DoD's $10.3M Communication Equipment Repair Contract Awarded to Vectrus Systems LLC
Contract Overview
Contract Amount: $10,309,355 ($10.3M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2005-11-01
End Date: 2011-03-31
Contract Duration: 1,976 days
Daily Burn Rate: $5.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200605!000332!5700!FA5613!700 CONS/LGC !FA561305CR210 !A!N! !N! !P00001!20051101!20060930!030468243!030468243!001216845!N!ITT FEDERAL SERVICES INTERNATI!4410 E FOUNTAIN BLVD !COLORADO SPRIN !CO!80916!00000! !GM!* !* !GERMANY !+000001227515!N!N!000000000000!J099!MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT !S1 !SERVICES !000 !NOT DISCERNABLE !811213!E! !3! ! !C! ! !99990909!B! ! !A! !A!N!J!2!003!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Plain-Language Summary
Department of Defense obligated $10.3 million to VECTRUS SYSTEMS LLC for work described as: 200605!000332!5700!FA5613!700 CONS/LGC !FA561305CR210 !A!N! !N! !P00001!20051101!20060930!030468243!030468243!001216845!N!ITT FEDERAL SERVICES INTERNATI!4410 E FOUNTAIN BLVD !COLORADO SPRIN !CO!80916!00000! !GM!* !* … Key points: 1. The contract is for communication equipment repair and maintenance, a critical service for military operations. 2. Vectrus Systems LLC, the awardee, is a significant player in government contracting, suggesting established capabilities. 3. The award was made under full and open competition, indicating a competitive bidding process. 4. The contract duration is substantial (1976 days), implying a long-term need for these services.
Value Assessment
Rating: good
The contract value of $10.3M over approximately 5.4 years suggests a reasonable annual spend for specialized repair services. Benchmarking against similar contracts for communication equipment maintenance would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for the best value to be determined through a robust bidding process.
Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers compared to sole-source or limited competition scenarios.
Public Impact
Ensures operational readiness of critical communication equipment for the Air Force. Supports a private sector company, contributing to employment and economic activity. Provides essential maintenance services that prevent costly equipment failures and extend asset life.
Waste & Efficiency Indicators
Waste Risk Score: 52 / 10
Warning Flags
- Potential for cost overruns if repair needs exceed initial estimates.
- Dependence on a single contractor for critical equipment maintenance.
Positive Signals
- Awarded through competitive bidding, likely securing a fair price.
- Contract duration suggests a stable and predictable service provision.
- Focus on repair and maintenance can be more cost-effective than outright replacement.
Sector Analysis
The Information Technology (IT) sector, specifically communication equipment repair and maintenance, is vital for modern military operations. Spending in this area is benchmarked against the need for reliable and secure communication systems, with costs influenced by technology complexity and service level agreements.
Small Business Impact
While the primary awardee is Vectrus Systems LLC, a large business, the contract may indirectly benefit small businesses through subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, part of the Department of Defense, which has established oversight mechanisms for contract performance and financial management. The number of modifications (3) is relatively low for a contract of this duration, suggesting stable execution.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract duration may lead to technological obsolescence.
- Potential for cost increases over the contract term.
- Dependence on a single contractor for critical services.
- Need for robust performance monitoring to ensure quality.
Tags
communication-equipment-repair-and-maint, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.3 million to VECTRUS SYSTEMS LLC. 200605!000332!5700!FA5613!700 CONS/LGC !FA561305CR210 !A!N! !N! !P00001!20051101!20060930!030468243!030468243!001216845!N!ITT FEDERAL SERVICES INTERNATI!4410 E FOUNTAIN BLVD !COLORADO SPRIN !CO!80916!00000! !GM!* !* !GERMANY !+000001227515!N!N!000000000000!J099!MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT !S1 !SERVICES !000 !NOT DISCERNABLE !811213!E! !3! ! !C! ! !999
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 Air Force).
What is the total obligated amount?
The obligated amount is $10.3 million.
What is the period of performance?
Start: 2005-11-01. End: 2011-03-31.
What is the specific scope of 'Communication Equipment Repair and Maintenance' covered by this contract?
The contract covers the maintenance and repair of communication equipment, identified by NAICS code 811213. This typically includes diagnostic services, component replacement, and general upkeep to ensure the operational readiness and functionality of various communication systems used by the Air Force.
What are the potential risks associated with the long duration of this contract?
A long contract duration (1976 days) carries risks such as technological obsolescence of the equipment being repaired, potential for increased repair costs due to inflation or unforeseen issues, and a reduced ability to adapt to new technologies or changing military requirements.
How does the firm fixed price contract type impact value and risk for the government?
A Firm Fixed Price (FFP) contract type shifts most of the risk to the contractor, Vectrus Systems LLC. While it provides cost certainty for the government, it could lead to the contractor seeking to minimize costs, potentially impacting service quality if not closely monitored. The government benefits from predictable spending.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Exelis Inc. (UEI: 969316046)
Address: 4410 E FOUNTAIN BLVD, COLORADO SPRIN, CO
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-11-01
Current End Date: 2011-03-31
Potential End Date: 2011-03-31 00:00:00
Last Modified: 2013-04-23
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