DoD awards $18.1M for dining facility services in Jordan, with 2 bidders competing

Contract Overview

Contract Amount: $18,123,596 ($18.1M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-17

End Date: 2024-06-16

Contract Duration: 1,095 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Other

Official Description: DINING FACILITY (DFAC) SERVICES AT MUWAFFAQ-SALTI AIR BASE (MSAB), JORDAN.

Plain-Language Summary

Department of Defense obligated $18.1 million to VECTRUS SYSTEMS LLC for work described as: DINING FACILITY (DFAC) SERVICES AT MUWAFFAQ-SALTI AIR BASE (MSAB), JORDAN. Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a healthy market for these services. 3. Limited number of bidders may indicate specific expertise required or market concentration. 4. Contract duration of three years provides stability for service delivery. 5. Services are critical for supporting military personnel stationed abroad. 6. Geographic location presents unique logistical and operational challenges.

Value Assessment

Rating: good

The contract value of $18.1 million over three years for dining facility services at a remote base is within a reasonable range for such operations. Benchmarking against similar contracts for overseas base support, the cost per day per service member is likely competitive, though specific metrics are not provided. The Cost Plus Fixed Fee (CPFF) contract type, while not explicitly stated in the provided data (it shows 'COST NO FEE'), typically allows for cost control with contractor incentives. Without more granular data on service levels and personnel supported, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests a fair price was achieved.

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 offers. Two bids were received, which suggests a moderate level of competition. While more than two bidders would typically indicate stronger price discovery, the specialized nature of providing services at an overseas military installation may limit the pool of qualified contractors. The government's ability to solicit from a broad range of potential providers is a positive indicator for achieving a competitive price.

Taxpayer Impact: The full and open competition process, even with two bidders, provides a baseline for fair pricing and ensures taxpayers are not subjected to sole-source premiums. This approach maximizes the opportunity to secure services at a reasonable cost.

Public Impact

Military personnel stationed at Muwaffaq-Salti Air Base (MSAB) in Jordan benefit from essential dining services. The contract ensures the provision of food services, contributing to morale and operational readiness. The geographic impact is concentrated at MSAB, Jordan, supporting U.S. Air Force operations. The contract supports a workforce of individuals providing food preparation, serving, and facility maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not closely managed due to the 'COST NO FEE' structure.
Logistical challenges in Jordan could impact service delivery and increase operational costs.
Dependence on a limited number of bidders might reduce future competitive pressure.
Ensuring consistent food quality and safety standards in a remote location requires robust oversight.

Positive Signals

Awarded under full and open competition, indicating a broad search for qualified contractors.
The contract duration of three years provides service continuity for deployed personnel.
The contractor, Vectrus Systems LLC, has experience in providing base support services globally.
The 'COST NO FEE' structure, if managed effectively, can align contractor and government interests on cost efficiency.

Sector Analysis

The Facilities Support Services sector encompasses a wide range of services essential for the operation and maintenance of government facilities, particularly those located in remote or overseas environments. This contract falls within the broader category of base operations support, which includes services like food, lodging, maintenance, and logistics. The market for these services is often characterized by a few large, experienced contractors capable of handling complex international deployments. Spending in this sector is driven by the need to maintain readiness and quality of life for military personnel in various global theaters.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal, as the primary award went to a large business. Future opportunities for small businesses would depend on subcontracting requirements that may be flowed down by the prime contractor, Vectrus Systems LLC.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, a component of the Department of Defense. The contract type ('COST NO FEE') necessitates close monitoring of expenditures to ensure costs remain reasonable and within the anticipated scope. Accountability measures would include performance metrics outlined in the contract's statement of work, regular progress reports from the contractor, and potential site visits or inspections by government representatives. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Contingency Base Support
Food Services Contracts
Overseas Military Support
Facilities Maintenance Contracts

Risk Flags

Potential for cost overruns due to 'COST NO FEE' contract type.
Logistical complexities in overseas operations.
Limited competition (2 bidders) may impact long-term price discovery.
Ensuring consistent quality and safety standards in a remote location.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to VECTRUS SYSTEMS LLC. DINING FACILITY (DFAC) SERVICES AT MUWAFFAQ-SALTI AIR BASE (MSAB), JORDAN.

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 $18.1 million.

What is the period of performance?

Start: 2021-06-17. End: 2024-06-16.

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

Vectrus Systems LLC has a significant track record in providing base operations and logistics support services to the U.S. military, including in challenging overseas environments. The company has held numerous contracts for services such as facility maintenance, logistics, IT, and security at various military installations globally. Their experience often includes managing complex supply chains, ensuring personnel welfare, and maintaining operational readiness in regions like the Middle East, Europe, and Asia. This extensive experience suggests a familiarity with the unique demands of supporting military operations abroad, including navigating local regulations, cultural nuances, and logistical hurdles. Their past performance on similar contracts would be a key factor in the government's evaluation during the bidding process for the MSAB dining facility services.

How does the cost per service member per day for this contract compare to similar contracts at other overseas bases?

To benchmark the cost per service member per day, we would need to know the average number of service members supported daily by the dining facility. Assuming an average daily population, the total contract value of $18.1 million over 1095 days ($16,551 per day) could be divided by the number of service members. For instance, if the DFAC supported 500 service members daily, the cost per service member per day would be approximately $33.10. This figure needs to be compared against industry benchmarks for similar services at comparable overseas locations. Factors like the cost of living, local labor rates, transportation costs for food supplies, and the specific service level agreements (e.g., number of meals per day, variety of options) significantly influence this metric. Contracts in high-cost-of-living areas or those with extensive logistical challenges typically exhibit higher per-person costs.

What are the primary risks associated with providing dining services at a remote base like MSAB, Jordan?

Providing dining services at a remote base like Muwaffaq-Salti Air Base (MSAB) in Jordan presents several key risks. Logistical challenges are paramount; ensuring a consistent and safe supply chain for food and beverages in a landlocked, potentially politically sensitive region requires robust planning and execution. This includes managing transportation, customs, and storage to prevent spoilage or contamination. Operational risks include maintaining food safety and hygiene standards in a demanding environment, managing a diverse workforce (potentially including local hires), and ensuring service continuity during unforeseen events such as extreme weather or security incidents. Furthermore, the 'COST NO FEE' contract type, while aiming for cost control, can introduce risks if not meticulously monitored, as the contractor may face incentives to manage costs tightly, potentially impacting service quality if not balanced with performance requirements. Finally, geopolitical instability in the region could pose risks to personnel and supply lines.

What is the expected impact of this contract on the operational readiness and morale of U.S. Air Force personnel at MSAB?

This contract is crucial for maintaining the operational readiness and morale of U.S. Air Force personnel stationed at MSAB, Jordan. Reliable and quality food services are a fundamental aspect of quality of life for deployed service members, directly impacting their well-being, health, and ability to perform their duties effectively. By ensuring consistent access to nutritious meals, the contract helps sustain physical health and cognitive function, which are essential for mission success. High morale, often boosted by good food and a sense of normalcy, can reduce stress, improve unit cohesion, and decrease personnel turnover or disciplinary issues. Conversely, poor or inconsistent dining services can lead to decreased morale, health problems, and reduced operational effectiveness. Therefore, the successful execution of this contract directly supports the overall mission effectiveness at MSAB.

How has spending on Dining Facility (DFAC) services at overseas bases evolved over the past five years?

Spending on Dining Facility (DFAC) services at overseas bases has generally remained a significant component of Department of Defense (DoD) operational budgets, reflecting the ongoing need to support deployed personnel. While specific aggregate data for DFAC services alone can be difficult to isolate from broader Base Operations Support (BOS) contracts, trends indicate a sustained requirement. Factors influencing spending include the number of personnel deployed, the geographic locations of bases, the complexity of logistical support, and the prevailing economic conditions affecting labor and commodity costs. In recent years, there has been an increased focus on efficiency and value for money, leading to more competitive bidding processes and potentially innovative service delivery models. However, geopolitical events and shifts in military posture can lead to fluctuations in demand and associated spending in specific regions. The overall trend suggests a consistent, albeit potentially fluctuating, investment in ensuring adequate food services for military personnel abroad.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST NO FEE (S)

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: $53,337,024

Exercised Options: $28,504,358

Current Obligation: $18,123,596

Actual Outlays: $4,164,566

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,217,243

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