DoD's $24.5M Facilities Support Contract Awarded to Vectrus Systems LLC for Recurring Services

Contract Overview

Contract Amount: $24,462,162 ($24.5M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-01

End Date: 2025-11-30

Contract Duration: 364 days

Daily Burn Rate: $67.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ISA BOSC OP4 RECURRING SERVICES

Plain-Language Summary

Department of Defense obligated $24.5 million to VECTRUS SYSTEMS LLC for work described as: ISA BOSC OP4 RECURRING SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract is for recurring facilities support services, suggesting ongoing operational needs. 3. Awarded via full and open competition, implying a robust bidding process. 4. The duration of the contract is one year, allowing for regular performance reviews. 5. The contract value is significant, reflecting substantial facilities management requirements. 6. Vectrus Systems LLC is the sole awardee for this specific delivery order.

Value Assessment

Rating: good

The contract value of approximately $24.5 million for a one-year period for facilities support services appears reasonable given the scope. Benchmarking against similar large-scale facilities support contracts awarded by the Department of Defense suggests that pricing is competitive. The firm-fixed-price structure helps manage cost predictability. Further analysis would involve comparing the specific services included against industry standards and the pricing of individual line items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the competition type suggests a healthy market for these services. This approach generally leads to better price discovery and ensures the government receives competitive offers.

Taxpayer Impact: Full and open competition benefits taxpayers by driving down prices through a competitive bidding process, ensuring that the government secures the best value for its investment in facilities support.

Public Impact

The Department of the Navy benefits from reliable and comprehensive facilities support services. Ensures the operational readiness and maintenance of critical facilities. Supports the daily functions of naval installations through essential services. Potential positive impact on the local workforce through employment opportunities generated by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on performance metrics and KPIs within the provided data.
Potential for cost overruns if scope creep occurs despite firm-fixed-price.
Dependence on a single contractor for critical recurring services.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Firm-fixed-price contract type provides cost certainty.
Contract duration allows for performance evaluation and potential renewal based on merit.

Sector Analysis

Facilities Support Services represent a significant segment within the broader professional, scientific, and technical services sector. This contract falls under NAICS code 561210, which encompasses establishments primarily engaged in operating and maintaining buildings and other facilities, for others. The market for these services is large and competitive, with numerous providers ranging from small specialized firms to large multinational corporations. This award to Vectrus Systems LLC positions them as a key provider for the Department of Defense in this domain.

Small Business Impact

The provided 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 mandated by a set-aside. However, the prime contractor, Vectrus Systems LLC, may engage small businesses as subcontractors to fulfill certain aspects of the facilities support services, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Navy. Performance monitoring, quality assurance surveillance plans (QASPs), and regular progress reviews are standard mechanisms to ensure contractor compliance and service delivery. Transparency is generally maintained through contract databases and reporting requirements, though specific oversight details are not provided in this data.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Logistics and Support Services
Government Facilities Management

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Performance quality may be impacted by cost-saving measures.
Contractor dependency poses a risk to service continuity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to VECTRUS SYSTEMS LLC. ISA BOSC OP4 RECURRING 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 Navy).

What is the total obligated amount?

The obligated amount is $24.5 million.

What is the period of performance?

Start: 2024-12-01. End: 2025-11-30.

What is Vectrus Systems LLC's track record with similar government contracts, particularly in facilities support?

Vectrus Systems LLC has a substantial history of performing government contracts, including extensive work in base operations support and facilities management for various branches of the U.S. military. They have held numerous large-scale contracts, often involving a wide array of services such as maintenance, repair, logistics, and security. Their experience often includes operating in complex environments and managing geographically dispersed facilities. While specific performance metrics for past contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive track record and capability to meet government requirements for facilities support.

How does the $24.5 million contract value compare to other facilities support contracts of similar scope and duration?

The $24.5 million contract value for a one-year period for facilities support services is within the expected range for large-scale Department of Defense installations. Contracts of this nature often encompass a broad spectrum of services including maintenance, repair, custodial, groundskeeping, and sometimes security or logistics. Benchmarking against publicly available data for similar contracts awarded by agencies like the Army, Air Force, or Navy reveals that values can range from tens to hundreds of millions of dollars annually, depending on the size and complexity of the facilities managed. This specific award appears to be a mid-to-high tier value, reflecting significant operational requirements.

What are the primary risks associated with this type of facilities support contract?

Primary risks include potential scope creep, where the contractor may be asked to perform services beyond the original contract scope without adequate adjustment in price or schedule. Another risk is performance degradation over time, especially if the firm-fixed-price model incentivizes cost-cutting at the expense of quality. Contractor dependency is also a risk; a single provider for essential services can create vulnerabilities if the contractor fails to perform or faces financial instability. Furthermore, unforeseen facility issues or emergencies could strain resources and budget. Effective oversight and clear performance metrics are crucial to mitigate these risks.

How effective are firm-fixed-price contracts in ensuring value for money in facilities support services?

Firm-fixed-price (FFP) contracts are generally considered effective in ensuring value for money for services with well-defined scopes, such as recurring facilities support. The FFP structure shifts most of the risk to the contractor, incentivizing them to manage costs efficiently and deliver services within the agreed-upon price. This provides the government with cost certainty and predictability. However, for services that are highly variable or subject to unforeseen circumstances, FFP can sometimes lead to contractors being overly conservative in their bids or potentially cutting corners on quality if not rigorously monitored. For routine, predictable facilities maintenance and operations, FFP is often a preferred method for cost control.

What is the historical spending trend for facilities support services within the Department of the Navy?

Historical spending on facilities support services within the Department of the Navy has consistently been substantial, reflecting the vast infrastructure and operational needs of naval installations worldwide. While specific year-over-year figures for this exact contract type are not provided, the Navy, as part of the DoD, allocates significant portions of its budget to maintaining its bases, shipyards, and other facilities. Spending in this category typically fluctuates based on infrastructure investment cycles, modernization efforts, and operational tempo. Trends often show a move towards consolidating services under larger, comprehensive support contracts to achieve economies of scale and improve efficiency, as exemplified by this award.

What are the implications of awarding this contract via full and open competition for the government and taxpayers?

Awarding this contract through full and open competition has several positive implications. It ensures that the government has access to the widest possible pool of qualified contractors, fostering a competitive environment. This competition typically drives down prices and encourages innovation as contractors vie for the award. For taxpayers, this means their money is more likely to be spent efficiently, securing the best possible services at the most competitive rates. It also promotes fairness and transparency in the procurement process, reducing the risk of favoritism and ensuring that the contract is awarded based on merit and value.

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: $24,462,162

Exercised Options: $24,462,162

Current Obligation: $24,462,162

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $725,242

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