential disruption if a follow-on contract is delayed, increased administrative costs for frequent re-procurement, and potentially less incentive for the contractor to invest in long-term efficiency improvements. It may also limit the ability to fully assess contractor performance.
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.
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: $48,363,977
Exercised Options: $48,363,977
Current Obligation: $48,363,977
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $26,655
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001914D0011
IDV Type: IDC
Timeline
Start Date: 2021-10-01
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2022-08-12
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