Vertex Aerospace LLC awarded $33.3M for support activities, with a significant portion allocated to Mississippi

Contract Overview

Contract Amount: $33,277,596 ($33.3M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-29

End Date: 2023-03-13

Contract Duration: 530 days

Daily Burn Rate: $62.8K/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 $33.3 million to VERTEX AEROSPACE LLC for work described as: AIMD SUPPORT - NAS PENSACOLA AND NAS CORPUS CHRISTI Key points: 1. The contract value of $33.3 million represents a substantial investment in aviation support services. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is established by comparing this award to similar support contracts. 5. The sector positioning highlights the importance of specialized aviation support within the defense industry. 6. The contract duration of 530 days provides a clear timeframe for service delivery.

Value Assessment

Rating: good

The contract value of $33.3 million appears reasonable for specialized aviation support services. Benchmarking against similar contracts for base operations and maintenance would provide a more precise value-for-money assessment. The 'COST NO FEE' contract type suggests that the government reimburses the contractor for allowable costs, with no additional fee, which can be cost-effective if managed properly. However, it necessitates robust oversight to control costs.

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 had the opportunity to submit proposals. This competitive process is generally expected to yield favorable pricing and innovative solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust bidding environment.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and encouraging a wider range of qualified contractors to participate, leading to better value.

Public Impact

The primary beneficiaries are the Department of Defense and its aviation units requiring support services at NAS Pensacola and NAS Corpus Christi. Services delivered include essential support activities for air transportation, likely encompassing maintenance, logistics, and operational assistance. The geographic impact is focused on naval air stations in Florida and Texas. Workforce implications may include the creation or sustainment of jobs for skilled aviation technicians and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost control under a 'COST NO FEE' contract requires diligent monitoring of contractor expenses to prevent overruns.
Ensuring consistent service quality across the contract duration is crucial for operational readiness.
Potential for scope creep if requirements are not clearly defined and managed.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contract type aims to reimburse allowable costs, potentially leading to cost savings if managed efficiently.
Clear contract duration provides a defined period for service delivery and performance evaluation.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aviation support. This sector is characterized by specialized technical expertise, stringent regulatory requirements, and significant government spending. The market size for aviation support services is substantial, driven by the operational needs of military and commercial aviation. This contract represents a component of the government's strategy to outsource specialized support functions to private entities.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. The 'ss' and 'sb' fields are false. Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Vertex Aerospace LLC chooses to engage them, or through competition with larger firms in future solicitations.

Oversight & Accountability

Oversight for this contract would likely be managed by the Defense Contract Management Agency (DCMA), given its role in contract administration. Accountability measures are inherent in the contract terms and performance requirements. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Station Operations and Maintenance
Aviation Logistics Support
Defense Aviation Services
Air Transportation Support Contracts

Risk Flags

Cost control risk due to 'COST NO FEE' contract type
Performance variability risk without clear historical data
Potential for scope creep if requirements are not tightly managed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.3 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 $33.3 million.

What is the period of performance?

Start: 2021-09-29. End: 2023-03-13.

What is the historical spending pattern for similar aviation support services at NAS Pensacola and NAS Corpus Christi?

Analyzing historical spending for aviation support at NAS Pensacola and NAS Corpus Christi would involve reviewing past contracts awarded for similar services at these installations. This would include examining contract values, durations, types of services rendered, and the contractors involved. A trend analysis could reveal whether spending has been consistent, increasing, or decreasing over time. It would also help identify if Vertex Aerospace LLC or its predecessors have been awarded similar contracts previously. Understanding this historical context is crucial for assessing whether the current $33.3 million award is in line with past investments or represents a significant shift in expenditure for these support functions. Without specific historical data, it's difficult to provide precise figures, but such a review would typically involve searching federal procurement databases like FPDS or SAM.gov for relevant contract actions.

How does the 'COST NO FEE' contract type typically perform in terms of cost control compared to other contract types?

The 'COST NO FEE' (CNF) contract type is designed to reimburse the contractor for all allowable costs incurred in performing the contract, but without any additional profit or fee. This type of contract is generally used when the scope of work is uncertain or difficult to define precisely, making fixed-price contracts impractical. From a cost control perspective, CNF contracts place a significant burden on the government to meticulously monitor and audit the contractor's expenses to ensure they are reasonable, allocable, and allowable. While it can be cost-effective for the government if managed diligently, it carries a higher risk of cost overruns if oversight is lax, as the contractor has less financial incentive to minimize costs compared to fixed-price contracts. Success with CNF hinges on robust government oversight, clear definitions of allowable costs, and effective communication with the contractor.

What are the key performance indicators (KPIs) likely being used to evaluate Vertex Aerospace LLC's performance under this contract?

Key Performance Indicators (KPIs) for an aviation support contract like this would typically focus on operational readiness, efficiency, and safety. Examples could include aircraft turnaround times, maintenance completion rates within specified timelines, availability of support personnel and equipment, adherence to safety protocols (e.g., zero major incidents), and responsiveness to emergent requirements. For services related to air transportation, KPIs might also track on-time performance of support functions, fuel efficiency if applicable, and the condition of facilities or equipment managed by the contractor. The 'COST NO FEE' structure implies that performance metrics are critical for ensuring the government receives value for the costs incurred. Regular performance reviews and reporting against these KPIs would be essential for contract management and accountability.

What is the typical profit margin or fee structure for similar aviation support contracts awarded through full and open competition?

The provided contract data indicates a 'COST NO FEE' (CNF) structure, meaning Vertex Aerospace LLC is not receiving a separate fee or profit margin on top of reimbursed costs. This is distinct from other contract types where profit is a standard component. For contracts awarded through full and open competition that *do* include a fee, the profit margin can vary significantly based on factors such as contract complexity, risk, duration, and the specific services provided. Historically, profit margins in the defense contracting sector can range from low single digits for very stable, low-risk services to higher percentages for more complex or innovative efforts. However, the CNF structure here bypasses traditional profit considerations, focusing instead on cost reimbursement and performance oversight. Benchmarking profit margins would require comparing this to contracts with similar scopes but different fee structures.

Are there any specific risks associated with Vertex Aerospace LLC's track record in fulfilling similar defense aviation support contracts?

Assessing the specific risks associated with Vertex Aerospace LLC's track record requires a detailed review of their past performance on similar contracts. This would involve examining past performance evaluations, any documented instances of contract disputes, cost overruns, schedule delays, or quality issues. Information on contractor performance is often available through sources like the Contractor Performance Assessment Reporting System (CPARS). Without access to CPARS data or specific historical contract details for Vertex Aerospace LLC, it is difficult to definitively state their track record. However, the government's procurement process typically includes evaluating past performance as a significant factor in award decisions, suggesting that Vertex Aerospace LLC was deemed capable of fulfilling this contract based on available information at the time of award.

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

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: $33,277,596

Exercised Options: $33,277,596

Current Obligation: $33,277,596

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $430,461

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