Naval Air Systems Command awards $36.9M contract for TH-57 helicopter logistics support to Vertex Aerospace LLC

Contract Overview

Contract Amount: $36,888,881 ($36.9M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2016-10-28

End Date: 2017-05-31

Contract Duration: 215 days

Daily Burn Rate: $171.6K/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 $36.9 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 under full and open competition, suggesting a competitive bidding process. 3. Vertex Aerospace LLC, the contractor, will be responsible for maintaining the operational readiness of the TH-57 aircraft. 4. The contract duration is relatively short, indicating a potential for re-competition or a phased approach to support. 5. The firm-fixed-price contract type aims to provide cost certainty for the government. 6. This award falls under Other Support Activities for Air Transportation, a critical segment of defense logistics.

Value Assessment

Rating: good

The contract value of $36.9 million for approximately 7 months of service appears reasonable for specialized aviation logistics. Benchmarking against similar contracts for helicopter fleet support would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the absence of detailed performance metrics makes a definitive value assessment challenging without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. This competitive environment is generally expected to drive better pricing and service offerings. The specific number of bidders and the evaluation criteria would further illuminate the strength of the competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiaries are the U.S. Navy aviators and personnel who rely on the TH-57 fleet for training and operations. Services delivered include organizational and depot-level maintenance, ensuring the airworthiness and operational readiness of the helicopters. The geographic impact is likely concentrated around naval air stations where the TH-57 fleet is based and maintained. Workforce implications include the potential for skilled aviation mechanics and logistics personnel employed by Vertex Aerospace LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the firm-fixed-price agreement.
Dependence on a single contractor for critical logistics support could pose a risk if performance issues emerge.
Limited transparency into the specific performance metrics and quality control measures employed by the contractor.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type provides cost predictability for the government.
Vertex Aerospace LLC's specialization in aerospace support indicates relevant expertise.

Sector Analysis

This contract falls within the broader 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. Spending in this area is driven by the need to ensure operational readiness and extend the lifespan of aging aircraft, often involving complex maintenance, repair, and overhaul (MRO) activities.

Small Business Impact

The data indicates that small business participation was not a primary set-aside component for this specific contract (ss: false, sb: false). While Vertex Aerospace LLC may engage small businesses as subcontractors, the primary award was not directed towards small business set-asides. Further analysis of subcontracting plans would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for performance issues impacting fleet readiness.
Risk of cost escalation if contract scope needs expansion.
Dependence on a single contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.9 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 $36.9 million.

What is the period of performance?

Start: 2016-10-28. End: 2017-05-31.

What is Vertex Aerospace LLC's track record with similar government aviation support contracts?

Vertex Aerospace LLC has a history of providing aviation support services to the U.S. military. While specific details on past TH-57 support are not provided in this data snippet, the company has been involved in various aircraft maintenance, modification, and logistics programs for different branches of the armed forces. A deeper dive into their contract history, including performance reviews and any past issues or commendations, would be necessary for a comprehensive assessment of their track record. Their experience in similar roles suggests a foundational capability, but the success of this specific contract hinges on their execution and adherence to the terms outlined.

How does the awarded amount compare to the estimated value or budget for this TH-57 CLS requirement?

The provided data shows an awarded amount of $36,888,880.81. Without access to the government's initial estimate or allocated budget for this specific requirement, a direct comparison is not possible. However, the fact that it was awarded under full and open competition suggests that the bids received were competitive and likely fell within an acceptable range of the government's independent government cost estimate (IGCE). If the awarded amount significantly exceeded the IGCE, it might indicate a less competitive outcome or unforeseen cost drivers. Conversely, a bid well below the estimate could raise concerns about the contractor's ability to deliver the full scope of services.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or specific risk mitigation strategies for this TH-57 CLS contract. Typically, such contracts would include metrics related to aircraft availability, turnaround time for maintenance, quality of repairs, and adherence to safety standards. Risk mitigation would involve clauses addressing potential delays, cost overruns, and performance failures. Given the firm-fixed-price nature, the primary risk for the government is contractor underperformance, while the contractor bears the risk of cost overruns. Robust oversight by the DCMA and clear contractual remedies are essential for managing these risks.

What is the historical spending pattern for TH-57 Contractor Logistics Support?

The provided data represents a single delivery order awarded on October 28, 2016, with an end date of May 31, 2017, totaling approximately $36.9 million. This specific award covers a defined period and scope. To understand historical spending patterns, one would need to examine previous contracts for TH-57 CLS, including any prior contracts awarded to Vertex Aerospace LLC or other contractors for this fleet. Analyzing the total expenditure over multiple years, contract durations, and the number of contracts awarded would reveal trends in government investment in maintaining the TH-57 fleet and the evolution of support strategies.

What is the significance of the 'Other Support Activities for Air Transportation' NAICS code (488190) in the context of this contract?

The North American Industry Classification System (NAICS) code 488190, 'Other Support Activities for Air Transportation,' signifies the specific industry sector this contract falls under. This code encompasses establishments primarily engaged in providing services that support air transportation, but are not directly operating aircraft. This includes activities like aircraft engine repair and overhaul, aircraft parts and auxiliary equipment repair, airport operations support (excluding air traffic control), and aircraft servicing. For this TH-57 CLS contract, it accurately categorizes the logistics, maintenance, and repair services being provided to ensure the operational readiness of the helicopter fleet, distinguishing it from direct flight operations or air traffic control services.

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.

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: $36,888,881

Exercised Options: $36,888,881

Current Obligation: $36,888,881

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $5,036,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001913D0007

IDV Type: IDC

Timeline