DoD's $48.6M OMDAC-SWACA Bridge Contract Awarded to Vectrus Systems LLC for Communication Equipment Repair

Contract Overview

Contract Amount: $48,646,638 ($48.6M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2021-03-16

End Date: 2021-07-15

Contract Duration: 121 days

Daily Burn Rate: $402.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: OMDAC-SWACA BRIDGE O&M SERVICES

Plain-Language Summary

Department of Defense obligated $48.6 million to VECTRUS SYSTEMS LLC for work described as: OMDAC-SWACA BRIDGE O&M SERVICES Key points: 1. The contract value is $48.6 million, awarded to a single vendor. 2. Competition was not utilized for this award, raising potential value concerns. 3. The contract is for communication equipment repair and maintenance. 4. The sector is primarily IT services within the Defense department.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure and lack of competition make a direct pricing assessment difficult. Without competitive bids, it's hard to determine if the $48.6 million represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these O&M services.

Public Impact

Essential communication equipment maintenance for the Department of Defense is being provided. The sole-source nature of the award could impact the availability of future competitive bids for similar services. Taxpayer funds are being utilized for this critical infrastructure support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost-plus contract type
  • Short contract duration

Positive Signals

  • Addresses critical communication equipment maintenance

Sector Analysis

This contract falls within the IT services sector, specifically focusing on repair and maintenance of communication equipment. Spending benchmarks for similar IT maintenance contracts can vary widely based on complexity and scope.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential gap in pre-award oversight or justification for a sole-source award. Post-award oversight would be crucial to ensure cost efficiency and performance.

Related Government Programs

  • Communication Equipment Repair and Maintenance
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Sole-source award lacks competition
  • Cost-plus contract type may inflate costs
  • Short duration suggests a bridge or interim solution
  • No indication of small business participation

Tags

communication-equipment-repair-and-maint, department-of-defense, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.6 million to VECTRUS SYSTEMS LLC. OMDAC-SWACA BRIDGE O&M SERVICES

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 $48.6 million.

What is the period of performance?

Start: 2021-03-16. End: 2021-07-15.

What was the justification for not competing this contract?

The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a documented justification, such as a critical need, lack of available sources, or urgency. Without this information, it's impossible to assess the validity of the non-competitive award.

What is the risk associated with a cost-plus-fixed-fee contract awarded sole-source?

The primary risk is reduced incentive for the contractor to control costs, as the government bears most of the cost risk. Combined with a sole-source award, this significantly limits price discovery and increases the likelihood of overpayment compared to a competitively bid fixed-price contract.

How effective is this contract in ensuring communication equipment readiness?

The effectiveness of this contract in ensuring communication equipment readiness can only be assessed through performance metrics and operational outcomes, which are not detailed in the provided data. While the service is being provided, the value and efficiency of that provision remain unclear due to the contract's structure.

Industry Classification

NAICS: Other Services (except Public Administration)Electronic and Precision Equipment Repair and MaintenanceCommunication Equipment Repair and Maintenance

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $48,646,638

Exercised Options: $48,646,638

Current Obligation: $48,646,638

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $22,059,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2021-03-16

Current End Date: 2021-07-15

Potential End Date: 2021-08-15 00:00:00

Last Modified: 2025-12-31

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