DoD's $36.5M R&D Contract with P E SYSTEMS, INC. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $36,535,906 ($36.5M)
Contractor: P E Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-11-25
End Date: 2018-09-05
Contract Duration: 1,015 days
Daily Burn Rate: $36.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: R&D
Official Description: IGF::OT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330
Plain-Language Summary
Department of Defense obligated $36.5 million to P E SYSTEMS, INC. for work described as: IGF::OT::IGF Key points: 1. Total contract value of $36.5 million over approximately 3 years. 2. Awarded to P E SYSTEMS, INC. for Research and Development services. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Contract type is Fixed Price Level of Effort. 5. Sector is Research and Development (NAICS 541712).
Value Assessment
Rating: fair
The contract value of $36.5M is substantial for R&D services. Benchmarking against similar contracts in NAICS 541712 is difficult without more specific service details, but the duration suggests a significant project.
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,' indicating a competitive process. This method generally promotes price discovery and potentially better pricing.
Taxpayer Impact: Taxpayer funds are being used for R&D, which can yield long-term benefits but requires careful oversight to ensure value for money.
Public Impact
Investment in advanced research and development by the Department of Defense. Potential for technological advancements benefiting national security. Contract supports a specific company, P E SYSTEMS, INC., in the R&D sector. Duration of nearly three years suggests a focused research effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the R&D scope and deliverables.
- The 'Exclusion of Sources' clause warrants further investigation into its justification.
- Fixed Price Level of Effort can sometimes lead to cost overruns if scope is not well-defined.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Contract supports critical R&D for the Department of Defense.
- Clear contract type (Fixed Price Level of Effort) and duration.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541712). Spending in this sector by the DoD is crucial for maintaining technological superiority, with significant annual investments.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. The prime contractor, P E SYSTEMS, INC., is not explicitly identified as a small business in this data.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, a component of the DoD. Oversight would typically involve program managers and contracting officers to ensure deliverables are met and funds are used appropriately.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed R&D scope.
- Ambiguity in 'Exclusion of Sources' justification.
- Potential for cost inefficiencies with Fixed Price Level of Effort in R&D.
- No clear indication of small business participation.
- Limited transparency on specific research outcomes and their impact.
Tags
research-and-development-in-the-physical, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.5 million to P E SYSTEMS, INC.. IGF::OT::IGF
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 $36.5 million.
What is the period of performance?
Start: 2015-11-25. End: 2018-09-05.
What specific R&D objectives were pursued under this contract, and how do they align with current Air Force priorities?
The provided data lacks specifics on the R&D objectives. To assess value, one would need to examine the Statement of Work (SOW) and final reports to understand the research conducted, its novelty, and its potential impact on Air Force capabilities or technological advancements. Alignment with priorities would be assessed through official Air Force strategic documents and program goals.
What was the justification for excluding other sources, even within a full and open competition framework?
The term 'Full and Open Competition After Exclusion of Sources' suggests that while the competition was broadly open, certain sources were intentionally excluded. The justification for this exclusion is critical for assessing fairness and potential risks. It could be due to specific technical requirements, prior work, or other factors that need to be documented and validated to ensure no viable competitors were unfairly barred.
How effectively did the Fixed Price Level of Effort structure manage costs and ensure the desired R&D outcomes were achieved?
A Fixed Price Level of Effort contract aims to control costs by setting a fixed price for a specified effort. However, its effectiveness hinges on a well-defined scope. If the R&D was complex and evolved, this structure might have led to either scope creep without adequate price adjustments or limitations on the depth of research. Assessing effectiveness requires reviewing project milestones, final deliverables, and any modifications or disputes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
Evaluated Preference: NONE
Contractor Details
Address: 10201 FAIRFAX BLVD STE 400, FAIRFAX, VA, 22030
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $87,062,674
Exercised Options: $39,033,924
Current Obligation: $36,535,906
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADS724
IDV Type: IDC
Timeline
Start Date: 2015-11-25
Current End Date: 2018-09-05
Potential End Date: 2021-04-14 00:00:00
Last Modified: 2023-11-03
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