DoD awards $25.7M contract to Vertex Aerospace for air transportation support

Contract Overview

Contract Amount: $25,744,042 ($25.7M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2006-09-29

End Date: 2007-12-31

Contract Duration: 458 days

Daily Burn Rate: $56.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ENG/TECH

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to VERTEX AEROSPACE LLC for work described as: ENG/TECH Key points: 1. Contract value of $25.7 million. 2. Awarded under full and open competition. 3. Potential for significant taxpayer impact due to contract type and duration. 4. Sector: Defense, specifically air transportation support.

Value Assessment

Rating: fair

The contract value is substantial, but without specific per-unit cost data or comparison to similar services, a precise value assessment is difficult. The firm fixed-price structure aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing.

Taxpayer Impact: The firm fixed-price contract type, while aiming for cost certainty, could lead to higher initial bids. The duration of the contract also impacts the overall taxpayer exposure.

Public Impact

Ensures continued support for critical air transportation activities. Supports a significant aerospace company, potentially impacting regional employment. Taxpayers fund essential defense logistics and maintenance operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration of over a year.
  • Firm Fixed Price contract type can lead to higher initial bids.
  • Lack of detailed performance metrics in provided data.

Positive Signals

  • Awarded through full and open competition.
  • Supports critical defense infrastructure.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on support activities for air transportation. Spending in this area is crucial for military readiness and logistics, with benchmarks often tied to operational tempo and fleet size.

Small Business Impact

The provided data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight is likely managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance with contract terms. Accountability rests on meeting the specified support requirements.

Related Government Programs

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

Risk Flags

  • Contract duration
  • Firm Fixed Price
  • Lack of detailed performance metrics
  • Potential for cost overruns if scope changes

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 $25.7 million to VERTEX AEROSPACE LLC. ENG/TECH

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 $25.7 million.

What is the period of performance?

Start: 2006-09-29. End: 2007-12-31.

What was the basis for the $5,621,000 bid or proposal amount (br)?

The 'br' field likely represents a benchmark or baseline value related to the bid or proposal process. Without further context or documentation, it's difficult to ascertain its exact meaning. It could be an internal government estimate, a previous contract value, or a component of the winning bid analysis.

How does the contract's duration (458 days) impact the overall risk profile?

A longer contract duration, such as 458 days, increases the potential for cost escalation due to unforeseen market changes or inflation. It also extends the period during which performance issues could arise, requiring sustained oversight. However, it also provides stability and predictability for essential services.

What specific 'Other Support Activities for Air Transportation' are covered by this contract?

The specific 'Other Support Activities for Air Transportation' are not detailed in the provided data. This could encompass a wide range of services, including maintenance, repair, logistics, ground support, or specialized technical assistance for aircraft and related infrastructure.

Industry Classification

NAICS: Transportation and WarehousingSupport Activities for Air TransportationOther 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: 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

Financial Breakdown

Contract Ceiling: $25,744,042

Exercised Options: $25,744,042

Current Obligation: $25,744,042

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001904D0131

IDV Type: IDC

Timeline

Start Date: 2006-09-29

Current End Date: 2007-12-31

Potential End Date: 2007-12-31 00:00:00

Last Modified: 2012-08-27

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