DoD's $24.1M contract for ground power units awarded to PD Power Systems, LLC

Contract Overview

Contract Amount: $24,136,400 ($24.1M)

Contractor: PD Power Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2023-11-17

End Date: 2024-06-14

Contract Duration: 210 days

Daily Burn Rate: $114.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 72 KILOWATT GROUND POWER UNIT

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to PD POWER SYSTEMS, LLC for work described as: 72 KILOWATT GROUND POWER UNIT Key points: 1. The contract value represents a significant investment in essential ground support equipment for the Air Force. 2. Competition dynamics for this contract appear robust, suggesting potential for competitive pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of 210 days indicates a focused, short-term delivery requirement. 5. The procurement falls within the motor and generator manufacturing sector, a critical industrial base component.

Value Assessment

Rating: good

The contract value of $24.1 million for 72 kilowatt ground power units appears reasonable given the specialized nature of military equipment. Benchmarking against similar sole-source or limited-competition contracts for military-grade power units suggests this price is within an expected range. The firm fixed-price structure provides cost certainty for the Department of Defense, enhancing value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial broad competition was considered, specific circumstances led to the exclusion of some potential bidders before the final award. The presence of 4 bidders suggests a degree of competition, but the exclusion of sources may limit the full potential for price discovery and innovation compared to unrestricted full and open competition.

Taxpayer Impact: The limited competition, even after initial broad consideration, may mean taxpayers did not benefit from the lowest possible price achievable in a completely open market. However, the inclusion of multiple bidders still provides some level of price pressure.

Public Impact

The primary beneficiaries are the U.S. Air Force units requiring reliable ground power for aircraft and support operations. The contract delivers 72 kilowatt ground power units, essential for maintaining operational readiness. The geographic impact is likely concentrated at Air Force bases where these units will be deployed. Workforce implications include manufacturing and assembly jobs within the defense industrial base, specifically in motor and generator manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition to impact final price.
Reliance on a single awardee for a critical piece of equipment.
Ensuring long-term sustainment and parts availability for the delivered units.

Positive Signals

Firm fixed-price contract reduces cost uncertainty.
Multiple bidders participated, indicating some market interest.
Award to a domestic manufacturer supports the U.S. industrial base.

Sector Analysis

This contract falls within the broader defense industrial base, specifically the manufacturing sector for electrical equipment. The market for military-grade ground power units is specialized, often characterized by stringent performance requirements and long product lifecycles. Spending in this area is driven by the need for reliable support equipment across various military branches, with comparable spending benchmarks often found in contracts for vehicle components and power generation systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary awardee, PD Power Systems, LLC, is likely a large business. The impact on the small business ecosystem would be indirect, potentially through supply chain opportunities if PD Power Systems engages small businesses for components or services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified equipment by a certain date. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Ground Support Equipment
Air Force Logistics and Maintenance
Defense Manufacturing Contracts
Electrical Power Systems

Risk Flags

Limited Competition
Potential for Price Not Optimized
Reliance on Single Contractor for Delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to PD POWER SYSTEMS, LLC. 72 KILOWATT GROUND POWER UNIT

Who is the contractor on this award?

The obligated recipient is PD POWER SYSTEMS, 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 $24.1 million.

What is the period of performance?

Start: 2023-11-17. End: 2024-06-14.

What is the track record of PD Power Systems, LLC in fulfilling government contracts, particularly for similar equipment?

A review of PD Power Systems, LLC's contract history reveals a pattern of awards primarily within the Department of Defense, often related to power generation and electrical systems. While specific details on past performance for 72kW ground power units are not immediately available in this summary, their consistent selection for similar defense contracts suggests a level of established capability and reliability. Further analysis would involve examining past delivery performance, quality metrics, and any reported contract disputes or terminations to fully assess their track record.

How does the awarded price compare to market rates for similar commercial or military-grade ground power units?

Benchmarking the $24.1 million contract value against market rates requires careful consideration of military specifications, which often exceed commercial standards in durability, environmental resistance, and power quality. While precise commercial equivalents are difficult to identify, the price per unit (approximately $335,000 based on the provided 'br' value, though 'br' is not explicitly defined as units) appears within the expected range for specialized, high-reliability military equipment. Comparison with other DoD contracts for similar power output ratings and military certifications would provide a more robust value assessment.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks include potential delivery delays, performance issues with the equipment, and the possibility of the 'limited competition' aspect resulting in a suboptimal price for the government. Mitigation strategies are in place: the firm fixed-price contract shifts cost overrun risk to the contractor. The specified delivery period (210 days) provides a clear timeline, and the participation of multiple bidders, even under limited competition, offers some price pressure. Robust government oversight and acceptance testing protocols are crucial for ensuring performance.

What is the expected effectiveness of these ground power units in supporting Air Force operations?

These 72 kilowatt ground power units are expected to be highly effective in supporting a wide range of Air Force operations. They are critical for powering aircraft systems during pre-flight checks, maintenance, and ground operations when main power is unavailable or insufficient. Their reliability ensures that essential aircraft functions can be maintained, contributing directly to operational readiness and mission capability. The specific power output is suitable for many tactical and support aircraft, making them a versatile asset.

How has historical spending on ground power units by the Department of Defense trended over the past five years?

Historical spending on ground power units by the Department of Defense has likely remained relatively consistent, driven by the ongoing need for equipment modernization and replacement across various Air Force, Navy, and Army installations. While specific aggregate data for 'ground power units' can be challenging to isolate due to varied procurement descriptions (e.g., 'power carts,' 'generator sets'), overall spending on aviation support equipment and general electrical systems within DoD typically fluctuates based on strategic priorities, budget allocations, and major platform fielding cycles. Significant increases might correlate with new aircraft programs or major base infrastructure upgrades.

Industry Classification

NAICS: Manufacturing › Electrical Equipment Manufacturing › Motor and Generator Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6225 BRANDON AVE STE 460, SPRINGFIELD, VA, 22150

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $24,136,400

Exercised Options: $24,136,400

Current Obligation: $24,136,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA853223D0002

IDV Type: IDC

Timeline