Air Force Awards $15.4M Engineering Services Contract to SIERTEK-PEERLESS JV LLC

Contract Overview

Contract Amount: $15,433,725 ($15.4M)

Contractor: Siertek-Peerless JV LLC

Awarding Agency: Department of Defense

Start Date: 2022-03-18

End Date: 2026-04-07

Contract Duration: 1,481 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AIR FORCE RESEARCH LABORATORY SYSTEMS TECHNOLOGY OFFICE ADVISORY AND ASSISTANCE SERVICES

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $15.4 million to SIERTEK-PEERLESS JV LLC for work described as: AIR FORCE RESEARCH LABORATORY SYSTEMS TECHNOLOGY OFFICE ADVISORY AND ASSISTANCE SERVICES Key points: 1. Contract awarded for engineering services to support the Air Force Research Laboratory. 2. SIERTEK-PEERLESS JV LLC is the awardee, indicating a specific vendor focus. 3. The contract utilizes full and open competition after exclusion of sources, suggesting a structured procurement process. 4. The firm fixed price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $15.4M for engineering services appears reasonable given the duration and scope. Benchmarking against similar large-scale engineering support contracts would provide further context on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a competitive process was initiated, but specific sources were excluded. This method aims for fair pricing while potentially narrowing the field of eligible bidders.

Taxpayer Impact: The firm fixed price contract type helps ensure cost certainty for taxpayers, preventing cost overruns on this $15.4M award.

Public Impact

Supports critical Air Force research and development initiatives. Ensures continued technological advancement within the Air Force. Potential for follow-on work based on performance. Impacts the aerospace and defense engineering services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in competition needs clarification.
Limited visibility into specific performance metrics.
Potential for vendor lock-in if not managed carefully.

Positive Signals

Firm fixed price contract for cost control.
Long-term engagement supports program stability.
Award to a joint venture may indicate capacity building.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced technology research for the Air Force. Spending in this area is crucial for national defense and technological superiority, with benchmarks varying widely based on project complexity and duration.

Small Business Impact

The awardee is a joint venture, SIERTEK-PEERLESS JV LLC. While not explicitly a small business set-aside, joint ventures can sometimes be structured to include small business participation or development goals. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of Defense's contracting oversight mechanisms should ensure adherence to contract terms and performance standards. Regular reviews and audits are essential to maintain accountability for the $15.4M expenditure.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for limited competition due to source exclusion.
Reliance on a single joint venture for critical services.
Need for clear performance metrics to ensure value.
Long contract duration requires ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to SIERTEK-PEERLESS JV LLC. AIR FORCE RESEARCH LABORATORY SYSTEMS TECHNOLOGY OFFICE ADVISORY AND ASSISTANCE SERVICES

Who is the contractor on this award?

The obligated recipient is SIERTEK-PEERLESS JV LLC.

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 $15.4 million.

What is the period of performance?

Start: 2022-03-18. End: 2026-04-07.

What specific engineering services are being provided under this contract, and how do they align with the Air Force's strategic objectives?

The contract is for Advisory and Assistance Services for the Air Force Research Laboratory Systems Technology Office. These services likely encompass technical expertise, research support, program management assistance, and strategic planning to advance the Air Force's technological capabilities and ensure alignment with overarching defense goals and emerging threats.

What were the primary reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?

Excluding sources typically occurs when specific capabilities, past performance, or security clearances are required that only a limited number of vendors possess. This ensures that the selected contractor can meet highly specialized needs, though it may reduce the breadth of competition and potentially impact price discovery compared to unrestricted full and open competition.

How will the effectiveness of SIERTEK-PEERLESS JV LLC's advisory and assistance services be measured to ensure optimal value for taxpayer investment?

Effectiveness will likely be measured through performance metrics outlined in the contract, such as timely delivery of reports, quality of technical advice, successful support of research milestones, and adherence to budget. Regular performance reviews by the Air Force, feedback mechanisms, and achievement of defined objectives will gauge the value derived from the $15.4M investment.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4141 COLONEL GLENN HWY STE 250, BEAVERCREEK, OH, 45431

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, 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: $21,818,335

Exercised Options: $16,383,962

Current Obligation: $15,433,725

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1146

IDV Type: IDC

Timeline