DoD's Navy Awards $39.1M Facilities Support Services Contract to Vectrus Systems LLC

Contract Overview

Contract Amount: $39,115,405 ($39.1M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2022-12-01

End Date: 2023-11-30

Contract Duration: 364 days

Daily Burn Rate: $107.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUNDING TO:FAR 52.217-8 OPTION BRIDGE RW

Plain-Language Summary

Department of Defense obligated $39.1 million to VECTRUS SYSTEMS LLC for work described as: FUNDING TO:FAR 52.217-8 OPTION BRIDGE RW Key points: 1. Contract awarded for facilities support services. 2. Vectrus Systems LLC is the sole contractor. 3. The contract is a firm-fixed-price delivery order. 4. This is an option bridge contract. 5. No small business participation noted.

Value Assessment

Rating: fair

The contract value of $39.1M for a 1-year duration appears reasonable for facilities support services. However, without specific service details or benchmarks for similar contracts, a precise value assessment is difficult. The lack of competition raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process. The 'option bridge' nature suggests it may be a temporary measure.

Taxpayer Impact: The lack of competition for a $39.1M contract means taxpayers may not be receiving the best possible price for these essential facilities support services.

Public Impact

Taxpayers may be overpaying due to the lack of competition. Essential facilities support services are being provided to the Department of the Navy. The contract duration of one year limits long-term strategic planning for service providers. The 'option bridge' designation suggests a potential for future, more competitive contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • No small business participation

Positive Signals

  • Firm fixed price contract
  • Essential services provided

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a range of services. Government spending in this sector is substantial, with competition often driving down costs. This contract's value is significant for a single-year award.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and could potentially limit the range of innovative solutions available.

Oversight & Accountability

As a sole-source award, this contract warrants close oversight to ensure fair pricing and adequate performance. The Department of Defense should have robust internal controls to justify non-competitive awards and monitor contractor effectiveness.

Related Government Programs

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

Risk Flags

  • Sole-source award lacks competition
  • Potential for overpricing
  • No small business participation
  • Contract is an 'option bridge', suggesting potential instability or transition

Tags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.1 million to VECTRUS SYSTEMS LLC. FUNDING TO:FAR 52.217-8 OPTION BRIDGE RW

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 $39.1 million.

What is the period of performance?

Start: 2022-12-01. End: 2023-11-30.

What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or the absence of other responsible sources. For this contract, the 'option bridge' designation suggests it might be a temporary measure to maintain services while a more competitive process is prepared. However, without explicit documentation, it's difficult to ascertain the precise reason. Robust oversight is crucial to ensure fair pricing through mechanisms like cost analysis or benchmarking against similar services, even in a sole-source scenario.

What are the specific risks associated with a sole-source contract for facilities support services, and how are they being mitigated?

The primary risk of a sole-source contract is the potential for inflated prices due to a lack of competition. Other risks include reduced innovation, vendor complacency, and potential quality degradation. Mitigation strategies involve rigorous government cost and price analysis, performance monitoring, and clear contract terms. For this facilities support contract, the Department of Defense must actively manage the vendor relationship and performance metrics to ensure value for money and service quality despite the non-competitive nature.

How does this contract contribute to the overall effectiveness of the Department of the Navy's facilities management and mission readiness?

Effective facilities support is critical for the operational readiness and mission effectiveness of any military branch. This contract ensures that essential services like maintenance, repair, and potentially other facility-related operations are maintained without interruption. While the sole-source nature raises questions about cost-efficiency, the continuity of these services directly supports the Navy's ability to operate its installations and execute its primary missions.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6945022R0008

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: $39,115,405

Exercised Options: $39,115,405

Current Obligation: $39,115,405

Actual Outlays: $503,913

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945022D0010

IDV Type: IDC

Timeline

Start Date: 2022-12-01

Current End Date: 2023-11-30

Potential End Date: 2023-11-30 00:00:00

Last Modified: 2023-11-30

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