DoD's $175.6M Program Management Contract with Vectrus Systems LLC: A Deep Dive
Contract Overview
Contract Amount: $175,642,115 ($175.6M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2008-08-21
End Date: 2014-07-09
Contract Duration: 2,148 days
Daily Burn Rate: $81.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROGRAM MANAGEMENT/SUPPORT SERVICES
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80915, UNITED STATES OF AMERICA
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $175.6 million to VECTRUS SYSTEMS LLC for work described as: PROGRAM MANAGEMENT/SUPPORT SERVICES Key points: 1. The contract awarded to Vectrus Systems LLC for program management/support services is substantial at $175.6M. 2. Awarded by the Department of the Air Force, it falls under the 'All Other Telecommunications' category. 3. The contract utilized full and open competition, suggesting a competitive bidding process. 4. With a duration of 2148 days, this represents a long-term commitment by the DoD. 5. The presence of a base award of $81.7M indicates initial scope and potential for growth.
Value Assessment
Rating: good
The contract's value of $175.6M for program management services appears reasonable given the 6-year duration. Benchmarking against similar large-scale, long-term support service contracts would provide a more precise assessment of its pricing competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of 'full and open competition' indicates that multiple vendors were likely able to bid, fostering price discovery and potentially leading to a more favorable price for the government. The award amount suggests a robust bidding process.
Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government receives competitive pricing and the best value for its spending.
Public Impact
Taxpayers benefit from competitive bidding processes that aim to secure services at the best possible price. The long-term nature of the contract provides stability for the awarded vendor and continuity for the government program. The 'All Other Telecommunications' NAICS code suggests a focus on critical communication infrastructure or support services within the Air Force. The contract's significant value highlights the substantial investment in program management and support functions within the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep over the long contract duration.
- Reliance on a single contractor for critical program management functions.
- Ensuring continued cost-effectiveness throughout the contract's lifecycle.
Positive Signals
- Awarded through full and open competition.
- Long contract duration provides stability.
- Clear base award amount.
Sector Analysis
This contract falls within the broader IT and professional services sector, specifically focusing on program management and support. Spending benchmarks for similar large-scale, long-term government support contracts are typically in the tens to hundreds of millions of dollars, aligning with this award.
Small Business Impact
The data indicates this contract was awarded to Vectrus Systems LLC, a large business. There is no explicit information provided regarding small business subcontracting goals or participation in this specific award, which warrants further investigation for potential small business opportunities.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, a component of the Department of Defense, which has established oversight mechanisms for contract management. The long duration necessitates ongoing performance monitoring and accountability to ensure objectives are met and funds are used effectively.
Related Government Programs
- All Other Telecommunications
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration may increase risk of cost overruns or changing requirements.
- Potential for vendor lock-in if transition is difficult.
- Need for robust oversight to ensure continued value.
- Dependence on a single contractor for critical functions.
Tags
all-other-telecommunications, department-of-defense, co, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $175.6 million to VECTRUS SYSTEMS LLC. PROGRAM MANAGEMENT/SUPPORT SERVICES
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 $175.6 million.
What is the period of performance?
Start: 2008-08-21. End: 2014-07-09.
What specific program management and support services are encompassed by this $175.6M contract, and how do they align with the Air Force's strategic objectives?
The contract, under NAICS code 517919 (All Other Telecommunications), likely covers a broad range of program management functions, potentially including planning, execution, monitoring, and control of complex Air Force initiatives. These services are crucial for ensuring the efficient and effective delivery of telecommunications capabilities and supporting the overall mission readiness of the Air Force.
Given the 'full and open competition' award method, what was the competitive landscape, and how did it influence the final pricing for these program management services?
Full and open competition suggests multiple bidders vied for this contract, which typically drives down prices through market forces. The government likely received proposals from various qualified vendors, allowing for comparison based on technical merit and cost. This process aims to secure the best value for taxpayers by ensuring competitive pricing.
What are the key performance indicators (KPIs) used to measure the effectiveness of Vectrus Systems LLC's program management services under this contract, and how is performance tracked?
Effectiveness is likely measured through KPIs related to project timelines, budget adherence, quality of deliverables, and overall mission support. The Department of the Air Force would have established performance standards and a system for regular monitoring and evaluation, potentially including contractor performance assessments (CPARs), to ensure the services meet contractual requirements and contribute to program success.
Industry Classification
NAICS: Information › Other Telecommunications › All Other Telecommunications
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $409,904,152
Exercised Options: $197,615,529
Current Obligation: $175,642,115
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-08-21
Current End Date: 2014-07-09
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2015-06-19
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