DoD's $61.3M Base Operating Support Services contract to Vectrus Systems LLC shows fair value with potential for cost savings
Contract Overview
Contract Amount: $61,348,459 ($61.3M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2022-02-25
End Date: 2024-02-24
Contract Duration: 729 days
Daily Burn Rate: $84.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: EUROPEAN DETERRENCE INITIATIVE - BASE OPERATING SUPPORT SERVICES
Plain-Language Summary
Department of Defense obligated $61.3 million to VECTRUS SYSTEMS LLC for work described as: EUROPEAN DETERRENCE INITIATIVE - BASE OPERATING SUPPORT SERVICES Key points: 1. Value for money appears reasonable given the scope of base operating support services. 2. Full and open competition suggests a competitive pricing environment. 3. Contract duration and delivery order structure present moderate performance risk. 4. Services are critical for maintaining essential functions at a DoD installation. 5. This contract fits within the broader Facilities Support Services sector for the DoD. 6. No small business set-aside was utilized, indicating a focus on large prime contractors.
Value Assessment
Rating: fair
The contract's value of $61.3 million over two years for base operating support services appears to be within a reasonable range for the scope of work. Benchmarking against similar large-scale facilities support contracts for military installations suggests that the pricing is competitive, especially considering the full and open competition. However, a detailed cost breakdown and comparison of specific labor rates and material costs would be necessary for a more precise value assessment. The cost-plus-fixed-fee (CPFF) structure introduces some risk of cost overruns if not managed diligently.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a competitive bidding process is a positive sign for price discovery and potentially achieving a fair market price. The specific number of bidders is not provided, but the method of competition suggests a robust selection process was intended.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors are incentivized to offer competitive pricing to win the contract.
Public Impact
The primary beneficiaries are the Department of Defense and its personnel stationed at the supported installation, ensuring operational readiness. Services delivered include essential base operating support functions, likely encompassing maintenance, logistics, and facility management. The geographic impact is localized to the specific military installation where the services are being performed. Workforce implications include the potential for direct and indirect employment opportunities for both Vectrus Systems LLC and any subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee (CPFF) contracts can lead to higher costs if contractor performance is not closely monitored.
- The two-year duration, while standard, requires ongoing performance management to ensure continued value.
- Reliance on a single contractor for essential base operations can create dependency and potential disruption if issues arise.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Vectrus Systems LLC is an established government contractor with experience in similar services.
- The contract aims to provide essential base operating support, contributing to mission readiness.
Sector Analysis
This contract falls within the Facilities Support Services sector, a significant segment of the government contracting market. This sector encompasses a wide range of services necessary for the operation and maintenance of government facilities, including military bases. Spending in this area is often substantial due to the extensive infrastructure managed by federal agencies. Comparable spending benchmarks would typically involve analyzing other base operating support contracts awarded by the Department of Defense or other agencies for similar-sized installations.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a large business, Vectrus Systems LLC. While this may limit direct opportunities for small businesses as prime contractors on this specific award, large prime contractors often engage small businesses for subcontracting roles, depending on the nature of the services required.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Air Force. Performance monitoring, financial reviews, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Base Operations Support Services
- Facilities Maintenance and Management
- Logistics and Support Services
- Department of Defense Infrastructure Support
Risk Flags
- Cost-Plus-Fixed-Fee contract type can lead to potential cost overruns if not managed effectively.
- Reliance on a single contractor for essential base operations carries inherent risks.
- Performance monitoring is critical to ensure service delivery meets requirements.
Tags
defense, department-of-defense, department-of-the-air-force, facilities-support-services, base-operating-support, full-and-open-competition, delivery-order, cost-plus-fixed-fee, vectrus-systems-llc, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.3 million to VECTRUS SYSTEMS LLC. EUROPEAN DETERRENCE INITIATIVE - BASE OPERATING SUPPORT SERVICES
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 $61.3 million.
What is the period of performance?
Start: 2022-02-25. End: 2024-02-24.
What is Vectrus Systems LLC's track record with similar base operating support contracts?
Vectrus Systems LLC has a significant history of performing base operating support services for the Department of Defense and other government agencies. They have held numerous contracts of varying sizes and scopes, often involving facility maintenance, logistics, transportation, and other essential base functions. Their experience typically includes managing large workforces, complex supply chains, and adhering to stringent security and operational requirements. Analyzing their past performance ratings, any contract disputes, and the successful completion of similar-sized contracts would provide a clearer picture of their capabilities and reliability in executing this current award. Publicly available contract databases and performance reports can offer insights into their historical performance trends.
How does the pricing of this contract compare to other similar base operating support contracts?
Benchmarking the pricing of this $61.3 million contract against similar base operating support services (BOS) contracts awarded by the Department of Defense is crucial for assessing value. BOS contracts can vary widely in scope, location, and duration, making direct comparisons challenging. However, general industry data suggests that costs for comprehensive BOS services, including labor, materials, and overhead, can range significantly. Factors such as the specific services included (e.g., security, fire protection, utilities, maintenance), the geographic location's cost of living, and the level of infrastructure complexity all influence pricing. Given that this contract was awarded under full and open competition, it implies that the pricing achieved was likely competitive within the market for the defined scope of work. A detailed analysis would require comparing specific line items, labor rates, and overhead percentages against a validated benchmark of comparable contracts.
What are the primary risks associated with this contract, and how are they being managed?
The primary risks associated with this Base Operating Support Services contract include potential cost overruns due to the Cost Plus Fixed Fee (CPFF) pricing structure, performance deficiencies in delivering critical services, and potential disruptions to base operations if the contractor fails to meet requirements. The CPFF structure, while allowing for flexibility, necessitates robust oversight to control costs. Performance risks are managed through defined performance standards, key performance indicators (KPIs), and potential award fees or penalties outlined in the contract. Disruptions are mitigated by the contractor's obligation to maintain continuous service delivery and by the government's ability to step in or seek remedies if performance falters. The two-year duration also presents a risk of contractor complacency or a need for transition if performance is unsatisfactory, requiring proactive contract management.
How effective is the full and open competition process in ensuring value for this type of service?
The full and open competition process is generally considered effective in ensuring value for services like base operating support because it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive offers. This process encourages contractors to propose their best pricing and technical solutions to win the contract. For complex services such as BOS, where requirements can be extensive and varied, competition helps to clarify the scope and drive innovation in service delivery. The effectiveness is further enhanced when the government clearly defines its needs and evaluation criteria. While competition drives initial value, ongoing contract management and performance monitoring are essential to sustain that value throughout the contract's life. The absence of specific bidder numbers in the provided data limits a precise assessment of the *degree* of competition achieved.
What is the historical spending trend for base operating support services at this specific installation or within this command?
Historical spending trends for base operating support services (BOS) at a specific installation or within a particular command are crucial for understanding the context of this $61.3 million award. Such data would reveal whether current spending represents an increase, decrease, or stable level compared to previous years or similar installations. Analyzing historical data can highlight patterns in contract renewals, changes in service scope, and the impact of budget fluctuations on BOS contracts. For instance, a consistent increase in spending might indicate rising costs, expanded requirements, or inflation, while a decrease could suggest efficiency gains, reduced operational tempo, or scope reductions. Without access to specific historical spending data for this installation or command, it is difficult to definitively assess whether this contract's value aligns with long-term trends or represents a significant deviation.
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: COST PLUS FIXED FEE (U)
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: $71,652,435
Exercised Options: $61,348,459
Current Obligation: $61,348,459
Actual Outlays: $12,152,352
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $7,504,246
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
Start Date: 2022-02-25
Current End Date: 2024-02-24
Potential End Date: 2024-02-24 00:00:00
Last Modified: 2023-06-29
More Contracts from Vectrus Systems LLC
- Kuwait Base Operations and Security Support Services — $4.8B (Department of Defense)
- Logistics Civil Augmentation Program (logcap) V Support Services in Kuwait — $2.2B (Department of Defense)
- Logistics Civil Augmentation Program (logcap) V Award for Iraq — $1.5B (Department of Defense)
- Operations, Maintenance, and Defense of Army Communications in Southwest Asia and Central Asia (omdac-Swaca) — $1.3B (Department of Defense)
- 200607!611001!2100!w91rus!aca, Fort Huachuca !w91rus06c0002 !A!N! !Y! !p00003!20060405!20101130!030468243!030468243!001216845!n!itt Federal Services Internati!4410 E Fountain Blvd !colorado Sprin !CO!80916!00000! !KU!* !* !kuwait !+000001759741!n!n!000000000000!d304!adp Telecommunications & Transmission Services !A7 !electronics and Communication Equip !000 !* !811213!E! !3! ! !B! ! !99990909!b!f!y!b! !a!u!u!2!006!b! !Z!N!Z! ! !N!M!N! ! ! ! ! !a!a!000!a!b!n! ! ! !y!2100!w61deg!0001! ! — $1.2B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)