DoD's Navy awards $32.5M facilities support contract to Vectrus Systems LLC for Option Year 1

Contract Overview

Contract Amount: $32,509,637 ($32.5M)

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: $89.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NSGB BOS: OPTION YEAR 1 RECURRING SERVICE FUNDING TASK ORDER 12/01/2024 - 11/30/2025

Plain-Language Summary

Department of Defense obligated $32.5 million to VECTRUS SYSTEMS LLC for work described as: NSGB BOS: OPTION YEAR 1 RECURRING SERVICE FUNDING TASK ORDER 12/01/2024 - 11/30/2025 Key points: 1. Contract value represents recurring service funding for a one-year period. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. Facilities Support Services are critical for maintaining operational readiness. 5. This award is for Option Year 1, indicating a continuation of existing services. 6. The North American Industry Classification System (NAICS) code 561210 points to comprehensive facilities management.

Value Assessment

Rating: good

The contract value of $32.5 million for one year of facilities support services appears reasonable given the scope of services typically associated with NAICS code 561210. Benchmarking against similar large-scale facilities support contracts awarded by the Department of Defense or other federal agencies would provide a more precise assessment of value for money. The firm-fixed-price structure is generally favorable for the government in managing cost certainty.

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 process typically involves a robust solicitation and evaluation, aiming to secure the best value for the government. The number of bidders is not specified, but full and open competition generally fosters a competitive environment that can lead to more favorable pricing and service offerings.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of qualified contractors to participate, leading to better value and potentially lower costs.

Public Impact

The Department of the Navy benefits from the continued provision of essential facilities support services, ensuring operational readiness. Services include a broad range of facilities management, maintenance, and potentially related support functions. The geographic impact is likely concentrated at the Navy installations where these services are being provided. Workforce implications include the potential for continued employment for personnel involved in facilities operations and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not clearly defined in task orders.
Reliance on a single contractor for critical infrastructure support.
Ensuring consistent service quality across all task orders and locations.

Positive Signals

Firm-fixed-price contract structure provides cost certainty.
Full and open competition suggests a competitive market for these services.
Option year structure allows for continuity of essential services.

Sector Analysis

Facilities Support Services, classified under NAICS code 561210, represent a significant segment of the government contracting market. This sector encompasses a wide array of services essential for the operation and maintenance of government facilities, including building operations, maintenance, and related support. The total addressable market for such services within the federal government is substantial, with agencies like the Department of Defense being major consumers. This contract fits within the broader category of base operations support and facilities management, where competition can vary based on the specific requirements and scale of the contract.

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 small business set-aside. However, the prime contractor, Vectrus Systems LLC, may still engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means that larger, established companies were likely the primary focus of the competition.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy contracting officers and program managers responsible for facilities support. The firm-fixed-price nature of the contract shifts some performance risk to the contractor, but government oversight is still crucial to ensure adherence to contract terms, service level agreements, and performance standards. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance and Repair
Logistics and Support Services
Government Facilities Management

Risk Flags

Contract performance risk
Cost overrun potential (if scope changes)
Dependence on single contractor for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.5 million to VECTRUS SYSTEMS LLC. NSGB BOS: OPTION YEAR 1 RECURRING SERVICE FUNDING TASK ORDER 12/01/2024 - 11/30/2025

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 $32.5 million.

What is the period of performance?

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

What is the historical spending trend for facilities support services by the Department of the Navy, and how does this award compare?

Analyzing historical spending for facilities support services by the Department of the Navy requires access to detailed budget and contract data over multiple fiscal years. Generally, federal agencies like the Navy allocate significant portions of their budgets to maintaining their vast infrastructure, which includes facilities support. Spending in this area can fluctuate based on infrastructure needs, modernization projects, and the number of active facilities. This specific award of $32.5 million for one option year represents a recurring cost for services. To compare, one would need to examine the total annual expenditure on similar services by the Navy in previous years, looking at the aggregate value of all facilities support contracts, not just this single award. Factors such as inflation, changes in service scope, and the competitive landscape also influence year-over-year spending.

What specific services are included under 'Facilities Support Services' for this contract?

The designation 'Facilities Support Services' under NAICS code 561210 is broad and typically encompasses a comprehensive range of activities necessary for the operation and upkeep of buildings and grounds. This can include, but is not limited to, general building maintenance and repair, janitorial services, groundskeeping, pest control, waste management, security services (if not separately contracted), utility management, and potentially minor renovation or repair work. For this specific contract with Vectrus Systems LLC, the exact scope of services would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents outline the specific tasks, performance standards, and deliverables expected from the contractor to ensure the facilities are safe, functional, and well-maintained for Navy personnel.

How does the firm-fixed-price contract type impact risk allocation between the government and Vectrus Systems LLC?

A firm-fixed-price (FFP) contract type, as indicated for this award, places the primary responsibility for cost control and managing unforeseen expenses on the contractor, Vectrus Systems LLC. This means that the agreed-upon price is generally fixed, regardless of the contractor's actual costs incurred. Consequently, the contractor assumes a significant portion of the cost risk. If the contractor's expenses exceed the fixed price, their profit margin will decrease, or they may incur a loss. Conversely, if they can perform the work for less than the fixed price, their profit increases. For the government, an FFP contract offers the advantage of cost certainty, as the total price is known upfront, making budgeting more predictable. However, the government bears the risk if the contractor inflates their initial bid to account for potential cost overruns.

What is Vectrus Systems LLC's track record with the Department of the Navy and similar federal contracts?

Vectrus Systems LLC has a significant history of performing services for the Department of Defense and other federal agencies, including facilities support and base operations. Their track record typically involves managing large-scale contracts requiring extensive logistical and operational capabilities. Information regarding their past performance, including any awards, past issues, or performance evaluations, can often be found in federal contract databases and through sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A review of these sources would reveal their experience with similar firm-fixed-price contracts, their ability to meet performance requirements, and their overall reliability as a government contractor. Their continued awards suggest a generally positive performance history.

What are the potential implications of this contract for small businesses in the facilities support sector?

Since this contract was awarded under full and open competition and not specifically set aside for small businesses, its direct impact on small businesses is limited to potential subcontracting opportunities. Vectrus Systems LLC, as the prime contractor, may choose to subcontract portions of the work to small businesses. The extent of this subcontracting would depend on Vectrus's own business strategy, subcontracting goals, and the specific requirements of the contract. While not a direct set-aside, the presence of a large prime contractor like Vectrus can sometimes create opportunities for small businesses to enter the supply chain. However, it also means that small businesses directly competing for such large-scale contracts would face significant competition from larger, established firms.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6945022R0032

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: $32,509,637

Exercised Options: $32,509,637

Current Obligation: $32,509,637

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945023D0022

IDV Type: IDC

Timeline