Air Force awards $86.2M contract for engineering and administrative support to P E SYSTEMS, INC

Contract Overview

Contract Amount: $86,247,553 ($86.2M)

Contractor: P E Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-08-14

End Date: 2021-02-18

Contract Duration: 2,015 days

Daily Burn Rate: $42.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CL::IGF SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF THE AIR FORCE LIFE CYCLE MANAGEMENT CENTER (AFLCMC) FIGHTERS AND BOMBERS DIRECTORATE (AFLCMC/WW) B-2 DIVISION (AFLCMC/WWZ) (EPASS RFP #23)

Place of Performance

Location: FAIRFAX, FAIRFAX CITY County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $86.2 million to P E SYSTEMS, INC. for work described as: IGF::CL::IGF SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF THE AIR FORCE LIFE CYCLE MANAGEMENT CENTER (AFLCMC) FIGHTERS AND BOMBERS DIRECTORATE (AFLCMC/WW) B-2 DIVISION (AFLCMC/WWZ) (EPA… Key points: 1. Contract provides advisory and assistance services for the Air Force Life Cycle Management Center. 2. Services support the Fighters and Bombers Directorate, specifically the B-2 Division. 3. The contract was awarded under the EPASS (Engineering, Professional, and Administrative Support Services) IDIQ. 4. This award represents a significant investment in sustaining critical bomber programs. 5. The duration of the contract spans over five years, indicating a long-term need for these services. 6. The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful cost monitoring.

Value Assessment

Rating: good

The total award amount of $86.2 million over approximately five years suggests a substantial but not excessive investment for specialized engineering and administrative support. Benchmarking against similar large-scale A&AS contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the Cost Plus Fixed Fee (CPFF) structure implies that costs are reimbursed plus a fixed fee, which can be efficient if managed well, but also carries potential for cost overruns if not closely monitored. The number of bids received (7) indicates a competitive environment that likely contributed to a reasonable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a robust bidding process. Seven bidders participated in the competition, suggesting a healthy level of market interest and a reasonable degree of competition for these specialized services. The presence of multiple bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs and ensured the government received competitive proposals for essential support services.

Public Impact

The primary beneficiaries are the Air Force Life Cycle Management Center (AFLCMC) and its B-2 Division, receiving critical support for bomber programs. Services delivered include advisory and assistance, engineering support, and administrative functions essential for program management and sustainment. The geographic impact is primarily within the Air Force's operational and acquisition commands, likely centered around AFLCMC's locations. Workforce implications include the potential for skilled engineers, analysts, and administrative professionals to be employed by P E SYSTEMS, INC. to fulfill this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns and ensure the fixed fee remains appropriate.
The long contract duration necessitates ongoing performance monitoring to ensure continued value and effectiveness.
Reliance on a single contractor for critical advisory and assistance services can create dependency and potential single points of failure if not managed proactively.

Positive Signals

Awarded under full and open competition, indicating a competitive process that likely secured fair pricing.
The EPASS IDIQ vehicle suggests a pre-vetted pool of capable contractors, streamlining the acquisition process.
The contract supports critical national defense assets (bomber programs), aligning with strategic priorities.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on engineering and administrative support for defense acquisition programs. The market for such services is substantial, driven by the government's continuous need for specialized expertise in managing complex weapon systems. Comparable spending benchmarks would involve analyzing other large A&AS contracts awarded by the Air Force or DoD for similar program support, often found under large IDIQ vehicles like EPASS.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While P E SYSTEMS, INC. may be a large business, the subcontracting plan and its impact on the small business ecosystem would need further investigation. Large prime contractors are often required to meet small business subcontracting goals, which can create opportunities for small businesses to participate in fulfilling the contract's requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within AFLCMC. Performance monitoring, financial reviews, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Life Cycle Management Center (AFLCMC) Operations
Fighters and Bombers Directorate Support
Engineering and Professional Services Contracts
Advisory and Assistance Services (A&AS)
EPASS IDIQ Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost growth.
Long contract duration necessitates ongoing performance monitoring.
Potential for contractor dependency on key personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.2 million to P E SYSTEMS, INC.. IGF::CL::IGF SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF THE AIR FORCE LIFE CYCLE MANAGEMENT CENTER (AFLCMC) FIGHTERS AND BOMBERS DIRECTORATE (AFLCMC/WW) B-2 DIVISION (AFLCMC/WWZ) (EPASS RFP #23)

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 $86.2 million.

What is the period of performance?

Start: 2015-08-14. End: 2021-02-18.

What is the track record of P E SYSTEMS, INC. in performing similar Air Force contracts?

P E SYSTEMS, INC. has a history of performing contracts with the Department of Defense, including various support services. To assess their track record specifically for Air Force Life Cycle Management Center (AFLCMC) contracts, a detailed review of their past performance evaluations, any past performance questionnaires, and contract close-out data would be necessary. This would involve examining metrics related to on-time delivery, quality of service, cost control, and overall customer satisfaction. Without access to specific performance reports for this contractor on similar AFLCMC programs, a definitive assessment of their track record is limited. However, their ability to win a significant contract like this suggests they have met certain performance and capability thresholds required by the Air Force.

How does the pricing structure (Cost Plus Fixed Fee) compare to other similar contracts for engineering and administrative support?

Cost Plus Fixed Fee (CPFF) is a common contract type for services where the scope may evolve or is difficult to define precisely upfront, such as research and development or complex advisory roles. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility to the contractor in managing unforeseen costs, as the government reimburses allowable costs plus a predetermined profit (the fixed fee). This can be advantageous for the government when scope is uncertain, as it ensures the necessary work gets done. However, it carries a higher risk of cost growth than FFP. Benchmarking CPFF contracts requires comparing the fixed fee percentage and the total reimbursed costs against the total contract value for similar services. Without specific data on the fixed fee percentage and actual costs incurred for this contract, a direct comparison is difficult, but CPFF is generally considered less price-certain than FFP for the government.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract like this, providing engineering and administrative support, typically focus on the quality, timeliness, and effectiveness of the services delivered. Specific KPIs might include adherence to project schedules, accuracy of technical analyses and reports, responsiveness to requests for information or support, and the successful achievement of program milestones outlined in the contract's Statement of Work (SOW). For advisory and assistance services, KPIs could also measure the impact of recommendations provided, such as cost savings identified or process improvements implemented. The contracting officer's representative (COR) and the program office would monitor these KPIs, often documented in performance reports, to ensure P E SYSTEMS, INC. is meeting its contractual obligations and providing value to AFLCMC.

What is the historical spending trend for similar advisory and assistance services within the Air Force Life Cycle Management Center?

Historical spending on Advisory and Assistance (A&AS) services within the Air Force Life Cycle Management Center (AFLCMC) has been substantial, reflecting the complexity and scale of managing major weapon systems. AFLCMC relies heavily on contractors for specialized expertise in areas such as systems engineering, program management, logistics, and technical analysis. Spending trends are often influenced by modernization programs, sustainment requirements, and budget allocations. While specific historical data for A&AS within AFLCMC requires detailed analysis of federal procurement databases (like FPDS-NG or USASpending.gov), it's generally understood that such services represent a significant portion of the center's operational budget. The EPASS IDIQ contract vehicle itself, under which this award was made, is designed to streamline the procurement of these types of services, indicating a consistent and ongoing need.

Are there any identified risks associated with the contractor's performance or the nature of the services provided?

Risks associated with this contract can be categorized into contractor performance and service nature. For contractor performance, risks include potential cost overruns due to the CPFF structure if not managed diligently, schedule delays impacting program milestones, or a decline in the quality of advisory and engineering support. The contractor's ability to retain key personnel over the contract's duration is also a risk factor. Regarding the nature of the services, providing critical advisory and assistance for bomber programs involves access to sensitive information, posing security risks if not properly handled. Furthermore, over-reliance on contractor expertise can lead to a loss of organic government capability over time. The government mitigates these risks through robust oversight, performance monitoring, and clear contractual requirements.

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: COST PLUS FIXED FEE (U)

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: $152,077,378

Exercised Options: $116,331,630

Current Obligation: $86,247,553

Actual Outlays: $2,158,488

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS724

IDV Type: IDC

Timeline