Vectrus Systems LLC awarded $137M for IT support in Europe, Africa, and U.S. Army commands

Contract Overview

Contract Amount: $137,293,441 ($137.3M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2012-01-31

End Date: 2017-05-31

Contract Duration: 1,947 days

Daily Burn Rate: $70.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: OPERATIONS, MAINTENANCE, AND SUPPLY-- EUROPE (OPMAS-E). INFORMATION TECHNOLOGY (IT) SUPPORT AND IT SERVICES TO SUPPORT THE MISSION OF THE 5TH SIGNAL COMMAND/USAREUR G6 WITHIN THE U.S. ARMY EUROPE (USAREUR), U.S. EUROPEAN COMMAND (EUCOM), AND U.S. AFRICA COMMAND (AFRICOM) AREAS OF RESPONSIBILITY (AORS). THE CONTRACTOR SHALL PROVIDE OPERATION, MAINTENANCE AND SUPPLY SUPPORT OF COMMUNICATIONS AND INFORMATION SYSTEMS UNDER THE PURVIEW OF THE 5TH SIGNAL COMMAND AND ITS SUBORDINATE UNITS, AND OTHER MILITARY SERVICES AND CUSTOMERS OF THE 5TH SIGNAL COMMAND.

Plain-Language Summary

Department of Defense obligated $137.3 million to VECTRUS SYSTEMS LLC for work described as: OPERATIONS, MAINTENANCE, AND SUPPLY-- EUROPE (OPMAS-E). INFORMATION TECHNOLOGY (IT) SUPPORT AND IT SERVICES TO SUPPORT THE MISSION OF THE 5TH SIGNAL COMMAND/USAREUR G6 WITHIN THE U.S. ARMY EUROPE (USAREUR), U.S. EUROPEAN COMMAND (EUCOM), AND U.S. AFRICA COMMAND (AFRICOM) AREAS O… Key points: 1. Contract focuses on IT support and services for critical military missions in Europe and Africa. 2. The contract duration of 1947 days indicates a long-term need for these IT services. 3. Awarded under full and open competition, suggesting a robust bidding process. 4. The cost-plus-fixed-fee contract type allows for flexibility but requires careful cost oversight. 5. This contract supports the 5th Signal Command, highlighting its role in military communications infrastructure. 6. The scope includes operations, maintenance, and supply support for complex communication systems.

Value Assessment

Rating: fair

The total award of $137.3 million over approximately 5.3 years suggests a significant investment in IT support for military operations. Benchmarking this against similar large-scale IT service contracts for defense commands is challenging without more granular data on service levels and specific deliverables. The cost-plus-fixed-fee structure means that while the contractor's profit is fixed, the total cost to the government can fluctuate based on actual expenses incurred, necessitating diligent oversight to ensure cost efficiency and prevent overruns. Without specific performance metrics or comparisons to industry standards for IT support in similar operational environments, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 3 bidders suggests a reasonable level of competition for this significant IT support requirement. A competitive bidding process is generally expected to drive down prices and encourage innovation, leading to better value for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of solutions, ensuring that government funds are used efficiently.

Public Impact

Military personnel and operations within U.S. Army Europe (USAREUR), U.S. European Command (EUCOM), and U.S. Africa Command (AFRICOM) benefit from reliable IT infrastructure. Ensures the continuous operation, maintenance, and supply of essential communications and information systems. Geographic impact covers extensive areas across Europe and Africa, supporting diverse military missions. Supports the technical workforce responsible for managing and maintaining these critical IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed meticulously.
The long duration of the contract may present challenges in adapting to rapidly evolving IT technologies.
Reliance on a single contractor for critical IT infrastructure in multiple AORs could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The contract addresses a long-standing and critical need for IT support in key operational theaters.
Vectrus Systems LLC has experience in providing similar services, suggesting a degree of contractor capability.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT support and managed services for defense organizations. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and modernizing defense IT infrastructure. Contracts of this nature are crucial for ensuring operational readiness and command and control capabilities for military forces operating globally. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded by the Department of Defense to similar commands or agencies, considering factors like scope of services, geographic coverage, and contract duration.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, as indicated by 'sb': false. The primary contractor, Vectrus Systems LLC, is a large business. While there is no explicit requirement for subcontracting to small businesses within the provided data, large prime contractors are often encouraged or required by broader federal policy to engage small businesses in their supply chains. The impact on the small business ecosystem would depend on whether Vectrus actively seeks out small business subcontractors for specialized IT services or support functions required under this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the relevant contracting activity within the 5th Signal Command. Accountability measures are typically embedded within the contract's performance work statement (PWS), requiring adherence to specific service levels and technical requirements. Transparency is facilitated through contract award databases and reporting requirements. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse, with the DoD IG's office having oversight responsibilities.

Related Government Programs

DoD IT Modernization Programs
Army Network Modernization
EUCOM IT Infrastructure Support
AFRICOM Communications Systems
Signal Command Operations

Risk Flags

Potential for cost overruns due to CPFF structure
Risk of technological obsolescence over contract duration
Challenges in managing IT infrastructure across diverse geographic areas
Dependency on contractor performance for critical military communications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $137.3 million to VECTRUS SYSTEMS LLC. OPERATIONS, MAINTENANCE, AND SUPPLY-- EUROPE (OPMAS-E). INFORMATION TECHNOLOGY (IT) SUPPORT AND IT SERVICES TO SUPPORT THE MISSION OF THE 5TH SIGNAL COMMAND/USAREUR G6 WITHIN THE U.S. ARMY EUROPE (USAREUR), U.S. EUROPEAN COMMAND (EUCOM), AND U.S. AFRICA COMMAND (AFRICOM) AREAS OF RESPONSIBILITY (AORS). THE CONTRACTOR SHALL PROVIDE OPERATION, MAINTENANCE AND SUPPLY SUPPORT OF COMMUNICATIONS AND INFORMATION SYSTEMS UNDER THE PURVIEW OF THE 5TH SIGNAL COMMAND AND ITS SUBORDINATE UNITS, AND OTHER M

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 $137.3 million.

What is the period of performance?

Start: 2012-01-31. End: 2017-05-31.

What is Vectrus Systems LLC's track record with similar IT support contracts for the Department of Defense?

Vectrus Systems LLC has a significant history of performing IT and communications support services for the Department of Defense. Prior to this contract, they held numerous awards for network operations, maintenance, and IT services, often in overseas locations similar to the scope of this award. Their experience includes managing complex communication systems, providing help desk support, and ensuring cybersecurity for military networks. Analyzing their past performance on similar contracts, including any reported issues or successes, would provide context for their capability to execute this current requirement effectively. Data on contract modifications, past performance evaluations, and any disputes or claims would be crucial for a comprehensive assessment.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for IT services in defense?

The Cost-Plus-Fixed-Fee (CPFF) contract type is often used for complex research and development or services where the scope is not precisely defined at the outset, allowing for flexibility. In this case, it suggests that the Army anticipated potential unknowns in providing IT support across diverse operational areas. Compared to Firm-Fixed-Price (FFP) contracts, CPFF shifts more cost risk to the government, as the final price is based on actual allowable costs plus a fixed fee. While FFP provides greater cost certainty, it can lead to contractor conservatism or scope limitations. For IT services, especially in dynamic environments like military operations, CPFF can facilitate adaptation but requires robust government oversight to manage costs and ensure the fixed fee remains appropriate for the effort.

What are the key performance indicators (KPIs) used to measure the success of this IT support contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for such IT support contracts include system availability and uptime (e.g., 99.9% for critical systems), response times for help desk tickets and incident resolution, successful implementation of system updates and patches, adherence to cybersecurity protocols, and timely completion of maintenance tasks. The contract's Performance Work Statement (PWS) would outline these metrics, often tied to performance-based payments or award fees. Government quality assurance personnel would monitor these KPIs, and deviations could trigger corrective actions or impact future contract awards. The effectiveness of these KPIs directly influences the value derived from the contract.

What is the historical spending trend for IT support services within USAREUR, EUCOM, and AFRICOM?

Historical spending on IT support services within USAREUR, EUCOM, and AFRICOM has likely been substantial and consistent, reflecting the ongoing need for robust communication and information systems to support military operations in these critical regions. While specific figures for this contract's predecessors are not provided, the award of a $137 million contract over five years indicates a significant and sustained investment. Trends in defense IT spending generally show an increasing reliance on outsourced services for specialized IT functions, driven by the complexity of modern warfare and the need for advanced technological capabilities. Budgetary allocations for these commands are subject to annual appropriations and strategic defense priorities, which can influence spending levels over time.

What are the potential risks associated with providing IT support across multiple geographic commands (USAREUR, EUCOM, AFRICOM)?

Providing IT support across multiple geographic commands like USAREUR, EUCOM, and AFRICOM presents several risks. These include logistical challenges in deploying and maintaining equipment and personnel across vast distances and potentially austere environments, varying cybersecurity threats and regulatory landscapes in different regions, and the complexity of managing diverse IT infrastructures tailored to specific command needs. Furthermore, ensuring consistent service delivery and interoperability between systems used by different commands can be difficult. Political instability or changes in host nation agreements could also impact operations. The contractor must maintain robust communication, security protocols, and adaptable service models to mitigate these multifaceted risks effectively.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91RUS11R0020

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vectrus, Inc.

Address: 655 SPACE CENTER DR, COLORADO SPRINGS, CO, 80915

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

Financial Breakdown

Contract Ceiling: $147,097,320

Exercised Options: $139,021,779

Current Obligation: $137,293,441

Actual Outlays: $64,936

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline