Army Sustainment Command Awards $253M Contract for APS-5 Equipment Support in Southwest Asia
Contract Overview
Contract Amount: $253,269,756 ($253.3M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2015-12-01
End Date: 2017-07-07
Contract Duration: 584 days
Daily Burn Rate: $433.7K/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 SUSTAINMENT COMMAND HAS A REQUIREMENT FOR RECEIVING, REPAIRING, MAINTAINING, STORING, PREPARING FOR ISSUE AND ISSUING ARMY PREPOSITIONED STOCK - 5 (APS-5) EQUIPMENT IN SOUTHWEST ASIA (SWA) IN SUPPORT OF THE 401ST ARMY FIELD SUPPORT BATTALION - KUWAIT (ASFBN-KU).
Plain-Language Summary
Department of Defense obligated $253.3 million to VECTRUS SYSTEMS LLC for work described as: IGF::OT::IGF THE ARMY SUSTAINMENT COMMAND HAS A REQUIREMENT FOR RECEIVING, REPAIRING, MAINTAINING, STORING, PREPARING FOR ISSUE AND ISSUING ARMY PREPOSITIONED STOCK - 5 (APS-5) EQUIPMENT IN SOUTHWEST ASIA (SWA) IN SUPPORT OF THE 401ST ARMY FIELD SUPPORT BATTALION - KUWAIT (ASFBN-… Key points: 1. Contract awarded to Vectrus Systems LLC for critical logistics support. 2. Focus on maintaining Army Prepositioned Stock (APS-5) equipment in a key operational theater. 3. Significant value suggests a substantial and ongoing need for these services. 4. The contract type (Cost Plus Fixed Fee) warrants close monitoring of costs.
Value Assessment
Rating: good
The contract value of $253.3 million over its period of performance appears reasonable for comprehensive logistics and maintenance services in a high-demand region like Southwest Asia. Benchmarking against similar large-scale sustainment contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This could potentially limit price discovery and may suggest a reliance on a specific vendor's capabilities or existing presence in the region.
Taxpayer Impact: The lack of full and open competition may result in a higher cost to taxpayers than a fully competed contract, though specific cost savings are not quantifiable without a competitive baseline.
Public Impact
Ensures readiness of critical military equipment for U.S. forces operating in Southwest Asia. Supports the 401st Army Field Support Battalion-Kuwait, a key logistical hub. Maintains vital infrastructure and services for military operations in a challenging environment. Contributes to the overall stability and security posture in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about potential overpricing.
- Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed tightly.
- Geopolitical instability in Southwest Asia poses inherent risks to contract performance and cost.
Positive Signals
- Essential services for maintaining military readiness.
- Long-term requirement indicates strategic importance.
- Established vendor likely possesses critical regional expertise.
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing a range of operational and maintenance activities. Spending in this sector is often driven by global military presence and operational tempo, with significant variability based on geographic location and mission scope.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine any potential subcontracting opportunities.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential gap in initial market research or a justification for limited competition. Robust oversight is crucial to ensure the contractor's performance meets requirements and that costs are reasonable, especially given the contract type.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of full and open competition.
- Potential for cost overruns with CPFF contract type.
- Geopolitical risks in Southwest Asia.
- Reliance on a single contractor for critical services.
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 $253.3 million to VECTRUS SYSTEMS LLC. IGF::OT::IGF THE ARMY SUSTAINMENT COMMAND HAS A REQUIREMENT FOR RECEIVING, REPAIRING, MAINTAINING, STORING, PREPARING FOR ISSUE AND ISSUING ARMY PREPOSITIONED STOCK - 5 (APS-5) EQUIPMENT IN SOUTHWEST ASIA (SWA) IN SUPPORT OF THE 401ST ARMY FIELD SUPPORT BATTALION - KUWAIT (ASFBN-KU).
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 $253.3 million.
What is the period of performance?
Start: 2015-12-01. End: 2017-07-07.
What was the justification for not competing this significant contract, and were alternative approaches considered to maximize value for taxpayers?
The justification for not competing this contract is not detailed in the provided data. Typically, sole-source or limited competition is pursued when only one responsible source can provide the required supplies or services, or in cases of urgent need. Agencies must document these justifications thoroughly. Without this documentation, it's difficult to assess if alternative approaches, such as phased competition or market research for future procurements, were considered to ensure the best value and competitive pricing for taxpayers.
How effectively are costs being managed under this Cost Plus Fixed Fee (CPFF) contract, given the potential for cost overruns in a complex operational environment?
Effective cost management under a CPFF contract relies heavily on robust government oversight, detailed performance metrics, and clear communication channels. The Army Sustainment Command must actively monitor Vectrus Systems LLC's expenditures, ensure adherence to the fixed fee, and scrutinize any cost increases. Regular audits and performance reviews are essential to identify potential inefficiencies or unallowable costs, thereby mitigating the risk of cost overruns and ensuring taxpayer funds are used appropriately.
What are the specific performance metrics and quality assurance measures in place to ensure the effective maintenance and readiness of APS-5 equipment?
The provided data does not detail the specific performance metrics or quality assurance measures. However, for a contract of this nature and value, it is expected that the Department of the Army has established stringent Key Performance Indicators (KPIs) related to equipment readiness rates, repair turnaround times, inventory accuracy, and facility maintenance standards. A comprehensive Quality Assurance Surveillance Plan (QASP) would be critical to monitor contractor performance and ensure the APS-5 equipment remains in optimal condition for deployment.
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: $253,269,756
Exercised Options: $253,269,756
Current Obligation: $253,269,756
Actual Outlays: $3,497
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $289,132,828
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-12-01
Current End Date: 2017-07-07
Potential End Date: 2017-07-07 00:00:00
Last Modified: 2025-04-22
More Contracts from Vectrus Systems LLC
- Kuwait Base Operations and Security Support Services — $4.8B (Department of Defense)
- Logistics Civil Augmentation Program (logcap) V Support Services in Kuwait — $2.2B (Department of Defense)
- Logistics Civil Augmentation Program (logcap) V Award for Iraq — $1.5B (Department of Defense)
- Operations, Maintenance, and Defense of Army Communications in Southwest Asia and Central Asia (omdac-Swaca) — $1.3B (Department of Defense)
- 200607!611001!2100!w91rus!aca, Fort Huachuca !w91rus06c0002 !A!N! !Y! !p00003!20060405!20101130!030468243!030468243!001216845!n!itt Federal Services Internati!4410 E Fountain Blvd !colorado Sprin !CO!80916!00000! !KU!* !* !kuwait !+000001759741!n!n!000000000000!d304!adp Telecommunications & Transmission Services !A7 !electronics and Communication Equip !000 !* !811213!E! !3! ! !B! ! !99990909!b!f!y!b! !a!u!u!2!006!b! !Z!N!Z! ! !N!M!N! ! ! ! ! !a!a!000!a!b!n! ! ! !y!2100!w61deg!0001! ! — $1.2B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)