Navy awards $20.5M for GAC/IX resin treatment system installation and operation in Hawaii

Contract Overview

Contract Amount: $20,459,795 ($20.5M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2023-10-23

End Date: 2025-05-22

Contract Duration: 577 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INSTALLATION AND OPERATION OF GAC/IX RESIN TREATMENT SYSTEM AT NAVY AIEA-HALAWA SHAFT

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to VECTRUS SYSTEMS LLC for work described as: INSTALLATION AND OPERATION OF GAC/IX RESIN TREATMENT SYSTEM AT NAVY AIEA-HALAWA SHAFT Key points: 1. Contract value appears reasonable for a multi-year facilities support service. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include performance under the firm-fixed-price structure and delivery timelines. 4. This contract supports critical water treatment infrastructure for naval operations. 5. The services fall within the broader facilities support and maintenance sector.

Value Assessment

Rating: good

The contract value of approximately $20.5 million over 577 days (roughly 1.6 years) for installation and operation of a GAC/IX resin treatment system seems within a reasonable range for specialized environmental and facilities services. Benchmarking against similar large-scale water treatment system installations and long-term operational contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure indicates that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection of qualified contractors and potentially more competitive pricing. The specific number of bidders is not provided, but the open competition suggests a healthy market engagement for these specialized services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

Naval facilities in Aiea-Halawa, Hawaii, will benefit from improved water treatment capabilities. The contract ensures the ongoing operation and maintenance of a critical GAC/IX resin treatment system. Geographic impact is localized to the Navy's Aiea-Halawa Shaft facility in Hawaii. Workforce implications may include specialized technicians for installation, operation, and maintenance of the treatment system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during installation or operation under a firm-fixed-price contract.
Dependence on contractor performance for critical water treatment infrastructure.
Ensuring long-term effectiveness and compliance of the resin treatment system.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Firm-fixed-price contract shifts cost risk to the contractor.
Clear definition of services for installation and operation of the treatment system.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically addressing environmental and water treatment infrastructure. The market for such services is driven by regulatory compliance, operational efficiency, and the need for specialized technical expertise. Comparable spending benchmarks would involve other large-scale environmental remediation and facility maintenance contracts awarded by government agencies, particularly those involving complex treatment systems.

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 arising from a set-aside provision. The prime contractor, VECTRUS SYSTEMS LLC, will likely manage the subcontracting opportunities, if any, based on their own business strategy and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Navy. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Facilities Support Services
Environmental Remediation Services
Water Treatment Systems
Naval Base Operations Support

Risk Flags

Performance Risk: Ensuring consistent water quality and system reliability under FFP.
Cost Risk: Potential for contractor cost overruns impacting profitability or leading to change requests.
Technical Risk: Complexity of installation and operation of specialized treatment systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to VECTRUS SYSTEMS LLC. INSTALLATION AND OPERATION OF GAC/IX RESIN TREATMENT SYSTEM AT NAVY AIEA-HALAWA SHAFT

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 $20.5 million.

What is the period of performance?

Start: 2023-10-23. End: 2025-05-22.

What is the historical spending pattern for similar GAC/IX resin treatment system contracts by the Department of the Navy?

Analyzing historical spending for similar GAC/IX resin treatment system contracts by the Department of the Navy requires access to detailed contract databases. However, general trends indicate that such specialized environmental services are often awarded through competitive processes and can range from several million to tens of millions of dollars, depending on the scale, duration, and complexity of the system. Factors like location, specific contaminants targeted, and the need for ongoing operational support significantly influence cost. The current award of $20.5 million for installation and operation over approximately 1.6 years appears to be in line with the upper-middle range for such specialized, multi-year projects, suggesting a substantial scope of work.

How does the awarded price compare to industry benchmarks for similar water treatment system installations and operations?

Directly comparing the awarded price of $20.5 million to precise industry benchmarks for GAC/IX resin treatment systems is challenging without specific project details (e.g., system capacity, type of resin, specific contaminants). However, for large-scale industrial or governmental water treatment projects involving installation and multi-year operational support, costs can vary widely. Factors such as site preparation, specialized equipment procurement, labor rates in Hawaii, and ongoing maintenance contribute significantly. The firm-fixed-price nature suggests the contractor has factored in these variables. Generally, government contracts awarded through full and open competition aim to achieve prices competitive with or below market rates, but the unique nature of specialized environmental services can lead to higher costs compared to more commoditized services.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

While specific KPIs are not detailed in the provided data, typical performance metrics for a GAC/IX resin treatment system installation and operation contract would likely include: water quality compliance (meeting all regulatory standards and Navy specifications), system uptime and reliability, timely completion of scheduled maintenance, efficiency of resin regeneration or replacement, and adherence to safety protocols. Performance measurement would likely involve regular site inspections, review of operational logs and water quality reports, and potentially user feedback from the facility. The contracting officer's representative (COR) would be responsible for monitoring these KPIs and ensuring the contractor meets the contract requirements.

What is the track record of VECTRUS SYSTEMS LLC in performing similar facilities support and environmental services for the Department of Defense?

VECTRUS SYSTEMS LLC has a significant track record of performing facilities, logistics, and base support services for the Department of Defense and other government agencies. Their contract history often includes large-scale operations and maintenance, construction, and specialized technical services across various global locations. While specific details on their performance for GAC/IX resin treatment systems would require deeper analysis of past performance evaluations (e.g., CPARS reports), their general experience suggests they possess the organizational capacity and technical expertise to manage complex projects. Their portfolio indicates a history of handling substantial government contracts, implying a capability to meet the demands of this particular award.

What are the potential risks associated with the firm-fixed-price (FFP) contract type for this project?

The primary risk associated with a firm-fixed-price contract for this project is that the contractor, VECTRUS SYSTEMS LLC, bears the financial burden if costs exceed the agreed-upon price. This could incentivize the contractor to cut corners on quality, materials, or labor to maintain profitability, potentially impacting system performance or longevity. Conversely, if the contractor significantly underestimates costs, they might face financial distress or seek change orders, which could increase the overall cost to the government. For the government, the risk lies in ensuring that the FFP price accurately reflects the scope of work and that robust oversight is in place to prevent substandard performance or excessive change requests.

Industry Classification

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

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6274215R3550

Offers Received: 1

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: $20,459,795

Exercised Options: $20,459,795

Current Obligation: $20,459,795

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274216D3552

IDV Type: IDC

Timeline