Army awards $289M for vehicle maintenance, with VECTRUS Systems LLC as prime contractor

Contract Overview

Contract Amount: $289,233,027 ($289.2M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2005-07-29

End Date: 2010-09-30

Contract Duration: 1,889 days

Daily Burn Rate: $153.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200510!001725!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05D0003 !A!N! !N!0002 ! !20050729!20090929!030468243!030468243!001216845!N!ITT FEDERAL SERVICES INTERNATI!4410 E FOUNTAIN BLVD !COLORADO SPRIN !CO!80916!00000! !IZ!* !* !IRAQ !+000001829857!N!N!000000000000!J023!MAINT&REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !S1 !SERVICES !000 !* !811118!E! !5!B!M! !A! !20200930!B! ! !A! !A!N!U!2!003!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $289.2 million to VECTRUS SYSTEMS LLC for work described as: 200510!001725!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05D0003 !A!N! !N!0002 ! !20050729!20090929!030468243!030468243!001216845!N!ITT FEDERAL SERVICES INTERNATI!4410 E FOUNTAIN BLVD !COLORADO SPRIN !CO!80916!00000! !IZ!* !* !IRAQ !+000001829857!N!N!000000000000!J023!MAI… Key points: 1. Contract value of $289.2M over 5 years indicates significant long-term support needs. 2. Full and open competition suggests a robust bidding process, potentially leading to better pricing. 3. The contract's duration and scope present moderate performance and execution risks. 4. This award falls within the broader category of essential equipment and vehicle sustainment for military operations. 5. The primary service involves maintenance and repair of a wide range of vehicles and equipment.

Value Assessment

Rating: good

The total contract value of $289.2 million over approximately five years suggests a substantial investment in vehicle and equipment maintenance. Benchmarking this against similar large-scale sustainment contracts is challenging without more specific details on the scope of work and equipment types. However, the duration implies a need for consistent and reliable service, which VECTRUS Systems LLC is expected to provide. The pricing structure, likely cost-plus-fixed-fee, allows for flexibility but requires careful oversight to ensure cost control and value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors were invited to bid. This approach typically fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions. The presence of multiple bidders generally leads to more transparent price discovery and can result in cost savings for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective services for essential military maintenance, preventing potential overpricing associated with less competitive awards.

Public Impact

The U.S. Army benefits directly through the sustained operational readiness of its vehicle and equipment fleet. Services include maintenance and repair for vehicles, trailers, and cycles, ensuring deployability. The contract likely has a significant impact on military operations in deployed environments, such as Iraq. Workforce implications include employment opportunities for skilled technicians and support personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in a cost-plus-fixed-fee contract if not managed diligently.
Ensuring consistent quality of maintenance across a diverse fleet of vehicles and equipment.
Managing logistical challenges for parts and personnel in potentially austere environments.
Dependence on contractor performance for critical operational readiness.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Long-term contract duration allows for stable planning and resource allocation for maintenance.
VECTRUS Systems LLC's established presence in supporting military operations.
Clear scope of work focused on essential maintenance and repair functions.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on logistics and sustainment services. The market for military vehicle and equipment maintenance is substantial, driven by the constant need to maintain operational readiness for global deployments. VECTRUS Systems LLC operates in a competitive landscape with other large defense contractors specializing in base operations and logistics support. Spending benchmarks for similar maintenance contracts can vary widely based on the specific equipment, location, and duration.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. However, large prime contractors like VECTRUS Systems LLC often engage small businesses for specialized services or component supply. The absence of specific small business goals in the contract details warrants further investigation into subcontracting plans to ensure opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Contracting Command and the relevant program executive office. Performance monitoring, quality assurance surveillance plans (QASPs), and regular progress reviews are standard mechanisms to ensure contractor compliance and service delivery. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational oversight specifics are often internal.

Related Government Programs

Base Operations Support Services
Logistics and Supply Chain Management
Tactical Vehicle Maintenance
Equipment Sustainment Programs
Foreign Military Sales Support

Risk Flags

Cost Overrun Potential (CPFF Structure)
Performance Quality Variability
Logistical Support Challenges
Geopolitical Instability Impact
Supply Chain Disruptions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $289.2 million to VECTRUS SYSTEMS LLC. 200510!001725!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05D0003 !A!N! !N!0002 ! !20050729!20090929!030468243!030468243!001216845!N!ITT FEDERAL SERVICES INTERNATI!4410 E FOUNTAIN BLVD !COLORADO SPRIN !CO!80916!00000! !IZ!* !* !IRAQ !+000001829857!N!N!000000000000!J023!MAINT&REPAIR OF EQ/VEHICLES-TRAILERS-CYCLES !S1 !SERVICES !000 !* !811118!E! !5!B!M! !A! !20200930!B! ! !A! !A!N!U!2!003!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is VECTRUS SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $289.2 million.

What is the period of performance?

Start: 2005-07-29. End: 2010-09-30.

What is VECTRUS Systems LLC's track record with similar large-scale maintenance contracts for the U.S. Army?

VECTRUS Systems LLC, formerly part of DynCorp International, has a significant history of supporting U.S. military operations globally. They have held numerous large contracts involving base operations, logistics, and maintenance services, often in challenging environments. Their experience includes maintaining fleets of tactical vehicles, aircraft, and other essential equipment. While specific performance metrics for past contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive track record in delivering required services. However, like any large contractor, they may have faced performance challenges or disputes on specific contracts, which would require deeper investigation into contract performance reports and historical data.

How does the per-unit cost of maintenance compare to industry benchmarks for similar vehicle types?

Determining a precise per-unit cost benchmark is difficult without granular data on the specific types of vehicles and equipment being maintained, the scope of each maintenance task (e.g., routine vs. major overhaul), and the geographic location of the service. The contract utilizes a Cost Plus Fixed Fee (CPFF) structure, which means the government pays the contractor's actual costs plus a fixed fee for profit. Benchmarking would require comparing the average cost per vehicle or per maintenance hour against industry standards for similar military or commercial fleets. Factors like parts availability, labor rates in the operating region, and the complexity of the equipment significantly influence these costs. A detailed cost analysis by the Army would have been performed prior to award to ensure reasonableness.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns due to the CPFF structure, performance deficiencies in meeting maintenance schedules or quality standards, and logistical challenges in supporting operations in potentially austere environments like Iraq. Mitigation strategies likely involve robust government oversight, including Quality Assurance Surveillance Plans (QASPs), regular performance reviews, and strict adherence to maintenance protocols. The contractor's own internal quality control processes and experienced personnel are also critical. Furthermore, the contract's duration allows for building a stable operational rhythm, and the competitive award process suggests the selection of a capable provider. However, unforeseen geopolitical events or supply chain disruptions could introduce additional risks.

How effective has VECTRUS Systems LLC been in fulfilling its maintenance obligations on past contracts of similar scope and duration?

Assessing VECTRUS Systems LLC's past effectiveness requires reviewing contract performance reports (CPARs) and other historical data not provided here. Generally, companies that consistently win large, competitive contracts demonstrate a capacity to meet contractual requirements. Their long-standing presence in the defense contracting sector suggests a level of sustained performance. However, specific contract performance can vary. It's important to note that 'effectiveness' can be measured in various ways, including timeliness, quality of work, cost control, and responsiveness to changing mission needs. A comprehensive analysis would involve examining CPARs for this specific contract and other relevant past performance.

What has been the historical spending trend for vehicle and equipment maintenance services by the Department of the Army?

The Department of the Army consistently allocates significant portions of its budget to maintenance, repair, and overhaul (MRO) services for its vast fleet of vehicles, aircraft, and equipment. Historical spending trends show a steady demand for these services, often increasing during periods of heightened operational tempo or modernization efforts. While specific figures fluctuate annually based on budget appropriations and operational needs, sustainment and readiness are perennial priorities. This contract represents a portion of that ongoing investment, reflecting the continuous requirement to keep military assets in operational condition across various global theaters.

Industry Classification

NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › Other Automotive Mechanical and Electrical Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vectrus, Inc. (UEI: 079387563)

Address: 655 SPACE CENTER DR, COLORADO SPRINGS, CO, 80915

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J05D0003

IDV Type: IDC

Timeline