Vertex Aerospace LLC awarded $27.6M for engineering repair services, with a significant portion allocated to Mississippi

Contract Overview

Contract Amount: $27,558,095 ($27.6M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-28

End Date: 2008-09-30

Contract Duration: 368 days

Daily Burn Rate: $74.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ENG REPAIR

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $27.6 million to VERTEX AEROSPACE LLC for work described as: ENG REPAIR Key points: 1. Contract value appears reasonable given the scope of engineering repair services. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of 368 days indicates a focused, short-term requirement. 4. Firm Fixed Price contract type shifts risk to the contractor. 5. The contract falls under 'Other Support Activities for Air Transportation', a niche but critical sector. 6. Awarded by the Department of Defense, highlighting its strategic importance.

Value Assessment

Rating: good

The contract value of $27.6 million for engineering repair services seems within a reasonable range for a Department of Defense contract of this nature. Benchmarking against similar contracts for specialized aerospace engineering and repair would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary financial risk, which can be advantageous for the government if costs are managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 3 bids suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The level of competition is a positive sign for price discovery and ensuring the government receives fair market value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging innovation among bidders.

Public Impact

The primary beneficiaries are the Department of Defense, receiving essential engineering repair services for its assets. Services delivered likely include maintenance, repair, and overhaul of aerospace components or systems. The contract's geographic impact is centered in Mississippi, potentially supporting local aerospace industry jobs. Workforce implications may include skilled technicians, engineers, and support staff in the Mississippi region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise, despite the fixed-price nature.
Dependence on a single contractor for critical repair services could pose a risk if performance issues emerge.

Positive Signals

Firm Fixed Price contract structure effectively caps the government's financial exposure.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Award to Vertex Aerospace LLC, a known entity in the aerospace support sector, implies a degree of established capability.

Sector Analysis

This contract operates within the aerospace and defense sector, specifically focusing on engineering repair services. This sector is characterized by high technical complexity, stringent quality requirements, and significant government investment. The market size for aerospace MRO (Maintenance, Repair, and Overhaul) is substantial globally, with government contracts forming a key segment. This specific award fits within the broader category of defense logistics and sustainment support.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by Vertex Aerospace LLC. The extent of these opportunities would depend on the prime contractor's subcontracting plan and the specific needs of the engineering repair services required.

Oversight & Accountability

Oversight for this contract would likely be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the firm fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Aerospace Engineering Services
Defense Logistics Support
Aircraft Maintenance and Repair
Department of Defense Procurement

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of performance degradation if contractor prioritizes profit over quality.
Dependence on contractor's technical expertise and capacity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.6 million to VERTEX AEROSPACE LLC. ENG REPAIR

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 $27.6 million.

What is the period of performance?

Start: 2007-09-28. End: 2008-09-30.

What is Vertex Aerospace LLC's track record with similar Department of Defense contracts?

Vertex Aerospace LLC has a history of performing contracts for the Department of Defense, often in areas related to aircraft maintenance, repair, and overhaul. Their experience typically spans various aircraft platforms and support services. Analyzing their past performance on similar firm-fixed-price contracts can reveal their ability to manage costs and deliver services within agreed-upon timelines and budgets. Reviewing past contract awards, performance reviews, and any documented disputes or corrective actions associated with Vertex Aerospace would provide a comprehensive understanding of their reliability and capability in fulfilling defense contracts.

How does the $27.6 million contract value compare to industry benchmarks for similar engineering repair services?

Benchmarking the $27.6 million contract value requires comparing it against the average cost of similar engineering repair services for Department of Defense assets. Factors such as the specific type of aircraft or equipment being serviced, the complexity of the repairs, the required turnaround time, and the level of technical expertise needed all influence pricing. Contracts for specialized aerospace engineering and repair can vary significantly. A detailed analysis would involve examining the scope of work, the number of labor hours estimated, and the rates charged for different skill sets, then comparing these to publicly available data or industry reports on similar defense contracts to ascertain if the price is competitive and reflects fair market value.

What are the primary risks associated with this firm-fixed-price contract for engineering repair?

The primary risks associated with this firm-fixed-price contract, despite its advantages in cost control, revolve around potential performance issues and unforeseen technical complexities. If the scope of work is not precisely defined or if unexpected technical challenges arise during the repair process, the contractor may struggle to complete the work within the fixed price, potentially leading to quality compromises or delays. The government's risk is primarily that the contractor may cut corners to maintain profitability, impacting the longevity or operational readiness of the assets being repaired. Additionally, reliance on a single contractor for critical repairs introduces a supply chain risk if the contractor faces operational disruptions.

What is the expected program effectiveness and impact of these engineering repair services?

The expected program effectiveness hinges on the successful completion of the engineering repair services, which should restore or enhance the operational readiness and reliability of the Department of Defense assets. Effective repair services contribute directly to the military's ability to execute its missions by ensuring equipment is functional and safe. The impact is measured in terms of increased asset availability, reduced downtime, and potentially extended service life of critical equipment. Successful execution of this contract should lead to improved operational capabilities for the units relying on the repaired assets and contribute to overall defense readiness.

How has historical spending on similar engineering repair services by the Department of Defense trended?

Historical spending by the Department of Defense on engineering repair services has generally been substantial and consistent, reflecting the ongoing need to maintain a large and complex fleet of aircraft, vehicles, and other equipment. Trends often show an increasing demand for advanced repair techniques and sustainment solutions as platforms age or require upgrades. Spending patterns can fluctuate based on defense budgets, geopolitical events, and specific modernization programs. Analyzing multi-year spending data for similar contract types and service categories can reveal whether current spending levels are in line with historical norms, increasing, or decreasing, and identify any significant shifts in procurement strategies or technology adoption.

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: 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: $27,558,095

Exercised Options: $27,558,095

Current Obligation: $27,558,095

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001904D0131

IDV Type: IDC

Timeline