Vectrus Systems LLC awarded $20.19M for technical services, including network development and operations

Contract Overview

Contract Amount: $20,188,373 ($20.2M)

Contractor: Vectrus Systems LLC

Awarding Agency: General Services Administration

Start Date: 2005-08-01

End Date: 2010-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: 53RD WING US/FMS TECHNICAL SERVICES SUPPORT (PARENT TASK) AND SUBTASK 2.1 - NETWORKS AND COMPUTER SYSTEMS DEVELOPMENT AND OPERATION

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $20.2 million to VECTRUS SYSTEMS LLC for work described as: 53RD WING US/FMS TECHNICAL SERVICES SUPPORT (PARENT TASK) AND SUBTASK 2.1 - NETWORKS AND COMPUTER SYSTEMS DEVELOPMENT AND OPERATION Key points: 1. Contract value of $20.19M over 5 years suggests a moderate annual spend. 2. Full and open competition indicates a potentially competitive bidding process. 3. The contract's duration of 1825 days (5 years) allows for sustained support. 4. Services encompass network and computer systems development and operation, a critical IT function. 5. The award was made by the General Services Administration, a common civilian agency. 6. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services. 7. The contract type is Labor Hours, which can be efficient for evolving requirements.

Value Assessment

Rating: fair

The contract value of $20.19M over five years averages approximately $4.04M annually. Benchmarking this against similar IT support contracts is challenging without more specific service details. However, the labor hour contract type suggests flexibility, which can sometimes lead to higher costs if not managed effectively. The absence of a specific ceiling price or detailed performance metrics makes a definitive value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The GSA's use of this approach for engineering and IT services indicates a commitment to leveraging market forces.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, potentially driving down costs.

Public Impact

Federal agencies requiring technical support for networks and computer systems benefit from this contract. The services delivered are crucial for maintaining and developing IT infrastructure. The contract is geographically located in Florida (FL), impacting the local workforce and economy there. The workforce implications include employment opportunities for individuals with expertise in network engineering and computer systems development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not closely monitored and managed.
Scope creep could increase the total cost beyond initial expectations.
Dependence on a single contractor for critical IT infrastructure support could pose risks.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Long-term contract (5 years) provides stability and continuity of essential services.
Labor hour contract type offers flexibility to adapt to changing technical requirements.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on IT infrastructure development and operations. The market for such services is substantial, driven by continuous government needs for modernizing and maintaining complex technological systems. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded by civilian agencies like GSA, considering factors like contract type, duration, and scope of work.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary contractor, Vectrus Systems LLC, would determine any subcontracting opportunities based on their own business strategy and needs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the General Services Administration. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Infrastructure Support Services
Network Engineering and Development
Computer Systems Operations
Technical Services Contracts
General Services Administration IT Procurement

Risk Flags

Labor Hour Contract Type Risk
Potential for Scope Creep
Contract Duration and Stability
Limited Publicly Available Performance Data

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.2 million to VECTRUS SYSTEMS LLC. 53RD WING US/FMS TECHNICAL SERVICES SUPPORT (PARENT TASK) AND SUBTASK 2.1 - NETWORKS AND COMPUTER SYSTEMS DEVELOPMENT AND OPERATION

Who is the contractor on this award?

The obligated recipient is VECTRUS SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2005-08-01. End: 2010-07-31.

What is Vectrus Systems LLC's track record with the federal government, particularly in IT support and network development?

Vectrus Systems LLC has a significant history of federal contracting. While specific details for this particular contract (53RD WING US/FMS TECHNICAL SERVICES SUPPORT) are limited in the provided data, Vectrus has been awarded numerous contracts across various agencies for services including IT, logistics, and base operations support. Their performance history can be further investigated through federal procurement databases like SAM.gov and FPDS, looking at past performance evaluations and any reported issues. A review of their broader federal portfolio would reveal their experience in managing large-scale technical services and their ability to meet government requirements across different domains.

How does the annual cost of this contract compare to similar IT support contracts awarded by the GSA?

The annual cost for this contract averages approximately $4.04 million ($20.19M / 5 years). To compare this effectively, one would need to identify similar GSA contracts for network and computer systems development and operation awarded around the same period (2005-2010). Key comparison points would include the contract type (e.g., labor hour, fixed price), the specific services rendered, the duration, and the number of bidders. Without access to a detailed benchmark database or a comprehensive search of comparable contracts from that era, a precise comparison is difficult. However, the labor hour nature suggests potential variability in cost based on actual hours worked.

What are the primary risks associated with a labor hour contract for IT services, and how might they have been mitigated?

The primary risk with a labor hour contract for IT services is the potential for cost overruns if the scope of work is not well-defined or if labor hours are not diligently managed and tracked. Unforeseen complexities or scope creep can lead to significantly higher expenditures than initially anticipated. Mitigation strategies employed by the government could include establishing clear performance work statements (PWS), implementing robust monitoring and reporting requirements for labor hours, setting not-to-exceed (NTE) ceilings for specific tasks or the overall contract, and conducting regular reviews of progress and resource utilization. Strong project management and oversight by the government's COR are crucial.

How effective has the GSA been in leveraging full and open competition to achieve cost savings for IT support services like this one?

The General Services Administration (GSA) generally aims to leverage full and open competition to achieve cost savings and best value for IT support services. By opening procurement to a wide range of vendors, GSA can foster a competitive environment that drives down prices and encourages innovation. The effectiveness, however, can vary depending on the specific market conditions, the clarity of the solicitation, and the evaluation criteria used. For this particular contract, the fact that it was competed under full and open terms suggests an intent to maximize competition. Analyzing the number of bids received and the final award price relative to initial estimates would provide a clearer picture of the cost savings achieved in this instance.

What is the historical spending pattern for technical services support under the 53RD WING program or similar initiatives?

The provided data only details a single contract award of $20.19M from 2005-2010 for '53RD WING US/FMS TECHNICAL SERVICES SUPPORT'. To understand historical spending patterns, one would need to examine contract awards over a longer period and potentially across different contract vehicles or programs related to the 53rd Wing or similar Air Force units. This would involve searching federal procurement databases for all contracts associated with the 53rd Wing, looking at spending trends, average contract values, dominant contract types, and key contractors over time. Without this broader dataset, it's impossible to establish a historical spending pattern from this single data point.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 4TFL57057091

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Contractor Details

Parent Company: WC Holding Inc. (UEI: 013567606)

Address: 1101 KING ST STE 550, ALEXANDRIA, VA, 08

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $20,303,895

Exercised Options: $20,188,373

Current Obligation: $20,188,373

Parent Contract

Parent Award PIID: GS07T00BGD0037

IDV Type: GWAC

Timeline