DHS's TARS contract transfer to CBP for program control, valued at $90.4M, completed its final two option years

Contract Overview

Contract Amount: $90,423,610 ($90.4M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2013-07-01

End Date: 2017-10-13

Contract Duration: 1,565 days

Daily Burn Rate: $57.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF THE PURPOSE OF THIS CONTRACT IS TO TRANSFER THE TARS CONTRACT FROM THE USAF TO CBP FOR PROGRAM CONTROL DURING THE FINAL TWO OPTION YEARS OF THE CONTRACT.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80915

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $90.4 million to VECTRUS SYSTEMS LLC for work described as: IGF::CT::IGF THE PURPOSE OF THIS CONTRACT IS TO TRANSFER THE TARS CONTRACT FROM THE USAF TO CBP FOR PROGRAM CONTROL DURING THE FINAL TWO OPTION YEARS OF THE CONTRACT. Key points: 1. The contract's primary purpose was a administrative transfer, not new service acquisition, impacting its value-for-money assessment. 2. Full and open competition was utilized, suggesting a competitive environment for the contract. 3. The contract duration of 1565 days (over 4 years) indicates a medium-term commitment. 4. The definitive contract type suggests a clear scope of work and pricing structure. 5. The contract was awarded to Vectrus Systems LLC, a known entity in government contracting. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services.

Value Assessment

Rating: fair

The contract's value of $90.4 million over its final two option years is difficult to assess for value-for-money as its primary purpose was an administrative transfer of program control from the USAF to CBP. This suggests that the bulk of the service delivery and associated costs likely occurred prior to this transfer period. Benchmarking against similar contracts for program management or administrative transfers is challenging due to the unique nature of this specific action. The fixed-price contract type provides some cost certainty, but the overall value proposition is tied to the effectiveness of the program management during this transition phase.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specific contract action. While full and open competition is generally preferred for ensuring fair pricing and access for a wide range of contractors, the limited number of bidders might warrant further investigation into potential barriers to entry or the specific nature of the services required.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it promotes a competitive environment, which can lead to more favorable pricing and better service quality. The fact that two bids were received suggests that the government received at least some price discovery, though a higher number of bidders could potentially yield even greater savings.

Public Impact

The primary beneficiary of this contract action is U.S. Customs and Border Protection (CBP), which gained program control. The services delivered were focused on program management and administrative transfer, ensuring continuity of operations for the TARS contract. The geographic impact is primarily within the Department of Homeland Security's operational areas, though specific locations are not detailed. Workforce implications are likely related to personnel involved in program management and oversight within CBP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The administrative nature of the transfer makes it difficult to assess performance metrics directly related to service delivery during this period.
The limited number of bidders (2) in a full and open competition could indicate potential market concentration or specialized requirements.

Positive Signals

The contract was executed under full and open competition, adhering to principles of fair market access.
The definitive contract type and firm fixed price structure provide clear terms and cost expectations.
The transfer ensured program continuity, preventing disruption to essential government functions.

Sector Analysis

The engineering services sector (NAICS 541330) is a significant component of federal contracting, encompassing a wide range of specialized technical expertise. Contracts in this sector often support complex government programs requiring design, analysis, and management. The TARS contract, even in its transfer phase, falls within this broad category, highlighting the government's reliance on external expertise for program oversight and execution. Comparable spending benchmarks for program management and administrative transfers are difficult to establish due to the unique nature of this specific action, but the overall value suggests a substantial program.

Small Business Impact

This contract does not appear to have involved small business set-asides, as indicated by 'sb': false. There is no explicit information provided regarding subcontracting plans or their impact on the small business ecosystem. The award to a large entity (Vectrus Systems LLC) suggests that the primary focus was not on direct small business participation through set-asides for this specific contract action.

Oversight & Accountability

Oversight for this contract would have been managed by the U.S. Customs and Border Protection (CBP) following the transfer of program control. As a definitive contract with a firm fixed price, the terms and conditions would have been clearly defined, facilitating oversight. Transparency is generally maintained through contract databases, though specific performance reports or Inspector General involvement details are not provided in the given data. The contract's administrative nature might have reduced the intensity of performance-based oversight compared to a service delivery contract.

Related Government Programs

TARS Contract
USAF Contracts
CBP Contracts
Engineering Services Contracts
Definitive Contracts

Risk Flags

Limited Competition (2 bidders)
Administrative Transfer Focus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $90.4 million to VECTRUS SYSTEMS LLC. IGF::CT::IGF THE PURPOSE OF THIS CONTRACT IS TO TRANSFER THE TARS CONTRACT FROM THE USAF TO CBP FOR PROGRAM CONTROL DURING THE FINAL TWO OPTION YEARS OF THE CONTRACT.

Who is the contractor on this award?

The obligated recipient is VECTRUS SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $90.4 million.

What is the period of performance?

Start: 2013-07-01. End: 2017-10-13.

What was the specific nature of the TARS contract before its transfer to CBP?

The provided data focuses on the administrative transfer of the TARS contract from the USAF to CBP for program control during its final two option years. While the NAICS code indicates 'Engineering Services' (541330), the specific functions and services rendered under the TARS contract prior to this transfer are not detailed in the provided information. Typically, contracts under this NAICS code involve a broad range of activities such as research and development, design, consulting, and technical support. The transfer itself suggests that the TARS program was significant enough to warrant continued oversight and management, even during its concluding phase.

How does the $90.4 million value compare to similar administrative contract transfers?

Directly comparing the $90.4 million value to similar administrative contract transfers is challenging due to the unique nature of such actions and the limited public data available for specific transfer events. Administrative transfers are often less about acquiring new services and more about reassigning program management responsibilities. The value likely reflects the remaining contract obligations and the administrative overhead associated with managing the program during its final stages. Without knowing the original scope and value of the TARS contract before this transfer, it's difficult to benchmark this specific amount against typical market rates for similar administrative actions. The fact that it was the final two option years also suggests it might represent a portion of a larger, pre-existing contract value.

What were the key risks associated with this contract transfer?

The primary risk associated with this contract transfer was the potential for disruption to program continuity and management. Ensuring a seamless handover of program control from the USAF to CBP was critical to avoid any negative impact on the TARS program's operations during its final two option years. Other risks could include a lack of clear understanding of the contract's existing terms and conditions by the new managing agency, potential for miscommunication between the transferring and receiving entities, and ensuring that the contractor (Vectrus Systems LLC) was adequately informed and prepared for the change in oversight. The fixed-price nature of the contract could also pose a risk if unforeseen issues arose that required additional funding beyond the contract's scope.

What does the 'definitive contract' type imply about the contract's structure and execution?

A 'definitive contract' is a type of contract that contains all the terms and clauses necessary for the performance of the contract. It is typically used when the scope of work, specifications, and pricing are clearly defined and agreed upon by both parties. For this TARS contract transfer, being a definitive contract implies that the terms governing the final two option years, including the administrative transfer of program control, were well-established and documented. This structure provides clarity for the contractor and the government agencies involved, reducing ambiguity and facilitating smoother execution and oversight. It suggests that the government had a clear understanding of its needs and the contractor's capabilities for the duration of these option periods.

How did the 'full and open competition' impact the contractor selection and pricing?

The 'full and open competition' designation means that the contract was awarded after a process where all responsible sources were allowed to submit bids. This approach is designed to maximize competition, which theoretically leads to better pricing, higher quality services, and increased innovation. In this case, two bidders submitted proposals, indicating a degree of competition. While two bidders are better than one, it is a relatively low number for a full and open competition, which might suggest specific market conditions or the specialized nature of the services required. The pricing would have been determined through the competitive bidding process, with the government selecting the offer that represented the best value, considering both price and other factors.

What is the significance of the NAICS code 541330 (Engineering Services) in the context of this contract?

The NAICS code 541330, 'Engineering Services,' indicates that the TARS contract, even during its administrative transfer phase, was fundamentally related to engineering activities. This broad category encompasses a wide array of services, including the design, development, and application of engineering principles to solve technical problems. For this contract, it suggests that the underlying TARS program involved complex technical aspects that required specialized engineering expertise for its management and oversight. The transfer of program control to CBP under this classification implies that CBP was taking over the responsibility for managing these engineering-related aspects of the TARS program during the specified period.

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: 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.

Address: 655 SPACE CENTER DR, COLORADO SPRINGS, CO, 80915

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $127,519,109

Exercised Options: $90,423,610

Current Obligation: $90,423,610

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline