DoD's $965M Logistics Contract for Special Ops Vehicles Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $965,408,472 ($965.4M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-05-31

End Date: 2020-11-20

Contract Duration: 3,095 days

Daily Burn Rate: $311.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF CONTRACTOR LOGISTICS SUSTAINMENT AND SUPPORT (CLSS) SERVICES FOR THE MAINTENANCE REPAIR AND SUPPLY SUPPORT FOR ROUTE CLEARANCE VEHICLES (RCV), MINE RESISTANT AMBUSH PROTECTED (MRAP) VEHICLES, AND THE UNITED STATES SPECIAL OPERATIONS COMMAND (USSOCOM) VEHICLES (REFERRED TO AS THE MRAP FAMILY OF VEHICLES (FOV) OF (MRAP) FAMILY OF VEHICLES (FOV).

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $965.4 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: IGF::OT::IGF CONTRACTOR LOGISTICS SUSTAINMENT AND SUPPORT (CLSS) SERVICES FOR THE MAINTENANCE REPAIR AND SUPPLY SUPPORT FOR ROUTE CLEARANCE VEHICLES (RCV), MINE RESISTANT AMBUSH PROTECTED (MRAP) VEHICLES, AND THE UNITED STATES SPECIAL OPERATIONS COMMAND (USSOCOM) VEHICLES (REFERR… Key points: 1. Significant contract value of $965.4M for sustainment and support of critical military vehicles. 2. Competition was full and open, suggesting potential for price discovery, but contract type warrants review. 3. Risk of cost overruns due to Cost Plus Fixed Fee (CPFF) structure. 4. Sector is Defense Logistics, a critical but often high-cost area for the government.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type, while common for complex logistics, can lead to higher costs if not managed tightly. Benchmarking against similar CPFF contracts for vehicle sustainment is crucial to assess if the fixed fee and overall costs are reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the CPFF structure means the government bears cost risk, and the effectiveness of competition in controlling costs depends heavily on robust oversight and negotiation.

Taxpayer Impact: Taxpayer funds are significantly impacted by the $965.4M total award. While competition was present, the CPFF structure necessitates careful monitoring to ensure efficient use of funds and prevent unnecessary cost escalation.

Public Impact

Ensures operational readiness of critical USSOCOM and Route Clearance vehicles. Supports specialized maintenance and supply chain for advanced military equipment. Potential for cost efficiencies if managed effectively, but risk of overspending exists. Impacts readiness of special operations forces and ground troops relying on these vehicles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • CPFF contract type can incentivize cost increases.
  • Long contract duration (3095 days) increases risk of cost escalation and scope creep.
  • Lack of specific performance metrics or award fee structure details.
  • Potential for contractor to inflate costs if oversight is weak.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical national defense assets.
  • Contractor has experience in logistics and sustainment.

Sector Analysis

This contract falls within the Defense Logistics sector, specifically focusing on the sustainment of specialized vehicles. Spending in this area is substantial across the DoD, with benchmarks varying widely based on vehicle type, complexity, and service life.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting plans for small businesses within the provided data.

Oversight & Accountability

The long duration and CPFF structure necessitate strong government oversight to manage costs, ensure performance, and prevent contractor overreach. Regular audits and performance reviews are critical for accountability.

Related Government Programs

  • General Automotive Repair
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Cost Plus Fixed Fee (CPFF) contract type.
  • Long contract duration (3095 days).
  • Potential for cost overruns.
  • Lack of specific performance metrics in provided data.
  • No indication of small business subcontracting.

Tags

general-automotive-repair, department-of-defense, va, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $965.4 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. IGF::OT::IGF CONTRACTOR LOGISTICS SUSTAINMENT AND SUPPORT (CLSS) SERVICES FOR THE MAINTENANCE REPAIR AND SUPPLY SUPPORT FOR ROUTE CLEARANCE VEHICLES (RCV), MINE RESISTANT AMBUSH PROTECTED (MRAP) VEHICLES, AND THE UNITED STATES SPECIAL OPERATIONS COMMAND (USSOCOM) VEHICLES (REFERRED TO AS THE MRAP FAMILY OF VEHICLES (FOV) OF (MRAP) FAMILY OF VEHICLES (FOV).

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $965.4 million.

What is the period of performance?

Start: 2012-05-31. End: 2020-11-20.

How effectively did the 'full and open competition' translate into cost savings given the CPFF contract type?

While full and open competition theoretically drives better pricing, the CPFF structure shifts cost risk to the government. The actual cost savings depend on the government's ability to negotiate a fair fixed fee and rigorously audit incurred costs. Without detailed cost data and fee structures, it's difficult to definitively assess the competitive impact on final price.

What are the primary risks associated with the long contract duration and CPFF structure for this specific vehicle sustainment program?

The primary risks include significant cost escalation over the 3095-day period due to inflation, unforeseen technical challenges, or contractor inefficiencies. The CPFF structure incentivizes cost accumulation, potentially leading to budget overruns if not tightly controlled. There's also a risk of reduced innovation if the contractor focuses solely on cost recovery rather than efficiency improvements.

How does the sustainment of these specific vehicles (RCV, MRAP, USSOCOM) compare to industry benchmarks for similar military logistics contracts in terms of cost-effectiveness?

Benchmarking is challenging without granular cost data per vehicle or service. However, sustainment of specialized, high-threat vehicles like MRAPs and USSOCOM assets is inherently more expensive than standard vehicle fleets due to unique maintenance requirements, parts, and expertise. The CPFF structure further complicates direct cost-effectiveness comparisons unless detailed cost breakdowns are available.

Industry Classification

NAICS: Other Services (except Public Administration)Automotive Repair and MaintenanceGeneral Automotive Repair

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W56HZV11R0181

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

Address: 12015 LEE JACKSON MEMORIAL HWY, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $965,408,472

Exercised Options: $965,408,472

Current Obligation: $965,408,472

Subaward Activity

Number of Subawards: 126

Total Subaward Amount: $21,129,877

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2012-05-31

Current End Date: 2020-11-20

Potential End Date: 2020-11-20 00:00:00

Last Modified: 2025-11-25

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