DoD awards $18.95M contract to Vertex Aerospace for Aircraft Production Control services
Contract Overview
Contract Amount: $18,950,796 ($19.0M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2006-12-01
End Date: 2008-01-10
Contract Duration: 405 days
Daily Burn Rate: $46.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: AIRCRAFT PRODUCTION CONTROL
Place of Performance
Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $19.0 million to VERTEX AEROSPACE LLC for work described as: AIRCRAFT PRODUCTION CONTROL Key points: 1. Contract awarded to Vertex Aerospace LLC for administrative management services. 2. Full and open competition was utilized for this award. 3. The contract duration is 405 days. 4. The base award amount is $46,792, with a potential value of $18,950,795.93.
Value Assessment
Rating: fair
The contract uses a Time and Materials pricing structure, which can lead to cost overruns if not closely managed. The base award is significantly lower than the potential ceiling, indicating substantial expected work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, suggesting a competitive bidding process. However, the significant difference between the base and potential award value might warrant scrutiny to ensure fair pricing throughout the contract's life.
Taxpayer Impact: Taxpayer funds are being used for administrative management services, with the potential for significant expenditure depending on the scope of work performed under the Time and Materials contract.
Public Impact
Ensures efficient aircraft production processes within the Army. Supports critical defense operations through effective management. Potential for cost variability due to Time and Materials pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Time and Materials pricing.
- Significant difference between base and potential award value.
Positive Signals
- Awarded through full and open competition.
- Supports critical Department of Defense operations.
Sector Analysis
This contract falls under administrative management and general management consulting services, a common support function across many government sectors. Benchmarks for this type of service vary widely based on complexity and duration.
Small Business Impact
The data does not indicate any specific set-aside for small businesses, and the prime contractor is not listed as a small business.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the DoD, implying oversight from higher defense authorities. Further oversight would depend on internal Army contracting and program management practices.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Significant variance between base award and potential ceiling.
- Lack of detail on specific services provided.
- No indication of small business participation.
Tags
administrative-management-and-general-ma, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.0 million to VERTEX AEROSPACE LLC. AIRCRAFT PRODUCTION CONTROL
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 $19.0 million.
What is the period of performance?
Start: 2006-12-01. End: 2008-01-10.
What specific administrative management and general management consulting services are included under this contract to justify the potential $18.95M ceiling?
The contract details are limited, but 'Aircraft Production Control' suggests services related to managing and optimizing the workflow, scheduling, resource allocation, and quality assurance processes involved in aircraft manufacturing or maintenance. This could encompass project management, supply chain coordination, and operational efficiency analysis, justifying a substantial budget if extensive support is required over the contract period.
How will the Department of the Army ensure cost control and value for money given the Time and Materials pricing structure and the large potential award value?
The Army should implement robust oversight mechanisms, including regular performance reviews, detailed cost tracking, and independent government cost estimates. Establishing clear milestones and deliverables tied to payments, along with strict adherence to contract terms and conditions, will be crucial. Periodic re-evaluation of the contract's necessity and scope against evolving requirements will also help manage costs effectively.
What is the expected impact of this contract on the Army's overall aircraft production efficiency and readiness?
If effectively managed, this contract should enhance aircraft production control by streamlining processes, improving resource utilization, and ensuring timely completion of production or maintenance tasks. This, in turn, contributes to improved operational readiness by ensuring that aircraft are available when needed. The success hinges on the contractor's expertise and the government's diligent oversight.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 555 INDUSTRIAL DR S, MADISON, MS, 03
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,950,796
Exercised Options: $18,950,796
Current Obligation: $18,950,796
Parent Contract
Parent Award PIID: GS10F0328N
IDV Type: FSS
Timeline
Start Date: 2006-12-01
Current End Date: 2008-01-10
Potential End Date: 2008-01-10 00:00:00
Last Modified: 2014-10-17
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