NAVAIR Awards $53M for TH-57 Contractor Logistics Support to Vertex Aerospace

Contract Overview

Contract Amount: $53,169,764 ($53.2M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2014-05-30

End Date: 2015-05-31

Contract Duration: 366 days

Daily Burn Rate: $145.3K/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 $53.2 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 covers comprehensive logistics services and materials for the TH-57 fleet. 2. Vertex Aerospace LLC is the sole awardee for this delivery order. 3. The contract utilizes a Firm Fixed Price (FFP) type, aiming for cost certainty. 4. This award falls under the 'Other Support Activities for Air Transportation' NAICS code.

Value Assessment

Rating: good

The total award amount is $53.2 million. Benchmarking against similar logistics support contracts for aircraft fleets is difficult without more granular data on service scope and duration. However, the fixed-price nature suggests an expectation of defined costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were considered. The delivery order mechanism suggests this is part of a larger contract vehicle, and the price discovery would have occurred during the initial competition for that vehicle.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers, as it promotes competitive pricing. The fixed-price contract further helps in managing taxpayer exposure to cost overruns.

Public Impact

Ensures continued operational readiness of the TH-57 training aircraft fleet. Supports critical training missions for naval aviators. Provides essential maintenance and spare parts, minimizing downtime.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for scope creep if not managed tightly.
Reliance on a single contractor for critical support.

Positive Signals

Full and open competition utilized.
Firm Fixed Price contract type.
Supports essential military training operations.

Sector Analysis

This contract falls within the Defense sector, specifically supporting aviation logistics. Spending benchmarks for similar CLS contracts can vary significantly based on aircraft type, age, and operational tempo. The $53M award for a single delivery order is substantial but typical for comprehensive fleet support.

Small Business Impact

The data indicates the prime contractor is Vertex Aerospace LLC. There is no explicit information provided regarding small business subcontracting participation in this specific delivery order. Further investigation would be needed to determine if small businesses are involved.

Oversight & Accountability

The Department of Defense, through the Naval Air Systems Command, is responsible for overseeing this contract. The Defense Contract Management Agency (DCMA) likely provides contract administration. Oversight would focus on ensuring Vertex Aerospace meets all contractual obligations for logistics support and material provision.

Related Government Programs

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

Risk Flags

Contract awarded as a Delivery Order under a larger contract vehicle.
No explicit mention of small business subcontracting.
Limited detail on specific performance metrics and KPIs.
Potential for long-term reliance on a single contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.2 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 $53.2 million.

What is the period of performance?

Start: 2014-05-30. End: 2015-05-31.

What is the specific breakdown of services and materials included in the TH-57 CLS, and how does this compare to industry standards for similar aircraft?

The provided data states 'all logistics services and materials for organizational and depot level services required to support and maintain the TH-57 fleet.' A detailed breakdown is not available. Industry standards for CLS typically include maintenance, repair, overhaul, spare parts management, technical data, and training. Comparing costs requires a granular understanding of the specific maintenance schedules, component lifecycles, and required support levels for the TH-57.

What were the key factors that led to Vertex Aerospace LLC being selected, and were there any significant price differences among the competing bids?

As the contract was awarded under 'full and open competition,' Vertex Aerospace LLC was likely selected based on a combination of factors including technical approach, past performance, and price, as evaluated against the solicitation's criteria. Specific details on competing bids and the evaluation process are not provided. However, the use of a Firm Fixed Price contract suggests that price was a significant, if not primary, consideration in the final award decision.

How will the effectiveness of the TH-57 CLS be measured, and what are the key performance indicators (KPIs) to ensure mission readiness?

The effectiveness of the TH-57 CLS will likely be measured through Key Performance Indicators (KPIs) related to aircraft availability, maintenance turnaround times, spare parts fill rates, and adherence to scheduled maintenance. While specific KPIs are not detailed in the provided data, NAVAIR would typically establish performance standards and monitor Vertex Aerospace's performance against these metrics to ensure the TH-57 fleet remains mission-ready for pilot training.

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: L3harris Technologies, Inc (UEI: 004203337)

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: $53,169,764

Exercised Options: $53,169,764

Current Obligation: $53,169,764

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $1,262,693

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001913D0007

IDV Type: IDC

Timeline