Naval Air Systems Command awards $24.9M contract for aircraft structural component repair to Vertex Aerospace LLC

Contract Overview

Contract Amount: $24,893,929 ($24.9M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2005-10-01

End Date: 2006-09-30

Contract Duration: 364 days

Daily Burn Rate: $68.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200609!470724!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001904D0131 !A!N! !N!WA02 ! !20051001!20060930!091441089!091441089!008898843!N!L-3 COMMUNICATIONS VERTEX AERO!555 INDUSTRIAL DR S !MADISON !MS!39110!55975!033!12!PENSACOLA NAS !ESCAMBIA !FLORIDA !+000004864352!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !NOT DISCERNABLE !488190!E! !5!A!S! ! ! !99990909!B! ! !A! !A!N!J!2!003!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! !1719!N00019!0001! !

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to VERTEX AEROSPACE LLC for work described as: 200609!470724!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001904D0131 !A!N! !N!WA02 ! !20051001!20060930!091441089!091441089!008898843!N!L-3 COMMUNICATIONS VERTEX AERO!555 INDUSTRIAL DR S !MADISON !MS!39110!55975!033!12!PENSACOLA NAS !ESCA… Key points: 1. Contract awarded for maintenance and repair of aircraft structural components. 2. Vertex Aerospace LLC, based in Mississippi, secured the contract. 3. The contract was awarded under full and open competition. 4. The period of performance spans one year, from October 2005 to September 2006. 5. The total value of the contract is approximately $24.9 million.

Value Assessment

Rating: fair

The contract value of $24.9 million for a one-year period of maintenance and repair services appears to be within a reasonable range for specialized aerospace components. Benchmarking against similar contracts for aircraft structural repair is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing as multiple vendors have the opportunity to submit proposals.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently by securing services at a reasonable cost.

Public Impact

Ensures continued operational readiness of naval aircraft through essential structural maintenance. Supports a US-based aerospace company, contributing to the defense industrial base. Provides critical repair services that extend the lifespan and safety of aircraft components. The contract's value indicates a significant need for these specialized services within the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise.
Dependence on a single contractor for critical repair services.
Limited data on the specific types and complexity of repairs required.

Positive Signals

Awarded through full and open competition, indicating potential for competitive pricing.
Contract duration is fixed, providing budget certainty for the period.
Services are essential for maintaining aircraft airworthiness and safety.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and repair. Spending in this area is critical for maintaining military readiness and is subject to rigorous oversight due to its impact on national security.

Small Business Impact

While the primary awardee is Vertex Aerospace LLC, a larger entity, the contract details do not specify any subcontracting requirements for small businesses. Further investigation would be needed to determine if small businesses were involved in the supply chain or as subcontractors.

Oversight & Accountability

The contract was awarded by the Naval Air Systems Command, indicating oversight by a major defense agency. The use of full and open competition suggests adherence to procurement regulations designed to ensure fairness and value.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Contract awarded under full and open competition.
Services are essential for aircraft maintenance and safety.
Fixed Price contract type can limit contractor risk and incentivize efficiency.
One-year duration provides budget certainty.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to VERTEX AEROSPACE LLC. 200609!470724!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001904D0131 !A!N! !N!WA02 ! !20051001!20060930!091441089!091441089!008898843!N!L-3 COMMUNICATIONS VERTEX AERO!555 INDUSTRIAL DR S !MADISON !MS!39110!55975!033!12!PENSACOLA NAS !ESCAMBIA !FLORIDA !+000004864352!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !NOT DISCERNABLE !488190!E! !5!A!S! ! ! !999

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 $24.9 million.

What is the period of performance?

Start: 2005-10-01. End: 2006-09-30.

What is the historical cost performance of Vertex Aerospace LLC on similar contracts?

Historical cost performance data for Vertex Aerospace LLC on similar contracts is crucial for a comprehensive value assessment. Analyzing past contract execution, including adherence to budget, change order frequency, and final costs versus initial estimates, would reveal trends in their pricing and efficiency. This information helps determine if their current pricing is competitive and if they have a track record of delivering services within budget.

What are the specific risks associated with the 'MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS' service?

Risks associated with aircraft structural component repair include the potential for unforeseen damage requiring extensive work, leading to cost overruns and schedule delays. The availability of specialized parts and skilled labor can also pose risks. Furthermore, the critical nature of structural integrity means any defects could have severe safety implications, necessitating stringent quality control and inspection processes.

How effectively does this contract contribute to the overall operational readiness of the Naval Air Systems Command fleet?

The effectiveness of this contract in contributing to fleet readiness hinges on the timeliness and quality of the repairs performed by Vertex Aerospace. If the repairs are completed efficiently and to high standards, it directly supports the availability and safety of naval aircraft. Conversely, delays or subpar work could negatively impact operational readiness, highlighting the importance of performance monitoring and contract management.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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

Parent Contract

Parent Award PIID: N0001904D0131

IDV Type: IDC

Timeline