Army Awards $124M Contract for APS-5 Equipment Support in Southwest Asia to Vectrus Systems LLC
Contract Overview
Contract Amount: $124,105,530 ($124.1M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2015-02-27
End Date: 2015-11-30
Contract Duration: 276 days
Daily Burn Rate: $449.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF THE ARMY CONTRACTING COMMAND - ROCK ISLAND (ACC-RI) HAS A REQUIREMENT TO AWARD A BRIDGE CONTRACT FOR RECEIVING, REPAIRING, MAINTAINING, STORING, PREPARING FOR ISSUE AND ISSUING ARMY PRE-POSITION STOCK-5 (APS-5) EQUIPMENT IN SOUTHWEST ASIA (SWA) IN SUPPORT OF THE 402ND ARMY FIELD SUPPORT BATTALION KUWAIT.
Plain-Language Summary
Department of Defense obligated $124.1 million to VECTRUS SYSTEMS LLC for work described as: IGF::OT::IGF THE ARMY CONTRACTING COMMAND - ROCK ISLAND (ACC-RI) HAS A REQUIREMENT TO AWARD A BRIDGE CONTRACT FOR RECEIVING, REPAIRING, MAINTAINING, STORING, PREPARING FOR ISSUE AND ISSUING ARMY PRE-POSITION STOCK-5 (APS-5) EQUIPMENT IN SOUTHWEST ASIA (SWA) IN SUPPORT OF THE 402N… Key points: 1. The contract is for essential logistics support of Army Pre-Positioned Stock-5 equipment. 2. Vectrus Systems LLC is the incumbent contractor for this service. 3. The contract was not competed, raising potential concerns about price discovery. 4. Facilities Support Services is the relevant sector for this expenditure.
Value Assessment
Rating: fair
The contract value of $124.1M for a 9-month period suggests a significant operational cost. Benchmarking against similar logistics support contracts in high-risk environments is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a sole-source or limited competition award. The lack of competition may have limited price discovery and potentially led to a higher cost for taxpayers.
Taxpayer Impact: The absence of competition for a substantial contract value raises questions about whether taxpayers received the best possible price for these critical services.
Public Impact
Ensures continued operational readiness of Army equipment in a critical region. Supports military operations by maintaining vital logistical capabilities. Potential for increased costs due to lack of competitive bidding. Impacts the efficiency of supply chain management for APS-5 assets.
Waste & Efficiency Indicators
Waste Risk Score: 45 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- High dollar value
Positive Signals
- Essential service for military operations
- Incumbent contractor likely has established processes
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing a range of operational and logistical support. Spending in this sector is often driven by geopolitical needs and military readiness requirements.
Small Business Impact
The data indicates this contract was awarded to Vectrus Systems LLC and does not specify any small business participation. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to understand the justification for the lack of competition and ensure fair pricing. Accountability for the contract's execution and cost management is crucial.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost-plus contract type increases government cost risk.
- Limited transparency on justification for non-competition.
- Potential for contractor inefficiencies not fully mitigated by fixed fee.
Tags
facilities-support-services, department-of-defense, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $124.1 million to VECTRUS SYSTEMS LLC. IGF::OT::IGF THE ARMY CONTRACTING COMMAND - ROCK ISLAND (ACC-RI) HAS A REQUIREMENT TO AWARD A BRIDGE CONTRACT FOR RECEIVING, REPAIRING, MAINTAINING, STORING, PREPARING FOR ISSUE AND ISSUING ARMY PRE-POSITION STOCK-5 (APS-5) EQUIPMENT IN SOUTHWEST ASIA (SWA) IN SUPPORT OF THE 402ND ARMY FIELD SUPPORT BATTALION KUWAIT.
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 $124.1 million.
What is the period of performance?
Start: 2015-02-27. End: 2015-11-30.
What was the specific justification for not competing this contract, and were alternative competitive strategies considered?
The justification for not competing this contract is not detailed in the provided data. Typically, non-competitive awards are made under specific circumstances such as urgent and compelling needs, or when only one responsible source can provide the required services. A thorough review of the contract file would be necessary to ascertain the precise rationale and whether other competitive approaches were explored.
How does the cost-plus fixed fee structure impact the risk and potential for cost overruns in this contract?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost to the government can vary. This structure shifts some cost risk to the government, as cost overruns directly increase the total contract price. Effective oversight is crucial to manage allowable costs and prevent inefficiencies.
What is the long-term strategy for APS-5 equipment support in Southwest Asia, and will future requirements be competed?
The provided data pertains to a bridge contract, suggesting a short-term solution. The long-term strategy for APS-5 equipment support in Southwest Asia is not detailed here. Future requirements should ideally be subject to full and open competition to ensure the best value for the government and taxpayers, unless specific justifications for limited competition are clearly established and documented.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vectrus, Inc.
Address: 655 SPACE CENTER DR, COLORADO SPRINGS, CO, 80915
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $124,105,530
Exercised Options: $124,105,530
Current Obligation: $124,105,530
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-02-27
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2025-04-22
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