Air Force awards $207M R&D contract to P E Systems for EPASS support
Contract Overview
Contract Amount: $207,192,708 ($207.2M)
Contractor: P E Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-03-01
End Date: 2026-02-28
Contract Duration: 729 days
Daily Burn Rate: $284.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF AIR FORCE LIFE CYCLE MANAGEMENT CENTER AGILE COMBAT SUPPORT DIRECTORATE (AFLCMC/WN)
Place of Performance
Location: FAIRFAX, FAIRFAX CITY County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $207.2 million to P E SYSTEMS, INC. for work described as: SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF AIR FORCE LIFE CYCLE MANAGEMENT CENTER AGILE COMBAT SUPPORT DIRECTORATE (AFLCMC/WN) Key points: 1. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 2. P E Systems, Inc. is the sole awardee. 3. The contract has a duration of 729 days. 4. This award falls under the 'Research and Development' sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. The awarded amount is substantial, and the pricing structure warrants close monitoring to ensure value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not have yielded the most competitive pricing, as fewer vendors were considered.
Taxpayer Impact: The significant value of this contract means that taxpayers are exposed to potential inefficiencies if cost controls are not robustly applied.
Public Impact
Supports critical Air Force Life Cycle Management Center functions. Potential for technological advancements in agile combat support. Long-term engagement with a single contractor could limit future innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- CPFF contract type requires stringent oversight.
- No small business participation noted.
Positive Signals
- Supports a key Air Force directorate.
- Long contract duration ensures continuity.
Sector Analysis
This contract falls within the R&D sector, specifically focusing on engineering and administrative support for agile combat systems. Spending in this area is crucial for maintaining technological superiority but requires careful management due to inherent uncertainties.
Small Business Impact
The data indicates that small businesses were not involved in this specific award, as the 'sb' field is false. Opportunities for small business participation in subcontracting should be explored to foster innovation and economic growth.
Oversight & Accountability
The 'VA' status suggests the contract is under review or has specific value assessment considerations. Close oversight by the Department of the Air Force is essential to manage costs and ensure performance objectives are met.
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
- Limited competition may lead to higher costs.
- Cost Plus Fixed Fee structure requires intensive oversight.
- No small business participation identified.
- Potential for vendor lock-in due to specialized support.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $207.2 million to P E SYSTEMS, INC.. SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF AIR FORCE LIFE CYCLE MANAGEMENT CENTER AGILE COMBAT SUPPORT DIRECTORATE (AFLCMC/WN)
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 $207.2 million.
What is the period of performance?
Start: 2024-03-01. End: 2026-02-28.
What specific performance metrics will be used to evaluate P E Systems' effectiveness in providing EPASS support?
The contract likely includes detailed performance work statements and key performance indicators (KPIs) that will be monitored by the Air Force. These metrics would typically cover areas such as timeliness of deliverables, quality of services, responsiveness to requests, and adherence to budget. Regular performance reviews and reporting will be crucial for assessing the contractor's effectiveness and ensuring mission success.
How will the Department of the Air Force mitigate the risks associated with a Cost Plus Fixed Fee contract structure?
Mitigation strategies for CPFF contracts often involve robust cost accounting standards, detailed budgeting and forecasting, and frequent audits. The Air Force will likely implement stringent oversight mechanisms, including regular reviews of the contractor's financial records and performance reports. Establishing clear ceilings and incentives for cost savings can also help manage financial risks and ensure value.
What is the anticipated long-term impact of this sole-source award on future competition for similar services?
A sole-source or limited competition award can potentially reduce future competition if the incumbent contractor builds significant institutional knowledge and advantages. To counter this, the Air Force should consider strategies for knowledge transfer and ensure that future solicitations are structured to encourage broad participation. Documenting lessons learned and market research will be vital for future procurement planning.
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
Solicitation ID: FA862223R2301
Offers Received: 1
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: $611,659,875
Exercised Options: $241,308,203
Current Obligation: $207,192,708
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
Start Date: 2024-03-01
Current End Date: 2026-02-28
Potential End Date: 2029-02-28 00:00:00
Last Modified: 2026-03-31
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