DoD's LOGCAP V Iraq Contract Awarded to Vectrus Systems LLC for $1.5B
Contract Overview
Contract Amount: $1,495,477,767 ($1.5B)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2019-04-12
End Date: 2026-06-21
Contract Duration: 2,627 days
Daily Burn Rate: $569.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR IRAQ.
Plain-Language Summary
Department of Defense obligated $1.50 billion to VECTRUS SYSTEMS LLC for work described as: LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR IRAQ. Key points: 1. Significant contract for logistics support in Iraq. 2. Vectrus Systems LLC is the awardee. 3. Full and open competition was utilized. 4. Contract duration extends to June 2026. 5. Cost Plus Fixed Fee pricing structure.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar large-scale logistics contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee nature may limit the direct impact of competition on final costs.
Taxpayer Impact: Taxpayer funds are being used for critical logistics support in a complex operational environment. The effectiveness of competition in controlling costs for this type of contract needs monitoring.
Public Impact
Ensures continued logistical support for U.S. forces in Iraq. Supports critical infrastructure and operational readiness. Potential for long-term U.S. military presence and operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee pricing risk
- Long contract duration in a volatile region
- Potential for scope creep
Positive Signals
- Full and open competition utilized
- Essential service provision
- Clear awardee identified
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing a wide range of operational support. Spending in this sector is often tied to geopolitical stability and military presence.
Small Business Impact
No specific indication of small business participation is provided in the data. Large logistics contracts often involve subcontracting opportunities, but direct awards to small businesses are less common for prime contracts of this scale.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight from within the DoD. The long duration necessitates continuous monitoring to ensure performance and cost control.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost overrun potential with CPFF
- Geopolitical instability in Iraq
- Long-term commitment duration
- Potential for undefined scope creep
Tags
facilities-support-services, department-of-defense, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.50 billion to VECTRUS SYSTEMS LLC. LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR IRAQ.
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 $1.50 billion.
What is the period of performance?
Start: 2019-04-12. End: 2026-06-21.
What is the projected cost per service member or unit supported by this contract?
The provided data does not detail cost per service member or unit. The total award value is $1.5 billion over approximately 2.6 years. A precise per-unit cost would require further breakdown of services rendered and the number of personnel or units supported.
What are the key performance indicators (KPIs) for this contract and how is performance measured?
Key performance indicators are not specified in the provided data. For a contract of this nature, KPIs would typically include response times for logistical requests, equipment availability, maintenance completion rates, and overall mission support effectiveness. Performance is usually assessed through regular reporting and government inspections.
How does the Cost Plus Fixed Fee structure mitigate risks for the government compared to other contract types?
While Cost Plus Fixed Fee (CPFF) contracts allow for flexibility in evolving requirements, they shift some cost risk to the government. The 'fixed fee' component provides the contractor with a guaranteed profit margin. This structure is often used when requirements are not well-defined, but it necessitates robust government oversight to prevent cost overruns and ensure value.
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: 6
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: $1,495,477,767
Exercised Options: $1,495,477,767
Current Obligation: $1,495,477,767
Subaward Activity
Number of Subawards: 769
Total Subaward Amount: $1,012,249,466
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: 2019-04-12
Current End Date: 2026-06-21
Potential End Date: 2026-06-21 00:00:00
Last Modified: 2025-09-30
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