DoD's $104M Aircraft Maintenance Contract with Vertex Aerospace: A Deep Dive into Value and Competition

Contract Overview

Contract Amount: $104,408,674 ($104.4M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2014-09-29

End Date: 2019-07-31

Contract Duration: 1,766 days

Daily Burn Rate: $59.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICST SUPPORT (CLS)

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $104.4 million to VERTEX AEROSPACE LLC for work described as: IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICST SUPPORT (CLS) Key points: 1. The contract awarded to Vertex Aerospace LLC for aircraft maintenance and logistics support represents a significant investment by the Department of Defense. 2. Analysis of the contract's value, competition, and sector context is crucial for understanding its overall effectiveness and taxpayer impact. 3. Potential risks and oversight mechanisms need careful examination to ensure optimal resource allocation and accountability. 4. The contract falls within the Defense sector, specifically related to air transportation support activities.

Value Assessment

Rating: good

The contract's total value of $104.4 million over its period of performance suggests a substantial commitment. Benchmarking against similar aircraft maintenance contracts would provide a clearer picture of its pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing and better value for the government.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer impact, suggesting that the government likely secured favorable pricing through a competitive bidding process.

Public Impact

Ensures critical aircraft maintenance and logistics support for U.S. Navy operations. Supports national defense readiness by maintaining operational aircraft capabilities. Provides economic activity through contract performance and associated supply chains. Highlights the government's reliance on private sector expertise for specialized military support.

Waste & Efficiency Indicators

Waste Risk Score: 59 / 10

Warning Flags

Contract duration of 1766 days may present long-term cost management challenges.
Lack of specific small business participation data requires further investigation.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm Fixed Price contract type helps control costs.
Supports critical U.S. Navy aviation readiness.

Sector Analysis

This contract falls under the Defense sector, specifically within 'Other Support Activities for Air Transportation'. The total value of $104.4 million is significant for this sub-sector, reflecting the complexity and importance of maintaining military aircraft.

Small Business Impact

The data indicates that small business participation was not a specific set-aside or requirement for this contract (ss: false, sb: false). Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), indicating established oversight mechanisms. However, the specific details of ongoing oversight and accountability measures are not provided in this data.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Long contract duration may lead to price inflexibility.
Lack of explicit small business participation data.
Potential for cost overruns for the contractor under fixed price.
Dependence on a single contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $104.4 million to VERTEX AEROSPACE LLC. IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICST SUPPORT (CLS)

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 $104.4 million.

What is the period of performance?

Start: 2014-09-29. End: 2019-07-31.

What was the competitive landscape like during the bidding process for this contract, and how did it influence the final price?

The contract was awarded under 'full and open competition,' suggesting that multiple qualified vendors were invited to bid. This competitive environment typically drives down prices as companies vie for the contract. The firm fixed price structure further incentivizes efficiency from the contractor, as any cost overruns are borne by Vertex Aerospace, ultimately benefiting the taxpayer through a predictable expenditure.

Are there any potential risks associated with the long duration of this contract (1766 days) and the firm fixed price structure?

A long contract duration can pose risks if market conditions or technological requirements change significantly, potentially making the fixed price less advantageous over time. For the government, there's a risk of paying above market if costs decrease, while the contractor bears the risk of cost increases. Effective contract management and potential for contract modifications are key to mitigating these risks.

How does the performance of Vertex Aerospace on this contract contribute to the overall effectiveness of U.S. Navy aviation readiness?

The effectiveness of Vertex Aerospace's performance directly impacts the U.S. Navy's ability to maintain its aircraft in operational readiness. Reliable and efficient maintenance and logistics support are critical for ensuring that aircraft are available when needed for training, deployment, and combat missions. Positive performance would translate to higher aircraft availability rates and reduced mission delays.

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: N0001912R0001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vertex Aerospace Services Corp. (UEI: 081292432)

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: $104,408,674

Exercised Options: $104,408,674

Current Obligation: $104,408,674

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $14,748,407

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001914D0011

IDV Type: IDC

Timeline