Navy Awards $86.8M Contract for Command Control & Ocean Surveillance Services to P E SYSTEMS, INC

Contract Overview

Contract Amount: $18,554,386 ($18.6M)

Contractor: P E Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2001-04-01

End Date: 2013-12-31

Contract Duration: 4,657 days

Daily Burn Rate: $4.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200107!006342!1700!D910B !NAVAL COMMAND CONTROL & OCEAN SU!N6523601C6820 !A!N!*!N! !20010401!20020331!867796989!867796989!867796989!N!PESYSTEMS, INC !9990 LEE HIGHWAY !FAIRFAX !VA!22030!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000000434719!Y!N!000000000000!R426!COMMUNICATIONS SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!*!*!3! ! ! !*!*!*!B!*!*!A! !B !U!U!1!001!N!4A!C!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!* !A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: FAIRFAX, FAIRFAX (CITY) County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to P E SYSTEMS, INC. for work described as: 200107!006342!1700!D910B !NAVAL COMMAND CONTROL & OCEAN SU!N6523601C6820 !A!N!*!N! !20010401!20020331!867796989!867796989!867796989!N!PESYSTEMS, INC !9990 LEE HIGHWAY !FAIRFAX !VA!22030!26496!600!51!FAIRFAX !FAIRF… Key points: 1. Contract awarded for essential command and control services. 2. P E SYSTEMS, INC. secured the contract, indicating potential specialization. 3. The contract value is substantial at $86.8 million. 4. Limited competition raises questions about cost-effectiveness and taxpayer value.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without a clear benchmark or comparison, assessing the pricing against similar contracts is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for an $86.8 million contract raises concerns about whether the government secured the best possible price, potentially impacting taxpayer funds negatively.

Public Impact

Ensures continued operation of critical naval command and control systems. Supports national security by maintaining ocean surveillance capabilities. Potential for job creation within P E SYSTEMS, INC. and its subcontractors. Taxpayers fund essential defense infrastructure and services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost Plus Fixed Fee contract type
Lack of detailed performance metrics in provided data

Positive Signals

Supports critical defense functions
Long-term contract duration
Experienced contractor

Sector Analysis

This contract falls under Engineering Services (NAICS 541330) and supports the Department of Defense's naval operations. Spending in this sector is crucial for national security, but often involves complex requirements and specialized providers.

Small Business Impact

The provided data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The contract's limited competition status warrants close oversight to ensure performance standards are met and costs are controlled. Accountability for the fixed fee and any cost reimbursements is crucial.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to Cost Plus Fixed Fee structure.
Lack of competitive bidding may result in suboptimal pricing.
Dependency on a single contractor for critical services.
Insufficient data to fully assess value for money.
Unclear impact on small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to P E SYSTEMS, INC.. 200107!006342!1700!D910B !NAVAL COMMAND CONTROL & OCEAN SU!N6523601C6820 !A!N!*!N! !20010401!20020331!867796989!867796989!867796989!N!PESYSTEMS, INC !9990 LEE HIGHWAY !FAIRFAX !VA!22030!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000000434719!Y!N!000000000000!R426!COMMUNICATIONS SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!*!*!3! ! ! !*!*!*!B!*!*!A!

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 Navy).

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2001-04-01. End: 2013-12-31.

What specific services are included under 'NAVAL COMMAND CONTROL & OCEAN SU' and how do they align with current defense needs?

The contract likely encompasses a range of services related to maintaining, operating, and upgrading naval command, control, and communication systems, as well as oceanographic data collection and analysis. These services are vital for situational awareness, strategic decision-making, and operational effectiveness in maritime environments, directly supporting national security objectives.

Given the limited competition, what mechanisms are in place to ensure P E SYSTEMS, INC. is delivering services at a fair and reasonable price?

With limited competition, the government relies heavily on pre-award cost and price analysis, historical pricing data, and potentially certified cost and pricing data from the contractor. Robust contract surveillance and performance monitoring are essential to ensure the contractor meets all requirements and that the fixed fee remains justified throughout the contract's life.

How does the performance of P E SYSTEMS, INC. on this contract compare to industry benchmarks for similar engineering and communication services?

Assessing performance against industry benchmarks requires access to detailed performance metrics, quality assurance reports, and potentially past performance evaluations. Without this specific data, a direct comparison is challenging. However, the contract's duration and renewal suggest a level of satisfaction, though continuous monitoring is advised.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 9990 LEE HIGHWAY, FAIRFAX, VA, 11

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline