DoD's $33M H-53 Helicopter Program Support Contract Awarded to Vectrus Systems LLC
Contract Overview
Contract Amount: $33,167,075 ($33.2M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2014-07-15
End Date: 2020-05-31
Contract Duration: 2,147 days
Daily Burn Rate: $15.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF PMA-261 H-53 HEAVY LIFT HELICOPTERS PROGRAM OFFICE SUPPORT
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80919
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $33.2 million to VECTRUS SYSTEMS LLC for work described as: IGF::OT::IGF PMA-261 H-53 HEAVY LIFT HELICOPTERS PROGRAM OFFICE SUPPORT Key points: 1. Contract awarded for engineering services supporting the H-53 Heavy Lift Helicopters Program Office. 2. Vectrus Systems LLC secured the contract through full and open competition. 3. The contract spans over five years, indicating a significant, long-term need. 4. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee. While this can be effective for complex projects, it necessitates robust oversight to prevent cost overruns and ensure value for money compared to similar engineering support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a competitive bidding process that should have driven favorable pricing. The Delivery Order (DO) mechanism indicates it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, allowing for task-specific competition.
Taxpayer Impact: Full and open competition generally leads to better pricing and value for taxpayers by fostering a competitive environment among qualified contractors.
Public Impact
Ensures continued operational readiness and modernization of critical heavy-lift helicopter capabilities. Supports advanced engineering and technical services essential for complex defense programs. Contributes to the overall effectiveness and safety of military aviation operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type requires diligent cost monitoring.
- Potential for scope creep in engineering services.
- Long contract duration may not reflect evolving needs.
Positive Signals
- Awarded via full and open competition.
- Supports a critical defense asset.
- Experienced contractor likely provides stable support.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting a major defense program. Spending benchmarks for similar large-scale, long-term engineering support contracts can vary widely based on program complexity and duration, but $33 million over five years suggests a substantial investment in specialized technical expertise.
Small Business Impact
The data indicates this contract was awarded to Vectrus Systems LLC and does not specify any subcontracting to small businesses. Further analysis would be needed to determine if small business participation goals were set or met.
Oversight & Accountability
The Department of Defense, through agencies like the Defense Contract Management Agency (DCMA), is responsible for overseeing this contract. Robust oversight is crucial for CPFF contracts to ensure costs are reasonable and allocable, and that performance meets program requirements.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration (over 5 years).
- Engineering services can be prone to scope creep.
- Lack of explicit small business participation noted.
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 $33.2 million to VECTRUS SYSTEMS LLC. IGF::OT::IGF PMA-261 H-53 HEAVY LIFT HELICOPTERS PROGRAM OFFICE SUPPORT
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 $33.2 million.
What is the period of performance?
Start: 2014-07-15. End: 2020-05-31.
What is the projected cost efficiency of this CPFF contract given the fixed fee?
The cost efficiency of a CPFF contract hinges on the government's ability to effectively monitor and control costs incurred by the contractor. While the fixed fee provides a ceiling for the contractor's profit, the overall cost efficiency depends on the reasonableness of the direct and indirect costs claimed. Regular audits and performance reviews by the DCMA are essential to ensure the government receives good value and that costs remain within expected parameters for engineering services of this nature.
What are the primary risks associated with the long duration and CPFF structure of this contract?
The primary risks include potential cost overruns due to the CPFF structure, where the contractor is reimbursed for all allowable costs plus a fixed fee, and scope creep over the contract's long duration (2014-2020). Without stringent oversight, costs could escalate beyond initial projections. Additionally, the fixed fee might not adequately incentivize efficiency if not carefully structured, and the long duration could lead to outdated technology or processes if not managed proactively.
How effectively does this contract support the long-term sustainment and modernization goals of the H-53 helicopter program?
This contract appears to be designed to provide essential engineering support for the H-53 program's sustainment and potentially modernization efforts. The long duration suggests a commitment to ongoing technical expertise. However, its effectiveness in modernization depends on the specific task orders issued and the contractor's ability to adapt to evolving technological requirements and program objectives within the established framework.
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: N0002412R3118
Offers Received: 13
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: $44,743,601
Exercised Options: $39,489,652
Current Obligation: $33,167,075
Subaward Activity
Number of Subawards: 61
Total Subaward Amount: $9,944,881
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: 2014-07-15
Current End Date: 2020-05-31
Potential End Date: 2020-05-31 00:00:00
Last Modified: 2025-04-26
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