DoD's Air Force Awards $20M Engineering Support Contract to Pelatron Technologies LLC

Contract Overview

Contract Amount: $20,202,680 ($20.2M)

Contractor: Pelatron Technologies LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-04

End Date: 2024-05-04

Contract Duration: 366 days

Daily Burn Rate: $55.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Other

Official Description: F-16 SYSTEM PROGRAM OFFICE ENGINEERING SUPPORT

Place of Performance

Location: LINDON, UTAH County, UTAH, 84042

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to PELATRON TECHNOLOGIES LLC for work described as: F-16 SYSTEM PROGRAM OFFICE ENGINEERING SUPPORT Key points: 1. Significant contract value of $20.02 million for engineering services. 2. Sole-source award to Pelatron Technologies LLC indicates limited competition. 3. Potential risk associated with a single-source provider for critical engineering support. 4. Contract falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The contract's fixed-price level-of-effort structure aims to control costs. However, without competitive benchmarking, it's difficult to definitively assess if the $20.02 million price is optimal compared to similar engineering support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this $20.02 million contract may result in taxpayers paying more than if multiple vendors had bid.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The F-16 program relies on Pelatron Technologies LLC for critical engineering support. Future contract awards in this category could be influenced by this sole-source decision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for overpayment due to lack of competition
Reliance on a single vendor for critical services

Positive Signals

Fixed-price contract type can help control costs
Clear contract duration of 366 days

Sector Analysis

This contract for engineering services is within the broader professional, scientific, and technical services sector. Benchmarks for engineering support contracts can vary widely based on specialization and scope, but a $20 million award for a specific aircraft system is substantial.

Small Business Impact

The awardee, Pelatron Technologies LLC, is not indicated as a small business. This contract does not appear to include provisions specifically aimed at supporting small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Further oversight should confirm that the Department of the Air Force adequately justified the lack of competition.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competitive pricing
Potential for cost overruns
Vendor lock-in risk
Limited transparency in price discovery

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to PELATRON TECHNOLOGIES LLC. F-16 SYSTEM PROGRAM OFFICE ENGINEERING SUPPORT

Who is the contractor on this award?

The obligated recipient is PELATRON TECHNOLOGIES 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 $20.2 million.

What is the period of performance?

Start: 2023-05-04. End: 2024-05-04.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification was made. Typically, this requires demonstrating that only one vendor can meet the requirement due to unique capabilities, urgency, or other specific circumstances. Without the detailed justification document, it's impossible to know the exact reasons or if alternatives were explored and deemed unsuitable.

How does the $20.02 million price compare to industry benchmarks for similar F-16 engineering support services, especially considering the sole-source nature?

Direct comparison to industry benchmarks is challenging without knowing the specific technical requirements and scope of work. However, sole-source contracts inherently carry a risk of being priced higher than competitively awarded ones. A thorough review would involve comparing Pelatron's proposed labor rates, overhead, and profit margins against industry standards for comparable engineering services on major defense platforms.

What is the potential impact on the F-16 program's long-term sustainment and modernization if Pelatron Technologies LLC is the sole provider of these critical engineering services?

Sole reliance on one provider for critical engineering support can create a bottleneck and increase program risk. If Pelatron faces financial difficulties, operational issues, or decides to exit the market, the F-16 program could face significant disruptions. This highlights the need for contingency planning and potentially developing alternative sources or in-house capabilities over time.

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: FIXED PRICE LEVEL OF EFFORT (B)

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: $20,202,680

Exercised Options: $20,202,680

Current Obligation: $20,202,680

Actual Outlays: $1,917

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA823220D0007

IDV Type: IDC

Timeline