DoD awards $14.3M F-16 Engineering Support to Pelatron Technologies LLC, raising competition concerns
Contract Overview
Contract Amount: $14,287,679 ($14.3M)
Contractor: Pelatron Technologies LLC
Awarding Agency: Department of Defense
Start Date: 2019-06-04
End Date: 2020-05-04
Contract Duration: 335 days
Daily Burn Rate: $42.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F-16 ENGINEERING SUPPORT SERVICES
Place of Performance
Location: LINDON, UTAH County, UTAH, 84042
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $14.3 million to PELATRON TECHNOLOGIES LLC for work described as: F-16 ENGINEERING SUPPORT SERVICES Key points: 1. Significant contract value for specialized engineering services. 2. Limited competition raises questions about price discovery and value for money. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector focus on defense engineering services.
Value Assessment
Rating: questionable
The contract value of $14.3M for engineering support services is substantial. Without competitive benchmarks or pricing details, it's difficult to assess if this price is optimal compared to similar contracts for F-16 support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and may lead to less favorable pricing for the government.
Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these critical engineering services.
Public Impact
Taxpayers may be overpaying due to limited competition. Essential support for F-16 aircraft readiness is secured. Potential for future sole-source awards in defense engineering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency in pricing
Positive Signals
- Secures critical F-16 engineering support
- Supports a specific defense need
Sector Analysis
This contract falls within the defense engineering services sector, which is crucial for maintaining military readiness. Spending in this area is often subject to unique procurement challenges due to specialized requirements and national security considerations.
Small Business Impact
The data does not indicate if Pelatron Technologies LLC is a small business. Further analysis would be needed to determine the impact on small business participation in defense contracting.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency. Oversight should focus on ensuring fair pricing and performance, especially given the limited competition.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition
- Potential for cost escalation
- Lack of transparency in pricing
- Dependency on a single contractor
Tags
engineering-services, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.3 million to PELATRON TECHNOLOGIES LLC. F-16 ENGINEERING SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is PELATRON TECHNOLOGIES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $14.3 million.
What is the period of performance?
Start: 2019-06-04. End: 2020-05-04.
What is the justification for awarding this contract on a limited competition basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for limited competition is not provided in the data. Typically, such awards occur when only one source can meet the requirement, or after a failed full and open competition. To ensure fair and reasonable pricing, the government should have conducted a thorough price analysis, potentially using historical data, cost breakdowns, or independent government cost estimates, even without competing offers.
What are the risks associated with relying on a single provider for critical F-16 engineering support, especially if this becomes a recurring need?
The primary risk is a lack of competitive pressure, leading to potentially inflated costs over time and reduced innovation. It also creates a dependency on one firm, which could impact schedule if the firm faces performance issues or capacity constraints. Furthermore, it limits opportunities for other capable firms to enter the market and gain experience.
How does the $14.3M contract value compare to industry benchmarks for similar F-16 engineering support services, and what is the potential taxpayer impact?
Without specific details on the scope of services and market rates, a direct benchmark comparison is difficult. However, a $14.3M award, especially if sole-sourced, suggests a significant investment. The potential taxpayer impact is negative if the price exceeds what would have been achieved through a competitive process, leading to inefficient use of public funds.
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: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1464 W 40 S STE 100, LINDON, UT, 84042
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,996,349
Exercised Options: $14,996,349
Current Obligation: $14,287,679
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA823219D0013
IDV Type: IDC
Timeline
Start Date: 2019-06-04
Current End Date: 2020-05-04
Potential End Date: 2020-05-04 00:00:00
Last Modified: 2025-12-15
More Contracts from Pelatron Technologies LLC
- F-16 Program Integrated Engineering Services — $20.3M (Department of Defense)
- F-16 System Program Office Engineering Support — $20.2M (Department of Defense)
- Engineering Services — $18.1M (Department of Defense)
- Engineering Services Order — $16.7M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)