FAA awards $5.58M follow-on contract to Vectrus Systems LLC for Engineering Services

Contract Overview

Contract Amount: $5,577,374 ($5.6M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Transportation

Start Date: 2019-05-23

End Date: 2020-10-09

Contract Duration: 505 days

Daily Burn Rate: $11.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PROVIDE FUNDING FOR VECTRUS CONTRACT # DTFACT-15-D-00005 TO 692M15-19-F-00390 FOLLOW-ON (AJI-321)F&E

Place of Performance

Location: HAMMONTON, ATLANTIC County, NEW JERSEY, 08037

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $5.6 million to VECTRUS SYSTEMS LLC for work described as: PROVIDE FUNDING FOR VECTRUS CONTRACT # DTFACT-15-D-00005 TO 692M15-19-F-00390 FOLLOW-ON (AJI-321)F&E Key points: 1. Contract awarded to Vectrus Systems LLC, a single provider. 2. The contract is for Engineering Services, with a value of $5.58M. 3. This is a follow-on contract, indicating a potential lack of competition. 4. The sector is IT, specifically engineering services supporting aviation.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these engineering services.

Public Impact

Taxpayers may be overpaying due to the sole-source nature of the award. The FAA relies on Vectrus Systems LLC for critical engineering services. Potential for cost inefficiencies due to the contract type and lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector, often associated with IT and professional services. Spending benchmarks for this specific type of service can vary widely based on complexity and duration.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to perform this work.

Oversight & Accountability

The contract's sole-source nature warrants close oversight to ensure fair pricing and effective service delivery. The FAA should document the justification for not competing this follow-on award.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-transportation, nj, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.6 million to VECTRUS SYSTEMS LLC. PROVIDE FUNDING FOR VECTRUS CONTRACT # DTFACT-15-D-00005 TO 692M15-19-F-00390 FOLLOW-ON (AJI-321)F&E

Who is the contractor on this award?

The obligated recipient is VECTRUS SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2019-05-23. End: 2020-10-09.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where competition is not feasible. The FAA should have conducted a price analysis to ensure the pricing was fair and reasonable, comparing it to historical data or similar services, even without competitive bids. Documentation of this analysis is crucial for accountability.

What are the potential risks associated with a Cost Plus Fixed Fee contract, especially in a sole-source scenario?

Cost Plus Fixed Fee contracts carry the risk of cost overruns if the contractor's costs exceed estimates, as the fixed fee remains constant. In a sole-source scenario, this risk is amplified as there's no competitive pressure to control costs. The government must diligently monitor expenditures and contractor performance to mitigate potential inefficiencies and ensure the fixed fee remains appropriate for the work performed.

How does the lack of competition for this follow-on contract impact the FAA's ability to achieve best value and manage long-term costs?

The absence of competition for this follow-on contract limits the FAA's ability to achieve best value by not leveraging market forces to drive down prices and encourage innovation. It may also lead to higher long-term costs if Vectrus Systems LLC does not face pressure to optimize its service delivery or pricing. Regular re-evaluation of the need for competition on subsequent contract actions is advisable.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vectrus, Inc.

Address: 1101 KING ST STE 550, ALEXANDRIA, VA, 22314

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,897,076

Exercised Options: $5,577,374

Current Obligation: $5,577,374

Actual Outlays: $4,680,931

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFACT15D00005

IDV Type: IDC

Timeline

Start Date: 2019-05-23

Current End Date: 2020-10-09

Potential End Date: 2020-10-09 00:00:00

Last Modified: 2026-03-11

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