DoD's $46.1M Base Operations Contract Awarded to Vectrus Systems LLC Faces Scrutiny
Contract Overview
Contract Amount: $46,111,720 ($46.1M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2009-03-31
End Date: 2010-06-30
Contract Duration: 456 days
Daily Burn Rate: $101.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: BASE OPERATIONS SERVICES - ASG
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80919
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $46.1 million to VECTRUS SYSTEMS LLC for work described as: BASE OPERATIONS SERVICES - ASG Key points: 1. The contract, valued at $46.1 million, was awarded to Vectrus Systems LLC. 2. Awarded by the Department of Defense, it falls under Facilities Support Services. 3. The contract was not competed, raising questions about price discovery and value. 4. The sector is Defense, specifically facilities support, a critical but potentially high-cost area.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee (CPAF), which can incentivize performance but also lead to cost overruns if not managed tightly. Without competitive benchmarking, assessing the value for money is difficult.
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 price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition suggests potential overpayment, directly impacting taxpayer funds negatively.
Public Impact
Taxpayers may be paying more than necessary due to the lack of competitive bidding. The reliance on a single contractor for essential base operations could create dependency and reduce flexibility. The effectiveness of the services provided under a non-competed contract warrants close monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Award Fee contract type
- Potential for inflated costs
Positive Signals
- Contract awarded to an established entity (Vectrus Systems LLC)
- Services are essential for base operations
Sector Analysis
This contract falls within the Defense sector, specifically Facilities Support Services. Spending in this area is substantial across government, and competitive bidding is crucial for cost efficiency.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The non-competed nature of this award necessitates robust oversight to ensure fair pricing and effective service delivery. Accountability for cost controls under the CPAF structure is paramount.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency in pricing
- Dependency on a single contractor
Tags
facilities-support-services, department-of-defense, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.1 million to VECTRUS SYSTEMS LLC. BASE OPERATIONS SERVICES - ASG
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 $46.1 million.
What is the period of performance?
Start: 2009-03-31. End: 2010-06-30.
What was the justification for not competing this significant facilities support contract?
The justification for not competing this contract is not provided in the data. Typically, non-competitive awards require a formal justification, such as a sole-source requirement or urgent need. Without this justification, it's difficult to assess the necessity and potential risks associated with foregoing competition.
How does the actual cost compare to industry benchmarks for similar facilities support services?
Without competitive bids or detailed cost breakdowns, comparing this contract's actual cost to industry benchmarks for similar facilities support services is challenging. The Cost Plus Award Fee structure, while allowing for performance incentives, can obscure true cost efficiency if not rigorously managed and benchmarked against market rates.
What mechanisms are in place to ensure the effectiveness and efficiency of services under this sole-source contract?
Given the sole-source nature, robust performance metrics, regular quality assurance reviews, and clear award fee criteria are essential to ensure service effectiveness and efficiency. The contracting agency must actively manage the contract to prevent complacency and ensure value for taxpayer money.
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.
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
Financial Breakdown
Contract Ceiling: $46,111,720
Exercised Options: $46,111,720
Current Obligation: $46,111,720
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-03-31
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2024-01-27
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