Vertex Aerospace LLC awarded $10.9M contract for facilities support services by the Department of Defense

Contract Overview

Contract Amount: $10,947,332 ($10.9M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2010-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: Other

Official Description: SUPPORT KVL

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $10.9 million to VERTEX AEROSPACE LLC for work described as: SUPPORT KVL Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a medium-term commitment. 3. The contract type 'COST NO FEE' implies the government bears the cost of performance, with the contractor receiving no fee. 4. The award to Vertex Aerospace LLC for facilities support services falls under the 'Facilities Support Services' NAICS code. 5. The contract was managed by the Defense Contract Management Agency, indicating a focus on defense-related operations. 6. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this $10.9 million contract for facilities support services is challenging without specific performance metrics or comparable contract data. The 'COST NO FEE' contract type is unusual and warrants further investigation into the contractor's motivation and the government's risk exposure. Typically, cost-reimbursement contracts include a fee to incentivize performance and manage risk. The absence of a fee could indicate a unique relationship or a specific operational context where profit is not the primary driver for the contractor.

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 a bid. The presence of 3 bidders suggests a moderate level of competition for this facilities support services contract. While multiple bidders are positive, the specific number (3) does not necessarily guarantee the most competitive pricing or optimal value without knowing the bid amounts and technical proposals.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better service offerings from contractors vying for the award.

Public Impact

The Department of Defense benefits from the provision of essential facilities support services, ensuring operational readiness. Vertex Aerospace LLC, as the contractor, is expected to deliver a range of facilities maintenance and operational support. The services are likely to impact military installations within the operational purview of the Defense Contract Management Agency. The contract may have implications for the local workforce in Mississippi, where the contract is managed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type raises concerns about contractor motivation and potential for cost overruns, as the contractor has no direct financial incentive for efficiency.
Lack of detailed performance metrics in the provided data makes it difficult to assess the true value for money and contractor performance.
The specific nature of 'facilities support services' is broad and could encompass a wide range of activities, making it hard to evaluate without further detail.

Positive Signals

Awarded through full and open competition, indicating a structured and accessible bidding process.
The contract is managed by the Defense Contract Management Agency, suggesting adherence to established defense procurement standards.
The duration of the contract provides a degree of stability for service delivery.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, is a broad sector encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This includes services such as general building maintenance, janitorial services, landscaping, and security. The federal government is a significant consumer of these services across various agencies and installations. Comparable spending benchmarks would typically involve analyzing the average cost per square foot for similar services across different government facilities or comparing contract values for similar scope and duration within the defense sector.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This means that the competition was open to businesses of all sizes, and there was no specific requirement to reserve a portion of the contract for small businesses. Consequently, there are no direct subcontracting implications for small businesses mandated by this specific award. The impact on the small business ecosystem is neutral in terms of direct set-aside benefits, though larger prime contractors may still engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet their contractual obligations. Accountability measures would typically involve performance reviews, audits, and adherence to the terms of the 'COST NO FEE' agreement. Transparency is generally facilitated through contract award databases, but detailed operational transparency would depend on specific reporting requirements within the contract itself. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Facilities Maintenance Contracts
Base Operations Support
Government Property Management
Defense Logistics Agency Contracts
General Services Administration Contracts

Risk Flags

Unusual contract type ('COST NO FEE') requires careful monitoring of cost controls.
Limited competition (3 bidders) may impact price discovery.
Broad scope of 'Facilities Support Services' necessitates clear performance metrics.
Contractor's performance history for this specific service type needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to VERTEX AEROSPACE LLC. SUPPORT KVL

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 $10.9 million.

What is the period of performance?

Start: 2007-10-01. End: 2010-09-30.

What is the specific scope of 'Facilities Support Services' covered under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 561210, which corresponds to Facilities Support Services. This broad category typically encompasses a wide array of services essential for the operation and maintenance of buildings and grounds. These can include, but are not limited to, general building maintenance, janitorial services, waste management, pest control, landscaping, groundskeeping, and potentially security services. Without the full contract details, the precise delineation of services, service level agreements (SLAs), and specific deliverables remains unspecified. Understanding the exact scope is crucial for evaluating performance, cost-effectiveness, and comparing this contract to others in the facilities management domain.

What are the implications of a 'COST NO FEE' contract type for the government and the contractor?

A 'COST NO FEE' (CNF) contract type is highly unusual, particularly for a significant value like $10.9 million. In a typical cost-reimbursement contract, the government agrees to pay the contractor's allowable costs plus a fee, which serves as the contractor's profit and incentive. In a CNF contract, the government reimburses the contractor's allowable costs, but the contractor receives no additional fee. This structure suggests that the contractor's motivation may not be profit-driven in the traditional sense. Possible reasons include fulfilling a strategic objective, maintaining a relationship with the government, or potentially using this contract as a loss leader for other business opportunities. For the government, the primary risk is that the contractor may lack the incentive to control costs as diligently as they would in a contract with a fee. Robust oversight and clear performance standards are critical to mitigate this risk and ensure value for taxpayer money.

How does the competition level of 3 bidders compare to typical benchmarks for facilities support services contracts?

The competition level of 3 bidders for this $10.9 million facilities support services contract indicates a moderate level of interest. While more than one bidder is essential for competition, the ideal number can vary significantly based on the contract's complexity, geographic scope, and market dynamics. For large-scale facilities support contracts, especially those involving specialized services or extensive geographic coverage, 3 bidders might be considered average or slightly below optimal. A higher number of bidders often correlates with more competitive pricing and a wider range of innovative solutions. Conversely, a low number of bidders could suggest barriers to entry, limited market availability, or insufficient outreach. Without specific market research data for this particular service category and region, it's difficult to definitively state if 3 bidders represent strong or weak competition, but it suggests that the bidding pool was not exceptionally large.

What is Vertex Aerospace LLC's track record with government contracts, particularly in facilities support?

Information regarding Vertex Aerospace LLC's specific track record with government contracts, especially in facilities support services, is not detailed in the provided data snippet. To assess their performance, one would need to examine their contract history, including past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Their experience with similar 'COST NO FEE' contracts would also be a key indicator. A thorough review of their portfolio would reveal their capabilities, reliability, and experience in managing complex government service agreements. Without this historical data, it is difficult to provide a definitive assessment of their suitability and past performance for this specific contract.

Are there any significant risks associated with the duration and value of this contract?

The contract has a duration of 1095 days (3 years) and a value of $10.9 million, averaging approximately $3.63 million per year. The primary risk associated with the duration is the potential for scope creep or changes in government requirements over the three-year period, which could lead to cost adjustments or contract modifications. The value, while substantial, needs to be assessed against the scope of services. The 'COST NO FEE' structure introduces a significant risk related to cost control, as mentioned previously. If the contractor does not diligently manage costs, the government could end up paying more than anticipated without the contractor having a direct financial incentive to minimize expenses. Furthermore, the risk of contractor performance degradation over a three-year period is always present, necessitating continuous monitoring and performance management.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: COST NO FEE (S)

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: $10,947,332

Exercised Options: $10,947,332

Current Obligation: $10,947,332

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001903D0010

IDV Type: IDC

Timeline