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
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
- Potential for limited competition due to source exclusion.
- Lack of specific details on the R&D deliverables and outcomes.
- The IDIQ structure can sometimes obscure true cost-effectiveness.
Positive Signals
- Awarded through a competitive process.
- Significant investment in critical R&D.
- Long-term engagement suggests project stability.
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
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for limited competition due to source exclusion.
- Lack of detailed performance metrics.
- IDIQ structure may obscure true cost-effectiveness.
- No indication of small business participation.
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 Services › Scientific Research and Development Services › Research 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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