DoD's $63.5M R&D Contract with P E SYSTEMS, INC. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $63,472,803 ($63.5M)

Contractor: P E Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-01-31

End Date: 2013-04-17

Contract Duration: 1,903 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: LABOR HOURS

Sector: R&D

Official Description: PASS BASIC IDIQ

Place of Performance

Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $63.5 million to P E SYSTEMS, INC. for work described as: PASS BASIC IDIQ Key points: 1. The contract value is substantial at $63.5 million. 2. Competition was full and open after exclusion of sources, indicating a competitive process. 3. The contract spans nearly 5 years, suggesting a significant, long-term project. 4. The sector is Research and Development, crucial for technological advancement.

Value Assessment

Rating: fair

The contract was awarded as a Delivery Order under an IDIQ, making direct pricing comparisons difficult without knowing the base IDIQ's terms. The total award amount of $63.5M over 1903 days suggests a daily burn rate of approximately $33,354.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was sought, specific sources may have been excluded based on predefined criteria. The price discovery mechanism is tied to the underlying IDIQ contract.

Taxpayer Impact: The use of full and open competition generally promotes competitive pricing, potentially leading to better value for taxpayers. However, the exclusion of sources warrants scrutiny to ensure it did not unduly limit competition.

Public Impact

This contract supports research and development efforts within the Department of Defense. The duration of the contract indicates a sustained investment in specific R&D capabilities. The awardee, P E SYSTEMS, INC., is a key contractor in this domain. The specific R&D area (NAICS 541710) is critical for national security and technological innovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this sector is vital for innovation and maintaining a technological edge, with significant government investment annually.

Small Business Impact

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

Oversight & Accountability

The contract was awarded as a Delivery Order under an IDIQ, implying oversight mechanisms are in place through the base contract. The duration and value suggest regular reporting and performance reviews would be expected.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, ma, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.5 million to P E SYSTEMS, INC.. PASS BASIC IDIQ

Who is the contractor on this award?

The obligated recipient is P E SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $63.5 million.

What is the period of performance?

Start: 2008-01-31. End: 2013-04-17.

What specific R&D advancements or outcomes were achieved under this contract, and how do they align with the initial objectives and taxpayer investment?

Assessing the specific R&D advancements requires access to project reports and performance metrics not provided in the data. The value of $63.5M over nearly five years suggests a substantial investment. Evaluating the alignment with objectives necessitates understanding the initial scope of work and comparing it against the delivered results to determine if the taxpayer investment yielded the expected technological or scientific progress.

Were there any risks associated with excluding certain sources during the 'full and open competition after exclusion of sources' process, and how were these risks mitigated?

Excluding sources, even in a nominally full and open competition, carries the risk of limiting the pool of innovative solutions or potentially higher-quality/lower-cost offers. Mitigation would involve a clear, justifiable rationale for exclusion based on technical requirements, past performance, or specific capabilities, ensuring the process remained fair and did not inadvertently stifle competition or lead to suboptimal pricing.

How effective was the IDIQ contract vehicle in facilitating efficient procurement and managing costs for this specific R&D effort compared to other potential contracting methods?

The effectiveness of the IDIQ vehicle hinges on its flexibility and the clarity of its terms. For R&D, IDIQs can be effective by allowing agencies to quickly order services as needs arise. However, without detailed task orders and pricing structures, it's difficult to definitively assess cost management. The 'fair' rating suggests potential areas for improvement in price discovery or transparency compared to more straightforward, competitively bid fixed-price contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 10201 FAIRFAX BLVD, FAIRFAX, VA, 22030

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $101,510,798

Exercised Options: $66,498,647

Current Obligation: $63,472,803

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA872107D0008

IDV Type: IDC

Timeline

Start Date: 2008-01-31

Current End Date: 2013-04-17

Potential End Date: 2013-04-17 00:00:00

Last Modified: 2018-10-17

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