Vertex Aerospace LLC awarded $50M for air transportation support, with a 91509 benchmark ratio

Contract Overview

Contract Amount: $50,055,522 ($50.1M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2010-10-01

End Date: 2012-03-31

Contract Duration: 547 days

Daily Burn Rate: $91.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FLT HR GEN

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $50.1 million to VERTEX AEROSPACE LLC for work described as: FLT HR GEN Key points: 1. Contract value of $50M for air transportation support. 2. Awarded to Vertex Aerospace LLC. 3. Contract duration of 547 days. 4. Procurement type: Full and Open Competition. 5. Delivery Order under a larger contract. 6. Fixed Price contract type. 7. Benchmark ratio of 91509 suggests potential value considerations. 8. Service area: Mississippi.

Value Assessment

Rating: fair

The contract's benchmark ratio of 91509 warrants further investigation into value for money. Without specific per-unit cost data or comparisons to similar contracts for air transportation support, it is difficult to definitively assess pricing. The fixed-price nature of the contract shifts some risk to the contractor, but the overall value proposition needs more granular analysis against industry standards and the specific services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally favorable for price discovery and ensuring the government receives competitive offers. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

Benefits the Department of Defense by providing essential air transportation support services. Ensures operational readiness and logistical capabilities for military operations. Services are geographically focused within Mississippi. Potential impact on the local workforce in Mississippi through employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to assess service quality.
The benchmark ratio of 91509 requires deeper analysis to understand its implications for cost-effectiveness.
Limited information on the specific nature of 'Other Support Activities for Air Transportation' hinders a full understanding of the scope.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Fixed-price contract type helps control costs and manage budget predictability.
Contract duration of over a year provides a period of stable support.

Sector Analysis

This contract falls within the 'Other Support Activities for Air Transportation' sector, which is a critical component of the broader aerospace and defense industry. This sector encompasses a wide range of services essential for maintaining and operating air fleets, including maintenance, logistics, and ground support. Spending in this area is often driven by defense readiness requirements and the operational tempo of military aviation. Benchmarking against similar contracts is crucial for assessing cost-effectiveness, as service needs can vary significantly.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the primary focus was on securing the best value through open competition, rather than specifically targeting small businesses. There is no information on subcontracting plans, so the impact on the small business ecosystem is not directly ascertainable from this data alone.

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. As a delivery order under a larger contract, the oversight mechanisms would be tied to the parent contract's structure. Transparency is generally facilitated through contract award databases, but detailed performance reporting and Inspector General jurisdiction would depend on the specific terms and any subsequent audits.

Related Government Programs

Defense Contract Management Agency Services
Air Transportation Support Contracts
Logistics and Maintenance Services
Federal Aviation Support

Risk Flags

Benchmark Ratio Requires Clarification
Specific Service Details Limited
Contractor Past Performance Not Provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.1 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 $50.1 million.

What is the period of performance?

Start: 2010-10-01. End: 2012-03-31.

What specific services are included under 'Other Support Activities for Air Transportation' for Vertex Aerospace LLC?

The specific services encompassed by 'Other Support Activities for Air Transportation' are not detailed in the provided data. This category is broad and can include a range of functions such as aircraft maintenance, repair, overhaul, ground support, logistics management, supply chain operations, and technical support. For Vertex Aerospace LLC, these services likely pertain to supporting the Department of Defense's air assets, ensuring their operational readiness and efficient functioning. A deeper dive into the contract's statement of work or related documentation would be necessary to ascertain the precise nature and scope of the support provided.

How does the benchmark ratio of 91509 compare to industry standards for similar air transportation support contracts?

The benchmark ratio of 91509 is a specific metric that requires context to be fully understood. Without knowing what this ratio represents (e.g., cost per flight hour, cost per maintenance action, or another performance indicator), it is challenging to compare it directly to industry standards. Typically, federal agencies use various benchmarks to assess value for money. If this ratio is indicative of cost efficiency, a higher number might suggest higher costs relative to output compared to similar contracts. Conversely, if it represents a measure of capability or scope, a higher number could be positive. Further clarification on the definition of this benchmark is needed for a meaningful comparison.

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

Information regarding Vertex Aerospace LLC's specific track record with similar Department of Defense contracts is not provided in the data snippet. Vertex Aerospace LLC is known to be a significant player in aerospace services, often involved in aircraft maintenance, modification, and support. To assess their track record for this particular type of contract, one would need to examine their past performance evaluations, any reported issues or successes on previous DoD contracts, and their overall experience in providing 'Other Support Activities for Air Transportation'. Publicly available contract databases and performance assessment reports could offer more insight.

What were the key factors that led to Vertex Aerospace LLC being awarded this contract under full and open competition?

Under full and open competition, the award to Vertex Aerospace LLC would have been based on the evaluation criteria outlined in the solicitation. These criteria typically include factors such as technical approach, past performance, management capability, and price. Vertex Aerospace LLC likely demonstrated superior performance in one or more of these areas, or offered the most advantageous combination of factors to the government. The 'full and open' nature implies that multiple proposals were received and evaluated, and Vertex's proposal was deemed the best value, not necessarily the lowest price, but the optimal balance of cost and other performance considerations.

What is the historical spending pattern 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 generally substantial, reflecting the continuous need for operational readiness and maintenance of military aircraft. This spending fluctuates based on geopolitical factors, modernization programs, and operational tempo. Agencies like the DoD often award numerous contracts, including delivery orders under larger indefinite-delivery/indefinite-quantity (IDIQ) vehicles, to various contractors to meet these diverse needs. Analyzing historical spending would involve reviewing aggregate data over several fiscal years to identify trends, major contract awards, and shifts in procurement strategies within this category.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vertex Aerospace Services Corp.

Address: 555 INDUSTRIAL DR S, MADISON, MS, 39110

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $50,055,522

Exercised Options: $50,055,522

Current Obligation: $50,055,522

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001905D0023

IDV Type: IDC

Timeline