DoD awards $55M C4 IT services task order to Vectrus Systems LLC under existing contract

Contract Overview

Contract Amount: $54,884,094 ($54.9M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-13

End Date: 2021-12-01

Contract Duration: 963 days

Daily Burn Rate: $57.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THIS TASK ORDER IS THE AWARD OF RFP RS3-17-0018, W15P7T-17-D- 0132, TASK ORDER # W15P7T-19-F-0079, TO PROVIDE COMMAND, CONTROL, COMMUNICATIONS, COMPUTER, AND INFORMATION TECHNOLOGY (C4 IT) SERVICES.

Plain-Language Summary

Department of Defense obligated $54.9 million to VECTRUS SYSTEMS LLC for work described as: THIS TASK ORDER IS THE AWARD OF RFP RS3-17-0018, W15P7T-17-D- 0132, TASK ORDER # W15P7T-19-F-0079, TO PROVIDE COMMAND, CONTROL, COMMUNICATIONS, COMPUTER, AND INFORMATION TECHNOLOGY (C4 IT) SERVICES. Key points: 1. Contract focuses on Command, Control, Communications, Computer, and Information Technology (C4 IT) services. 2. Awarded via full and open competition, indicating a broad market solicitation. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 4. Performance period spans over two years, suggesting a need for sustained IT support. 5. The North American Industry Classification System (NAICS) code 541712 points to Research and Development in Physical, Engineering, and Life Sciences, which may indicate a specialized IT support function. 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: fair

The total award amount is $54.9 million over a period of 963 days. Benchmarking this against similar C4 IT services contracts is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses allowable costs plus a fixed fee, which can lead to higher overall costs if not managed tightly. Without detailed cost breakdowns or comparisons to industry standards for specific C4 IT functions, assessing the value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, suggesting that multiple vendors were likely solicited and had the opportunity to bid. The data indicates 8 proposals were received. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through a wider pool of potential bidders, leading to more cost-effective solutions.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other Department of Defense entities requiring C4 IT support. Services delivered include Command, Control, Communications, Computer, and Information Technology functions, crucial for military operations. The geographic impact is likely within the operational areas supported by the Department of the Army, potentially global. Workforce implications may include the need for specialized IT professionals to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns and ensure the fixed fee remains reasonable.
The NAICS code suggests R&D, which can have inherent cost uncertainties that need careful management.
The duration of the contract (963 days) necessitates ongoing performance monitoring to ensure continued service quality.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The receipt of 8 proposals suggests significant vendor interest and a robust competitive landscape.
The contract is for essential C4 IT services, critical for military command and control.

Sector Analysis

This contract falls within the broader Information Technology and Defense sectors, specifically focusing on C4 IT services. The IT services market is vast and highly competitive, with significant government spending. Contracts like this are essential for maintaining the technological infrastructure that supports military operations. Comparable spending benchmarks would depend on the specific nature of the C4 IT services, but overall IT spending by the DoD is in the tens of billions annually.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. This means that opportunities for small businesses to directly participate in this specific task order are limited unless they are prime contractors or subcontractors to the prime. The absence of set-asides may reduce direct opportunities for small businesses in this particular award.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve contract officers, contracting specialists, and technical monitors within the Department of the Army. Accountability measures would include performance reviews, audits of costs, and adherence to the fixed fee. Transparency is facilitated through contract award databases, but detailed cost breakdowns and performance metrics are often not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD C4 IT Modernization Programs
Army Network Modernization Efforts
Defense Information Systems Agency (DISA) Contracts
Command and Control Systems Procurement
IT Services for Military Operations

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
NAICS code suggests R&D component, introducing potential for scope creep or unmet objectives.
Lack of specific performance metrics in provided data makes value assessment challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.9 million to VECTRUS SYSTEMS LLC. THIS TASK ORDER IS THE AWARD OF RFP RS3-17-0018, W15P7T-17-D- 0132, TASK ORDER # W15P7T-19-F-0079, TO PROVIDE COMMAND, CONTROL, COMMUNICATIONS, COMPUTER, AND INFORMATION TECHNOLOGY (C4 IT) SERVICES.

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 Army).

What is the total obligated amount?

The obligated amount is $54.9 million.

What is the period of performance?

Start: 2019-04-13. End: 2021-12-01.

What is the historical spending pattern for Vectrus Systems LLC with the Department of Defense, particularly for C4 IT services?

Analyzing Vectrus Systems LLC's historical spending with the Department of Defense requires access to comprehensive contract databases. However, general contract award data indicates that Vectrus has been a significant contractor for the DoD across various service areas, including IT, logistics, and base operations support. For C4 IT services specifically, their track record would need to be examined against similar task orders and contracts to identify trends in award values, contract types, and performance periods. Without specific historical data for this task order's predecessors or comparable services, it's difficult to establish a precise spending pattern. However, the current award of approximately $55 million suggests a substantial engagement for C4 IT support.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for similar C4 IT services in terms of cost efficiency?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a predetermined fixed fee. This structure is often used when the scope of work is not precisely defined or involves research and development, where cost uncertainties are high. While CPFF can incentivize contractors to control costs to protect their fee, it can also lead to higher overall costs for the government compared to fixed-price contracts if costs escalate significantly. For C4 IT services, fixed-price contracts (like FFP or FP-EPA) might offer better cost certainty if requirements are well-defined. However, for complex, evolving IT needs or R&D aspects, CPFF can be appropriate, provided robust oversight is in place to manage costs and ensure the fixed fee is fair and reasonable relative to the effort.

What are the key performance indicators (KPIs) typically associated with C4 IT services contracts of this magnitude?

Key Performance Indicators (KPIs) for C4 IT services contracts of this magnitude often focus on system availability, network uptime, response times for technical support, cybersecurity compliance, and successful implementation of new technologies or upgrades. For example, KPIs might include achieving 99.9% network uptime, resolving critical help desk tickets within 4 hours, maintaining zero critical security vulnerabilities, and completing project milestones on schedule. The specific KPIs would be detailed in the Performance Work Statement (PWS) of the task order and are crucial for measuring contractor performance and ensuring the government receives the expected value and operational capability.

What is the potential risk associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code for a C4 IT services contract?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' associated with this C4 IT services contract introduces specific risks. While C4 IT services are generally operational, this NAICS code suggests that the contract may involve innovative technology development, system integration of novel components, or research into advanced communication and computing solutions. Risks include the inherent uncertainty in R&D outcomes, potential for cost overruns if research proves more complex than anticipated, longer development timelines, and the possibility that the developed solutions may not meet all initial operational requirements. Effective risk mitigation would involve clear R&D objectives, phased development with go/no-go decision points, and strong technical oversight.

How does the 'full and open competition' award method impact the overall cost to the taxpayer for this contract?

Awarding this contract under 'full and open competition' generally benefits taxpayers by fostering a competitive environment. This means that all responsible sources were permitted to submit proposals, leading to a wider range of potential solutions and pricing. The competition among multiple bidders (8 proposals were received) typically drives down prices as contractors strive to offer the most attractive bid to win the contract. This process helps ensure that the government is not overpaying for the C4 IT services and is likely to secure a more cost-effective solution compared to sole-source or limited competition awards. The competitive pressure encourages efficiency and innovation from the winning contractor.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7901 JONES BRANCH DR, MCCLEAN, VA, 22102

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $116,736,184

Exercised Options: $69,334,016

Current Obligation: $54,884,094

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $9,681,278

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T17D0132

IDV Type: IDC

Timeline