GSA awards $40M for KC-46 Tanker Modernization Engineering Services to P E Systems

Contract Overview

Contract Amount: $39,994,922 ($40.0M)

Contractor: P E Systems, Inc.

Awarding Agency: General Services Administration

Start Date: 2012-01-31

End Date: 2015-05-31

Contract Duration: 1,216 days

Daily Burn Rate: $32.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ADVISORY AND ASSISTANCE SERVICES SUPPORTING KC 46 TANKER MODERNIZATION DIRECTORATE

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $40.0 million to P E SYSTEMS, INC. for work described as: ADVISORY AND ASSISTANCE SERVICES SUPPORTING KC 46 TANKER MODERNIZATION DIRECTORATE Key points: 1. The contract focuses on critical engineering services for the KC-46 tanker program. 2. P E Systems, Inc. secured the award through full and open competition. 3. The firm fixed-price contract spans over three years, indicating a defined scope. 4. This expenditure supports a significant defense modernization effort.

Value Assessment

Rating: good

The $39.99M award for engineering services appears reasonable given the complexity of aircraft modernization. Benchmarking against similar large-scale defense engineering contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: The $39.99M represents taxpayer investment in a critical defense asset, aiming for modernization and operational efficiency.

Public Impact

Supports the modernization of a key military refueling aircraft, enhancing national security capabilities. The award to P E Systems, Inc. contributes to the aerospace and defense sector's economic activity. Ensures continued development and integration of advanced technologies for the KC-46 tanker.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in complex modernization projects.
Dependence on a single contractor for critical engineering support.

Positive Signals

Awarded through full and open competition.
Firm fixed-price contract structure.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330) within the broader aerospace and defense sector. Spending in this area is often substantial due to the high cost of research, development, and modernization of complex military platforms.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as P E Systems, Inc. is likely a large business. There is no specific set-aside for small businesses mentioned.

Oversight & Accountability

The General Services Administration (GSA) managed this award through its Federal Acquisition Service, indicating established procurement processes. Oversight would focus on contract performance and adherence to terms.

Related Government Programs

Engineering Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Complexity of defense modernization projects can lead to scope creep and cost increases.
Potential for vendor lock-in if P E Systems becomes indispensable for future KC-46 support.
Reliance on engineering services can be subject to changing technological landscapes and requirements.
The long duration (1216 days) increases exposure to market fluctuations and evolving threats.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $40.0 million to P E SYSTEMS, INC.. ADVISORY AND ASSISTANCE SERVICES SUPPORTING KC 46 TANKER MODERNIZATION DIRECTORATE

Who is the contractor on this award?

The obligated recipient is P E SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $40.0 million.

What is the period of performance?

Start: 2012-01-31. End: 2015-05-31.

What is the specific scope of 'modernization' for the KC-46 tanker directorate under this contract?

The contract likely encompasses a range of engineering activities, including system design, integration, testing, and technical support for upgrades and modifications to the KC-46 tanker. This could involve avionics, software, or structural enhancements to improve performance, safety, or operational capabilities.

What are the key performance indicators (KPIs) used to measure the success of P E Systems' support?

Key performance indicators would likely include on-time delivery of engineering reports and deliverables, adherence to technical specifications, successful integration of proposed modifications, and cost control within the firm fixed-price structure. Regular progress reviews and milestone achievements would also be monitored.

How does this $40M expenditure align with the overall lifecycle cost projections for the KC-46 program?

This $40M represents a portion of the total program cost for KC-46 modernization. Its alignment with lifecycle cost projections depends on the specific modernization phase it supports. Without broader program financial data, it's difficult to assess its long-term fiscal impact, but it appears to be a significant investment in ongoing upgrades.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 5TP57120008

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10201 FAIRFAX BLVD, FAIRFAX, VA, 22030

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $40,216,918

Exercised Options: $39,994,922

Current Obligation: $39,994,922

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F0211K

IDV Type: FSS

Timeline