DoD's $84M Facilities Support Contract with Vectrus Systems LLC Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $83,998,203 ($84.0M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2018-05-24
End Date: 2024-09-30
Contract Duration: 2,321 days
Daily Burn Rate: $36.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: O&M SUSTAINMENT
Place of Performance
Location: SHEPPARD AFB, WICHITA County, TEXAS, 76311
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $84.0 million to VECTRUS SYSTEMS LLC for work described as: O&M SUSTAINMENT Key points: 1. The contract's substantial value of $84M raises questions about cost-effectiveness for facilities support services. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The firm fixed-price contract type aims to control costs, but the duration and total value warrant review. 4. The lack of small business participation is noted, potentially limiting broader economic impact.
Value Assessment
Rating: fair
The $84M contract awarded to Vectrus Systems LLC for facilities support is a significant investment. Without specific benchmarks for similar O&M sustainment contracts, assessing its value is challenging. The firm fixed-price structure provides some cost certainty, but the long duration and total award amount necessitate careful monitoring.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation process. This method is generally expected to foster competitive pricing. However, the long-term nature of the contract and the specific services provided may influence the degree of price discovery achieved.
Taxpayer Impact: While competition was sought, the $84M total award over several years represents a considerable taxpayer outlay for facilities support services.
Public Impact
Taxpayers are funding essential operational and maintenance services for Department of the Air Force facilities. The long contract duration (2018-2024) means sustained financial commitment from the government. The absence of small business involvement means potential missed opportunities for smaller enterprises in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Long contract duration
- High total award value
Positive Signals
- Full and open competition
- Firm fixed-price contract type
Sector Analysis
This contract falls under facilities support services, a broad category within the defense sector. Spending benchmarks for O&M sustainment can vary widely based on the scope and complexity of facilities managed. The $84M award suggests a substantial portfolio of responsibilities.
Small Business Impact
The contract data indicates that small businesses were not involved in this award (ss: false, sb: false). This suggests that the prime contractor, Vectrus Systems LLC, is likely a large business, and subcontracting opportunities for small businesses may be limited or not explicitly tracked in this award notice.
Oversight & Accountability
The contract's long duration and significant value warrant ongoing oversight to ensure performance standards are met and costs remain justified. The Department of the Air Force is responsible for monitoring contractor performance and adherence to contract terms.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High total award value
- Long contract duration
- Lack of small business participation
- Potential for cost creep despite FFP
Tags
facilities-support-services, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $84.0 million to VECTRUS SYSTEMS LLC. O&M SUSTAINMENT
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 Air Force).
What is the total obligated amount?
The obligated amount is $84.0 million.
What is the period of performance?
Start: 2018-05-24. End: 2024-09-30.
How does the per-unit cost of services under this contract compare to industry benchmarks for similar facilities support contracts, considering the firm fixed-price nature?
Assessing the per-unit cost requires detailed service breakdowns not present in the award data. However, the firm fixed-price structure implies Vectrus Systems LLC assumed cost overruns. A comparison to industry benchmarks would necessitate analyzing specific service metrics (e.g., cost per square foot maintained, cost per maintenance task) against aggregated data for similar DoD or commercial contracts to determine if the $84M total award represents efficient spending.
What specific risks are associated with the long duration (2018-2024) of this facilities support contract, beyond potential cost overruns?
The extended duration poses risks such as technological obsolescence in maintenance equipment or processes, potential shifts in facility needs or strategic priorities for the Air Force, and reduced flexibility for the government to adopt newer, potentially more cost-effective solutions. It also increases the risk of contractor complacency or performance degradation over time if not actively managed and incentivized.
Given the full and open competition, how effectively did the bidding process ensure the best value was achieved for the taxpayer, considering the contract's scope?
Full and open competition is designed to maximize value by encouraging multiple bids. However, the effectiveness depends on the clarity of the solicitation, the evaluation criteria, and the number and quality of bids received. For this $84M contract, the long duration and specific nature of facilities support might have limited the pool of highly qualified bidders, potentially impacting the degree of price competition achieved and the ultimate value realized by the taxpayer.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA300216R0019
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
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: $104,692,094
Exercised Options: $92,425,846
Current Obligation: $83,998,203
Actual Outlays: $46,016,811
Subaward Activity
Number of Subawards: 51
Total Subaward Amount: $4,264,431
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-05-24
Current End Date: 2024-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-05-07
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