Navy awards $14.1M facilities support contract to Vectrus Systems LLC for potable water services

Contract Overview

Contract Amount: $14,100,162 ($14.1M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-29

End Date: 2026-02-25

Contract Duration: 180 days

Daily Burn Rate: $78.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: POTABLE WATER TO LEEWARD SIDE OF NSGB

Plain-Language Summary

Department of Defense obligated $14.1 million to VECTRUS SYSTEMS LLC for work described as: POTABLE WATER TO LEEWARD SIDE OF NSGB Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is 180 days, indicating a short-term need for services. 3. The fixed-price contract type aims to control costs for the government. 4. Facilities support services are crucial for maintaining operational readiness. 5. The award is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $14.1 million for 180 days of potable water services appears reasonable given the scope of facilities support. Benchmarking against similar contracts for large naval bases is difficult without more specific service details, but the fixed-price nature suggests an effort to ensure cost predictability. The award amount is within the expected range for specialized facilities maintenance on a military installation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The Navy's use of this procurement approach suggests confidence in achieving a fair market price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down costs through competitive pressure and ensuring the government receives the best value for its investment.

Public Impact

Naval Station Guam (NSG) benefits from reliable potable water supply. Ensures operational readiness and habitability for personnel stationed at NSG. Services are geographically focused on the Leeward side of Naval Station Guam. Supports the infrastructure necessary for military operations and personnel well-being.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters during the short contract period.
Dependence on a single contractor for critical potable water infrastructure.
Limited visibility into the specific performance metrics and quality control measures employed by the contractor.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Fixed-price contract type helps manage and predict government expenditure.
Contract duration is clearly defined, allowing for focused performance management.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad sector encompassing a wide range of services for maintaining and operating buildings and infrastructure. This contract falls within the government's significant spending in this area, particularly for military installations where maintaining operational readiness and habitability is paramount. Comparable spending benchmarks are highly variable due to the diverse nature of facilities support, but large-scale base support contracts can run into tens or hundreds of millions of dollars annually.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. As a delivery order under a potentially larger contract, the subcontracting implications would depend on the terms of the base IDIQ contract. Without further information, the direct impact on the small business ecosystem is unclear, but it suggests larger prime contractors are likely managing this requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Navy's contracting and facilities management departments. Accountability measures are embedded in the firm-fixed-price contract type, which incentivizes the contractor to meet performance standards within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Naval Base Guam Operations and Maintenance
Base Operations Support (BOS)
Facilities Engineering Support Services
Utilities Management Contracts

Risk Flags

Short contract duration may limit long-term infrastructure investment by contractor.
Potential for price increases in future contract renewals if competition is limited.
Dependence on contractor performance for critical life support service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to VECTRUS SYSTEMS LLC. POTABLE WATER TO LEEWARD SIDE OF NSGB

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 $14.1 million.

What is the period of performance?

Start: 2025-08-29. End: 2026-02-25.

What is the track record of Vectrus Systems LLC in providing similar facilities support services to the Department of Defense?

Vectrus Systems LLC has a significant history of providing a wide range of services to the Department of Defense and other government agencies, including base operations support, facilities management, IT, and logistics. They have held numerous large-scale contracts, often involving base operations and maintenance, similar to the services required for potable water systems. Their performance history can be reviewed through contract databases and past performance evaluations, which are typically considered during the source selection process for new awards. While specific details of past performance on potable water systems are not provided here, their extensive experience in base support suggests a capacity to handle such requirements.

How does the awarded amount of $14.1 million compare to similar potable water service contracts for naval installations?

Directly comparing the $14.1 million for a 180-day period requires detailed knowledge of the specific scope of work, volume of water, infrastructure complexity, and geographic location. However, for large naval installations, comprehensive facilities support, including water systems, can represent a substantial portion of a base's operational budget. Contracts for similar services on major bases can range from tens to hundreds of millions of dollars annually. This $14.1 million award for a six-month period suggests a significant scale of operation or a critical, high-demand service requirement for the Leeward side of Naval Station Guam, aligning with the substantial investment typically seen in maintaining essential utilities for military readiness.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential service disruptions due to contractor performance issues, unforeseen infrastructure failures requiring emergency repairs beyond the contract scope, and price volatility if the contract were not fixed-price. Mitigation strategies involve the firm-fixed-price contract type, which places the cost risk on the contractor and incentivizes efficient service delivery. The Department of the Navy's oversight, performance monitoring, and the defined contract duration also serve as risk mitigation tools. Furthermore, the requirement for full and open competition suggests a selection process that favors contractors with proven reliability and capability, reducing the risk of selecting an underqualified vendor.

What is the expected effectiveness of Vectrus Systems LLC in ensuring a consistent and safe potable water supply?

The effectiveness is expected to be high, given Vectrus's established presence and experience in government contracting, particularly within the defense sector. The firm-fixed-price structure incentivizes Vectrus to deliver services efficiently and reliably to maintain profitability. The Department of the Navy will likely have performance standards and quality assurance surveillance plans (QASPs) in place to monitor the contractor's adherence to requirements for water quality, delivery, and system maintenance. Past performance evaluations, considered during the award, also contribute to the expectation of effective service delivery.

What has been the historical spending pattern for potable water services or similar facilities support at Naval Station Guam?

Historical spending data for potable water services specifically at Naval Station Guam is not detailed in the provided information. However, Naval Station Guam, as a major operational hub in the Pacific, consistently requires significant investment in base operations and maintenance, including utilities like potable water. Annual spending on facilities support services for such installations typically runs into the millions, often tens of millions, of dollars, depending on the scope of services and infrastructure needs. This $14.1 million delivery order for a six-month period suggests a substantial ongoing or critical need, consistent with the high operational tempo and infrastructure demands of a key naval base.

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: 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: $14,100,162

Exercised Options: $14,100,162

Current Obligation: $14,100,162

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $266,753

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