DoD Awards $387M Facilities Support Contract to Vectrus Systems LLC Under Full and Open Competition
Contract Overview
Contract Amount: $387,147,835 ($387.1M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2023-05-15
End Date: 2026-03-30
Contract Duration: 1,050 days
Daily Burn Rate: $368.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: CAS DOS TRANSITION
Plain-Language Summary
Department of Defense obligated $387.1 million to VECTRUS SYSTEMS LLC for work described as: CAS DOS TRANSITION Key points: 1. Significant contract value of $387.1 million for facilities support services. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. Potential risks associated with long-term service contracts and contractor performance. 4. Services fall under the facilities support sector, crucial for operational readiness.
Value Assessment
Rating: good
The contract's cost-plus-fixed-fee structure allows for flexibility but requires careful monitoring of costs to ensure value. Benchmarking against similar large-scale facilities support contracts is recommended to validate pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for essential facilities support services.
Public Impact
Ensures continued operational support for Department of the Army facilities. Supports a large federal agency's infrastructure management needs. Potential for job creation and economic activity through contractor operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration and potential for cost overruns.
- Dependence on a single contractor for critical services.
Positive Signals
- Awarded via full and open competition.
- Clear contract end date provides predictability.
Sector Analysis
This contract falls within the facilities support services sector, which encompasses a wide range of services essential for maintaining government infrastructure. Spending in this sector is often substantial and directly tied to agency operational needs.
Small Business Impact
The contract was awarded through full and open competition and does not indicate specific set-asides for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of the Army's oversight will be critical in managing the cost-plus-fixed-fee structure and ensuring contractor performance meets the required standards throughout the contract duration.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns under CPFF structure.
- Long contract duration (over 2 years) increases exposure to market changes.
- Dependence on a single contractor for critical services.
- Lack of explicit small business subcontracting goals noted.
Tags
facilities-support-services, department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $387.1 million to VECTRUS SYSTEMS LLC. CAS DOS TRANSITION
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 $387.1 million.
What is the period of performance?
Start: 2023-05-15. End: 2026-03-30.
What is the benchmark cost for similar facilities support contracts of this scale and scope?
Benchmarking similar facilities support contracts requires detailed analysis of contract scope, duration, geographic location, and specific services provided. Generally, large-scale contracts can range from hundreds of millions to billions of dollars. Factors like labor rates, material costs, and overhead contribute significantly. Without specific comparable data, a precise benchmark is difficult, but the $387 million award appears substantial, necessitating careful review against industry standards for similar government contracts.
What are the primary risks associated with a cost-plus-fixed-fee contract for facilities support?
The primary risk with a cost-plus-fixed-fee (CPFF) contract is the potential for cost overruns. While the fixed fee provides the contractor with an incentive for efficiency, the government bears the risk of increased costs. Effective oversight is crucial to monitor expenditures, prevent unnecessary costs, and ensure the contractor operates within reasonable bounds. Scope creep can also inflate costs if not managed tightly.
How does the full and open competition impact the overall effectiveness and value for taxpayers?
Full and open competition generally enhances effectiveness and taxpayer value by fostering a competitive environment. It allows a wider pool of qualified vendors to bid, driving down prices and encouraging innovation. This process increases the likelihood of selecting a contractor that offers the best combination of price, quality, and performance, ultimately benefiting the government and taxpayers through potentially lower costs and higher service quality.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $387,147,835
Exercised Options: $387,147,835
Current Obligation: $387,147,835
Actual Outlays: $71,001,154
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J19D0045
IDV Type: IDC
Timeline
Start Date: 2023-05-15
Current End Date: 2026-03-30
Potential End Date: 2026-03-30 12:03:00
Last Modified: 2025-12-22
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