Naval Air Systems Command awards $30.5M for TH-57 helicopter logistics support to Vertex Aerospace LLC

Contract Overview

Contract Amount: $30,519,088 ($30.5M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2016-05-24

End Date: 2017-05-31

Contract Duration: 372 days

Daily Burn Rate: $82.0K/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 $30.5 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, indicating a specific provider for these critical support services. 4. The contract duration is 372 days, suggesting a short-term or interim support requirement. 5. The award type is a delivery order, implying it's part of a larger contract vehicle. 6. The pricing structure is firm-fixed-price, 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 rendered. The total award amount of $30.5 million for approximately one year of support for a helicopter fleet suggests a significant operational cost. However, without detailed breakdowns of labor, parts, and overhead, a precise value-for-money assessment is difficult. Comparing it to similar CLS contracts for other aircraft types would provide better context, but such data is not readily available.

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 typically leads to a more robust price discovery process as multiple companies vie for the contract. The number of bidders is not specified, but the use of full and open competition generally implies a competitive environment that should theoretically drive down costs and improve service quality.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible price and service for the government by encouraging multiple vendors to offer their best terms.

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 support and maintenance required to keep the TH-57 aircraft operational. The geographic impact is likely concentrated at naval air stations where the TH-57 fleet is based and maintained. Workforce implications include the employment of skilled technicians and logistics personnel by Vertex Aerospace LLC.

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 unforeseen maintenance needs.
Dependence on a single contractor for critical logistics support could pose a risk if performance issues arise.
The short duration of the contract may indicate a transitional phase, potentially leading to future contract uncertainty or higher costs if not managed well.

Positive Signals

Awarded through full and open competition, suggesting a competitive environment that should drive value.
Firm-fixed-price contract structure places cost control responsibility on the contractor.
Specific focus on logistics support for the TH-57 fleet indicates tailored service delivery.

Sector Analysis

The aerospace and defense logistics sector is a critical component of military readiness, involving the maintenance, repair, and supply chain management of aircraft and other defense assets. This contract for TH-57 Contractor Logistics Support (CLS) fits within this sector by ensuring the operational availability of a specific training or utility helicopter fleet. The market for CLS is competitive, with various companies offering specialized services. Spending benchmarks for CLS can vary widely based on aircraft type, age, and operational tempo, but typically represent a significant portion of an aircraft program's lifecycle cost.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no specific mention of subcontracting plans for small businesses. This suggests that the primary award went to a larger entity, and opportunities for small businesses would likely be through subcontracting if Vertex Aerospace LLC chooses to engage them. Without explicit subcontracting requirements, the direct impact on the small business ecosystem for this specific contract may be limited.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Naval Air Systems Command (NAVAIR) and the Defense Contract Management Agency (DCMA). These agencies are responsible for ensuring contractor performance, compliance with contract terms, and proper use of government funds. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Operations
TH-57 Helicopter Program
Contractor Logistics Support (CLS)
Department of Defense Aviation Maintenance

Risk Flags

Potential for performance issues if contractor lacks sufficient experience with TH-57 specific systems.
Risk associated with firm-fixed-price if unforeseen maintenance needs arise.
Dependence on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 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 $30.5 million.

What is the period of performance?

Start: 2016-05-24. End: 2017-05-31.

What is the historical spending pattern for TH-57 logistics support, and how does this award compare?

Historical spending data for TH-57 logistics support prior to this specific delivery order is not provided in the given data. To assess how this $30.5 million award compares, one would need to examine previous contracts for TH-57 CLS, including their duration, scope, and total value. Factors such as inflation, changes in operational requirements, and fleet size would influence year-over-year comparisons. Without this historical context, it's difficult to determine if this award represents an increase, decrease, or stable level of spending for TH-57 support. Analyzing past contract awards for similar helicopter types or training aircraft could offer a proxy for comparison, but direct historical data for the TH-57 is essential for a precise assessment.

What is Vertex Aerospace LLC's track record with similar logistics support contracts for military aircraft?

Vertex Aerospace LLC's track record with similar logistics support contracts is a key factor in assessing performance risk. While the provided data confirms Vertex Aerospace LLC as the contractor for this TH-57 CLS, it does not detail their past performance on comparable contracts. A thorough analysis would involve reviewing their contract history with the Department of Defense and other government agencies, specifically looking for experience with rotary-wing aircraft or similar training platforms. Performance metrics, past performance evaluations, and any history of contract disputes or corrective actions would be crucial. A strong track record with similar CLS contracts would indicate a lower risk of performance issues and a higher likelihood of successful contract execution.

How does the firm-fixed-price (FFP) structure impact cost control and risk for this TH-57 CLS contract?

The firm-fixed-price (FFP) contract structure places the primary responsibility for cost control and managing financial risk on the contractor, Vertex Aerospace LLC. Under an FFP agreement, the total price is fixed regardless of the contractor's actual costs incurred in performing the work. This incentivizes the contractor to manage their expenses efficiently to maximize profit. For the government, an FFP contract provides cost certainty, as the total expenditure is known upfront. However, it also means that if the contractor encounters unexpected cost increases (e.g., due to unforeseen maintenance issues or parts price hikes), they absorb those costs. Conversely, if the contractor can perform the work more efficiently than anticipated, they realize a higher profit margin. This structure is generally preferred for services with well-defined requirements where cost risks can be reasonably estimated.

What are the specific performance metrics or Key Performance Indicators (KPIs) associated with this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) for this TH-57 Contractor Logistics Support (CLS) contract. Typically, CLS contracts include detailed requirements for aircraft availability rates, response times for maintenance actions, parts fulfillment rates, turnaround times for repairs, and adherence to safety standards. These KPIs are crucial for the Naval Air Systems Command (NAVAIR) to monitor the contractor's performance and ensure the TH-57 fleet remains operational and mission-ready. Without these specific metrics, it is challenging to objectively assess the contractor's performance and the overall effectiveness of the logistics support provided. Future analysis should seek to identify these performance standards and track the contractor's adherence to them.

What is the estimated total cost of ownership for the TH-57 fleet, and how does this logistics contract contribute to it?

The provided data focuses solely on a specific delivery order for TH-57 Contractor Logistics Support (CLS) valued at $30.5 million. It does not offer information regarding the total cost of ownership (TCO) for the TH-57 fleet. The TCO encompasses all expenses associated with operating and maintaining the aircraft throughout its lifecycle, including acquisition costs, fuel, personnel, training, modifications, and ongoing maintenance and logistics support. This $30.5 million contract represents a significant component of the operational and sustainment costs for the TH-57 fleet during the contract period. To understand its contribution to the TCO, one would need to compare it against the total projected costs for the fleet's lifespan and analyze how effectively this CLS contract helps manage those sustainment expenses relative to other potential support arrangements.

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: $30,519,088

Exercised Options: $30,519,088

Current Obligation: $30,519,088

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001913D0007

IDV Type: IDC

Timeline