Army Awards $502.7M for Missile and Space Systems Support to ITT Federal Services
Contract Overview
Contract Amount: $502,695,529 ($502.7M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2000-08-15
End Date: 2011-04-10
Contract Duration: 3,890 days
Daily Burn Rate: $129.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: 200011!2100!000773!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0900C0064 !A!*!* !20000815!20001130!006974133!001216845!001216845!N!1D510!ITT FEDERAL SERVICES CORPORATI!4410 E. FOUNTAIN BLVD. !COLORADO SPRIN !CO!80916!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !0001!+000000568166!N!N!000000000000!AD21!RDTE/SERVICES-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !1GIF!AIR TRAFFIC CNTL COMM CONSOLE !3669!3!*!*!*!B!A!*!A !N!V!2!002!B!* !Z!N!Z!* !* !N!C!*!Z!A!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!
Plain-Language Summary
Department of Defense obligated $502.7 million to VECTRUS SYSTEMS LLC for work described as: 200011!2100!000773!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0900C0064 !A!*!* !20000815!20001130!006974133!001216845!001216845!N!1D510!ITT FEDERAL SERVICES CORPORATI!4410 E. FOUNTAIN BLVD. !COLORADO SPRIN !CO!80916!16000!041!08!COLORADO SPRINGS !EL … Key points: 1. The contract, valued at $502.7 million, was awarded to ITT Federal Services Corporation. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The primary risk appears to be the cost-plus incentive fee structure, which can lead to cost overruns if not managed carefully. 4. The sector is IT and R&D, specifically missile and space systems and air traffic control consoles.
Value Assessment
Rating: fair
The contract value of $502.7 million for missile and space systems support appears substantial. Benchmarking against similar contracts for complex defense systems is necessary to fully assess its pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the cost-plus incentive fee (CPIF) structure requires careful monitoring to ensure cost efficiency.
Taxpayer Impact: The competitive award process aims to secure fair pricing for taxpayers, but the CPIF structure introduces potential for cost escalation.
Public Impact
This significant contract supports critical missile and space systems, impacting national defense capabilities. The award to ITT Federal Services Corporation highlights the role of private contractors in maintaining advanced defense infrastructure. The duration of the contract (over 8 years) suggests a long-term need for these specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus incentive fee structure
- Long contract duration
- Potential for cost overruns
Positive Signals
- Full and open competition
- Supports critical defense systems
Sector Analysis
This contract falls within the IT and R&D sectors, focusing on advanced defense systems. Spending in this area is typically high due to the complexity and strategic importance of the technologies involved.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, ITT Federal Services Corporation, is a large entity, suggesting limited direct opportunities for small businesses on this prime contract.
Oversight & Accountability
The contract's long duration and CPIF structure necessitate strong oversight from the Department of Defense to ensure performance and cost control, safeguarding taxpayer funds.
Related Government Programs
- All Other Automotive Repair and Maintenance
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost-plus incentive fee structure can lead to cost overruns.
- Long contract duration may reduce flexibility and increase risk of obsolescence.
- Lack of specific details on performance metrics and outcomes.
- Potential for contractor lock-in due to specialized nature of services.
Tags
all-other-automotive-repair-and-maintena, department-of-defense, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $502.7 million to VECTRUS SYSTEMS LLC. 200011!2100!000773!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0900C0064 !A!*!* !20000815!20001130!006974133!001216845!001216845!N!1D510!ITT FEDERAL SERVICES CORPORATI!4410 E. FOUNTAIN BLVD. !COLORADO SPRIN !CO!80916!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !0001!+000000568166!N!N!000000000000!AD21!RDTE/SERVICES-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !1GIF!AIR TRAFFIC CNTL COMM CONSOLE !3669!3!*!*!*!B!A!*!A !N!V!
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 $502.7 million.
What is the period of performance?
Start: 2000-08-15. End: 2011-04-10.
What specific missile and space systems are covered under this contract, and how does the scope of work align with current defense priorities?
The provided data identifies the work as 'MISSILE AND SPACE SYSTEMS' and 'AIR TRAFFIC CNTL COMM CONSOLE'. While the exact systems are not detailed, this likely pertains to command, control, and communication systems integral to missile defense and space operations. The alignment with current defense priorities would require further analysis of the Statement of Work (SOW) and the Army's strategic objectives in these domains.
How effectively has the Cost Plus Incentive Fee (CPIF) structure managed costs and incentivized performance for ITT Federal Services Corporation over the contract's lifespan?
Assessing the effectiveness of the CPIF structure requires examining performance metrics and final costs against initial targets. Without access to detailed performance reports and final cost data, it's difficult to definitively state its success. However, CPIF contracts inherently carry a risk of cost growth if incentives are not perfectly aligned with desired outcomes or if unforeseen issues arise.
What is the projected long-term impact of this contract on the technological advancement and operational readiness of the U.S. Army's missile and space capabilities?
This contract's significant value and long duration suggest a substantial contribution to maintaining and potentially advancing the Army's missile and space capabilities. Continued support for critical systems ensures operational readiness. The specific impact on technological advancement would depend on whether the contract includes provisions for research, development, and innovation beyond basic maintenance and support.
Industry Classification
NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › All Other Automotive Repair and Maintenance
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DAAA0999R0118
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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
Financial Breakdown
Contract Ceiling: $157,486,010
Exercised Options: $157,486,010
Current Obligation: $502,695,529
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2000-08-15
Current End Date: 2011-04-10
Potential End Date: 2011-04-10 12:04:00
Last Modified: 2016-09-06
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