DoD's $28.1M contract with Vertex Aerospace for air transportation support awarded via sole-source vehicle

Contract Overview

Contract Amount: $28,109,572 ($28.1M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2011-09-30

End Date: 2012-09-30

Contract Duration: 366 days

Daily Burn Rate: $76.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: HSI

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to VERTEX AEROSPACE LLC for work described as: HSI Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. The contract value of $28.1 million for a 366-day duration suggests a significant investment in air transportation support. 3. Performance is managed by the Defense Contract Management Agency, indicating a focus on oversight. 4. The contract falls under 'Other Support Activities for Air Transportation,' a broad category with potential for varied service delivery. 5. Awarded as a Delivery Order under an unspecified contract vehicle, raising questions about the initial procurement process. 6. The firm fixed-price contract type aims to control costs, but the lack of competition may undermine this.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without knowing the specific services rendered and the underlying contract vehicle. However, a $28.1 million award for a single year of support activities for air transportation, especially when not competed, raises concerns about potential overpayment. Without competitive bids, it's difficult to ascertain if Vertex Aerospace's pricing reflects fair market value or if taxpayers are bearing a premium due to the lack of alternative offers. Further analysis would require understanding the scope of work and comparing it to similar sole-source awards for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific emergency situations. The absence of competition means there were no alternative bids to compare against Vertex Aerospace's proposal, which can limit price discovery and potentially lead to higher costs for the government. The rationale for the sole-source award would need to be thoroughly documented to justify the lack of competition.

Taxpayer Impact: The lack of competition means taxpayers did not benefit from the cost savings that typically arise from a competitive bidding process. This could result in the government paying more than necessary for the air transportation support services.

Public Impact

The primary beneficiaries are likely military operations requiring specialized air transportation support services. Services delivered are categorized under 'Other Support Activities for Air Transportation,' which could encompass maintenance, logistics, or operational assistance. The geographic impact is centered around the operations managed by the Department of Defense, potentially at various air bases or operational theaters. Workforce implications may include the utilization of specialized personnel by Vertex Aerospace to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the initial contract vehicle selection.
Potential for cost overruns due to absence of market-driven price validation.

Positive Signals

Firm fixed-price contract type provides cost certainty if scope is well-defined.
Award to Vertex Aerospace, a known entity in aerospace support.
Managed by Defense Contract Management Agency, suggesting established oversight.

Sector Analysis

The 'Other Support Activities for Air Transportation' sector is a critical component of national defense and logistics. This contract fits within the broader aerospace and defense industry, which is characterized by high technological demands and specialized service providers. Comparable spending benchmarks are difficult to establish without specific service details, but the defense sector often involves significant investments in maintaining operational readiness and logistical capabilities. The market size for such specialized support services is substantial, driven by government contracts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary awardee, Vertex Aerospace LLC, is expected to perform the majority of the work, and there may be limited direct opportunities for small businesses to participate in this specific contract. The impact on the small business ecosystem is therefore minimal for this particular award.

Oversight & Accountability

Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded within the contract terms and DCMA's surveillance activities. Transparency regarding the specific services and performance metrics would depend on the public availability of contract details beyond the basic award information. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Aircraft Maintenance Contracts
Air Mobility Command Support Services
Defense Logistics Agency Aviation Support
Aerospace Support Services Contracts

Risk Flags

Sole-source award raises concerns about price competition.
Lack of detailed service scope in provided data hinders full analysis.
Potential for cost inefficiencies due to absence of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to VERTEX AEROSPACE LLC. HSI

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 $28.1 million.

What is the period of performance?

Start: 2011-09-30. End: 2012-09-30.

What specific air transportation support services were provided under this $28.1 million contract?

The provided data indicates the contract falls under NAICS code 488190, 'Other Support Activities for Air Transportation.' This broad category can encompass a range of services, including aircraft maintenance and repair, ground support, air traffic control services, airport operations support, and specialized logistical assistance for aviation operations. Without access to the detailed Statement of Work (SOW) or contract modifications, the precise nature of the services rendered by Vertex Aerospace LLC remains unspecified. Understanding the exact services is crucial for a comprehensive value assessment and for comparing this contract to similar procurements.

What was the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. The specific justification for this sole-source determination is not provided in the abbreviated data. Typically, sole-source awards are justified under circumstances such as: only one responsible source exists to provide the required service, a national emergency, or when the government needs to procure unique supplies or services from a specific contractor. The Department of Defense would have had to document and approve this justification, often requiring a Justification and Approval (J&A) document to be filed, which would detail the rationale for foregoing full and open competition.

How does the $28.1 million contract value compare to historical spending on similar air transportation support services by the DoD?

Comparing this $28.1 million contract value to historical spending requires access to broader contract databases and historical procurement data for 'Other Support Activities for Air Transportation' within the Department of Defense. Without that comparative data, it's difficult to definitively state whether this award is high, low, or average. However, given it's a sole-source award for a single year (366 days), the amount suggests a significant scope of services. A thorough analysis would involve identifying comparable contracts awarded over the past several years, considering factors like service type, duration, and contractor, to establish a relevant benchmark.

What is Vertex Aerospace LLC's track record with the federal government, particularly in providing air transportation support?

Vertex Aerospace LLC has a history of contracting with the federal government, primarily within the aerospace and defense sectors. While the provided data confirms this specific $28.1 million award, a deeper dive into federal procurement records would reveal the extent and nature of their past performance. This would include examining previous contracts, their values, performance ratings, and any past performance issues or successes. Understanding their established capabilities and reliability in delivering air transportation support services is essential for assessing the risk associated with this current contract.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible price for the services rendered. Other risks include a potential decrease in service quality if the contractor faces no competitive threat, and a reduced incentive for innovation. Furthermore, the absence of a competitive process can raise concerns about fairness and transparency in government procurement. Robust oversight and clear performance metrics are critical to mitigate these risks.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vertex Aerospace Services Corp. (UEI: 081292432)

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: $28,109,572

Exercised Options: $28,109,572

Current Obligation: $28,109,572

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001911D0024

IDV Type: IDC

Timeline