DoD awards $43.7M contract to Vertex Aerospace for air transportation support, utilizing full and open competition
Contract Overview
Contract Amount: $43,754,110 ($43.8M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2008-10-14
End Date: 2013-09-30
Contract Duration: 1,812 days
Daily Burn Rate: $24.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: Defense
Official Description: FCF NASK
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $43.8 million to VERTEX AEROSPACE LLC for work described as: FCF NASK Key points: 1. Contract Value: $43.7 million awarded to Vertex Aerospace LLC. 2. Competition: Full and open competition was utilized. 3. Risk: Low risk indicated by contract type (Cost No Fee). 4. Sector: Defense sector, specifically air transportation support.
Value Assessment
Rating: good
The Cost No Fee contract type suggests a focus on achieving the objective rather than strict cost control, which can be appropriate for certain support services. Benchmarking against similar contracts for air transportation support is needed for a definitive pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which typically leads to better price discovery and value for the government. This method allows all responsible sources to submit offers, fostering a competitive environment.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best possible pricing and quality.
Public Impact
Ensures continued support for critical air transportation functions within the Department of Defense. Supports a key defense contractor, Vertex Aerospace LLC, contributing to the defense industrial base. The contract duration of 1812 days indicates a significant, long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if not managed closely despite 'Cost No Fee' type.
Positive Signals
- Full and open competition utilized.
- Contract awarded to a known entity in the aerospace sector.
Sector Analysis
This contract falls within the Defense sector, specifically supporting air transportation activities. Spending in this area is crucial for military readiness and logistics. Benchmarks for similar support contracts vary widely based on scope and duration.
Small Business Impact
The data indicates the prime contractor is Vertex Aerospace LLC. There is no information provided on subcontracting to small businesses, which is a missed opportunity for analysis.
Oversight & Accountability
Oversight is likely managed by the Defense Contract Management Agency (DCMA). The 'Cost No Fee' contract type requires diligent monitoring to ensure objectives are met without excessive cost accumulation.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of detailed service description.
- Potential for cost creep despite contract type.
- No indication of small business participation.
- Contract awarded in 2008, historical data may have limited current relevance.
Tags
other-support-activities-for-air-transpo, department-of-defense, ms, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.8 million to VERTEX AEROSPACE LLC. FCF NASK
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 $43.8 million.
What is the period of performance?
Start: 2008-10-14. End: 2013-09-30.
What specific air transportation services are covered under this contract, and how do they align with current DoD operational needs?
The contract covers 'Other Support Activities for Air Transportation,' a broad category. Specific services could range from aircraft maintenance and ground support to logistics and operational planning. Alignment with current DoD needs would require examining the statement of work and any task orders issued under the contract to ensure it directly supports ongoing military operations and strategic objectives.
Given the 'Cost No Fee' structure, what mechanisms are in place to prevent cost overruns and ensure efficient resource utilization?
While 'Cost No Fee' aims to incentivize performance, robust oversight is critical. Mechanisms likely include detailed reporting requirements, regular progress reviews by the DCMA, and potentially performance incentives tied to specific milestones or quality standards. The government must actively monitor expenditures and contractor performance to ensure value and prevent uncontrolled cost escalation.
How does the $43.7 million award compare to industry benchmarks for similar long-term air transportation support contracts?
Without specific details on the scope of services, duration, and geographic location, direct benchmarking is challenging. However, $43.7 million over approximately five years (2008-2013) suggests a significant but potentially reasonable investment for comprehensive support. A detailed comparison would require analyzing contracts with similar service levels, fleet sizes supported, and operational tempo.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST NO FEE (S)
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, Limited Liability Corporation, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $43,754,110
Exercised Options: $43,754,110
Current Obligation: $43,754,110
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001908D0014
IDV Type: IDC
Timeline
Start Date: 2008-10-14
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2014-09-17
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