DoD's $62M LOGCAP V Award for PACOM Theater Support Services to Vectrus Systems LLC
Contract Overview
Contract Amount: $62,162,298 ($62.2M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2021-01-01
End Date: 2024-08-31
Contract Duration: 1,338 days
Daily Burn Rate: $46.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR PACOM SETTING THE THEATER SERVICES IN SUPPORT OF LEASE, LICENSE, LURA AND NON-LURA SERVICES AT SUBIC BAY, PHILIPPINES.
Plain-Language Summary
Department of Defense obligated $62.2 million to VECTRUS SYSTEMS LLC for work described as: LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR PACOM SETTING THE THEATER SERVICES IN SUPPORT OF LEASE, LICENSE, LURA AND NON-LURA SERVICES AT SUBIC BAY, PHILIPPINES. Key points: 1. Awarded to Vectrus Systems LLC for essential logistics support in the PACOM region. 2. The contract covers a broad range of facilities support services, including lease and license agreements. 3. Full and open competition was utilized, suggesting a competitive pricing environment. 4. The contract duration is over three years, indicating a significant, long-term requirement.
Value Assessment
Rating: good
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can incentivize contractor efficiency. Benchmarking CPFF contracts for similar logistics services is crucial to ensure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, as multiple bidders likely competed. This method generally leads to more competitive pricing compared to sole-source or limited competition.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered, though ongoing cost monitoring is essential.
Public Impact
Ensures critical logistical support for US military operations in the Indo-Pacific. Supports infrastructure and operational readiness in a key strategic region. Provides essential services that enable personnel and equipment movement and sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
- Geopolitical risks in the PACOM region could impact service delivery and costs.
- Reliance on a single awardee for extensive logistics support.
Positive Signals
- Full and open competition promotes competitive pricing.
- Long-term contract provides stability for critical support functions.
- Services are essential for regional military readiness.
Sector Analysis
Facilities Support Services (NAICS 561210) are critical for maintaining operational infrastructure. Spending in this sector can vary significantly based on geographic location, scale of operations, and specific service requirements.
Small Business Impact
This award was not set aside for small businesses, and the prime contractor is a large business. Opportunities for small businesses may exist as subcontractors, but this is not explicitly detailed.
Oversight & Accountability
The Department of the Army, as the procuring agency, is responsible for oversight. Regular performance reviews and financial audits are necessary to ensure contract compliance and cost control.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns with CPFF contract type.
- Geopolitical and environmental risks in the PACOM region.
- Dependency on a single contractor for critical support.
- Lack of small business participation at the prime contract level.
Tags
facilities-support-services, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.2 million to VECTRUS SYSTEMS LLC. LOGISTICS CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR PACOM SETTING THE THEATER SERVICES IN SUPPORT OF LEASE, LICENSE, LURA AND NON-LURA SERVICES AT SUBIC BAY, PHILIPPINES.
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 $62.2 million.
What is the period of performance?
Start: 2021-01-01. End: 2024-08-31.
What is the typical profit margin for CPFF contracts in logistics support services, and how does Vectrus's fixed fee compare?
Profit margins for Cost Plus Fixed Fee (CPFF) contracts in logistics can vary, but typically range from 7-15%. A detailed review of Vectrus's fixed fee against industry benchmarks and the scope of services is needed to assess if it represents fair value and incentivizes efficient performance. Without specific fee details, a precise comparison is difficult.
What are the specific risks associated with providing logistics support in the PACOM region, and how are they mitigated?
Risks in the PACOM region include geopolitical instability, natural disasters, complex logistical chains, and potential supply chain disruptions. Mitigation strategies likely involve robust contingency planning, diversified sourcing, strong communication protocols with local authorities and military commands, and flexible contract terms to adapt to changing conditions.
How effectively does this contract support the overall mission readiness of US forces in the PACOM theater?
This contract is designed to directly support mission readiness by ensuring essential services are available for US forces. Its effectiveness hinges on reliable service delivery, timely response to operational needs, and seamless integration with military logistics. Continuous performance monitoring and feedback from end-users are key to assessing its true impact.
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: $62,162,298
Exercised Options: $62,162,298
Current Obligation: $62,162,298
Actual Outlays: $43,434
Subaward Activity
Number of Subawards: 142
Total Subaward Amount: $44,066,465
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: 2021-01-01
Current End Date: 2024-08-31
Potential End Date: 2024-08-31 00:00:00
Last Modified: 2025-09-25
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