Vertex Aerospace LLC awarded $43.3M contract for air transportation support, highlighting potential value and competition

Contract Overview

Contract Amount: $43,314,608 ($43.3M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-29

End Date: 2014-06-30

Contract Duration: 1,735 days

Daily Burn Rate: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FLT HR GEN

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110, UNITED STATES OF AMERICA

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $43.3 million to VERTEX AEROSPACE LLC for work described as: FLT HR GEN Key points: 1. Contract value of $43.3M suggests significant service requirements over its duration. 2. Full and open competition indicates a potentially robust market for these services. 3. Firm Fixed Price contract type aims to control costs and provide predictability. 4. Contract duration of 1735 days (approx. 4.75 years) allows for sustained support. 5. Awarded by the Department of Defense, indicating a critical national security or operational need. 6. The North American Industry Classification System (NAICS) code 488190 points to specialized aviation support services.

Value Assessment

Rating: good

The contract's firm fixed price structure is a positive indicator for cost control. Benchmarking against similar contracts for 'Other Support Activities for Air Transportation' would be necessary for a definitive value assessment. Given the duration and scope, the $43.3M award appears reasonable, assuming the services provided are comprehensive and meet the DoD's needs. Further analysis of specific deliverables and performance metrics would refine this assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple capable vendors were invited to bid. This process typically leads to a more competitive pricing environment and a wider selection of qualified contractors. The presence of two bidders, as indicated, is a moderate level of competition. A higher number of bidders would generally be preferred to ensure the most advantageous pricing for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring the government receives the best possible value for its investment.

Public Impact

The Department of Defense benefits from reliable and specialized air transportation support services. This contract ensures the operational readiness and efficiency of air assets. The services likely support military personnel and cargo movement, contributing to national security objectives. The contract's impact is primarily within the defense sector, supporting aviation logistics and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price contract.
Dependence on a single contractor for critical support functions could pose a risk.
Ensuring consistent service quality throughout the contract's long duration requires diligent oversight.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Full and open competition suggests a competitive market and potential for good value.
Awarded by a major federal agency (DoD) implies adherence to stringent performance standards.
The contractor, Vertex Aerospace LLC, has experience in aerospace support services.

Sector Analysis

The aviation support services sector is critical for maintaining the operational capabilities of air fleets, both commercial and governmental. This contract falls under the broader aerospace and defense industry, which is characterized by high technical requirements and significant government spending. The NAICS code 488190 specifically covers support activities such as aircraft engine repair, maintenance, and overhaul, as well as other aviation support services. Spending in this area is often driven by defense needs and the maintenance of aging aircraft fleets.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Vertex Aerospace LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. The firm fixed-price nature of the contract provides a degree of financial oversight by limiting the government's exposure to cost increases. Transparency is generally maintained through contract award databases and reporting requirements, although specific performance metrics and detailed oversight activities are often internal to the agency.

Related Government Programs

Department of Defense Aircraft Maintenance Contracts
Air Transportation Services Contracts
Aerospace Support Services
Federal Aviation Administration (FAA) Contracts
Military Logistics Support

Risk Flags

Contract Duration
Competition Level
Contract Type Risk
Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.3 million to VERTEX AEROSPACE LLC. FLT HR GEN

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 $43.3 million.

What is the period of performance?

Start: 2009-09-29. End: 2014-06-30.

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. While specific details of past performance on contracts of this exact scope and value are not provided in the summary data, their engagement with the DoD suggests a level of established capability and familiarity with government procurement processes. A deeper dive into contract performance reports, past performance questionnaires, and any documented issues or commendations would provide a more comprehensive understanding of their reliability and effectiveness in fulfilling similar requirements.

How does the $43.3M contract value compare to industry benchmarks for similar air transportation support services?

Benchmarking the $43.3M contract value requires comparing it against similar contracts awarded by the DoD or other federal agencies for 'Other Support Activities for Air Transportation' (NAICS 488190) over comparable periods. Factors such as the specific services included (e.g., maintenance, repair, logistics, ground support), the types of aircraft supported, and the geographic locations of service delivery significantly influence pricing. Without access to a detailed breakdown of the services rendered under this contract and a database of comparable contract awards, a precise benchmark is difficult. However, the value suggests a substantial and ongoing requirement for specialized aviation support.

What are the primary risks associated with this firm fixed-price contract for air transportation support?

The primary risks associated with this firm fixed-price contract, despite its cost control benefits, include potential contractor underperformance if the fixed price is too low to cover actual costs adequately, leading to quality issues or contractor default. Conversely, if the price is too high, the government may overpay. Scope creep, where the government requests additional services not originally defined, can lead to costly change orders if not managed strictly. Furthermore, the long duration (1735 days) increases the risk of unforeseen market changes, technological obsolescence, or contractor financial instability impacting service continuity.

How effective is the 'full and open competition' strategy in ensuring value for this specific contract?

The 'full and open competition' strategy is generally effective in ensuring value by maximizing the pool of potential bidders and fostering a competitive environment that drives down prices. For this $43.3M contract, the fact that it was competed openly suggests that the DoD sought the best possible offer from the market. The presence of two bidders indicates a moderate level of competition. While more bidders would typically enhance price discovery and potentially yield lower prices, the open competition framework itself is a strong indicator of an effort to achieve value. The ultimate effectiveness hinges on the thoroughness of the evaluation process and the specific terms negotiated.

What are the historical spending patterns for 'Other Support Activities for Air Transportation' within the Department of Defense?

Historical spending patterns for 'Other Support Activities for Air Transportation' within the Department of Defense are typically substantial, reflecting the vast scale and operational tempo of military aviation. The DoD relies heavily on specialized support services to maintain its diverse fleet of aircraft, ranging from tactical fighters to transport planes and helicopters. Spending in this category often fluctuates based on defense budgets, modernization programs, and the operational readiness requirements of various military branches. Contracts like this one, awarded under NAICS code 488190, are a consistent component of the DoD's procurement strategy to ensure the longevity and functionality of its air assets.

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, 39110

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $43,314,608

Exercised Options: $43,314,608

Current Obligation: $43,314,608

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001905D0023

IDV Type: IDC

Timeline