DoD's $18.6M Engineering Services Contract Awarded to Vectrus Systems LLC Under Full and Open Competition
Contract Overview
Contract Amount: $18,662,417 ($18.7M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2021-04-01
End Date: 2026-03-31
Contract Duration: 1,825 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: LABOR
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $18.7 million to VECTRUS SYSTEMS LLC for work described as: LABOR Key points: 1. Significant contract value of $18.6 million for engineering services. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. Potential risk associated with cost-plus fixed fee contract type. 4. Services fall under the engineering sector, crucial for defense operations.
Value Assessment
Rating: good
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. Benchmarking against similar engineering service contracts is recommended to ensure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.
Public Impact
Ensures continued engineering support for Department of the Navy operations. Supports critical defense infrastructure and technological advancements. Potential for job creation within the engineering services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may incentivize overspending.
- Long duration of the contract (5 years) increases exposure to cost fluctuations.
Positive Signals
- Awarded through full and open competition.
- Clear contract end date provides a defined period for services.
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for supporting complex government projects, particularly in defense. Spending benchmarks for similar engineering services contracts can vary widely based on scope and complexity.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The contract's duration and cost-plus nature warrant close oversight to ensure adherence to scope and budget. Regular performance reviews and cost audits are essential for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for scope creep without strict management.
- Lack of explicit small business participation data.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.7 million to VECTRUS SYSTEMS LLC. LABOR
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 Navy).
What is the total obligated amount?
The obligated amount is $18.7 million.
What is the period of performance?
Start: 2021-04-01. End: 2026-03-31.
What is the typical profit margin for Cost Plus Fixed Fee engineering contracts in the defense sector?
Profit margins for Cost Plus Fixed Fee (CPFF) contracts in the defense sector can vary, but are often regulated. Fixed fees typically range from 5% to 15% of the estimated cost, depending on the contract's complexity, risk, and the contractor's performance. Agencies aim to negotiate fees that are fair compensation for the contractor's effort while remaining competitive and cost-effective for the government.
How does the 'full and open competition' method mitigate risks associated with cost overruns in CPFF contracts?
Full and open competition mitigates cost overrun risks by establishing a competitive baseline price during the initial award. While CPFF contracts inherently allow for cost increases, the competitive pressure during bidding encourages contractors to propose more realistic initial cost estimates and efficient execution plans to secure the fixed fee. Post-award oversight remains critical to manage any necessary cost adjustments.
What are the key performance indicators (KPIs) used to measure the effectiveness of engineering services provided under this contract?
Key performance indicators for engineering services often include on-time delivery of milestones, adherence to technical specifications, quality of deliverables (e.g., reports, designs), cost control within the estimated budget, and responsiveness to government requests. Performance metrics are typically defined in the contract's Performance Work Statement (PWS) and are crucial for evaluating contractor success and ensuring mission objectives are met.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0042120R0153
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vectrus, Inc.
Address: 1875 CAMPUS COMMONS DRIVE SUITE 301, RESTON, VA, 20191
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,103,425
Exercised Options: $21,036,854
Current Obligation: $18,662,417
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042121D0015
IDV Type: IDC
Timeline
Start Date: 2021-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-11-25
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