DoD's $21M contract for Kuwait dining services awarded to Vectrus Systems LLC

Contract Overview

Contract Amount: $21,019,275 ($21.0M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-26

End Date: 2025-06-25

Contract Duration: 1,460 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ALI AL SALEM AIR BASE DINING FACILITY SERVICES, KUWAIT

Plain-Language Summary

Department of Defense obligated $21.0 million to VECTRUS SYSTEMS LLC for work described as: ALI AL SALEM AIR BASE DINING FACILITY SERVICES, KUWAIT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1460 days (4 years) indicates a long-term need for these services. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. Services are for dining facilities at Ali Al Salem Air Base, Kuwait. 5. The base award amount is approximately $21 million. 6. The contract was awarded as a delivery order.

Value Assessment

Rating: good

Benchmarking dining facility services in overseas locations can be challenging due to unique logistical and operational factors. However, the firm-fixed-price structure generally promotes cost control. Without specific performance metrics or comparable contract data for similar bases, a precise value-for-money assessment is difficult. The award amount appears reasonable for a multi-year contract supporting a significant military installation abroad.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method typically fosters competitive pricing and encourages contractors to offer their best value. The open competition suggests the government sought the most advantageous offer based on price and other factors.

Taxpayer Impact: Taxpayers benefit from a competitive process that is designed to secure the best possible price and quality for essential services, reducing the likelihood of inflated costs.

Public Impact

Service members stationed at Ali Al Salem Air Base, Kuwait, will benefit from consistent and reliable dining services. The contract ensures the provision of food services, contributing to the morale and operational readiness of military personnel. The geographic impact is localized to Ali Al Salem Air Base in Kuwait. The contract supports jobs related to food service operations, potentially including local hires or contracted personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational challenges arise in a remote location.
Dependence on contractor performance for critical service delivery to military personnel.

Positive Signals

Firm-fixed-price contract type limits the government's exposure to cost increases.
Long-term contract duration provides stability and predictability for service provision.
Awarded through full and open competition, suggesting a competitive market for these services.

Sector Analysis

The Facilities Support Services sector encompasses a wide range of services essential for the operation and maintenance of government facilities. This contract falls within the broader category of base operations support, which is a significant area of spending for the Department of Defense, particularly in overseas locations. Market size for such services is substantial, driven by the need to maintain infrastructure and provide essential amenities for military personnel globally.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As it was awarded under full and open competition, it is unlikely that small businesses were exclusively targeted, though they may have participated as subcontractors. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Air Force contracting command. Performance monitoring would likely involve base leadership and quality assurance personnel to ensure services meet contractual requirements. Transparency is generally maintained through contract databases, though specific performance reports may not be publicly available.

Related Government Programs

Base Operations Support Contracts
Food Services Contracts
Department of Defense Contracts
Services Contracts Overseas

Risk Flags

Potential for supply chain disruptions
Geopolitical risks in the region
Operational challenges in a remote location
Dependence on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to VECTRUS SYSTEMS LLC. ALI AL SALEM AIR BASE DINING FACILITY SERVICES, KUWAIT

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 $21.0 million.

What is the period of performance?

Start: 2021-06-26. End: 2025-06-25.

What is the historical spending pattern for dining facility services at Ali Al Salem Air Base?

Analyzing historical spending for dining facility services at Ali Al Salem Air Base requires access to historical contract data specific to this location. Without direct access to this granular information, it's difficult to provide a precise spending trend. However, contracts for base support services, including dining, are typically recurring needs for military installations. Spending can fluctuate based on factors such as troop levels, operational tempo, and changes in service requirements. The current $21 million award over four years suggests a consistent need and budget allocation for these services. To provide a detailed historical analysis, one would need to examine previous contracts for similar services at this base, noting award amounts, durations, and any significant changes in scope or pricing over time.

How does the per-meal cost under this contract compare to similar contracts at other overseas bases?

Determining the per-meal cost requires dividing the total contract value by the estimated number of meals served over the contract period. This information (number of meals) is not provided in the current data. Without this, a direct per-meal cost comparison is impossible. Generally, overseas dining contracts can have higher per-meal costs compared to domestic contracts due to logistical challenges, transportation of goods, labor costs in foreign countries, and security requirements. Factors like the specific location (e.g., cost of living, availability of local resources), the scope of services (e.g., type of cuisine, operating hours), and the competitive landscape all influence pricing. A comprehensive comparison would necessitate gathering per-meal cost data from multiple, comparable overseas dining facility contracts awarded by the DoD.

What is Vectrus Systems LLC's track record with similar government contracts, particularly in overseas base support?

Vectrus Systems LLC has a significant track record of performing government contracts, particularly in logistics, base operations, and facilities support, often in overseas environments. They have held numerous contracts with the Department of Defense and other agencies. Their experience often includes providing a wide range of services such as maintenance, transportation, IT, and, relevantly, food services. When assessing their track record for this specific contract, it's important to review past performance evaluations, any past performance issues or awards, and the scale and complexity of previous similar contracts they have managed. A review of their contract history would likely show extensive experience in managing large-scale service delivery in challenging operational theaters, which is a positive indicator for this dining facility services contract.

What are the key performance indicators (KPIs) used to measure the success of this dining facility services contract?

Key Performance Indicators (KPIs) for dining facility services contracts typically focus on service quality, food safety, customer satisfaction, and operational efficiency. Common KPIs include food quality ratings (e.g., taste, freshness, variety), adherence to nutritional standards, food safety compliance (e.g., passing health inspections), timeliness of service (e.g., meal availability during designated hours), cleanliness of facilities, and customer satisfaction scores (often gathered through surveys). For this contract, the Department of the Air Force would likely establish specific measurable targets for these KPIs. Contractor performance is evaluated against these metrics, and failure to meet them can result in penalties or impact future contract awards. The firm-fixed-price nature of the contract incentivizes the contractor to meet these KPIs efficiently.

Are there any specific risks associated with providing dining services in Kuwait compared to other regions?

Providing dining services in Kuwait presents several specific risks. Geopolitical instability in the broader Middle East region, although generally stable in Kuwait, always poses a background risk. Logistical challenges are significant; importing food supplies and ensuring their freshness and safety requires robust supply chain management, potentially involving long transit times and specialized handling. Local labor laws, cultural considerations, and the availability of a qualified workforce can also pose challenges. Furthermore, operating in a military base environment requires strict adherence to security protocols and potentially fluctuating demands based on military operations. Environmental factors, such as extreme heat, can impact food storage and preparation. The contractor must have robust contingency plans to mitigate these risks.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $21,053,690

Exercised Options: $21,053,690

Current Obligation: $21,019,275

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $91,394

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA805120D0008

IDV Type: IDC

Timeline