Vertex Aerospace LLC contract for aircraft maintenance and logistics support awarded by DoD totals over $43.9 million

Contract Overview

Contract Amount: $43,911,938 ($43.9M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2014-10-14

End Date: 2019-09-30

Contract Duration: 1,812 days

Daily Burn Rate: $24.2K/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 LOGISTICS SUPPORT (CLS)

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $43.9 million to VERTEX AEROSPACE LLC for work described as: IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT (CLS) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The contract duration of 1812 days indicates a significant, long-term support requirement. 4. The contract was awarded by the Defense Contract Management Agency, a key DoD entity. 5. The North American Industry Classification System (NAICS) code 488190 points to support activities for air transportation. 6. The contract was issued as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific services rendered and the scope of work. However, the total award amount of over $43.9 million over approximately five years suggests a substantial investment in aircraft maintenance and logistics. Further analysis would require comparing the per-unit costs or service rates against similar contracts for comparable aircraft types and maintenance levels. The firm fixed-price nature of the contract provides cost certainty for the government, but the ultimate value depends on the contractor's efficiency and the market rates for these specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best value available in the market for these critical aircraft maintenance and logistics services.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring that the government receives competitive bids, leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the U.S. military units relying on the supported aircraft for operational readiness. Services delivered include essential aircraft maintenance and logistics support, crucial for maintaining fleet availability. The geographic impact is likely concentrated around the operational bases or maintenance facilities where the aircraft are stationed or serviced. Workforce implications include employment opportunities for skilled aviation mechanics, technicians, and logistics personnel, both directly by the contractor and indirectly through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of the true competitive intensity.
The duration of the contract (nearly 5 years) means that market conditions and technology could change significantly, potentially impacting long-term value.
Without a breakdown of services, it's difficult to assess if the pricing is competitive for specific maintenance tasks.
The contract's status as a Delivery Order suggests it might be one of many under a larger vehicle, making its standalone risk assessment incomplete.

Positive Signals

Awarded via full and open competition, indicating a robust and accessible bidding process.
Firm Fixed Price contract structure transfers cost overrun risk to the contractor.
The contract supports critical defense operations, ensuring readiness of air assets.
The contractor, Vertex Aerospace LLC, is likely experienced in providing these types of services.

Sector Analysis

The aerospace and defense industry is characterized by high technological complexity, stringent quality requirements, and significant government investment. Aircraft maintenance and logistics support are critical components of this sector, ensuring the operational readiness of military fleets. The market for these services is substantial, with numerous specialized contractors vying for government contracts. This specific contract fits within the broader category of aviation support services, which often involve long-term sustainment and maintenance agreements to keep complex aircraft operational.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this contract. This suggests that the contract was not specifically targeted towards small businesses. Consequently, the direct impact on the small business ecosystem may be limited unless Vertex Aerospace LLC actively engages small businesses as subcontractors. Further investigation into subcontracting plans would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract is likely 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 obligates the contractor to deliver services within the agreed-upon price. Transparency would be enhanced by public reporting of performance metrics and any audits or reviews conducted by oversight bodies or the Inspector General, though specific details are not provided here.

Related Government Programs

Aircraft Maintenance Services
Logistics Support Services
Defense Contract Management
Air Transportation Support
Military Aviation Sustainment

Risk Flags

Potential for supply chain disruptions impacting parts availability.
Risk of contractor performance issues affecting aircraft readiness.
Long contract duration may expose government to changing market conditions or technology.
Lack of specific bidder count limits assessment of competitive intensity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.9 million to VERTEX AEROSPACE LLC. IGF::CT::IGF T-45 U.S.N. AIRCRAFT MAINTENANCE AND LOGISTICS 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 $43.9 million.

What is the period of performance?

Start: 2014-10-14. End: 2019-09-30.

What specific types of aircraft maintenance and logistics support are covered under this contract?

The provided data does not specify the exact types of aircraft maintenance and logistics support. However, the NAICS code 488190, 'Other Support Activities for Air Transportation,' suggests a broad range of services. This could include scheduled and unscheduled maintenance, repair and overhaul, component replacement, supply chain management for parts, ground support, and potentially technical support for various military aircraft. A detailed statement of work (SOW) or contract line item numbers (CLINs) would be required to ascertain the precise scope of services.

How does the $43.9 million award compare to historical spending on similar aircraft maintenance contracts?

Comparing this $43.9 million award requires identifying similar contracts based on aircraft type, service scope, and duration. Without this comparative data, it's difficult to definitively state whether this amount is high or low. However, for a contract spanning nearly five years and covering comprehensive maintenance and logistics for potentially multiple aircraft platforms, this figure appears within a reasonable range for significant defense sustainment efforts. Historical spending patterns for similar DoD maintenance contracts would provide a more robust benchmark for assessing value for money.

What is Vertex Aerospace LLC's track record in performing similar defense contracts?

Vertex Aerospace LLC's track record in performing similar defense contracts is a crucial factor in assessing performance risk. While the data indicates they were awarded this contract, it doesn't detail their past performance history. A thorough analysis would involve reviewing past performance evaluations, any contract disputes, on-time delivery rates, and overall client satisfaction from previous government contracts. Companies with a proven history of successful performance in aircraft maintenance and logistics are generally considered lower risk.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for this contract would likely focus on ensuring aircraft availability, mission readiness, and efficient turnaround times for maintenance. Examples could include metrics such as aircraft mission capable rates, mean time between failures (MTBF), mean time to repair (MTTR), on-time delivery of parts and services, and adherence to quality standards for maintenance performed. The specific KPIs would be defined in the contract's performance work statement (PWS) and would be used by the DCMA to monitor Vertex Aerospace LLC's performance.

What is the potential impact of this contract on the broader aerospace and defense supply chain?

This contract, valued at over $43.9 million, has a notable impact on the aerospace and defense supply chain. It creates demand for specialized labor (mechanics, technicians, logisticians) and materials (spare parts, consumables, tooling). Vertex Aerospace LLC, as the prime contractor, will likely engage numerous subcontractors and suppliers, potentially including small businesses, to fulfill its obligations. This contract supports the ecosystem of companies that provide sustainment services for military aviation assets, contributing to economic activity within the sector.

Are there any identified risks associated with this contract, such as cost overruns or performance deficiencies?

The primary risk mitigation for this contract is its Firm Fixed Price (FFP) structure, which places the burden of cost control on Vertex Aerospace LLC. However, risks can still arise. Potential risks include unforeseen technical challenges with aircraft systems, supply chain disruptions for critical parts, or contractor performance issues leading to delays or quality defects. The contract's duration also presents a risk of market shifts or obsolescence. The Defense Contract Management Agency (DCMA) would be responsible for monitoring performance and identifying any emerging risks.

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.

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: $43,911,938

Exercised Options: $43,911,938

Current Obligation: $43,911,938

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $2,100,881

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001914D0011

IDV Type: IDC

Timeline