Vertex Aerospace LLC awarded $26.5M for T-45 aircraft logistics support across three naval air stations

Contract Overview

Contract Amount: $26,499,654 ($26.5M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2014-03-31

End Date: 2016-09-30

Contract Duration: 914 days

Daily Burn Rate: $29.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF CONTRACTOR LOGISTICS SUPPORT FOR T-45 AIRCRAFT AT NAS KINGSVILLE, TX, NAS MERIDIAN, MS AND NAS PENSACOLA, FL.

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to VERTEX AEROSPACE LLC for work described as: IGF::CT::IGF CONTRACTOR LOGISTICS SUPPORT FOR T-45 AIRCRAFT AT NAS KINGSVILLE, TX, NAS MERIDIAN, MS AND NAS PENSACOLA, FL. Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Limited competition due to the nature of the requirement. 3. Contract duration of approximately 2.5 years. 4. Services provided at multiple key naval air stations. 5. No small business set-aside noted for this contract. 6. Contract value falls within a moderate range for specialized aviation support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable sole-source awards. The firm-fixed-price structure suggests an attempt to control costs, but the absence of competition limits the ability to assess if the pricing is truly competitive. The total award amount of $26.5 million over roughly 30 months averages to approximately $883,000 per month, which needs to be evaluated against the scope of logistics services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The reasons for sole-sourcing are not detailed in the provided data, but typically this occurs when only one vendor can meet the specialized requirements, or for reasons of urgency or national security. The lack of competition means there was no opportunity for multiple bidders to offer proposals, potentially impacting price discovery and the government's ability to secure the best possible value through market forces.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the award was not subject to a bidding process that could drive down costs.

Public Impact

Naval air stations in Kingsville, TX, Meridian, MS, and Pensacola, FL benefit from continued T-45 aircraft operational readiness. Ensures the availability of critical logistics and support services for T-45 training aircraft. Supports the training pipeline for naval aviators. Indirectly impacts the workforce at these naval installations through sustained operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited value for taxpayer funds.
Sole-source awards can reduce transparency and accountability in the procurement process.
Absence of performance metrics in the provided data makes it difficult to assess service quality.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Award supports critical training aircraft operations for naval aviation.
Services are being provided at multiple, geographically dispersed naval installations.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation support services. The market for specialized aircraft logistics and maintenance is often characterized by high barriers to entry due to technical expertise, certifications, and established relationships with defense agencies. While specific market size data for T-45 logistics is not provided, the overall defense aviation support industry represents a significant portion of federal spending, with contracts often being long-term and highly specialized.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Consequently, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The prime contractor, Vertex Aerospace LLC, is responsible for fulfilling the contract requirements, and any subcontracting decisions would be at their discretion, not mandated by a set-aside provision.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet performance and delivery requirements. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is limited due to the sole-source nature of the award, as detailed justifications and competitive analyses are not publicly available.

Related Government Programs

T-45 Goshawk Aircraft Program
Naval Aviation Training Command Support Contracts
Defense Logistics Support Services
Aircraft Maintenance and Repair Contracts

Risk Flags

Sole-source award limits competitive pricing.
Lack of performance data hinders value assessment.
Potential for cost overruns without competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to VERTEX AEROSPACE LLC. IGF::CT::IGF CONTRACTOR LOGISTICS SUPPORT FOR T-45 AIRCRAFT AT NAS KINGSVILLE, TX, NAS MERIDIAN, MS AND NAS PENSACOLA, FL.

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 $26.5 million.

What is the period of performance?

Start: 2014-03-31. End: 2016-09-30.

What is Vertex Aerospace LLC's track record with similar defense logistics contracts?

Vertex Aerospace LLC has a history of providing aviation support services to the Department of Defense. While specific details on past contracts for T-45 aircraft logistics are not provided in this data snippet, the company's involvement suggests prior experience in the defense aviation sector. A comprehensive assessment would require reviewing their contract history, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or accolades related to similar service provision. Their ability to secure this sole-source award implies a level of trust and perceived capability by the awarding agency, likely built upon previous performance or unique qualifications.

How does the $26.5 million award compare to similar T-45 logistics support contracts?

Direct comparison of the $26.5 million award for T-45 aircraft logistics support is difficult without access to historical data on similar contracts, especially given this was a sole-source award. Typically, the value of such contracts depends on the scope of services (e.g., maintenance, repair, parts, ground support), the duration, and the number of aircraft supported. The average monthly cost of approximately $883,000 ($26.5M / 30 months) provides a baseline. To assess value, this figure would need to be benchmarked against contracts for comparable aircraft types or against internal cost estimates if the government had performed its own cost analysis prior to the sole-source award. The lack of competition limits the ability to determine if this represents a competitive market price.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for reduced value for taxpayer money due to the absence of competition. Without multiple bids, there is less pressure on the contractor to offer the lowest possible price, potentially leading to cost inefficiencies. Another risk is contractor performance; if Vertex Aerospace LLC underperforms, the government has limited immediate alternatives due to the sole-source nature, potentially requiring contract modifications or lengthy re-procurement processes. Furthermore, reliance on a single provider can create vulnerabilities if the contractor faces financial instability or operational disruptions. The lack of publicly available performance data also makes it harder to proactively identify and mitigate risks.

How effective is the T-45 aircraft training program, and how does this contract contribute to its effectiveness?

The T-45 Goshawk is a primary jet trainer used by the U.S. Navy and Marine Corps to train future naval aviators. Its effectiveness is crucial for ensuring a pipeline of qualified pilots. This contract directly contributes to the effectiveness of the T-45 program by ensuring the availability of essential logistics support services. Reliable maintenance, repair, and parts management are critical for keeping the training aircraft operational and minimizing downtime. By securing these services through Vertex Aerospace LLC, the contract aims to maintain the readiness of the T-45 fleet, thereby supporting the uninterrupted training of naval aviators and contributing to overall mission readiness.

What are the historical spending patterns for T-45 aircraft logistics support?

Historical spending patterns for T-45 aircraft logistics support are not detailed in the provided data. However, given the T-45 has been in service for several decades, it is reasonable to assume that the U.S. Navy has consistently allocated funds for its maintenance and operational support. Spending would likely fluctuate based on the age of the fleet, the intensity of training operations, and the contracting strategies employed over time (e.g., competitive vs. sole-source awards, in-house vs. contractor support). This specific $26.5 million award represents a portion of that ongoing expenditure. A full analysis would require examining multi-year budget allocations and contract awards related to the T-45 program.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001913R0089

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: $26,499,654

Exercised Options: $26,499,654

Current Obligation: $26,499,654

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001914D0019

IDV Type: IDC

Timeline