VSE Corporation awarded $44.2M for 63rd RSC Logistic Support, highlighting facilities maintenance needs

Contract Overview

Contract Amount: $44,203,067 ($44.2M)

Contractor: VSE Corporation

Awarding Agency: Department of Defense

Start Date: 2013-09-27

End Date: 2016-03-29

Contract Duration: 914 days

Daily Burn Rate: $48.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE YEAR 63RD RSC LOGISTIC SUPPORT

Place of Performance

Location: MOFFETT FIELD, SANTA CLARA County, CALIFORNIA, 94035, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $44.2 million to VSE CORPORATION for work described as: BASE YEAR 63RD RSC LOGISTIC SUPPORT Key points: 1. Contract value appears reasonable for the duration and scope of facilities support services. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of approximately 2.5 years indicates a need for sustained support. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The award falls within the Facilities Support Services NAICS code, aligning with industry standards. 6. Geographic focus on California may indicate regional operational requirements.

Value Assessment

Rating: good

The contract value of $44.2 million over approximately 2.5 years for logistic support and facilities services appears to be within a reasonable range for the scope of work. Benchmarking against similar contracts for large-scale military base support or extensive facility maintenance would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor is expected to manage costs effectively to maintain profitability, which can be a positive indicator of value if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bidders suggests a competitive environment, which generally leads to better pricing and service offerings for the government. The specific number of bids received and the evaluation process details would further clarify the extent of competition and its impact on price discovery.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and encouraging a wider pool of qualified contractors to bid, potentially leading to more efficient use of public funds.

Public Impact

The 63rd Regional Support Command (RSC) benefits from sustained logistic and facilities support, ensuring operational readiness. Services delivered likely include maintenance, repair, and general upkeep of facilities essential for military operations. The geographic impact is concentrated in California, supporting military personnel and infrastructure within that region. Workforce implications may include the direct employment of personnel by VSE Corporation and potential indirect employment in supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Dependence on a single contractor for critical facilities support could pose a risk if performance falters.
Ensuring consistent quality of services across all contracted facilities requires robust oversight.

Positive Signals

Firm fixed-price contract aligns incentives for cost control with the contractor.
Full and open competition suggests a robust market and potential for competitive pricing.
Award to an established contractor like VSE Corporation may indicate a track record of successful performance in similar roles.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader defense and government services market. This sector encompasses a wide range of activities, from routine maintenance and repair to specialized facility management. The market size for such services is substantial, driven by the government's extensive real estate holdings and operational needs. VSE Corporation's award reflects its positioning within this competitive landscape, competing against other firms specializing in facility operations and logistics.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the extent of small business participation, if any, would likely be through voluntary subcontracting by VSE Corporation. Further analysis would be needed to determine if small businesses are significantly involved in supporting this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements, though specific details of ongoing oversight activities are not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Facilities Maintenance Contracts
Regional Support Command Logistics
Base Operations Support Services
Department of Defense Facilities Management

Risk Flags

Contract duration exceeds 1 year
Contract value exceeds $10 million
Contract awarded to large business

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.2 million to VSE CORPORATION. BASE YEAR 63RD RSC LOGISTIC SUPPORT

Who is the contractor on this award?

The obligated recipient is VSE CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $44.2 million.

What is the period of performance?

Start: 2013-09-27. End: 2016-03-29.

What is VSE Corporation's track record with similar Department of Defense contracts, particularly in facilities support and logistics?

VSE Corporation has a significant history of performing contracts for the Department of Defense, often in areas related to logistics, engineering, and facility support. Their experience includes providing services to various branches and commands, suggesting a familiarity with military operational requirements and contracting procedures. Analyzing their past performance ratings, any contract modifications, and the scale of previous similar awards would provide a clearer picture of their capabilities and reliability in executing this specific contract. A review of their contract history would likely reveal a pattern of engagement in complex support roles, indicating a capacity to manage the demands of the 63rd RSC Logistic Support contract.

How does the awarded amount of $44.2 million compare to the duration and scope of services provided under this contract?

The contract value of $44.2 million spans a base period and potential option periods, totaling approximately 914 days (around 2.5 years). This equates to an average annual value of roughly $17.7 million. For comprehensive logistic support and facilities services for a Regional Support Command, this figure appears to be within a reasonable range, considering the complexity of maintaining military infrastructure, managing supply chains, and ensuring operational readiness. However, a precise value-for-money assessment would require detailed breakdowns of the services included, such as maintenance, repair, transportation, and administrative support, and comparison with industry benchmarks for similar scope contracts.

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

Key risks for this contract include potential performance deficiencies in delivering logistic and facilities support, cost overruns if the firm fixed-price structure is not managed effectively by the contractor, and potential disruptions to military operations if services are interrupted. Mitigation strategies typically involve robust contract oversight by the government, including performance monitoring, quality assurance checks, and clear communication channels. The firm fixed-price nature itself shifts much of the cost risk to VSE Corporation. Additionally, the competitive bidding process aims to select a contractor with a proven ability to manage these risks successfully.

How effective has VSE Corporation been in fulfilling its contractual obligations in past facilities support contracts with the DoD?

Assessing the effectiveness of VSE Corporation in past facilities support contracts requires access to performance evaluations and contract close-out data, which are not fully detailed in the provided summary. Generally, a contract award to a company suggests they met the minimum performance requirements for that solicitation. However, a deeper dive into past performance reviews, such as Contractor Performance Assessment Reporting System (CPARS) data, would reveal specific strengths and weaknesses. Positive trends in CPARS ratings would indicate consistent effectiveness, while negative trends might highlight areas of concern that could be relevant to this current contract.

What are the historical spending patterns for logistic support and facilities services for the 63rd RSC or similar commands?

Historical spending patterns for logistic support and facilities services for the 63rd RSC or similar commands would provide crucial context for evaluating the current $44.2 million award. Analyzing previous contracts awarded to the 63rd RSC, or comparable Regional Support Commands, for similar services over the past 5-10 years would reveal trends in contract values, durations, and types of services procured. This analysis would help determine if the current award represents an increase, decrease, or stable level of spending, and whether it aligns with inflation and evolving operational requirements. Such data is essential for identifying any significant deviations or anomalies in federal spending for these critical support functions.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2550 HUNTINGTON AVE, ALEXANDRIA, VA, 22303

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $44,203,067

Exercised Options: $44,203,067

Current Obligation: $44,203,067

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SE07D0017

IDV Type: IDC

Timeline