FAA awards $5.58M follow-on contract to Vectrus Systems LLC for Engineering Services
Contract Overview
Contract Amount: $5,577,374 ($5.6M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Transportation
Start Date: 2019-05-23
End Date: 2020-10-09
Contract Duration: 505 days
Daily Burn Rate: $11.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: PROVIDE FUNDING FOR VECTRUS CONTRACT # DTFACT-15-D-00005 TO 692M15-19-F-00390 FOLLOW-ON (AJI-321)F&E
Place of Performance
Location: HAMMONTON, ATLANTIC County, NEW JERSEY, 08037
Plain-Language Summary
Department of Transportation obligated $5.6 million to VECTRUS SYSTEMS LLC for work described as: PROVIDE FUNDING FOR VECTRUS CONTRACT # DTFACT-15-D-00005 TO 692M15-19-F-00390 FOLLOW-ON (AJI-321)F&E Key points: 1. Contract awarded to Vectrus Systems LLC, a single provider. 2. The contract is for Engineering Services, with a value of $5.58M. 3. This is a follow-on contract, indicating a potential lack of competition. 4. The sector is IT, specifically engineering services supporting aviation.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these engineering services.
Public Impact
Taxpayers may be overpaying due to the sole-source nature of the award. The FAA relies on Vectrus Systems LLC for critical engineering services. Potential for cost inefficiencies due to the contract type and lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
Positive Signals
- Follow-on contract suggests established relationship and potential for continuity of service
Sector Analysis
This contract falls within the Engineering Services sector, often associated with IT and professional services. Spending benchmarks for this specific type of service can vary widely based on complexity and duration.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to perform this work.
Oversight & Accountability
The contract's sole-source nature warrants close oversight to ensure fair pricing and effective service delivery. The FAA should document the justification for not competing this follow-on award.
Related Government Programs
- Engineering Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
- No small business participation identified
Tags
engineering-services, department-of-transportation, nj, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $5.6 million to VECTRUS SYSTEMS LLC. PROVIDE FUNDING FOR VECTRUS CONTRACT # DTFACT-15-D-00005 TO 692M15-19-F-00390 FOLLOW-ON (AJI-321)F&E
Who is the contractor on this award?
The obligated recipient is VECTRUS SYSTEMS LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $5.6 million.
What is the period of performance?
Start: 2019-05-23. End: 2020-10-09.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where competition is not feasible. The FAA should have conducted a price analysis to ensure the pricing was fair and reasonable, comparing it to historical data or similar services, even without competitive bids. Documentation of this analysis is crucial for accountability.
What are the potential risks associated with a Cost Plus Fixed Fee contract, especially in a sole-source scenario?
Cost Plus Fixed Fee contracts carry the risk of cost overruns if the contractor's costs exceed estimates, as the fixed fee remains constant. In a sole-source scenario, this risk is amplified as there's no competitive pressure to control costs. The government must diligently monitor expenditures and contractor performance to mitigate potential inefficiencies and ensure the fixed fee remains appropriate for the work performed.
How does the lack of competition for this follow-on contract impact the FAA's ability to achieve best value and manage long-term costs?
The absence of competition for this follow-on contract limits the FAA's ability to achieve best value by not leveraging market forces to drive down prices and encourage innovation. It may also lead to higher long-term costs if Vectrus Systems LLC does not face pressure to optimize its service delivery or pricing. Regular re-evaluation of the need for competition on subsequent contract actions is advisable.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vectrus, Inc.
Address: 1101 KING ST STE 550, ALEXANDRIA, VA, 22314
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,897,076
Exercised Options: $5,577,374
Current Obligation: $5,577,374
Actual Outlays: $4,680,931
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DTFACT15D00005
IDV Type: IDC
Timeline
Start Date: 2019-05-23
Current End Date: 2020-10-09
Potential End Date: 2020-10-09 00:00:00
Last Modified: 2026-03-11
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