DoD Awards $574M Facilities Support Contract to Vectrus Systems LLC Under Full and Open Competition
Contract Overview
Contract Amount: $573,932,647 ($573.9M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2016-02-19
End Date: 2027-06-30
Contract Duration: 4,149 days
Daily Burn Rate: $138.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 19
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28307
Plain-Language Summary
Department of Defense obligated $573.9 million to VECTRUS SYSTEMS LLC for work described as: IGF::OT::IGF Key points: 1. Significant contract value of $573.9M awarded to a single vendor. 2. Vectrus Systems LLC is the sole awardee, indicating a competitive award process. 3. The contract spans over 10 years, suggesting long-term service needs. 4. Facilities Support Services (NAICS 561210) is a broad category with potential for cost efficiencies. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires robust oversight.
Value Assessment
Rating: good
The contract value of $573.9M over 10 years suggests a substantial service requirement. Benchmarking against similar large-scale facilities support contracts would be necessary to fully assess pricing, but the CPFF structure implies a focus on managing costs against a defined scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust bidding process. This method is expected to drive competitive pricing and ensure the government receives best value. The award to a single vendor suggests Vectrus offered the most advantageous proposal.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by leveraging market forces. The long-term nature of the contract allows for potential economies of scale and predictable service delivery.
Public Impact
Ensures continued essential facilities support services for the Department of the Army. Supports military readiness and operations through reliable infrastructure maintenance. Potential for job creation and economic activity in North Carolina where the contract is managed. Long-term commitment may offer stability for service members and their families reliant on base facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type requires diligent oversight to prevent cost overruns.
- Long contract duration (over 10 years) may not adapt well to rapidly changing facility needs or technologies.
- Sole awardee limits future competitive opportunities during the contract period.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Long-term award provides service stability and predictability.
- Vectrus Systems LLC has a history of performing similar large-scale contracts.
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing maintenance, repair, and operational support for government facilities. Spending in this sector is critical for maintaining infrastructure and supporting agency missions. Benchmarks for similar large-scale contracts would typically consider the scope of services, geographic coverage, and contract type.
Small Business Impact
While the primary awardee is Vectrus Systems LLC, a large business, the contract terms may include provisions for subcontracting to small businesses. Further analysis would be needed to determine the extent of small business participation in fulfilling this large contract.
Oversight & Accountability
The Cost Plus Fixed Fee (CPFF) contract type necessitates strong government oversight to monitor costs, ensure performance, and prevent potential waste or fraud. Regular performance reviews and audits will be crucial for accountability.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Long contract duration may lead to outdated service models.
- Limited visibility into small business subcontracting.
- Dependence on a single vendor for critical facilities support.
- Risk of performance degradation over the extended contract period.
Tags
facilities-support-services, department-of-defense, nc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $573.9 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 $573.9 million.
What is the period of performance?
Start: 2016-02-19. End: 2027-06-30.
What is the estimated total cost of ownership for this contract over its full duration, considering potential cost growth under the CPFF structure?
The total awarded value is $573.9M, with a base period and multiple option periods extending to June 2027. Under a CPFF structure, the government pays allowable costs plus a fixed fee. While the fee is fixed, the total cost can fluctuate based on actual expenses. Robust oversight is critical to manage these costs effectively and prevent overruns beyond the initial estimates.
What are the specific performance metrics and key performance indicators (KPIs) used to evaluate Vectrus Systems LLC's service delivery under this contract?
Detailed performance metrics and KPIs are essential for a contract of this magnitude and duration. These would typically include standards for response times, quality of maintenance, safety compliance, and operational efficiency. The government's quality assurance surveillance plan (QASP) would outline how performance is monitored and measured against these KPIs.
How does the government ensure that the fixed fee component of the CPFF contract remains fair and reflects the value delivered over the contract's lifecycle?
The fixed fee is typically negotiated at the time of award based on the estimated cost and complexity of the work. For long-term contracts, periodic reviews of the fee might occur if there are significant changes in scope or contract type. The government's negotiation strategy and market research during the initial award are key to ensuring the fee is appropriate.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W52P1J15R0099
Offers Received: 19
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: $573,932,647
Exercised Options: $573,932,647
Current Obligation: $573,932,647
Subaward Activity
Number of Subawards: 48
Total Subaward Amount: $57,102,818
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: W52P1J13G0027
IDV Type: BOA
Timeline
Start Date: 2016-02-19
Current End Date: 2027-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2025-12-31
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