DoD Awards Vertex Aerospace $122M Aircraft Maintenance Contract Amidst Full and Open Competition
Contract Overview
Contract Amount: $122,389,153 ($122.4M)
Contractor: Vertex Aerospace LLC
Awarding Agency: Department of Defense
Start Date: 2015-10-01
End Date: 2020-09-30
Contract Duration: 1,826 days
Daily Burn Rate: $67.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
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
Plain-Language Summary
Department of Defense obligated $122.4 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 value of $122.4M awarded to Vertex Aerospace LLC for aircraft maintenance and logistics. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 5 years, ending September 30, 2020. 4. The contract falls under 'Other Support Activities for Air Transportation' (NAICS 488190).
Value Assessment
Rating: fair
The contract type is Cost No Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.
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. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value for money in aircraft maintenance and logistics support.
Public Impact
Ensures operational readiness of U.S. Navy aircraft through essential maintenance and logistics. Supports Vertex Aerospace LLC, a key contractor in the defense sector. Impacts the broader aerospace and defense industry through government procurement.
Waste & Efficiency Indicators
Waste Risk Score: 67 / 10
Warning Flags
- Cost No Fee contract type may lack cost control incentives.
- Limited visibility into specific performance metrics and potential cost efficiencies.
Positive Signals
- Awarded through full and open competition, promoting market fairness.
- Supports critical defense logistics and maintenance operations.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft support services. Spending benchmarks for similar logistics and maintenance contracts can vary significantly based on aircraft type and service scope.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight is likely managed by the Defense Contract Management Agency (DCMA). The 'Cost No Fee' structure necessitates robust oversight to ensure contract objectives are met without excessive cost to the government.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost No Fee contract type
- Lack of detailed performance metrics
- Limited visibility into cost drivers
- Potential for cost overruns without strong oversight
Tags
other-support-activities-for-air-transpo, department-of-defense, ms, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $122.4 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 $122.4 million.
What is the period of performance?
Start: 2015-10-01. End: 2020-09-30.
What specific maintenance and logistics services are included under this contract, and how do they align with the $122M budget?
The contract details are for 'Aircraft Maintenance and Logistics Support.' While the total award is $122.4M, specific service breakdowns are not provided in this summary. A detailed review of the contract's Statement of Work (SOW) would be necessary to understand the scope of services and how the budget is allocated across maintenance tasks, parts, labor, and logistical operations.
What are the potential risks associated with a 'Cost No Fee' contract for aircraft maintenance, and how are they mitigated?
A 'Cost No Fee' contract carries the risk of the contractor not being incentivized to control costs, potentially leading to overspending. Mitigation relies heavily on strong government oversight, detailed performance metrics, and clear contract terms to ensure the government receives the required services at a reasonable cost, even without a direct profit motive tied to cost efficiency.
How does the performance of Vertex Aerospace LLC on this contract compare to industry benchmarks for aircraft maintenance and logistics support?
Without specific performance data (e.g., on-time delivery, quality of work, cost variance), it's impossible to benchmark Vertex Aerospace's performance. Industry benchmarks for aircraft maintenance are highly variable, depending on the aircraft type, complexity of maintenance, and specific support requirements. A comparative analysis would require access to performance reports and cost data from similar contracts.
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: COST NO FEE (S)
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: $122,389,153
Exercised Options: $122,389,153
Current Obligation: $122,389,153
Subaward Activity
Number of Subawards: 38
Total Subaward Amount: $6,017,826
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
Start Date: 2015-10-01
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2021-09-27
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