Navy awards $14M contract to Vector CSP LLC for air transportation support services

Contract Overview

Contract Amount: $13,983,069 ($14.0M)

Contractor: Vector CSP LLC

Awarding Agency: Department of Defense

Start Date: 2023-11-01

End Date: 2026-10-31

Contract Duration: 1,095 days

Daily Burn Rate: $12.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CONTRACT AWARD

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to VECTOR CSP LLC for work described as: CONTRACT AWARD Key points: 1. Contract value of $13.98M over three years suggests a moderate investment in specialized support. 2. Awarded under Simplified Acquisition Procedures (SAP), indicating a focus on smaller value procurements. 3. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of cost overruns. 4. Limited competition data available due to SAP, potentially impacting price discovery. 5. Contract duration of 1095 days aligns with typical support service agreements. 6. Geographic focus on Maryland (MD) indicates regional operational needs.

Value Assessment

Rating: fair

The contract value of approximately $14 million over three years for air transportation support is within a typical range for specialized services. However, without specific benchmarks for 'Other Support Activities for Air Transportation' (NAICS 488190), a precise value-for-money assessment is challenging. The CPFF structure introduces inherent risk, as costs can fluctuate, and the fixed fee may not adequately incentivize efficiency if not managed closely. Benchmarking against similar contracts would be necessary for a more definitive assessment of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less formal bidding process and may not always result in the same level of competition as full and open procedures. The number of bidders (3) is noted, but the specific details of the solicitation and evaluation process under SAP are not fully detailed here. This level of competition, while present, might not fully leverage market forces to achieve the lowest possible price.

Taxpayer Impact: For taxpayers, competition under SAP can sometimes lead to higher prices compared to robust, full-and-open competition, as the pool of potential bidders may be smaller or the process less rigorous in driving down costs.

Public Impact

The Department of the Navy benefits from specialized support activities crucial for its air transportation operations. Services provided likely enhance the efficiency and effectiveness of military air logistics and operations. The contract's geographic focus on Maryland suggests support for naval air facilities or operations within that region. Potential workforce implications include employment opportunities for individuals with expertise in air transportation support and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns if not managed diligently.
Limited transparency on competition details under SAP makes it difficult to fully assess price reasonableness.
The specific nature of 'Other Support Activities for Air Transportation' requires clear performance metrics to ensure value.
Dependence on a single contractor for critical support functions can pose a risk if performance falters.

Positive Signals

Award to Vector CSP LLC indicates a selection based on perceived capability for the required support.
The existence of a contract suggests a recognized need for these specific air transportation support services.
A defined contract period allows for planning and budgeting of essential support functions.
The presence of 3 bidders, even under SAP, indicates some level of market interest and potential for competitive pricing.

Sector Analysis

The air transportation support sector encompasses a wide range of services essential for the operation of aircraft and aviation infrastructure. This includes maintenance, logistics, ground support, and administrative functions. The market size is substantial, driven by both commercial and government aviation needs. This contract fits within the government's broader spending on defense logistics and operational support, ensuring the readiness and effectiveness of its air assets. Comparable spending benchmarks would typically be found within defense logistics and aviation support categories.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-aside requirements. The impact on the small business ecosystem is likely minimal unless Vector CSP LLC voluntarily engages small businesses as subcontractors, which is not specified.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is generally facilitated through contract award databases, though the specifics of performance monitoring and internal reviews are not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Logistics Support Contracts
Naval Air Station Operations Support
Air Mobility Command Services
Federal Aviation Administration Support Services

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to prevent cost overruns.
Competition under Simplified Acquisition Procedures (SAP) may limit price discovery and potentially increase costs.
Lack of detailed performance metrics in the provided data makes assessing service effectiveness challenging.
Dependence on a single contractor for critical support functions carries inherent operational risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to VECTOR CSP LLC. CONTRACT AWARD

Who is the contractor on this award?

The obligated recipient is VECTOR CSP LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $14.0 million.

What is the period of performance?

Start: 2023-11-01. End: 2026-10-31.

What is the track record of Vector CSP LLC in performing similar air transportation support services for the federal government?

Assessing Vector CSP LLC's track record requires a review of their past performance on federal contracts, particularly those involving air transportation support or similar logistical services. Information on past performance, including client satisfaction, adherence to schedules, and quality of service, is typically available through sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A detailed analysis would involve examining the scope and value of previous contracts, any performance issues or awards received, and the duration of their experience in this specific domain. Without direct access to these detailed performance records, it is difficult to definitively state their capabilities, but the award itself suggests they met the Navy's requirements at the time of selection.

How does the awarded price compare to similar air transportation support contracts awarded by the Department of Defense or other federal agencies?

Benchmarking this $14 million contract against similar air transportation support contracts is crucial for assessing value for money. This comparison would ideally involve analyzing contracts with comparable scope, duration, service complexity, and geographic location. Factors such as the number of bidders, the contract type (e.g., CPFF, FFP), and the specific services rendered are critical. For instance, if other agencies have awarded similar three-year support contracts for around $4-5 million annually, this contract might be considered within a reasonable range. Conversely, if comparable contracts are significantly lower, it could indicate potential overpricing or a less competitive bidding environment. Access to detailed contract databases and historical pricing data is necessary for a robust comparison.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this service, and how are they being mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as the government agrees to cover all allowable costs plus a predetermined fixed fee. This can lead to cost overruns if the contractor's actual costs exceed initial estimates. Mitigation strategies typically involve robust government oversight, detailed cost accounting standards, regular audits of contractor expenses, and clear definitions of allowable costs. The fixed fee itself acts as a ceiling on the contractor's profit, but the government bears the risk of escalating direct and indirect costs. Effective management by the Navy's contracting officers is essential to monitor expenditures and ensure the contractor operates efficiently within the spirit of the agreement.

What is the expected effectiveness of the services provided under this contract in supporting the Navy's air transportation mission?

The effectiveness of the services provided under this contract hinges on the specific nature of the 'Other Support Activities for Air Transportation' and the performance standards outlined in the contract. If these services are critical for flight operations, maintenance scheduling, or logistical coordination, their effective delivery directly impacts the Navy's ability to conduct its air missions efficiently and safely. The Navy's selection of Vector CSP LLC suggests they believe the contractor can meet these performance expectations. Success will be measured by the contractor's ability to meet defined service level agreements, maintain operational readiness, and contribute to the overall mission objectives without significant disruptions or cost escalations.

How does the historical spending on 'Other Support Activities for Air Transportation' by the Department of the Navy compare to this award?

To assess historical spending patterns, one would need to analyze the Department of the Navy's budget allocations and contract awards for NAICS code 488190 ('Other Support Activities for Air Transportation') over several fiscal years. This analysis would reveal trends in spending, identify major contractors in this space, and indicate whether this $14 million award represents a significant increase or decrease compared to previous investments. Understanding this historical context helps determine if the current award is consistent with past procurement strategies or if it signifies a shift in priorities or operational needs. It also provides a baseline for evaluating the long-term financial commitment to these support services.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: N0042122R0212

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 101 MILL END CT, ELIZABETH CITY, NC, 27909

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business

Financial Breakdown

Contract Ceiling: $32,491,860

Exercised Options: $19,023,739

Current Obligation: $13,983,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline