F-16 Engineering Services Contract Awarded to Pelatron Technologies LLC for Over $20 Million

Contract Overview

Contract Amount: $20,329,379 ($20.3M)

Contractor: Pelatron Technologies LLC

Awarding Agency: Department of Defense

Start Date: 2024-05-04

End Date: 2025-05-05

Contract Duration: 366 days

Daily Burn Rate: $55.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Defense

Official Description: F-16 PROGRAM INTEGRATED ENGINEERING SERVICES

Place of Performance

Location: LINDON, UTAH County, UTAH, 84042

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to PELATRON TECHNOLOGIES LLC for work described as: F-16 PROGRAM INTEGRATED ENGINEERING SERVICES Key points: 1. Contract focuses on integrated engineering support for the F-16 program. 2. Awarded as a sole-source contract, limiting competitive opportunities. 3. Duration of one year suggests a focused scope of work. 4. Fixed Price Level of Effort contract type aims to control costs for defined tasks. 5. Geographic location of performance is Utah. 6. No small business set-aside was applied to this award.

Value Assessment

Rating: fair

The contract value of over $20 million for one year of engineering services for a major defense platform like the F-16 program requires careful benchmarking. Without specific details on the scope of 'integrated engineering services,' it is difficult to compare directly to similar contracts. The fixed-price nature of the contract provides some cost certainty, but the absence of competition raises concerns about whether the government secured the best possible value. Further analysis of the specific tasks and deliverables would be needed to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source is available or when there is a compelling justification for not seeking competition. The lack of a competitive bidding process means that the government did not benefit from the price discovery that typically occurs when multiple companies vie for a contract. This can potentially lead to higher prices than might be achieved in a fully competed environment.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the absence of a bidding process. The government's ability to negotiate favorable terms is reduced when there are no alternative offers.

Public Impact

The primary beneficiaries are the Department of the Air Force and the F-16 program, ensuring continued engineering support. Services delivered include integrated engineering support, crucial for maintaining and potentially upgrading the F-16 fleet. Geographic impact is concentrated in Utah, where the contractor will perform the work. Workforce implications include potential employment opportunities for engineers and technical staff within Pelatron Technologies LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source award.
Scope of 'integrated engineering services' is broad and requires further definition to assess performance.
Contract duration of one year may not align with long-term program needs, potentially leading to future contract fragmentation.

Positive Signals

Fixed Price Level of Effort contract type provides cost control for defined tasks.
Award to a single contractor can ensure continuity of specialized expertise for the F-16 program.
Contract performance period is clearly defined.

Sector Analysis

The aerospace and defense sector is characterized by complex engineering requirements and significant government spending. Contracts for aircraft sustainment and modernization, such as this one for the F-16 program, are critical components of national defense budgets. The market often involves specialized firms with deep technical expertise. Benchmarking this contract's value would ideally involve comparing it to other engineering support contracts for similar legacy aircraft programs, considering factors like labor rates, overhead, and the specific technical services provided.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The focus is on a sole-source award to Pelatron Technologies LLC. This means that opportunities for small businesses to participate in this specific contract, either as prime contractors or subcontractors, are likely limited unless Pelatron Technologies LLC voluntarily engages them. The impact on the broader small business ecosystem for defense contracting is neutral in this instance, as no set-aside was mandated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the fixed-price level of effort structure, which obligates the contractor to perform defined tasks. Transparency could be enhanced by publicly detailing the justification for the sole-source award and the specific metrics used to evaluate performance. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

F-16 Sustainment Programs
Aerospace Engineering Services
Defense Contractor Support Services
Air Force Logistics and Maintenance Contracts

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed scope of work and deliverables in summary data hinders performance assessment.
Contractor's past performance and specific expertise for F-16 integrated engineering services require verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to PELATRON TECHNOLOGIES LLC. F-16 PROGRAM INTEGRATED ENGINEERING 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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2024-05-04. End: 2025-05-05.

What is the specific justification for awarding this contract on a sole-source basis to Pelatron Technologies LLC?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is a common designation for sole-source procurements. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as the existence of only one responsible source, urgent and compelling needs, or specific national security requirements. Without further details from the contracting agency (Department of the Air Force), the precise justification remains unknown. This lack of transparency can be a concern for ensuring fair competition and optimal use of taxpayer funds. Further investigation into the contract award justification documentation would be necessary to understand the rationale behind bypassing the competitive bidding process.

How does the cost of Pelatron Technologies LLC's engineering services compare to market rates or similar contracts for F-16 support?

Directly comparing the cost of Pelatron Technologies LLC's services is challenging without detailed breakdowns of the labor categories, hours, and overhead rates included in their fixed-price level of effort. The total award of $20,329,379.2 for a 366-day period averages approximately $55,545 per day. However, this daily average doesn't account for the specific tasks performed. Benchmarking against other F-16 engineering support contracts, especially those awarded competitively, would provide a more accurate assessment. Given the sole-source nature of this award, there is a risk that the pricing may not reflect the most competitive market rates achievable through open competition. A thorough review of the contract's cost elements and comparison with historical data for similar services would be required for a definitive value assessment.

What are the key performance indicators (KPIs) and deliverables expected under this contract?

The provided data specifies the contract type as 'FIXED PRICE LEVEL OF EFFORT' (FPLE) and the service as 'Engineering Services' for the 'F-16 PROGRAM INTEGRATED ENGINEERING SERVICES.' An FPLE contract obligates the contractor to complete a specified level of effort (e.g., hours or dollar amount) at a fixed price. While the total effort is defined, the specific 'integrated engineering services' and their associated deliverables are not detailed in the summary data. Key performance indicators would typically be established within the contract's statement of work (SOW) and could include metrics related to response times for engineering inquiries, quality of technical documentation produced, successful integration of system modifications, or adherence to project timelines. Without access to the SOW, a precise list of KPIs and deliverables cannot be determined.

What is the track record of Pelatron Technologies LLC in performing similar defense engineering contracts?

Information regarding Pelatron Technologies LLC's specific track record in performing defense engineering contracts, particularly those related to the F-16 program or similar complex aircraft systems, is not provided in the summary data. A comprehensive assessment of their past performance, including client satisfaction, adherence to schedule and budget, and technical proficiency on previous projects, would be crucial for evaluating the risk associated with this award. Federal procurement databases and past performance reviews typically contain such information. Without this context, it's difficult to gauge their reliability and expertise for this specific engineering services requirement.

How does this contract's value and duration compare to historical spending on F-16 engineering support?

The current contract represents a single award of approximately $20.3 million for a one-year period of performance. To compare this to historical spending on F-16 engineering support, one would need to examine aggregate spending data for the F-16 program over several fiscal years. This would involve looking at all contracts awarded for engineering, maintenance, sustainment, and upgrade services related to the F-16. Factors such as inflation, program maturity, and evolving technological requirements would need to be considered for a meaningful comparison. A single year's contract value provides a snapshot, but understanding the long-term financial commitment and trends in F-16 support spending requires a broader historical analysis of the program's budget.

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: $20,329,379

Exercised Options: $20,329,379

Current Obligation: $20,329,379

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