DoD Awards $72.5M Facilities Support Services Contract to Vectrus Systems LLC
Contract Overview
Contract Amount: $72,496,893 ($72.5M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2014-02-28
End Date: 2015-08-09
Contract Duration: 527 days
Daily Burn Rate: $137.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::CT::IGF LRC BASE OPERATIONS SUPPORT SERVICES
Place of Performance
Location: FORT BENNING, CHATTAHOOCHEE County, GEORGIA, 31905
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $72.5 million to VECTRUS SYSTEMS LLC for work described as: IGF::CT::IGF LRC BASE OPERATIONS SUPPORT SERVICES Key points: 1. Contract awarded to Vectrus Systems LLC for base operations support. 2. Significant value of $72.5 million over its duration. 3. Contract was not competed, raising questions about price discovery. 4. Facilities Support Services sector is essential for military base functionality.
Value Assessment
Rating: questionable
The contract value of $72.5 million for a 527-day period suggests a substantial per-day cost. Without competitive bidding, it's difficult to assess if this pricing is optimal compared to market rates for similar comprehensive facilities support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This lack of competition limits the government's ability to leverage market forces to achieve the best possible price and value.
Taxpayer Impact: The absence of competition may lead to taxpayers paying a premium for services that could potentially be procured at a lower cost through a competitive process.
Public Impact
Essential base operations support ensures continuity for military functions. Lack of competition raises concerns about potential overspending of taxpayer funds. Contract duration of over a year highlights the ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus award fee structure can incentivize spending
Positive Signals
- Essential service provision
- Established contractor performance history (implied)
Sector Analysis
This contract falls within the Facilities Support Services sector, which encompasses a broad range of services necessary for the operation and maintenance of government facilities. Spending in this sector is critical for maintaining infrastructure but can be prone to cost overruns if not managed competitively.
Small Business Impact
The data indicates this contract was awarded to Vectrus Systems LLC and does not specify any small business participation. Further analysis would be needed to determine if small businesses were subcontracted or if opportunities were missed.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement was robust and that the pricing was appropriately scrutinized. The cost-plus award fee structure also requires diligent monitoring.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Cost-plus award fee structure
- Potential for cost overruns
- Limited transparency on pricing justification
Tags
facilities-support-services, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.5 million to VECTRUS SYSTEMS LLC. IGF::CT::IGF LRC BASE OPERATIONS SUPPORT SERVICES
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 $72.5 million.
What is the period of performance?
Start: 2014-02-28. End: 2015-08-09.
What was the specific justification for not competing this large facilities support contract?
The justification for not competing this contract would typically stem from reasons such as urgent and compelling needs, the unavailability of a qualified source, or specific statutory requirements. Without access to the contract file and its associated documentation, the precise rationale remains unknown. However, a lack of competition for a contract of this magnitude is a significant point for review.
How does the cost-plus award fee structure impact the government's risk and the contractor's incentive for cost control?
A cost-plus award fee (CPAF) contract allows the contractor to recover allowable costs plus a fee that is determined based on performance against pre-defined criteria. While it can incentivize high performance, it also shifts some cost risk to the government. The contractor has less incentive to aggressively control costs compared to a fixed-price contract, as costs are reimbursed. Effective oversight is crucial to manage this structure.
What is the benchmark for facilities support services contracts of this scope and duration to assess value for money?
Benchmarking facilities support services contracts requires detailed comparison based on specific services included, geographic location, contract type, and duration. Generally, competitive bidding yields better value. For a contract of this size and duration, a lack of competition makes direct value-for-money assessment difficult without access to comparable sole-source or competitively awarded contracts within the Department of Defense or other federal agencies.
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 AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vectrus, Inc. (UEI: 079387563)
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: $76,283,141
Exercised Options: $76,283,141
Current Obligation: $72,496,893
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-02-28
Current End Date: 2015-08-09
Potential End Date: 2015-08-09 00:00:00
Last Modified: 2019-05-28
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