DoD's $8.4M Medical Logistics Augmentation Contract Awarded to Vectrus Systems LLC Under Full and Open Competition
Contract Overview
Contract Amount: $8,436,765 ($8.4M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-01
End Date: 2026-09-17
Contract Duration: 1,842 days
Daily Burn Rate: $4.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MEDICAL LOGISTICS PERSONNEL AUGMENTATION SERVICE
Plain-Language Summary
Department of Defense obligated $8.4 million to VECTRUS SYSTEMS LLC for work described as: MEDICAL LOGISTICS PERSONNEL AUGMENTATION SERVICE Key points: 1. Contract provides essential medical logistics personnel augmentation, supporting critical defense operations. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1842 days indicates a long-term need for these services. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The specific North American Industry Classification System (NAICS) code 541330 points to engineering services, which may encompass specialized logistics planning and execution. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a pre-existing contract.
Value Assessment
Rating: good
The contract value of $8.4 million over approximately five years appears reasonable for specialized medical logistics support. Benchmarking against similar contracts for personnel augmentation in defense logistics is necessary for a definitive value assessment. However, the firm-fixed-price structure provides cost predictability. Without specific per-unit cost data or detailed service level agreements, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency likely sought to maximize value by allowing a broad range of qualified contractors to participate.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices, thereby optimizing the use of public funds.
Public Impact
Benefits military medical units by ensuring adequate staffing for logistics operations. Delivers critical support services for the management and movement of medical supplies and equipment. Geographic impact is likely global, supporting deployed forces and military installations. Workforce implications include the provision of specialized personnel to augment existing military and civilian medical logistics teams.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if augmentation needs exceed initial projections.
- Dependence on contractor personnel for critical logistics functions.
- Ensuring consistent quality and adherence to strict medical logistics protocols.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Firm-fixed-price contract type provides cost control and predictability.
- Long contract duration suggests a stable and reliable source of support.
- Vectrus Systems LLC's established presence in government contracting may indicate experience and reliability.
Sector Analysis
The defense logistics sector is a significant area of federal spending, encompassing the procurement and management of supplies, equipment, and personnel to support military operations. This contract falls within the broader engineering and professional services category, specifically tailored to the unique demands of medical logistics. The market for such specialized services is competitive, with numerous firms capable of providing augmentation support to government agencies. Comparable spending benchmarks would involve analyzing other contracts for logistics personnel augmentation within the Department of Defense and other federal agencies.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, Vectrus Systems LLC, may engage small businesses as subcontractors if it aligns with their subcontracting plan or operational needs, though this is not mandated by a set-aside provision.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reporting requirements are standard mechanisms to ensure contractor performance. Transparency is facilitated through contract databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.
Related Government Programs
- Medical Materiel Management
- Defense Logistics Agency (DLA) Contracts
- Military Health System Support Services
- Logistics and Supply Chain Management Services
- Personnel Augmentation Contracts
Risk Flags
- Potential for performance degradation if contractor personnel turnover is high.
- Risk of inadequate supply chain visibility if augmentation focuses solely on personnel without system integration.
- Dependency on contractor for critical medical logistics functions.
Tags
defense, department-of-defense, department-of-the-army, medical-logistics, personnel-augmentation, vectrus-systems-llc, full-and-open-competition, delivery-order, firm-fixed-price, engineering-services, >$1m, long-term
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.4 million to VECTRUS SYSTEMS LLC. MEDICAL LOGISTICS PERSONNEL AUGMENTATION SERVICE
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 $8.4 million.
What is the period of performance?
Start: 2021-09-01. End: 2026-09-17.
What is Vectrus Systems LLC's track record with similar Department of Defense contracts, particularly in medical logistics?
Vectrus Systems LLC has a significant history of performing contracts for the Department of Defense, including services related to logistics, base operations support, and facilities management. While specific details on their past performance in *medical* logistics augmentation are not provided in this data snippet, their broader experience in complex defense environments suggests a capability to handle demanding operational requirements. A deeper dive into their contract history, past performance evaluations, and any reported issues or commendations would be necessary to fully assess their suitability and reliability for this specific medical logistics role. Their established presence indicates they are a known entity within the defense contracting landscape.
How does the $8.4 million contract value compare to similar medical logistics augmentation contracts awarded by the DoD?
The $8.4 million contract value, spread over approximately five years (1842 days), translates to an average annual value of roughly $1.68 million. To benchmark this effectively, one would need to compare it against other contracts for medical logistics personnel augmentation awarded by the DoD or other federal agencies. Factors such as the number of personnel augmented, the specific skill sets required (e.g., inventory management, supply chain planning, distribution), the geographic locations of service, and the duration of support are critical variables. Without access to a comprehensive database of comparable contracts, it's challenging to definitively state if this represents a high, low, or average value. However, the full and open competition suggests an effort to achieve a competitive market price.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential disruptions to the medical supply chain if contractor personnel are not adequately trained or retained, leading to performance deficiencies. There's also a risk of cost overruns if the scope of augmentation expands beyond initial expectations, although the firm-fixed-price structure aims to mitigate this. Dependence on contractor personnel for critical functions poses a risk if the contractor experiences staffing shortages or quality control issues. Mitigation strategies likely involve robust performance monitoring by the government, clearly defined service level agreements, and potentially performance bonds. The competitive award process itself helps mitigate risks by selecting a contractor deemed capable and offering competitive terms.
How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this medical logistics augmentation service?
The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and the risks of cost escalation are manageable. For medical logistics augmentation, where the need is for personnel to perform specific, predictable tasks, FFP provides cost certainty for the government. It incentivizes the contractor to control costs and operate efficiently to maximize profit. However, if unforeseen complexities arise in the medical logistics environment that significantly alter the required effort, an FFP contract could potentially lead to disputes or a contractor seeking additional compensation, or conversely, limit the scope of necessary support if not carefully managed. The government's role in clearly defining requirements and monitoring performance is crucial for FFP's success.
What is the historical spending pattern for medical logistics personnel augmentation services within the Department of the Army?
Historical spending patterns for medical logistics personnel augmentation within the Department of the Army would reveal the frequency, value, and duration of such contracts over time. Analyzing this data would indicate whether this $8.4 million award is part of a consistent, ongoing requirement or a one-time surge support effort. It would also show which contractors have historically been awarded these types of services and under what competitive conditions. Understanding these patterns helps in forecasting future needs, budgeting, and assessing the maturity of the market for these services. Without specific historical data, it's difficult to place this current contract within a broader spending context.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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
Solicitation ID: W912D121Q0037
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
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: $10,366,095
Exercised Options: $10,366,095
Current Obligation: $8,436,765
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QRAD20DU133
IDV Type: IDC
Timeline
Start Date: 2021-09-01
Current End Date: 2026-09-17
Potential End Date: 2026-09-17 00:00:00
Last Modified: 2026-01-16
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