DoD's $317M Facilities Support Contract with Vectrus Systems LLC Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $316,780,069 ($316.8M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2015-09-30
End Date: 2022-02-17
Contract Duration: 2,332 days
Daily Burn Rate: $135.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF
Plain-Language Summary
Department of Defense obligated $316.8 million to VECTRUS SYSTEMS LLC for work described as: IGF::OT::IGF Key points: 1. Significant contract value of $316.8 million over its lifespan. 2. Sole-source award raises questions about competitive pricing and value. 3. Long contract duration (2015-2022) may indicate potential for price creep. 4. Facilities Support Services sector often sees competitive bidding opportunities.
Value Assessment
Rating: questionable
The contract's total value of $316.8 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value for facilities support services compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The long-term nature of the contract could mask inefficiencies or price increases. Lack of transparency in the sole-source award process hinders public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
Positive Signals
- Services provided by a known contractor
Sector Analysis
This contract falls within Facilities Support Services, a broad category encompassing maintenance, repair, and operational support for government facilities. Spending in this sector can vary widely, but competitive procurement is typical for achieving cost efficiencies.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Sole-source awards often bypass opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the pricing is justified and that future requirements are competed to maximize value.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for overpayment due to lack of competition
- Limited transparency in contract award
- Risk of contractor complacency
- Missed opportunities for small business participation
Tags
facilities-support-services, department-of-defense, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $316.8 million to VECTRUS SYSTEMS LLC. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is VECTRUS SYSTEMS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $316.8 million.
What is the period of performance?
Start: 2015-09-30. End: 2022-02-17.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without specific documentation, it's impossible to determine the precise reason. However, the absence of competition raises concerns about whether alternative sources were thoroughly explored or if the justification was robust enough to warrant bypassing the standard competitive process.
How does the cost of this contract compare to industry benchmarks for similar facilities support services?
Direct comparison is challenging without detailed service breakdowns and performance metrics. However, sole-source contracts are inherently at a disadvantage regarding price discovery. Industry benchmarks for competitive contracts in facilities support often show lower per-unit costs and better value due to market pressures. This contract's lack of competition suggests its pricing may be higher than what could be achieved through a competitive bidding process.
What measures were in place to ensure effective service delivery and accountability given the sole-source nature?
While the contract type is 'COST PLUS FIXED FEE,' indicating some cost controls, the sole-source award itself reduces inherent accountability driven by market competition. Oversight would typically rely on contract performance metrics, regular reviews, and potentially independent cost analyses. The long duration and lack of competition suggest a need for robust government oversight to ensure the contractor is meeting all performance standards and delivering value effectively.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $316,780,069
Exercised Options: $316,780,069
Current Obligation: $316,780,069
Actual Outlays: $2,337,459
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $1,454,690
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-09-30
Current End Date: 2022-02-17
Potential End Date: 2022-02-17 00:00:00
Last Modified: 2025-09-30
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