Vertex Aerospace LLC contract for air transportation support awarded $35.3M, exceeding initial estimates

Contract Overview

Contract Amount: $35,273,759 ($35.3M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2006-09-29

End Date: 2007-09-30

Contract Duration: 366 days

Daily Burn Rate: $96.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

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 $35.3 million to VERTEX AEROSPACE LLC for work described as: ENG&TECH Key points: 1. Value for money appears fair given the firm fixed-price contract type, though a detailed cost breakdown is needed for definitive assessment. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a short duration and firm fixed-price structure mitigating some financial uncertainties. 4. Performance context is limited without specific details on services rendered and outcomes achieved. 5. Sector positioning places this contract within the broader defense logistics and support services market.

Value Assessment

Rating: fair

The contract's value of $35.3 million for a one-year period of performance is substantial. Benchmarking against similar support contracts for aviation assets is challenging without more specific service details. However, the firm fixed-price nature suggests the contractor bears the risk of cost overruns, which can be a positive indicator for value if the scope is well-defined. Further analysis would require comparing the unit costs of services provided against industry standards or other government contracts for comparable support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bidders suggests a degree of competition, though the specific number of proposals received and their relative strengths are not detailed. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition process is generally favorable for taxpayers as it encourages a wider range of potential suppliers to bid, driving down costs through market forces.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential support activities for air transportation. Services likely include maintenance, logistics, or operational support crucial for maintaining air readiness. The geographic impact is centered around the operational base where the air transportation support is provided, likely within Mississippi. Workforce implications may involve skilled technicians, logistics personnel, and administrative staff employed by Vertex Aerospace and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The contract duration is relatively short (one year), which might limit long-term strategic planning for support services.
Specific details on the scope of 'Other Support Activities for Air Transportation' are not provided, hindering a precise understanding of the value delivered.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type shifts cost risk to the contractor, potentially leading to better cost control.
The contractor, Vertex Aerospace LLC, has experience in aerospace support, implying relevant expertise.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on support services for aviation assets. The market for defense logistics and maintenance is substantial, with numerous companies competing to provide specialized support to military branches. Comparable spending benchmarks would involve analyzing other contracts for aircraft maintenance, repair, and overhaul (MRO), as well as logistical support services within the Department of Defense.

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 direct impact on small businesses is likely through potential subcontracting opportunities if Vertex Aerospace LLC engages them. The absence of explicit small business goals means there's no mandated pathway for small business inclusion, relying instead on the prime contractor's discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet performance and delivery requirements. Accountability measures are inherent in the firm fixed-price contract, where Vertex Aerospace is liable for delivering services within the agreed price. Transparency is facilitated through contract award databases, though detailed performance reports may be less accessible to the public.

Related Government Programs

Aircraft Maintenance Services
Logistics Support Contracts
Defense Aviation Support
Air Transportation Services
Aerospace Maintenance, Repair, and Overhaul (MRO)

Risk Flags

Potential for limited competition if only two bidders participated.
Lack of detailed performance metrics hinders effectiveness assessment.
Scope of services is broadly defined, requiring careful monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.3 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 $35.3 million.

What is the period of performance?

Start: 2006-09-29. End: 2007-09-30.

What specific services are included under 'Other Support Activities for Air Transportation' for this contract?

The provided data classifies the contract under NAICS code 488190, 'Other Support Activities for Air Transportation.' This broad category typically encompasses services such as airport operations support, air traffic control services, aircraft servicing (like fueling, de-icing, cleaning), cargo handling, and potentially certain types of aircraft maintenance or repair that are not classified under specialized repair services. Without access to the contract's statement of work (SOW), the precise nature of Vertex Aerospace LLC's responsibilities remains unspecified. However, given the context of defense spending, these services are likely critical for maintaining the operational readiness and efficiency of military aviation assets at a specific installation or region.

How does the awarded amount of $35.3 million compare to similar contracts for air transportation support?

Direct comparison of the $35.3 million award for a one-year duration is difficult without knowing the specific services rendered and the scale of operations supported. Contracts for 'Other Support Activities for Air Transportation' can vary widely in scope, from basic ground handling at a single airbase to comprehensive support across multiple locations. To benchmark effectively, one would need to identify contracts with similar NAICS codes (488190) and contract types (Firm Fixed Price) awarded to comparable companies, ideally within the Department of Defense. Factors like geographic location, type of aircraft supported, and the specific services included in the Statement of Work (SOW) are crucial for a meaningful comparison. Generally, large-scale aviation support contracts can range from tens to hundreds of millions of dollars annually, depending on complexity and duration.

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

Vertex Aerospace LLC has a history of receiving contracts from the Department of Defense, as indicated by this award and its presence in federal procurement databases. While this specific data point doesn't detail their entire history, companies operating in the aerospace support sector often secure multiple contracts over time. A comprehensive review would involve examining their past performance ratings, any contract modifications, past performance on similar services, and any instances of contract disputes or terminations. Their ability to win a 'full and open competition' contract suggests they are considered a capable and competitive provider within the defense industrial base. Further investigation into their contract portfolio and performance history would provide a clearer picture of their reliability and expertise.

What are the potential risks associated with this contract for the government?

The primary risks for the government in this contract, despite being firm fixed-price, revolve around the potential for inadequate service delivery or scope creep if the Statement of Work (SOW) is not precisely defined. While the contractor assumes cost overruns, the government bears the risk of receiving substandard support that could impact operational readiness. If the competition was limited to only two bidders, there's a potential risk that the government did not achieve the most competitive pricing possible. Furthermore, the short duration (366 days) might necessitate a rapid re-compete process, introducing potential disruption if a follow-on contract isn't secured smoothly. Ensuring robust oversight and clear performance metrics are key to mitigating these risks.

How has spending on 'Other Support Activities for Air Transportation' evolved over recent years?

Analyzing historical spending trends for NAICS code 488190 ('Other Support Activities for Air Transportation') within the Department of Defense requires access to comprehensive federal procurement data over multiple fiscal years. Generally, spending in this category tends to fluctuate based on military readiness requirements, operational tempo, and strategic shifts in defense posture. Periods of increased global engagement or modernization efforts often correlate with higher demand for support services. Conversely, budget constraints or force structure changes might lead to reductions. Without specific historical data for this contract or broader category trends, it's difficult to provide precise figures. However, the defense sector's reliance on efficient air operations suggests a consistent, albeit variable, need for these support activities.

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: 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: $35,273,759

Exercised Options: $35,273,759

Current Obligation: $35,273,759

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001905D0023

IDV Type: IDC

Timeline