DoD Awards $37.4M for TH-57 Helicopter Maintenance to Vertex Aerospace LLC
Contract Overview
Contract Amount: $37,389,045 ($37.4M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2012-09-28
End Date: 2013-06-30
Contract Duration: 275 days
Daily Burn Rate: $136.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TH-57 MAINTENANCE
Place of Performance
Location: MADISON, MADISON County, MISSISSIPPI, 39110
Plain-Language Summary
Department of Defense obligated $37.4 million to VERTEX AEROSPACE LLC for work described as: TH-57 MAINTENANCE Key points: 1. Significant contract value for specialized aviation support. 2. Vertex Aerospace LLC is the sole awardee, raising questions about competition. 3. The contract falls under 'Other Support Activities for Air Transportation', a niche sector. 4. Fixed-price contract type aims to control costs, but limited competition could inflate prices.
Value Assessment
Rating: fair
The contract value of $37.4M for a 275-day duration appears substantial. Without specific benchmarks for TH-57 maintenance, it's difficult to definitively assess value, but the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this substantial contract likely results in a higher cost to taxpayers than if multiple vendors had vied for the work.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The specialized nature of helicopter maintenance highlights potential single-source dependencies. Ensuring the quality and necessity of services provided is crucial given the sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for inflated pricing due to lack of competition.
- Contract duration is relatively short, but the nature of maintenance could lead to follow-on contracts.
Positive Signals
- Firm fixed-price contract aims to control costs.
- Specialized service for critical military assets.
Sector Analysis
This contract falls within the 'Other Support Activities for Air Transportation' sector, which includes specialized services like aircraft maintenance. Spending in this area can be significant, particularly for defense applications, and often involves niche providers.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a single, larger entity.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and that the services rendered are both necessary and of high quality. The Defense Contract Management Agency's role is critical here.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Potential for inflated pricing
- Lack of small business participation
- Limited transparency on justification for sole-source
Tags
other-support-activities-for-air-transpo, department-of-defense, ms, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.4 million to VERTEX AEROSPACE LLC. TH-57 MAINTENANCE
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 $37.4 million.
What is the period of performance?
Start: 2012-09-28. End: 2013-06-30.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. Without further details, it's presumed the agency followed established procedures. However, the absence of competition inherently limits price discovery, making robust negotiation and cost analysis critical to ensure fair pricing for taxpayers.
What are the risks associated with relying on a single vendor for critical TH-57 helicopter maintenance, particularly regarding long-term operational readiness and potential price escalations?
Sole-source reliance creates significant risk. It can lead to price escalations as the vendor faces no competitive pressure. Furthermore, operational readiness could be jeopardized if the vendor experiences financial instability, production issues, or decides to exit the market. This dependency necessitates strong contract management and contingency planning.
How does the $37.4M contract value compare to industry benchmarks for similar TH-57 helicopter maintenance services, considering the 275-day duration?
Direct comparison is challenging without access to proprietary data or specific service scope details. However, the $37.4M figure for approximately 9 months of specialized aviation maintenance is substantial. The lack of competition suggests this price may not reflect the most cost-effective market rate, warranting further investigation into the cost breakdown and justification.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 555 INDUSTRIAL DR S, MADISON, MS, 39110
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,389,045
Exercised Options: $37,389,045
Current Obligation: $37,389,045
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001912D0003
IDV Type: IDC
Timeline
Start Date: 2012-09-28
Current End Date: 2013-06-30
Potential End Date: 2013-06-30 00:00:00
Last Modified: 2024-05-14
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