Vectrus Systems LLC contract for FAA IOT&E services awarded by GSA for over $11.5M

Contract Overview

Contract Amount: $11,574,393 ($11.6M)

Contractor: Vectrus Systems LLC

Awarding Agency: General Services Administration

Start Date: 2006-03-30

End Date: 2010-03-31

Contract Duration: 1,462 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FAA IOT&E

Place of Performance

Location: EGG HARBOR TOWNSHIP, ATLANTIC County, NEW JERSEY, 08234

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $11.6 million to VECTRUS SYSTEMS LLC for work described as: FAA IOT&E Key points: 1. Contract value of $11.5M over 4 years suggests a significant investment in engineering services. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The Cost Plus Fixed Fee (CPFF) pricing structure may present cost control challenges if not closely monitored. 4. The duration of 1462 days (approx. 4 years) allows for sustained support but requires long-term planning. 5. The contract's focus on engineering services aligns with the need for technical expertise in government operations. 6. Awarded by the General Services Administration (GSA), a common contracting vehicle for federal agencies.

Value Assessment

Rating: fair

The contract value of over $11.5 million for approximately four years of engineering services requires careful benchmarking against similar GSA contracts for technical support. The Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility, can lead to cost overruns if not managed diligently. Without specific performance metrics or comparable per-unit costs, a definitive value-for-money assessment is challenging, but the duration and scope suggest a substantial commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 4 bidders indicates a reasonable level of competition for this engineering services requirement. This competitive environment is generally expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a market that encourages competitive pricing and innovation, potentially leading to better value for the funds expended.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving essential engineering and testing support. Services delivered likely include technical analysis, system integration, and testing for aviation-related technologies. The contract's impact is concentrated within the aviation sector, supporting critical infrastructure and safety initiatives. Workforce implications may include specialized engineering roles within Vectrus Systems LLC and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to higher costs if not managed effectively.
Lack of specific performance metrics makes it difficult to assess efficiency.
Long contract duration requires sustained oversight to ensure continued value.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
GSA contract vehicle suggests adherence to established procurement standards.
Engineering services are critical for complex government operations.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of government contracting that supports a wide range of technical and scientific endeavors. The market for engineering services is substantial, with federal agencies being significant clients. This contract with the FAA, managed through GSA, represents a typical engagement for specialized technical support within the broader federal IT and defense-related infrastructure landscape.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Vectrus Systems LLC, is likely a large business, and any subcontracting opportunities would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer at the General Services Administration (GSA) and the program office within the FAA. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure cost containment and adherence to the fixed fee. Transparency would be facilitated through contract reporting mechanisms and potentially through Freedom of Information Act (FOIA) requests, though specific performance data might be sensitive.

Related Government Programs

FAA Operations Support
GSA IT Schedule Contracts
Engineering and Technical Services
Federal Aviation Administration Modernization Programs

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring for cost overruns.
Long contract duration necessitates sustained oversight.
Specific performance metrics are not detailed in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $11.6 million to VECTRUS SYSTEMS LLC. FAA IOT&E

Who is the contractor on this award?

The obligated recipient is VECTRUS SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2006-03-30. End: 2010-03-31.

What is the historical spending pattern for FAA IOT&E services under GSA contracts?

Analyzing historical spending for FAA IOT&E services under GSA contracts requires accessing detailed federal procurement data. While this specific contract represents $11.5M over four years, broader trends would involve examining multiple contracts awarded over time. Factors influencing spending include technological advancements, regulatory changes, and the overall budget allocated to aviation infrastructure and safety. GSA's role as a contracting vehicle suggests a standardized approach, but specific program needs of the FAA would dictate the volume and nature of these services. Without access to a comprehensive database of all FAA IOT&E contracts, a precise historical spending pattern is difficult to ascertain, but it's reasonable to assume consistent investment in technical support for aviation systems.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar engineering services?

The Cost Plus Fixed Fee (CPFF) structure is common for research and development or complex services where the scope is not fully defined at the outset. It allows the contractor to incur costs deemed reasonable and allocable, plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but carries a higher risk of cost escalation. Compared to Cost Plus Incentive Fee (CPIF), CPFF lacks direct financial incentives for the contractor to control costs beyond the initial agreement. For engineering services, FFP might be used for well-defined projects, while CPFF or CPIF are often preferred for developmental or uncertain efforts like testing and evaluation (IOT&E).

What are the key performance indicators (KPIs) typically associated with FAA IOT&E contracts?

Key Performance Indicators (KPIs) for FAA IOT&E contracts are designed to measure the effectiveness and efficiency of testing and evaluation processes. Common KPIs include test completion rates, defect detection rates, accuracy of test results, adherence to testing schedules, and timely reporting of findings. For a contract like this, KPIs might also relate to the successful validation of specific aviation technologies or systems, the identification of critical vulnerabilities, and the overall contribution to system safety and reliability. The effectiveness of the contractor is often measured by their ability to provide objective, thorough, and timely insights that inform FAA decision-making regarding system deployment and certification.

What is Vectrus Systems LLC's track record with GSA and FAA contracts?

Vectrus Systems LLC has a significant history of contracting with the U.S. government, including through GSA schedules and direct awards. Their portfolio often includes IT, network modernization, and engineering services, aligning with the nature of this FAA contract. While specific details of their performance on past FAA IOT&E contracts would require deeper data analysis, their continued success in securing government contracts suggests a generally positive track record. Companies like Vectrus often specialize in supporting complex government missions, and their ability to win competitive bids indicates they meet the technical and financial requirements set by agencies like the FAA and contracting bodies like GSA.

What is the potential impact of this contract on aviation safety and technological advancement?

This contract directly supports the FAA's mission to ensure aviation safety and efficiency. The 'IOT&E' (Independent Verification and Validation, or Integration, Operations, and Test & Evaluation) designation implies rigorous testing of systems, software, or processes before they are implemented. By providing specialized engineering services, Vectrus Systems LLC contributes to identifying potential flaws, ensuring interoperability, and validating the performance of critical aviation technologies. This, in turn, helps prevent failures, enhances the reliability of air traffic management systems, and supports the integration of new technologies, ultimately bolstering overall aviation safety and fostering technological advancement within the sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: R3060554

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: WC Holding Inc. (UEI: 013567606)

Address: 1101 KING ST STE 550, ALEXANDRIA, VA, 08

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $11,811,147

Exercised Options: $11,574,393

Current Obligation: $11,574,393

Parent Contract

Parent Award PIID: GS07T00BGD0037

IDV Type: GWAC

Timeline