DoD's $362.8M Facilities Support Contract with Vectrus Systems LLC: A 7-Year Analysis
Contract Overview
Contract Amount: $362,793,770 ($362.8M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2008-05-21
End Date: 2015-09-24
Contract Duration: 2,682 days
Daily Burn Rate: $135.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: SUBCLINS 0003AA, LABOR(131) - $198,709.94; 0003AB, GWOT LABOR (135) - $35,767.79; 0003AC MAINT (FORSCOM) LABOR (115) - $3,974.00; 0003AE MISSION LABOR (324) - $119,225.96; 0003AG MATERIALS & TRAVEL (131) $19,870.99; 0003AH GWOT MATERIAL (135) - $7,948.00; 0003AL MISSION MATERIALS & TRAVEL(324) $11,922.60
Place of Performance
Location: FORT BENNING, CHATTAHOOCHEE County, GEORGIA, 31905
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $362.8 million to VECTRUS SYSTEMS LLC for work described as: SUBCLINS 0003AA, LABOR(131) - $198,709.94; 0003AB, GWOT LABOR (135) - $35,767.79; 0003AC MAINT (FORSCOM) LABOR (115) - $3,974.00; 0003AE MISSION LABOR (324) - $119,225.96; 0003AG MATERIALS & TRAVEL (131) $19,870.99; 0003AH GWOT MATERIAL (135) - $7,948.00; 0003AL MISSION MATERIALS… Key points: 1. The contract, awarded in 2008 and ending in 2015, totaled $362.8 million. 2. Vectrus Systems LLC was the sole awardee under a full and open competition. 3. The contract type was Cost Plus Award Fee, indicating performance incentives. 4. Services included facilities support, labor, materials, and travel across various mission types.
Value Assessment
Rating: fair
The Cost Plus Award Fee structure suggests an attempt to align contractor performance with government objectives. However, without detailed award fee data, it's difficult to assess the true value realized beyond cost reimbursement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a Cost Plus Award Fee contract type, however, can introduce complexity in price discovery compared to fixed-price contracts.
Taxpayer Impact: While competition was present, the cost-plus nature of the contract means taxpayer funds were used to reimburse actual costs plus an award fee, potentially leading to higher overall expenditure than a fixed-price contract.
Public Impact
Ensured operational readiness through comprehensive facilities support services. Supported various missions, including GWOT (Global War on Terrorism) and FORSCOM (Forces Command). Provided essential labor, materials, and travel for sustained military operations. The contract's duration of over 7 years highlights the long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost-plus contracts can incentivize spending.
- Lack of detailed award fee data hinders precise value assessment.
- Potential for cost overruns in long-term service contracts.
Positive Signals
- Full and open competition was utilized.
- Contract type aimed to incentivize performance.
- Services were critical for military operations.
Sector Analysis
This contract falls under Facilities Support Services (NAICS 561210), a broad category encompassing maintenance, operation, and management of facilities. Spending in this sector is substantial across government agencies, often driven by the need to maintain aging infrastructure and support diverse operational requirements.
Small Business Impact
The data indicates this was a large contract awarded to Vectrus Systems LLC. There is no explicit information provided regarding subcontracting to small businesses, which is a common practice in large federal contracts to meet socio-economic goals.
Oversight & Accountability
The contract utilized a Cost Plus Award Fee structure, which requires robust oversight to ensure costs are reasonable and the award fee is justified based on performance metrics. The Department of the Army's oversight would be crucial in managing this contract effectively.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost-plus contracts can lead to higher overall costs compared to fixed-price.
- Lack of specific award fee details limits performance assessment.
- Potential for scope creep in long-term service contracts.
- No clear indication of small business participation.
Tags
facilities-support-services, department-of-defense, ga, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $362.8 million to VECTRUS SYSTEMS LLC. SUBCLINS 0003AA, LABOR(131) - $198,709.94; 0003AB, GWOT LABOR (135) - $35,767.79; 0003AC MAINT (FORSCOM) LABOR (115) - $3,974.00; 0003AE MISSION LABOR (324) - $119,225.96; 0003AG MATERIALS & TRAVEL (131) $19,870.99; 0003AH GWOT MATERIAL (135) - $7,948.00; 0003AL MISSION MATERIALS & TRAVEL(324) $11,922.60
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 $362.8 million.
What is the period of performance?
Start: 2008-05-21. End: 2015-09-24.
What was the average annual spending under this contract, and how does it compare to industry benchmarks for similar facilities support services?
The contract's total value was $362.8 million over approximately 7 years (2682 days), averaging roughly $51.8 million annually. Benchmarking requires specific details on the scope of services, geographic locations, and labor rates, but this figure represents a significant investment in facilities support, likely within the expected range for large-scale military installations.
What were the key performance indicators (KPIs) used to determine the award fee, and how effectively did Vectrus Systems LLC meet them?
The provided data does not specify the key performance indicators (KPIs) used for the award fee. To assess effectiveness, one would need access to the contract's performance work statement (PWS) and the documented award fee determinations made by the government over the contract's life.
Given the Cost Plus Award Fee structure, what mechanisms were in place to prevent contractor overspending and ensure taxpayer value?
Cost Plus Award Fee contracts typically include mechanisms like forward pricing rates, audits of incurred costs, and detailed review of contractor expenditures. The award fee itself is designed to incentivize efficiency and high performance, with the government withholding fees for subpar results, alongside robust program management oversight.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 8
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vectrus, Inc. (UEI: 079387563)
Address: 655 SPACE CENTER DR, COLORADO SPRINGS, CO, 80915
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $370,371,140
Exercised Options: $370,371,140
Current Obligation: $362,793,770
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911SE07D0006
IDV Type: IDC
Timeline
Start Date: 2008-05-21
Current End Date: 2015-09-24
Potential End Date: 2015-09-24 00:00:00
Last Modified: 2019-05-11
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