Vectrus Systems LLC awarded $18.77M for aerial port operations, supporting European deterrence efforts

Contract Overview

Contract Amount: $18,768,242 ($18.8M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2024-02-25

End Date: 2026-02-24

Contract Duration: 730 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: EUROPEAN DETERRENCE INITIATIVE - AERIAL PORT OPERATIONS

Plain-Language Summary

Department of Defense obligated $18.8 million to VECTRUS SYSTEMS LLC for work described as: EUROPEAN DETERRENCE INITIATIVE - AERIAL PORT OPERATIONS Key points: 1. Contract value represents a significant investment in logistical support for strategic defense initiatives. 2. The firm-fixed-price structure aims to control costs and provide predictable expenditures. 3. Competition was full and open, suggesting a robust market for these specialized services. 4. The contract duration of two years allows for sustained operational support. 5. This award aligns with broader U.S. European defense posture and readiness. 6. Performance will be monitored to ensure effective execution of aerial port functions.

Value Assessment

Rating: good

The contract value of $18.77 million over two years for aerial port operations appears reasonable given the scope of supporting European deterrence. Benchmarking against similar large-scale logistics and base support contracts within the Department of Defense suggests that pricing is likely competitive, especially given the full and open competition. The firm-fixed-price contract type further supports value by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and submitted proposals. The presence of three bids (no=3) suggests a healthy level of competition for these critical aerial port operations. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the government is not overpaying for essential aerial port services, maximizing the value of defense spending.

Public Impact

The primary beneficiaries are U.S. military forces operating in Europe, who receive essential logistical support for personnel and equipment movement. Services delivered include the management and operation of aerial ports, crucial for rapid deployment and sustainment. The geographic impact is focused on U.S. European Command (USEUCOM) areas of responsibility, enhancing regional security. Workforce implications include the potential for direct and indirect employment opportunities for both military and civilian personnel involved in port operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if operational demands exceed initial projections.
Reliance on contractor performance for critical mission success.
Geopolitical instability in Europe could impact operational tempo and requirements.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive market and potentially better pricing.
Contract duration allows for stable, long-term support.
Award to an established contractor with experience in similar operations.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically focusing on the critical functions of aerial port operations. This sector is vital for military readiness and global logistics. The market for such services is characterized by a mix of large, established defense contractors and specialized logistics providers. Spending in this area is often driven by geopolitical requirements and the need to maintain operational capabilities across various theaters.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb=false, ss=false). While Vectrus Systems LLC may utilize small business subcontractors, the primary award is to a large business. Analysis of subcontracting plans would be necessary to determine the specific impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight will likely be managed by the contracting officer's representative (COR) within the Department of the Air Force, ensuring adherence to contract terms and performance standards. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

European Deterrence Initiative
Logistics Readiness
Base Operations Support
Air Mobility Command Contracts
Defense Logistics Agency Contracts

Risk Flags

Performance Risk
Geopolitical Risk
Contract Scope Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to VECTRUS SYSTEMS LLC. EUROPEAN DETERRENCE INITIATIVE - AERIAL PORT OPERATIONS

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 $18.8 million.

What is the period of performance?

Start: 2024-02-25. End: 2026-02-24.

What is Vectrus Systems LLC's track record with similar aerial port operations contracts?

Vectrus Systems LLC has a significant history of performing base operations and logistics support contracts for the Department of Defense, including services related to aerial port management. Their experience often spans multiple geographic locations and includes managing complex logistical challenges. While specific details on past performance for this exact type of operation would require deeper analysis of contract histories and performance reviews, their established presence in the defense contracting space suggests a capacity to handle such requirements. Reviewing past performance evaluations and any reported issues on similar contracts would provide a clearer picture of their reliability and effectiveness in executing aerial port functions.

How does the $18.77 million contract value compare to similar aerial port operations contracts awarded by the DoD?

The $18.77 million contract value for two years of aerial port operations is within a typical range for such services, especially when supporting strategic initiatives like the European Deterrence Initiative. Contracts for comprehensive base support or specialized logistics in high-demand areas can range from tens to hundreds of millions of dollars over multiple years. Given that this is for aerial port operations specifically, and considering the firm-fixed-price structure and full and open competition, the value appears to be a reasonable benchmark. However, a precise comparison would necessitate analyzing contracts with identical scopes, durations, and geographic locations, factoring in inflation and specific operational complexities.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance failures by the contractor, leading to disruptions in critical aerial port functions and impacting military readiness. Geopolitical instability in Europe could also introduce unforeseen operational demands or security concerns. Furthermore, cost overruns, although mitigated by the firm-fixed-price structure, remain a possibility if scope changes are not managed effectively. Mitigation strategies typically involve robust contract oversight by the COR, clear performance metrics and service level agreements, regular performance reviews, and contingency planning by both the government and the contractor. The competitive nature of the award also incentivizes the contractor to perform well to secure future opportunities.

How effective is the firm-fixed-price contract type in ensuring value for money in this context?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and risks can be reasonably anticipated, as is often the case with established aerial port operations. FFP shifts the majority of cost risk to the contractor, incentivizing them to manage resources efficiently and control expenses to maximize profit. This structure provides the government with cost certainty, making budgeting more predictable. While it may lead to a higher initial price compared to cost-reimbursement contracts, it minimizes the risk of unexpected cost growth for the government, thereby enhancing overall value by preventing overspending on undefined elements.

What are the historical spending patterns for aerial port operations support within the European Deterrence Initiative?

Historical spending on aerial port operations support within the European Deterrence Initiative (EDI) has generally trended upwards, reflecting the increasing emphasis on bolstering NATO's eastern flank and enhancing U.S. military presence in Europe. While specific figures for 'aerial port operations' as a distinct category within EDI can be difficult to isolate without detailed budget breakdowns, overall EDI funding has seen substantial increases in recent fiscal years. This surge is driven by the need for enhanced logistical capabilities, including rapid deployment, prepositioning of assets, and sustained operational support. Contracts for base operations, logistics, and transportation services, which encompass aerial port functions, represent a significant portion of this spending.

Industry Classification

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

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $89,236,122

Exercised Options: $30,702,756

Current Obligation: $18,768,242

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $3,432,266

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