Naval Air Systems Command awards $43.7M for TH-57 helicopter logistics support to Vertex Aerospace LLC

Contract Overview

Contract Amount: $43,722,845 ($43.7M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2013-06-18

End Date: 2014-05-31

Contract Duration: 347 days

Daily Burn Rate: $126.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE NAVAL AIR SYSTEMS COMMAND (NAVAIR) HAS A REQUIREMENT TO PROVIDE TH-57 CONTRACTOR LOGISTICS SUPPORT (CLS), WHICH CONSISTS OF ALL LOGISTICS SERVICES AND MATERIALS FOR ORGANIZATIONAL AND DEPOT LEVEL SERVICES REQUIRED TO SUPPORT AND MAINTAIN THE TH-57 FLEET.

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $43.7 million to VERTEX AEROSPACE LLC for work described as: THE NAVAL AIR SYSTEMS COMMAND (NAVAIR) HAS A REQUIREMENT TO PROVIDE TH-57 CONTRACTOR LOGISTICS SUPPORT (CLS), WHICH CONSISTS OF ALL LOGISTICS SERVICES AND MATERIALS FOR ORGANIZATIONAL AND DEPOT LEVEL SERVICES REQUIRED TO SUPPORT AND MAINTAIN THE TH-57 FLEET. Key points: 1. Contract provides comprehensive logistics services for the TH-57 fleet, encompassing organizational and depot-level maintenance. 2. Vertex Aerospace LLC secured the contract, indicating a specific capability in supporting rotary-wing aircraft logistics. 3. The contract duration of approximately one year suggests a focused operational period for the support services. 4. Awarded under a Firm Fixed Price contract type, aiming to control costs and provide predictable expenditures. 5. The contract was awarded through Full and Open Competition, suggesting a robust bidding process. 6. The North American Industry Classification System (NAICS) code 488190 points to specialized support activities for air transportation.

Value Assessment

Rating: fair

The total contract value of $43.7 million for approximately one year of logistics support for a specific helicopter fleet appears to be within a reasonable range for such specialized services. Benchmarking against similar contracts for helicopter fleet support would provide a clearer picture of value for money. The firm fixed price structure suggests an effort to manage costs, but the absence of detailed cost breakdowns makes a precise value assessment challenging without further data on the scope of services and materials provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive environment where multiple companies likely vied for the contract. The number of bidders is not specified, but the process itself implies that the government sought the best value through a broad solicitation, which typically leads to more competitive pricing.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple vendors, leading to potentially better service at a lower cost.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who operate and maintain the TH-57 helicopter fleet. The contract ensures the continued operational readiness and safety of the TH-57 aircraft through essential logistics and maintenance. Services are likely concentrated at naval air stations where the TH-57 fleet is based and operated. The contract supports a specialized segment of the aerospace and defense industry workforce involved in aviation logistics and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the fixed-price agreement.
Dependence on a single contractor for critical logistics support could pose a risk if performance falters.
The relatively short duration of the contract may limit long-term strategic planning for fleet sustainment.

Positive Signals

Firm Fixed Price contract type helps to control costs and provides budget certainty.
Full and Open Competition suggests a robust process to select the most capable and cost-effective provider.
Award to Vertex Aerospace LLC indicates a known entity in the aerospace support sector.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation support services. The market for such specialized logistics support is driven by the operational needs of military aviation fleets. While the TH-57 is a specific training helicopter, the services provided are representative of broader trends in military aircraft sustainment, where contractors play a crucial role in maintaining readiness and managing complex supply chains. Comparable spending benchmarks would involve analyzing other contracts for similar fleet support services across different branches of the military.

Small Business Impact

The data indicates that small business participation (SB set-aside and subcontracting) was not a primary focus for this specific contract, as 'sb' is listed as false. This suggests that the prime contract was not specifically set aside for small businesses, and there is no explicit mention of mandatory small business subcontracting goals. The impact on the small business ecosystem would depend on whether Vertex Aerospace LLC engages small businesses as subcontractors for specialized services or materials, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are inherent in the Firm Fixed Price contract type, which incentivizes the contractor to meet specifications within budget. Transparency is facilitated through the contract award process, which was conducted under Full and Open Competition. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Helicopter Logistics Support Contracts
Defense Contract Management Agency (DCMA) Oversight
Firm Fixed Price Service Contracts
Aerospace Support Services

Risk Flags

Potential for performance issues if contractor lacks sufficient specialized expertise.
Risk of cost overruns if contract scope is not clearly defined or if unforeseen issues arise.
Dependence on a single vendor for critical support services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.7 million to VERTEX AEROSPACE LLC. THE NAVAL AIR SYSTEMS COMMAND (NAVAIR) HAS A REQUIREMENT TO PROVIDE TH-57 CONTRACTOR LOGISTICS SUPPORT (CLS), WHICH CONSISTS OF ALL LOGISTICS SERVICES AND MATERIALS FOR ORGANIZATIONAL AND DEPOT LEVEL SERVICES REQUIRED TO SUPPORT AND MAINTAIN THE TH-57 FLEET.

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 $43.7 million.

What is the period of performance?

Start: 2013-06-18. End: 2014-05-31.

What is the historical spending pattern for TH-57 helicopter logistics support?

Analyzing historical spending for TH-57 logistics support requires access to past contract awards and modifications for this specific aircraft type. Without that data, it's difficult to establish a precise pattern. However, the current award of $43.7 million for approximately one year suggests a significant but potentially episodic investment in maintaining this fleet. Typically, such contracts are awarded periodically based on the operational lifecycle of the aircraft and the availability of organic military maintenance capabilities. Fluctuations in spending could be influenced by fleet size, operational tempo, and the introduction of new technologies or maintenance procedures. Understanding the frequency and value of previous contracts would reveal whether this award represents a typical expenditure or an outlier.

How does Vertex Aerospace LLC's performance on similar contracts compare?

Assessing Vertex Aerospace LLC's performance on similar contracts requires a review of their past performance evaluations and contract history, particularly for logistics support of military aircraft. Information such as past performance ratings, any contract disputes, or awards for exceptional performance would be crucial. If Vertex has a strong track record with other helicopter or fixed-wing aircraft logistics contracts, it suggests a lower performance risk for this TH-57 contract. Conversely, any history of underperformance, missed deadlines, or quality issues on comparable contracts would raise concerns about the reliability and effectiveness of their support for the TH-57 fleet. A comprehensive analysis would involve examining data from sources like the Contractor Performance Assessment Reporting System (CPARS).

What are the key performance indicators (KPIs) for this contract, and how are they measured?

Key Performance Indicators (KPIs) for a contract like this typically focus on ensuring the operational readiness and availability of the TH-57 fleet. These could include metrics such as aircraft mission capable rates, turnaround times for maintenance and repairs, parts availability, and adherence to scheduled maintenance. The contract likely specifies these KPIs and the methods for measuring them, possibly through regular reporting by Vertex Aerospace LLC and verification by the Naval Air Systems Command (NAVAIR) or DCMA. Failure to meet these KPIs could result in penalties or impact future contract awards, providing a mechanism for performance accountability. The specific KPIs and measurement methodologies are usually detailed within the contract's Statement of Work (SOW).

What is the estimated value of the materials and labor components within this contract?

The provided data does not break down the $43.7 million contract value into specific components for materials and labor. As a Firm Fixed Price contract, the contractor, Vertex Aerospace LLC, is responsible for managing these costs to ensure profitability. Typically, such logistics support contracts involve a significant portion allocated to labor for skilled technicians and maintenance personnel, as well as costs for spare parts, consumables, and potentially specialized equipment. Without a detailed cost breakdown from the contract itself, estimating the precise split between materials and labor is speculative. However, for complex aviation support, labor often constitutes a substantial percentage due to the expertise required.

What is the strategic importance of the TH-57 fleet and its logistics support?

The TH-57 Sea Ranger is primarily used by the U.S. Navy and Marine Corps for helicopter training, specifically for student naval aviators. Therefore, the strategic importance of its logistics support lies in ensuring the continuous availability of training platforms. A well-maintained TH-57 fleet is critical for producing qualified pilots, which directly impacts the readiness of the naval aviation forces. Disruptions in logistics or maintenance could delay pilot training pipelines, potentially affecting the overall force structure and operational capabilities. This contract ensures that the training mission can proceed without interruption due to aircraft availability issues.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001910R0097

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3 Technologies, Inc. (UEI: 008898884)

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: $43,722,845

Exercised Options: $43,722,845

Current Obligation: $43,722,845

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001913D0007

IDV Type: IDC

Timeline