Army Space Command Awards $146M IT Contract to ITT Industries for Electronics and Communication Maintenance
Contract Overview
Contract Amount: $145,970,585 ($146.0M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2001-11-30
End Date: 2012-01-31
Contract Duration: 3,714 days
Daily Burn Rate: $39.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: 200209!000909!2100!SG62 !U.S. ARMY SPACE COMMAND !DASG6202C0002 !A!N! !N! !20011130!20030131!615223963!615223963!001216845!N!ITT INDUSTRIES, INC , SYSTEMS !1460 GARDEN OF THE GODS RO!COLORADO SPRIN !CO!80907!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !+000000210339!N!N!000000000000!J056!MAINT & REPAIR OF EQ/CONSTRUCTION MATERIALS !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !541519!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!V!2!002!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! !Y! !DASG62!0001!
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80919
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $146.0 million to VECTRUS SYSTEMS LLC for work described as: 200209!000909!2100!SG62 !U.S. ARMY SPACE COMMAND !DASG6202C0002 !A!N! !N! !20011130!20030131!615223963!615223963!001216845!N!ITT INDUSTRIES, INC , SYSTEMS !1460 GARDEN OF THE GODS RO!COLORADO SPRIN !CO!80907!16000!041!08!COLORADO SPRINGS !EL PA… Key points: 1. The contract value of $146M is significant for IT services in the defense sector. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration is over 10 years, indicating a long-term need. 4. The primary sector is IT, specifically focusing on maintenance and repair of electronic and communication equipment.
Value Assessment
Rating: fair
The contract value of $146M over 10 years suggests an average annual spend of approximately $14.6M. Without specific unit costs or detailed service breakdowns, a precise pricing assessment is difficult, but it appears to be within a reasonable range for complex IT maintenance services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery and potentially lower costs for the government. The use of a Cost Plus Incentive Fee (CPIF) contract type allows for shared savings if costs are kept below target.
Taxpayer Impact: The competitive nature of the award and the CPIF structure aim to ensure taxpayer money is used efficiently, though the long duration could lead to cost escalations if not managed carefully.
Public Impact
This contract supports critical IT infrastructure for the U.S. Army Space Command. The long-term nature of the contract provides stability for the contractor and ensures continuity of essential services. Maintenance and repair of electronics and communication systems are vital for military operations and national security.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Long contract duration (over 10 years) could lead to price creep.
- Cost Plus Incentive Fee contracts can be complex to manage and audit.
- Reliance on a single contractor for over a decade may reduce future competitive pressure.
Positive Signals
- Awarded under full and open competition.
- Contract aims to maintain critical defense IT infrastructure.
- Incentive fee structure encourages cost control.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on maintenance and repair of electronic and communication equipment. Defense IT spending is a substantial portion of the federal budget, with significant investments in maintaining aging systems and acquiring new technologies.
Small Business Impact
The data indicates the prime contractor is ITT Industries, Inc. (Systems). There is no explicit information provided regarding subcontracting to small businesses within this data snippet.
Oversight & Accountability
The contract was awarded by the Department of Defense (DoD) through the Defense Contract Management Agency (DCMA). Oversight would involve monitoring performance, costs, and adherence to contract terms throughout the contract's lifecycle.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration
- Cost Plus Incentive Fee contract type
- Potential for technology obsolescence over contract life
- Lack of specific performance metrics in provided data
Tags
other-computer-related-services, department-of-defense, co, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $146.0 million to VECTRUS SYSTEMS LLC. 200209!000909!2100!SG62 !U.S. ARMY SPACE COMMAND !DASG6202C0002 !A!N! !N! !20011130!20030131!615223963!615223963!001216845!N!ITT INDUSTRIES, INC , SYSTEMS !1460 GARDEN OF THE GODS RO!COLORADO SPRIN !CO!80907!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !+000000210339!N!N!000000000000!J056!MAINT & REPAIR OF EQ/CONSTRUCTION MATERIALS !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !541519!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is VECTRUS SYSTEMS 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 $146.0 million.
What is the period of performance?
Start: 2001-11-30. End: 2012-01-31.
What specific types of electronic and communication equipment are covered under this contract, and how has their technological relevance evolved over the contract's 10+ year span?
The contract covers maintenance and repair of 'ELECTRONICS AND COMMUNICATION' equipment. Given the contract's start in 2001 and end in 2012, it likely encompassed a range of technologies from legacy systems to emerging digital communication platforms. Understanding the specific equipment would reveal the scope of the service and how the contractor adapted to technological advancements to ensure operational readiness for the Army Space Command.
How effectively did the Cost Plus Incentive Fee (CPIF) structure incentivize cost savings for the government over the contract's duration, and what were the final cost outcomes compared to initial tar
The CPIF structure is designed to align contractor and government interests by sharing in cost savings or overruns. To assess its effectiveness, one would need to examine the target cost, the final incurred cost, and the resulting fee adjustments. Without this detailed financial data, it's difficult to quantify the actual savings achieved or the degree to which the incentive mechanism influenced contractor behavior.
What was the rationale for awarding a contract of such long duration (over 10 years) for IT maintenance and repair, and did it lead to any observed performance or cost efficiencies compared to shorter
Long-duration contracts can offer stability and predictability for both the government and the contractor, potentially reducing administrative overhead and fostering specialized expertise. For IT maintenance, it might have been deemed necessary for complex, integrated systems. However, such long terms also risk obsolescence and reduced competitive pressure. Evaluating whether efficiencies were realized would require comparing performance metrics and cost trends against similar, shorter-term contracts or industry benchmarks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Contractor Details
Parent Company: Vectrus, Inc.
Address: 2424 GARDEN OF THE GODS RD STE 300, COLORADO SPRINGS, CO, 80919
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $481,535
Exercised Options: $481,535
Current Obligation: $145,970,585
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2001-11-30
Current End Date: 2012-01-31
Potential End Date: 2012-01-31 00:00:00
Last Modified: 2024-04-29
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