Naval Air Systems Command awards $51.5M for TH-57 helicopter logistics support to Vertex Aerospace

Contract Overview

Contract Amount: $51,494,042 ($51.5M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2015-05-28

End Date: 2016-05-31

Contract Duration: 369 days

Daily Burn Rate: $139.6K/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. IGF::CT::IGF

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $51.5 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. IGF::CT::IGF Key points: 1. Contract provides comprehensive logistics services for the TH-57 fleet, encompassing organizational and depot-level maintenance. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. Vertex Aerospace LLC is the contractor, with the contract managed by the Defense Contract Management Agency. 4. The contract duration is 369 days, indicating a short-term support requirement. 5. The award type is a delivery order, suggesting it's part of a larger contract vehicle. 6. The primary service category is Other Support Activities for Air Transportation. 7. The contract is a Firm Fixed Price type, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the broader contract it belongs to or the specific services included. The total award amount of $51.5 million for approximately one year of comprehensive logistics support for a helicopter fleet appears substantial. However, without comparable contract data for similar helicopter fleet support or detailed breakdowns of the services provided, a definitive value-for-money assessment is difficult. The firm fixed-price structure implies that the contractor is responsible for managing costs to meet the agreed-upon price, which can be beneficial for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This method is generally preferred for maximizing competition and achieving the best possible pricing and value for the government. The number of bidders is not specified, but the use of this procurement method suggests a deliberate effort to solicit a wide range of offers.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, potentially saving taxpayer dollars by ensuring the government receives offers from multiple capable vendors vying for the contract.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who rely on the TH-57 helicopter fleet for training and operations. Services delivered include all logistics services and materials for organizational and depot-level maintenance. The geographic impact is likely concentrated around naval air stations where the TH-57 fleet is operated and maintained. Workforce implications include the employment of personnel by Vertex Aerospace LLC for logistics, maintenance, and support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract does not adequately account for all potential maintenance and logistics needs.
Dependence on a single contractor for critical logistics support could pose risks if performance issues arise.
The short duration of the delivery order (approx. 1 year) may not incentivize long-term investment in fleet readiness by the contractor.

Positive Signals

The use of full and open competition suggests a robust process to select the most capable and cost-effective provider.
Firm fixed-price contract shifts cost control responsibility to the contractor, potentially leading to efficiencies.
Awarding to Vertex Aerospace LLC, a known entity in aerospace support, may indicate confidence in their capabilities.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation support services. The market for contractor logistics support (CLS) is significant, with numerous companies specializing in maintaining military aircraft fleets. The TH-57 is a training helicopter, and contracts for its support are crucial for maintaining pilot training pipelines. Comparable spending benchmarks would involve analyzing other CLS contracts for similar training or light utility aircraft fleets across different military branches.

Small Business Impact

The data indicates that small business participation (sb) was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is Vertex Aerospace LLC, there is no explicit information on subcontracting plans with small businesses. The impact on the small business ecosystem would depend on whether Vertex Aerospace actively seeks small business subcontractors for specialized services or supplies, which is not detailed in this award notice.

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. Accountability measures would be embedded within the contract terms and conditions, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data or specific oversight reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Defense Contract Management Agency (DCMA) Oversight
Helicopter Logistics Support Services
Military Aircraft Maintenance Contracts
TH-57 Helicopter Program Support

Risk Flags

Potential for performance degradation over contract duration.
Dependence on single contractor for critical support.
Firm Fixed Price may not cover unforeseen technical challenges.
Short contract duration limits long-term strategic planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.5 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. IGF::CT::IGF

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 $51.5 million.

What is the period of performance?

Start: 2015-05-28. End: 2016-05-31.

What is the historical spending pattern for TH-57 helicopter logistics support by NAVAIR?

Analyzing historical spending for TH-57 logistics support requires accessing NAVAIR's contract databases over multiple fiscal years. Without direct access to this data, we can infer that spending would fluctuate based on fleet size, operational tempo, and maintenance requirements. Contracts for such support are typically awarded through competitive processes, with durations varying from short-term delivery orders to longer-term sustainment contracts. The total amount awarded for this specific delivery order ($51.5M) provides a snapshot for the 2015-2016 period, but a comprehensive understanding would necessitate a review of all prior and subsequent contracts related to the TH-57 fleet's lifecycle, including any sole-source or other-than-full-and-open competition awards that might have occurred due to specific circumstances or vendor capabilities.

How does Vertex Aerospace LLC's performance on similar contracts compare to this award?

Assessing Vertex Aerospace LLC's performance on similar contracts requires access to performance evaluations, past performance questionnaires, and potentially debriefing information from previous procurements. Publicly available data often includes contract awards and basic details but rarely delves into granular performance metrics or contractor ratings unless specific issues have led to public scrutiny or legal challenges. To compare performance, one would need to identify other logistics support contracts awarded to Vertex Aerospace for comparable aircraft types or military branches and analyze their execution regarding schedule adherence, cost control, quality of service, and customer satisfaction. Without such detailed comparative data, it's difficult to definitively benchmark their track record against this specific TH-57 CLS award.

What are the key performance indicators (KPIs) for this TH-57 CLS contract, and how are they measured?

Key Performance Indicators (KPIs) for a Contractor Logistics Support (CLS) contract like this typically focus on aspects critical to fleet readiness and operational availability. Common KPIs include aircraft mission capable rates, turnaround times for maintenance actions, parts availability, response times for logistical support requests, and adherence to maintenance schedules. These KPIs are usually defined within the contract's Performance Work Statement (PWS). Measurement methods often involve contractor self-reporting, government acceptance testing, data analysis from maintenance logs, and direct observation by government quality assurance representatives. Failure to meet these KPIs can result in contractually defined remedies, such as incentive fees, award deductions, or even termination for default.

What is the risk assessment associated with relying on a single contractor for TH-57 fleet support?

The primary risk associated with relying on a single contractor, even one selected through full and open competition, is the potential for service disruption if the contractor fails to perform adequately or faces financial instability. This dependence can reduce the government's leverage in negotiating future contracts or addressing performance issues. Mitigation strategies often include robust contract surveillance, clear performance standards, contingency planning, and maintaining the option to bring services in-house or transition to another contractor. For a critical function like fleet logistics support, the government would typically monitor the contractor's financial health and operational stability closely throughout the contract period.

How does the $51.5 million award compare to the estimated total cost of ownership for the TH-57 fleet during the contract period?

Determining how the $51.5 million award compares to the total cost of ownership (TCO) for the TH-57 fleet requires comprehensive data on the fleet's size, operational tempo, planned upgrades, fuel costs, personnel costs, and other sustainment expenses beyond direct contractor logistics support. The awarded amount represents the cost of specific logistics services and materials provided by Vertex Aerospace for a defined period (approximately one year). The TCO would encompass a much broader range of expenses. Without detailed fleet management data and projections, it's impossible to provide a direct comparison. However, the $51.5 million figure should be evaluated against the criticality of the TH-57's role (likely pilot training) and the potential costs associated with flight hour reductions or training delays if support were inadequate.

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: 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: $55,417,408

Exercised Options: $55,417,408

Current Obligation: $51,494,042

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $4,226,142

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001913D0007

IDV Type: IDC

Timeline