DoD Awards $19.9M for Red Hill Fuel Storage Maintenance to Vectrus Systems LLC

Contract Overview

Contract Amount: $19,915,277 ($19.9M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-08

End Date: 2026-09-09

Contract Duration: 366 days

Daily Burn Rate: $54.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GSCMAC III OPERATIONS AND MAINTENANCE RED HILL SHAFT.

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $19.9 million to VECTRUS SYSTEMS LLC for work described as: GSCMAC III OPERATIONS AND MAINTENANCE RED HILL SHAFT. Key points: 1. Vectrus Systems LLC secured a $19.9M contract for GSCMAC III Operations and Maintenance at Red Hill. 2. The contract is for facilities support services, a critical but often complex sector. 3. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 4. The award duration is one year, with a firm fixed price contract type.

Value Assessment

Rating: good

The award of $19.9M for a one-year contract appears reasonable for specialized facilities support services. Benchmarking against similar large-scale maintenance contracts would provide further context on value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, which typically fosters competitive pricing. The award to Vectrus Systems LLC indicates they were the most advantageous offer.

Taxpayer Impact: The firm fixed price structure helps control costs, ensuring taxpayer funds are used efficiently for essential services.

Public Impact

Ensures continued operation and maintenance of critical fuel storage facilities. Supports military readiness and operational capabilities in Hawaii. Provides essential services to the Department of the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Geographic concentration of services in Hawaii.
  • Potential environmental risks associated with fuel storage operations.
  • Dependence on a single contractor for critical infrastructure.

Positive Signals

  • Utilized full and open competition.
  • Firm fixed price contract type limits cost overruns.
  • Contract supports essential military infrastructure.

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing maintenance, repair, and operational support for government facilities. Spending in this sector can vary significantly based on the complexity and criticality of the facilities.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award.

Oversight & Accountability

The use of full and open competition and a firm fixed price contract suggests a degree of oversight in the procurement process. Continued monitoring of performance and cost will be crucial.

Related Government Programs

  • Facilities Support Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Environmental risks associated with fuel storage.
  • Potential for cost overruns if unforeseen issues arise.
  • Dependence on a single contractor for critical infrastructure.
  • Geographic concentration of services.

Tags

facilities-support-services, department-of-defense, hi, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to VECTRUS SYSTEMS LLC. GSCMAC III OPERATIONS AND MAINTENANCE RED HILL 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 $19.9 million.

What is the period of performance?

Start: 2025-09-08. End: 2026-09-09.

What is the historical cost performance of Vectrus Systems LLC on similar DoD contracts?

Analyzing Vectrus Systems LLC's past performance on comparable Department of Defense contracts is crucial for assessing value and reliability. This includes examining their track record on cost control, adherence to schedules, and quality of service delivery in similar operational environments. Such a review would provide insights into their capability to manage the Red Hill contract effectively and within budget.

What are the specific environmental risks associated with the Red Hill fuel storage maintenance, and how are they mitigated?

The Red Hill facility stores vast quantities of fuel, posing significant environmental risks including potential leaks and contamination of groundwater. Mitigation strategies likely involve rigorous inspection protocols, advanced containment systems, emergency response plans, and strict adherence to environmental regulations. Understanding these specific risks and the contractor's role in managing them is vital for assessing the overall risk profile of the contract.

How does the awarded price compare to industry benchmarks for similar large-scale fuel storage facility maintenance contracts?

Comparing the $19.9 million award to industry benchmarks for similar large-scale fuel storage facility maintenance contracts is essential for evaluating cost-effectiveness. This analysis should consider factors like facility size, fuel volume, scope of services, and geographic location. A favorable comparison would indicate good value for taxpayer money, while a significantly higher cost might warrant further investigation into the pricing structure and competitive landscape.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $83,579,428

Exercised Options: $19,915,277

Current Obligation: $19,915,277

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6274224D3506

IDV Type: IDC

Timeline

Start Date: 2025-09-08

Current End Date: 2026-09-09

Potential End Date: 2029-09-09 00:00:00

Last Modified: 2025-09-08

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