DoD awards $39.6M for Off-Site Maintenance to Vertex Aerospace LLC under Full and Open Competition
Contract Overview
Contract Amount: $39,611,015 ($39.6M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2009-09-30
Contract Duration: 364 days
Daily Burn Rate: $108.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: OFF-SITE EM
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $39.6 million to VERTEX AEROSPACE LLC for work described as: OFF-SITE EM Key points: 1. Contract awarded to Vertex Aerospace LLC for off-site maintenance services. 2. The contract was secured through full and open competition, indicating a competitive bidding process. 3. The total award value is $39,611,015.03. 4. The contract duration is 364 days, ending September 30, 2009.
Value Assessment
Rating: good
The award value of $39.6M for off-site maintenance appears reasonable given the contract duration and the nature of aerospace support services. Benchmarking against similar DoD contracts for maintenance and repair would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by fostering a competitive environment among potential contractors.
Public Impact
Ensures continued operational readiness for Department of Defense aircraft through essential maintenance. Supports the aerospace industry by providing contracts to qualified service providers. The competitive nature of the award suggests efficient use of taxpayer funds for critical support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized
- Clear contract end date
- Firm fixed price contract type
Sector Analysis
This contract falls under Other Support Activities for Air Transportation, a sector crucial for maintaining military aviation capabilities. Spending in this area is directly tied to defense readiness and operational requirements.
Small Business Impact
While the contract was awarded through full and open competition, there is no specific indication of small business participation or subcontracting goals in the provided data. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and ensuring compliance with terms and conditions. The firm fixed price structure provides cost certainty.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for delays impacting operational readiness
- Quality control risks in off-site maintenance
- Dependence on a single contractor for a critical service period
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 $39.6 million to VERTEX AEROSPACE LLC. OFF-SITE EM
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 $39.6 million.
What is the period of performance?
Start: 2008-10-01. End: 2009-09-30.
What was the competitive landscape like for this 'Off-Site EM' contract, and how did it influence the final price?
The contract was awarded under 'Full and Open Competition,' indicating that multiple vendors were eligible to bid. This competitive environment typically drives down prices as contractors vie for the award. The specific number of bids received and the pricing strategies of the competing firms would offer deeper insight into the price discovery mechanism and its impact on the final negotiated price.
What are the primary risks associated with this off-site maintenance contract, and how are they mitigated?
Key risks include potential delays in maintenance impacting aircraft availability, quality control issues with the off-site provider, and cost overruns if the firm fixed price contract doesn't adequately cover all eventualities. Mitigation strategies likely involve robust DCMA oversight, clear performance metrics, defined quality assurance procedures, and adherence to the firm fixed price terms to cap government liability.
How effectively does this contract contribute to the Department of Defense's overall mission readiness and strategic objectives?
This contract directly supports DoD mission readiness by ensuring aircraft are maintained and operational. Off-site maintenance can offer specialized capabilities or capacity that may not be available internally. Its effectiveness is measured by the timely and quality completion of services, minimizing aircraft downtime and contributing to the overall air transportation support infrastructure necessary for defense operations.
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: $39,611,015
Exercised Options: $39,611,015
Current Obligation: $39,611,015
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001905D0023
IDV Type: IDC
Timeline
Start Date: 2008-10-01
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2014-09-16
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