DoD Awards $139M DFAC Contract to Vectrus Systems LLC Under Full and Open Competition
Contract Overview
Contract Amount: $138,952,038 ($139.0M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2018-02-09
End Date: 2023-06-30
Contract Duration: 1,967 days
Daily Burn Rate: $70.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: COST NO FEE
Sector: Other
Official Description: AWARD OF THE DINING FACILITY (DFAC) MISSION AWARD FOR THE BASE YEAR - 10 FEB 2018 - 09 FEB 2019.
Plain-Language Summary
Department of Defense obligated $139.0 million to VECTRUS SYSTEMS LLC for work described as: AWARD OF THE DINING FACILITY (DFAC) MISSION AWARD FOR THE BASE YEAR - 10 FEB 2018 - 09 FEB 2019. Key points: 1. The contract awarded to Vectrus Systems LLC is for Dining Facility (DFAC) operations. 2. This award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration is substantial, spanning from February 2018 to June 2023. 4. The contract type is Cost No Fee, which means the contractor is reimbursed for allowable costs but does not receive a fee.
Value Assessment
Rating: fair
The contract's Cost No Fee structure makes direct pricing assessment difficult without detailed cost breakdowns. Benchmarking against similar DFAC contracts is challenging due to the lack of a fixed fee or profit margin.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and competitive pricing, though the Cost No Fee structure complicates direct price comparison.
Taxpayer Impact: Taxpayer funds are used to reimburse the contractor for allowable costs associated with providing dining services.
Public Impact
Ensures essential food services are provided to military personnel. Supports the morale and well-being of service members by providing meals. The large contract value indicates significant resource allocation to DFAC operations. Potential for cost efficiencies or overruns depending on contractor management and oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee structure limits transparency on contractor profit.
- Long contract duration may reduce flexibility for future adjustments.
- Potential for scope creep if not managed tightly.
Positive Signals
- Full and open competition promotes market-based pricing.
- Contract ensures continuity of essential services.
- Clear performance period defined.
Sector Analysis
This contract falls within the Food Service Contractors sector, specifically supporting government facilities. Spending benchmarks for DFAC operations can vary widely based on location, scale, and service level requirements.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this award. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
Oversight is crucial for Cost No Fee contracts to ensure that all reimbursed costs are allowable, reasonable, and allocable to the contract. The Department of Defense and Department of the Army are responsible for this oversight.
Related Government Programs
- Food Service Contractors
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost No Fee structure requires intensive oversight.
- Potential for cost overruns borne by the government.
- Long contract duration may not reflect current market conditions.
- Lack of explicit profit margin makes value assessment difficult.
Tags
food-service-contractors, department-of-defense, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $139.0 million to VECTRUS SYSTEMS LLC. AWARD OF THE DINING FACILITY (DFAC) MISSION AWARD FOR THE BASE YEAR - 10 FEB 2018 - 09 FEB 2019.
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 $139.0 million.
What is the period of performance?
Start: 2018-02-09. End: 2023-06-30.
What were the key performance indicators (KPIs) used to evaluate contractor performance under this Cost No Fee contract, and how were they measured?
While the contract type is Cost No Fee, performance is typically evaluated based on service delivery metrics such as meal quality, timeliness, sanitation standards, and customer satisfaction. Specific KPIs would be detailed in the contract's Performance Work Statement (PWS). Agencies use inspections, surveys, and direct observation to monitor adherence to these standards.
How does the Cost No Fee structure impact the government's ability to ensure cost-effectiveness compared to fixed-price contracts?
The Cost No Fee structure shifts the primary risk of cost overruns to the government. While it can ensure service continuity and quality by removing contractor profit motive, it necessitates robust government oversight to scrutinize all claimed costs. This contrasts with fixed-price contracts where the contractor bears cost overrun risk, incentivizing efficiency.
What is the typical cost range for similar DFAC operations of comparable size and scope to benchmark this contract's spending?
Benchmarking DFAC costs is complex due to variations in location, facility type, number of meals served, and service level agreements. However, industry averages and historical government data can provide a range. Factors like labor costs, food prices, and overhead contribute significantly. A detailed comparison would require analyzing specific contract requirements and regional economic data.
Industry Classification
NAICS: Accommodation and Food Services › Special Food Services › Food Service Contractors
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W52P1J17R0049
Offers Received: 14
Pricing Type: COST NO FEE (S)
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: $138,952,038
Exercised Options: $138,952,038
Current Obligation: $138,952,038
Actual Outlays: $1,778,703
Subaward Activity
Number of Subawards: 31
Total Subaward Amount: $5,130,105
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-02-09
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2025-09-29
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