Department of the Navy awards $21.2M facilities support contract to Vectrus Systems LLC

Contract Overview

Contract Amount: $21,247,043 ($21.2M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2023-12-01

End Date: 2024-11-30

Contract Duration: 365 days

Daily Burn Rate: $58.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ISA BOSC OPTION 3 FUNDING, N62470-20-D-0010 (01 DEC 23 TO 30 NOV

Plain-Language Summary

Department of Defense obligated $21.2 million to VECTRUS SYSTEMS LLC for work described as: ISA BOSC OPTION 3 FUNDING, N62470-20-D-0010 (01 DEC 23 TO 30 NOV Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for facilities support services, a critical component of base operations. 3. The duration of the contract is one year, indicating a short-term need or a base for future options. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. No small business set-aside was noted, potentially limiting opportunities for smaller enterprises. 6. The award amount represents a significant investment in maintaining naval facilities.

Value Assessment

Rating: good

The contract value of $21.2 million for one year of facilities support services appears reasonable when benchmarked against similar large-scale base operations contracts. While specific per-unit cost data is not provided, the firm-fixed-price structure suggests that the contractor assumes cost overruns, which can be a positive indicator for value. Further analysis would require comparing the scope of services to other contracts of similar size and complexity within the Department of Defense.

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 bids. The specific number of bidders is not detailed, but this method generally fosters a competitive environment, which can lead to more favorable pricing and better service offerings for the government. The open competition suggests that the Navy sought the best value proposition from the market.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider selection of qualified contractors, ensuring that the government receives optimal value for its investment in facilities support.

Public Impact

Naval personnel and their families benefit from well-maintained and functional base facilities. Essential services such as maintenance, repair, and operations of facilities are delivered. The geographic impact is localized to the specific naval installation(s) served by this contract. The contract supports jobs within the facilities management and maintenance sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, leading to cost increases beyond the initial award.
Dependence on a single contractor for critical facilities support could pose a risk if performance issues arise.
The firm-fixed-price nature, while beneficial for cost control, could incentivize minimal service delivery if not adequately monitored.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm-fixed-price contract structure transfers cost risk to the contractor.
Vectrus Systems LLC's experience in similar government contracts provides a degree of confidence in their ability to perform.
The contract addresses essential operational needs for naval facilities.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This sector is highly competitive, with numerous providers ranging from small businesses to large corporations. The Department of Defense is a major consumer of these services, awarding billions annually to ensure the functionality and readiness of its installations worldwide. This contract fits within the broader trend of outsourcing non-core functions to specialized service providers to enhance efficiency and focus on primary mission objectives.

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 larger, established companies were likely the primary focus of the competition. While this may not directly benefit small businesses through this specific award, it is common for prime contractors on large contracts to utilize small businesses for specialized services, though the extent of this subcontracting is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Navy, who is responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Inspector General's office may also conduct audits or investigations into contract performance and financial management. Transparency is generally maintained through contract award databases and reporting requirements, though detailed performance metrics are often internal.

Related Government Programs

Base Operations Support (BOS) Contracts
Facilities Maintenance and Repair Services
Department of Defense Installation Support
Government Facilities Management Contracts

Risk Flags

Potential for performance degradation under firm-fixed-price if not adequately monitored.
Lack of specific small business subcontracting goals may limit opportunities for smaller enterprises.
Dependence on contractor for critical infrastructure maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to VECTRUS SYSTEMS LLC. ISA BOSC OPTION 3 FUNDING, N62470-20-D-0010 (01 DEC 23 TO 30 NOV

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 $21.2 million.

What is the period of performance?

Start: 2023-12-01. End: 2024-11-30.

What is Vectrus Systems LLC's track record with similar facilities support contracts for the Department of Defense?

Vectrus Systems LLC has a significant history of performing facilities support and base operations services for the Department of Defense and other government agencies. They have held numerous large-scale contracts involving maintenance, repair, logistics, and other operational support functions across various military installations. Their experience often includes managing complex requirements, diverse service portfolios, and operating in challenging environments. Reviewing their past performance evaluations and contract history can provide insights into their reliability, quality of service, and ability to manage budgets effectively. This specific contract builds upon that established foundation, leveraging their expertise in delivering essential support services.

How does the $21.2 million award compare to previous facilities support contracts awarded by the Department of the Navy?

The $21.2 million award for one year of facilities support services is a substantial but not unprecedented amount for the Department of the Navy. Large naval installations often require extensive support, leading to contracts in the tens or even hundreds of millions of dollars annually for comprehensive base operations. When compared to similar contracts for base operations support at comparable naval bases, this award appears to be within the expected range. Factors such as the specific scope of services, geographic location, and duration influence the overall value. Benchmarking against contracts with similar service lines and contract types (e.g., firm-fixed-price) provides a better context for assessing value for money.

What are the primary risks associated with this firm-fixed-price contract for facilities support?

The primary risk with a firm-fixed-price (FFP) contract is that the contractor, Vectrus Systems LLC, bears the financial risk if costs exceed the agreed-upon price. This can incentivize the contractor to cut corners on service quality or labor to maintain profitability, potentially impacting the level of support provided. Conversely, if the contractor is highly efficient, they retain any cost savings, which is a benefit to the government. Effective oversight by the government is crucial to ensure that the contractor meets all performance standards and service level agreements despite the FFP structure. The government must also ensure the initial price was set appropriately to reflect fair market value.

What is the expected impact of this contract on the operational readiness of the naval facilities it supports?

This contract is expected to significantly enhance the operational readiness of the naval facilities by ensuring that essential infrastructure and services are maintained and functional. Reliable facilities support is critical for the day-to-day operations of any military base, impacting everything from housing and workspaces to utilities and grounds maintenance. By outsourcing these functions to a specialized provider like Vectrus Systems LLC, the Navy can focus its internal resources on core military missions. Consistent and high-quality performance under this contract should lead to a more stable and efficient operating environment, directly contributing to the overall readiness and effectiveness of the installation.

How has spending on facilities support services by the Department of the Navy trended over the past five years?

Spending on facilities support services by the Department of the Navy has generally remained robust over the past five years, reflecting the ongoing need to maintain a vast network of installations. While specific figures fluctuate based on budget allocations, infrastructure modernization projects, and the awarding of new contracts, the overall trend indicates a consistent demand for these services. The Navy, like other branches of the DoD, often utilizes a mix of contract types and competition levels to procure these services. Factors such as base closures, consolidations, and new construction can influence year-over-year spending. Data from contract databases typically shows billions of dollars obligated annually for various aspects of facilities support.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247018R3004

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: $21,247,043

Exercised Options: $21,247,043

Current Obligation: $21,247,043

Actual Outlays: $24,130

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $337,131

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247020D0010

IDV Type: IDC

Timeline