DoD awards Vertex Aerospace $111M for HAZMAT support, highlighting potential cost efficiencies
Contract Overview
Contract Amount: $110,973,650 ($111.0M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2010-10-01
End Date: 2012-09-30
Contract Duration: 730 days
Daily Burn Rate: $152.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: Defense
Official Description: HAZMAT
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $111.0 million to VERTEX AEROSPACE LLC for work described as: HAZMAT Key points: 1. Significant contract value of $111 million for HAZMAT support. 2. Vertex Aerospace, a key defense contractor, secured this award. 3. Potential for cost savings through efficient HAZMAT management. 4. The contract falls under the 'Other Support Activities for Air Transportation' NAICS code.
Value Assessment
Rating: good
The contract type is Cost No Fee, which can sometimes lead to less price certainty. However, the award value of $111M for a 2-year period suggests a reasonable baseline for services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, indicating a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently for essential HAZMAT support services.
Public Impact
Ensures critical HAZMAT handling and transportation for military operations. Supports the Department of Defense's logistical capabilities. Contributes to environmental and safety compliance in military activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee contract type may offer less incentive for cost control.
- Reliance on a single vendor for critical HAZMAT services.
Positive Signals
- Full and open competition ensures market-driven pricing.
- Experienced contractor in Vertex Aerospace.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on support services. Spending benchmarks for HAZMAT logistics can vary widely based on scope and regulatory requirements.
Small Business Impact
The data indicates that small business participation was not a primary focus for this specific contract award, as the prime contractor is not a small business and no small business set-aside was noted.
Oversight & Accountability
The Department of Defense, through its agencies like the Defense Contract Management Agency, is responsible for overseeing contract performance and ensuring compliance with terms and conditions.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to Cost No Fee structure.
- Dependence on a single contractor for critical services.
- Lack of explicit small business subcontracting goals.
- Scope of 'Other Support Activities' could be broad and require detailed monitoring.
Tags
other-support-activities-for-air-transpo, department-of-defense, ms, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $111.0 million to VERTEX AEROSPACE LLC. HAZMAT
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 $111.0 million.
What is the period of performance?
Start: 2010-10-01. End: 2012-09-30.
What specific HAZMAT services are included in this contract and how do they align with current DoD operational needs?
The contract covers 'Other Support Activities for Air Transportation' related to HAZMAT. This likely includes handling, storage, transportation, and disposal of hazardous materials essential for air operations. Alignment with current needs would require examining specific mission requirements and the evolving nature of military logistics and safety protocols.
Are there any performance metrics or key performance indicators (KPIs) associated with this Cost No Fee contract to ensure service quality?
While Cost No Fee contracts prioritize cost reimbursement, effective oversight typically involves performance standards and KPIs. The Defense Contract Management Agency would likely monitor adherence to safety regulations, delivery timelines, and proper handling procedures, even without direct profit incentives tied to cost savings.
What is the long-term strategy for HAZMAT support, and does this contract represent a sustainable solution or a short-term fix?
This contract spans two years, suggesting it addresses immediate or medium-term needs. A long-term strategy would involve assessing future requirements, technological advancements in HAZMAT management, and potential consolidation or diversification of support providers to ensure sustained, cost-effective, and compliant 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: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 555 INDUSTRIAL DR S, MADISON, MS, 39110
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $110,973,650
Exercised Options: $110,973,650
Current Obligation: $110,973,650
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001908D0014
IDV Type: IDC
Timeline
Start Date: 2010-10-01
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2016-09-28
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