Logistics support services contract awarded to Vectrus Systems LLC for over $28 million

Contract Overview

Contract Amount: $28,160,774 ($28.2M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2007-07-01

End Date: 2007-12-04

Contract Duration: 156 days

Daily Burn Rate: $180.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROVIDE ALL RESOURCES AND MANAGEMENT NECESSARY TO PERFORM LOGISTICS SUPPORT SERVICE. TAS::21 2020::TAS

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310, UNITED STATES OF AMERICA

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to VECTRUS SYSTEMS LLC for work described as: PROVIDE ALL RESOURCES AND MANAGEMENT NECESSARY TO PERFORM LOGISTICS SUPPORT SERVICE. TAS::21 2020::TAS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is 156 days, indicating a short-term or specific task-oriented requirement. 4. The award was made by the Department of Defense, specifically the Department of the Army. 5. The North American Industry Classification System (NAICS) code 561210 points to Facilities Support Services. 6. The contract was awarded as 'Other Direct Costs' (ODC), which may require further clarification on cost allocation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee structure introduces inherent risk for cost control. Comparing this to similar short-term logistics support contracts would be necessary to assess if the $28.16 million expenditure represents a fair price for the services rendered over the 156-day period. The absence of specific performance data makes a definitive value assessment difficult.

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 promotes price discovery and allows the government to select the most advantageous offer. The open competition suggests a healthy market for these services.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value through an open process.

Public Impact

The Department of the Army benefits from the provision of essential logistics support services. This contract ensures the continuity of operations by providing necessary resources for logistics. The services delivered are critical for maintaining military readiness and operational effectiveness. The geographic impact is likely concentrated around the operational areas of the Department of the Army units being supported.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee, requiring robust oversight.
The short duration may indicate a need for rapid deployment or a specific, time-bound requirement, potentially leading to higher unit costs.
Lack of detailed performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.

Positive Signals

Awarded through full and open competition, which typically leads to better pricing and value.
The contractor, Vectrus Systems LLC, has a track record in providing similar services to the government.
The contract addresses a clear need for logistics support within the Department of the Army.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a range of services necessary for the operation and maintenance of government facilities. The market for these services is substantial, with numerous private sector companies capable of providing logistics and facility management. Spending in this area is consistent across various government agencies, particularly those with significant physical infrastructure and operational footprints like the Department of Defense.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Vectrus Systems LLC engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures would be defined in the contract's terms and conditions, including performance standards and payment schedules. Transparency is facilitated by the contract award data, but detailed operational oversight and inspector general jurisdiction would depend on the specific nature of the services and any potential issues that arise.

Related Government Programs

Logistics Support Services
Facilities Management Contracts
Department of Defense Procurement
Army Operational Support

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Short contract duration may lead to higher unit costs and potential service gaps.
Lack of detailed performance metrics hinders value assessment.
ODC designation requires careful scrutiny to ensure cost reasonableness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to VECTRUS SYSTEMS LLC. PROVIDE ALL RESOURCES AND MANAGEMENT NECESSARY TO PERFORM LOGISTICS SUPPORT SERVICE. TAS::21 2020::TAS

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 $28.2 million.

What is the period of performance?

Start: 2007-07-01. End: 2007-12-04.

What is Vectrus Systems LLC's track record with similar logistics support contracts?

Vectrus Systems LLC has a significant history of performing logistics and base operations support services for the U.S. military, including contracts with the Department of the Army and other branches. Their experience often involves providing a wide array of services such as supply chain management, transportation, facility maintenance, and personnel support. Analyzing their past performance on similar Cost Plus Fixed Fee contracts, particularly those with short durations, would provide insight into their ability to manage costs and deliver effectively under such terms. Reviewing past performance evaluations and any contract disputes or awards would offer a more comprehensive understanding of their reliability and value proposition in this sector.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of service?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the exact costs are difficult to estimate but the scope of work is defined. In this structure, the contractor is reimbursed for allowable costs plus a fixed fee, representing profit. Compared to fixed-price contracts, CPFF offers more flexibility for the government if requirements change, but it carries a higher risk of cost growth as the contractor is incentivized to incur costs to achieve their fee. For logistics support, especially short-term or rapidly deployable needs, CPFF can be suitable if managed with stringent oversight. However, it generally offers less price certainty than firm-fixed-price contracts and requires robust government monitoring to ensure costs remain reasonable and necessary.

What are the primary risks associated with a 156-day logistics support contract?

A primary risk with a short-duration contract like this 156-day logistics support service is the potential for inflated costs due to the compressed timeline and the need for rapid mobilization. Contractors may factor in higher overhead or premium rates to account for the short engagement. Another risk is the adequacy of performance; a short period might not be sufficient to fully assess the contractor's long-term capabilities or the true value delivered. Furthermore, if the services are critical and the contract is not extended or replaced promptly, there's a risk of service disruption. The CPFF structure itself introduces risks of cost overruns if not meticulously managed.

What does the NAICS code 561210 (Facilities Support Services) typically encompass in a defense context?

In a defense context, NAICS code 561210 for Facilities Support Services typically encompasses a broad range of services essential for the operation, maintenance, and management of military installations and facilities. This can include services such as grounds maintenance, custodial services, pest control, refuse collection, security systems maintenance, and general facility repair and upkeep. For logistics support, it often extends to managing the infrastructure that supports supply chains, warehousing, transportation hubs, and personnel services. The scope is wide, aiming to ensure that military bases and operational sites are functional, safe, and conducive to the primary mission objectives.

How does the 'Other Direct Costs' (ODC) designation impact cost analysis?

The 'Other Direct Costs' (ODC) designation within a Cost Plus Fixed Fee contract means that certain direct costs incurred by the contractor, which are not easily categorized under labor, materials, or other specific line items, are reimbursed. This can include items like travel, per diem, specialized equipment rentals, or subcontractor services not explicitly defined elsewhere. For cost analysis, ODCs can be a risk area because they are often less scrutinized than direct labor or major material purchases. It requires careful review and justification by the government to ensure these costs are reasonable, allocable, and necessary for contract performance. Without detailed breakdowns, it can be challenging to benchmark ODC expenditures accurately.

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: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vectrus, Inc. (UEI: 079387563)

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,160,774

Exercised Options: $28,160,774

Current Obligation: $28,160,774

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SE07D0006

IDV Type: IDC

Timeline