Army awards $119M training support contract to Vertex Aerospace LLC for CENTCOM operations

Contract Overview

Contract Amount: $119,061,991 ($119.1M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2020-07-01

End Date: 2023-12-31

Contract Duration: 1,278 days

Daily Burn Rate: $93.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS CONTRACT AWARD IS IN SUPPORT OF THE UNITED STATES ARMY CENTRAL COMMAND'S (ARCENT) TRAINING SUPPORT SERVICES (TSS) EFFORT BASED ON CAMP BEUHRING AND CAMP ARIFIJAN, KUWAIT, AS WELL AS THROUGHOUT THE CENTCOM AOR.

Plain-Language Summary

Department of Defense obligated $119.1 million to VERTEX AEROSPACE LLC for work described as: THIS CONTRACT AWARD IS IN SUPPORT OF THE UNITED STATES ARMY CENTRAL COMMAND'S (ARCENT) TRAINING SUPPORT SERVICES (TSS) EFFORT BASED ON CAMP BEUHRING AND CAMP ARIFIJAN, KUWAIT, AS WELL AS THROUGHOUT THE CENTCOM AOR. Key points: 1. Contract provides essential training support services across multiple locations in the CENTCOM AOR. 2. Vertex Aerospace LLC, a significant player in aerospace and defense services, secured this award. 3. The contract duration spans over three years, indicating a sustained need for these services. 4. Awarded under full and open competition, suggesting a robust bidding process. 5. The firm-fixed-price nature of the contract aims to control costs for the government. 6. This award aligns with broader Department of Defense efforts to enhance operational readiness.

Value Assessment

Rating: good

The contract value of approximately $119 million over three years suggests a substantial investment in training support. Benchmarking this against similar large-scale training support contracts within the Department of Defense would provide a clearer picture of value for money. The firm-fixed-price structure is generally favorable for cost control, but detailed analysis of the specific services rendered and their efficiency is needed for a comprehensive value assessment. Without direct cost comparisons for identical services, a definitive value judgment is challenging, but the scale indicates a significant operational requirement.

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 bids. The presence of three bidders, as suggested by the data, points to a competitive environment. This level of competition is generally expected to drive more favorable pricing and service offerings for the government, as contractors vie for the award. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a market that encourages competitive pricing and innovation, leading to better value for the government's investment.

Public Impact

The primary beneficiaries are the United States Army Central Command (ARCENT) and its personnel, who receive enhanced training capabilities. Services delivered include crucial training support, vital for maintaining operational readiness in the CENTCOM AOR. The geographic impact is significant, covering operations in Kuwait (Camp Buehring and Camp Arifjan) and potentially other areas within the CENTCOM Area of Responsibility. Workforce implications include employment opportunities for personnel involved in delivering these training support services, both directly by Vertex Aerospace and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve significantly beyond initial projections.
Geopolitical instability in the CENTCOM AOR could impact service delivery and operational continuity.
Reliance on a single prime contractor for critical training support necessitates robust oversight.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
Firm-fixed-price contract type helps mitigate cost overruns for the government.
Vertex Aerospace LLC's established presence in the defense sector may indicate a capacity to meet complex requirements.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to defense support services. The market for such services is substantial, driven by ongoing military operations and modernization efforts. Comparable spending benchmarks would involve analyzing other large-scale training and operational support contracts awarded by the Department of Defense to various service providers. The scale of this award suggests it is a significant contract within its niche, supporting critical command functions.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this contract (ss: false, sb: false). While Vertex Aerospace LLC is the prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Vertex Aerospace's strategy and the specific requirements of the training support services. Further analysis would be needed to determine the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Department of the Army and ARCENT. Accountability measures are typically embedded within the contract's performance work statement, with regular reporting requirements and performance reviews. Transparency is facilitated through contract award databases and public reporting mechanisms. The Inspector General's office within the Department of Defense may conduct audits or investigations as deemed necessary to ensure proper use of funds and contract compliance.

Related Government Programs

US Army Training Support Services
CENTCOM Operations Support
Defense Contractor Services
Military Readiness Programs
Logistics and Support Contracts

Risk Flags

Geopolitical Risk in CENTCOM AOR
Contractor Performance Risk
Scope Definition and Management
Operational Continuity Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $119.1 million to VERTEX AEROSPACE LLC. THIS CONTRACT AWARD IS IN SUPPORT OF THE UNITED STATES ARMY CENTRAL COMMAND'S (ARCENT) TRAINING SUPPORT SERVICES (TSS) EFFORT BASED ON CAMP BEUHRING AND CAMP ARIFIJAN, KUWAIT, AS WELL AS THROUGHOUT THE CENTCOM AOR.

Who is the contractor on this award?

The obligated recipient is VERTEX AEROSPACE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $119.1 million.

What is the period of performance?

Start: 2020-07-01. End: 2023-12-31.

What is Vertex Aerospace LLC's track record with similar large-scale Department of Defense contracts, particularly in the CENTCOM AOR?

Vertex Aerospace LLC has a history of performing various aviation and defense-related services for the U.S. military. While specific details on their track record within the CENTCOM AOR for training support services require deeper investigation into contract performance databases, the company's general profile suggests experience in complex operational environments. Analyzing past performance reviews, any contract disputes, and the successful completion of prior similar contracts would provide a more comprehensive understanding of their capabilities and reliability in supporting ARCENT's mission. Their ability to secure this significant award implies a level of confidence from the awarding agency based on their past performance or demonstrated capabilities.

How does the awarded amount of $119 million compare to the estimated value of similar training support contracts for regional commands?

The $119 million contract value for ARCENT's Training Support Services (TSS) effort is substantial, reflecting the scale and complexity of supporting operations across the CENTCOM AOR. To benchmark this effectively, one would need to compare it against other large-scale training and operational support contracts awarded to regional commands or similar military branches. For instance, contracts supporting U.S. European Command (EUCOM) or U.S. Indo-Pacific Command (INDOPACOM) for comparable services could serve as benchmarks. Factors such as the duration of the contract, the scope of services (e.g., simulation, live training, logistical support), and the specific operational tempo of the region influence these values. Without direct comparative data for identical services in similar theaters, it's challenging to definitively state if $119 million represents a premium or a standard rate, but it indicates a significant commitment to training infrastructure in the CENTCOM region.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks for this contract include geopolitical instability within the CENTCOM AOR, which could disrupt service delivery or increase operational costs. Performance risks, such as the contractor's ability to meet evolving training needs or maintain service quality over the contract's duration, are also present. Furthermore, reliance on a single prime contractor for critical support functions introduces a dependency risk. Mitigation strategies likely include robust contract oversight by ARCENT, clear performance metrics and penalties outlined in the contract, contingency planning for operational disruptions, and potentially requiring the contractor to maintain specific readiness levels for personnel and equipment. The firm-fixed-price nature also mitigates financial risk for the government, shifting cost overrun risks to the contractor.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this specific training support requirement?

The Firm-Fixed-Price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For training support services, where the core requirements are often predictable, FFP helps the government lock in a price, shifting the risk of cost overruns to the contractor. This encourages the contractor to manage costs efficiently to maximize profit. However, if the training requirements are highly dynamic or subject to rapid changes due to evolving threats or operational needs, an FFP contract might become less advantageous, potentially leading to change orders or the contractor resisting necessary scope adjustments. The effectiveness here hinges on the clarity and stability of the defined training support requirements.

What is the historical spending pattern for training support services within ARCENT or the broader CENTCOM AOR?

Analyzing historical spending patterns for training support services within ARCENT or the broader CENTCOM AOR is crucial for context. This involves examining previous contract awards for similar services, their values, durations, and the contractors involved over the past several fiscal years. Significant year-over-year increases or decreases in spending could indicate shifts in operational tempo, strategic priorities, or the effectiveness of previous support efforts. Understanding this trend helps determine if the current $119 million award represents a continuation of established spending levels, a significant increase driven by new requirements, or a decrease reflecting efficiency gains or reduced needs. Without access to specific historical spending data for this category within ARCENT, a precise analysis is not possible, but such data would reveal the long-term investment in training support in the region.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W900KK20R0048

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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: $119,764,091

Exercised Options: $119,764,091

Current Obligation: $119,061,991

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $819,565,479

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline