DoD's $68.8M Engineering Support Contract with Vectrus Systems LLC Awarded via Full and Open Competition
Contract Overview
Contract Amount: $68,808,970 ($68.8M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2014-07-01
End Date: 2020-07-31
Contract Duration: 2,222 days
Daily Burn Rate: $31.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: CONTRACTOR SUPPORT SERVICES- ENGINEERING, LOGISTICS, AND PROGRAM MANAGEMENT
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80919
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $68.8 million to VECTRUS SYSTEMS LLC for work described as: CONTRACTOR SUPPORT SERVICES- ENGINEERING, LOGISTICS, AND PROGRAM MANAGEMENT Key points: 1. Significant contract value of $68.8 million for engineering, logistics, and program management. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Contractor Vectrus Systems LLC has a history with DoD, indicating established relationships. 4. The contract spans over six years, from 2014 to 2020, reflecting long-term support needs.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty. Benchmarking against similar engineering support contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which generally promotes competitive pricing and allows any qualified vendor to bid. This method is expected to yield fair market prices for the services rendered.
Taxpayer Impact: Full and open competition aims to ensure taxpayer money is spent efficiently by fostering a competitive environment that drives down costs.
Public Impact
Ensures critical engineering, logistics, and program management support for Department of Defense operations. Supports national security objectives through specialized contractor services. Provides employment opportunities within the engineering and logistics sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration may not reflect current market needs or pricing.
- Lack of specific performance metrics makes it hard to assess value for money.
Positive Signals
- Awarded via full and open competition, indicating a robust bidding process.
- Contractor has experience supporting DoD, suggesting capability.
- Services provided are essential for program management and logistics.
Sector Analysis
This contract falls under Engineering Services, a broad category crucial for government operations. Spending in this sector is often driven by defense needs, infrastructure projects, and technological advancements. Benchmarks vary widely based on the specific engineering discipline and project scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). This suggests that the scale or nature of the services required may have favored larger, established contractors capable of handling complex, long-term engagements.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet their contractual obligations. Oversight would typically involve monitoring performance, costs, and compliance throughout the contract period.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (6 years)
- No specific performance metrics provided
- No indication of small business participation
Tags
engineering-services, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.8 million to VECTRUS SYSTEMS LLC. CONTRACTOR SUPPORT SERVICES- ENGINEERING, LOGISTICS, AND PROGRAM MANAGEMENT
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 $68.8 million.
What is the period of performance?
Start: 2014-07-01. End: 2020-07-31.
How effectively did the Cost Plus Fixed Fee structure incentivize performance while controlling costs for Vectrus Systems LLC?
The Cost Plus Fixed Fee (CPFF) structure aims to provide flexibility for evolving project needs while offering a degree of cost certainty through the fixed fee. However, CPFF contracts can sometimes lead to cost overruns if the government's oversight is insufficient or if the contractor has less incentive to control expenses beyond the fixed fee. A thorough review of project expenditures against the initial estimates and the final fixed fee would be necessary to assess the effectiveness of this structure in this specific case.
What were the primary risks associated with awarding a six-year engineering support contract via full and open competition?
The primary risks include potential for scope creep, technological obsolescence over the six-year period, and the possibility that initial cost estimates may not accurately reflect the final expenditures. While full and open competition helps ensure a competitive initial price, long-term contracts can still face challenges in adapting to changing requirements or market conditions, potentially leading to suboptimal value for the government.
To what extent did the engineering, logistics, and program management services provided by Vectrus Systems LLC contribute to the Department of Defense's mission effectiveness?
The contribution to mission effectiveness is directly tied to the quality and timeliness of the services rendered. Effective engineering support is crucial for developing and maintaining complex defense systems, while robust logistics and program management ensure operational readiness and efficient resource allocation. Without specific performance metrics and mission outcomes, it's challenging to quantify the exact impact, but the sustained award suggests a perceived value and contribution to DoD operations.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002414R3031
Offers Received: 9
Pricing Type: COST PLUS FIXED FEE (U)
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, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $74,775,339
Exercised Options: $74,367,638
Current Obligation: $68,808,970
Subaward Activity
Number of Subawards: 50
Total Subaward Amount: $8,889,735
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017810D6407
IDV Type: IDC
Timeline
Start Date: 2014-07-01
Current End Date: 2020-07-31
Potential End Date: 2020-07-31 00:00:00
Last Modified: 2025-10-30
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