DoD's $40M JUKEBOX ALPHA contract awarded to Pegasus Global Strategic Solutions, LLC for navigation systems

Contract Overview

Contract Amount: $40,014,975 ($40.0M)

Contractor: Pegasus Global Strategic Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2007-02-06

End Date: 2007-12-31

Contract Duration: 328 days

Daily Burn Rate: $122.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: JUKEBOX ALPHA MODEL

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $40.0 million to PEGASUS GLOBAL STRATEGIC SOLUTIONS, LLC for work described as: JUKEBOX ALPHA MODEL Key points: 1. Contract awarded for navigation system manufacturing. 2. Pegasus Global Strategic Solutions, LLC is the sole awardee. 3. The contract was not competed, raising potential value concerns. 4. Spending falls within the IT/Defense sector for system manufacturing.

Value Assessment

Rating: questionable

The contract value of $40M for a single award without competition makes it difficult to assess value. Benchmarking against similar navigation system contracts is needed to determine if the price is fair.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning there was no competition. This limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for a $40M contract raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The Department of the Navy received specialized navigation equipment. The contract duration was less than a year, suggesting a specific, short-term need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Specific system acquisition
Defined contract period

Sector Analysis

This contract falls under the manufacturing of specialized navigation systems, often associated with defense applications. Spending benchmarks for similar sole-source awards in this niche sector are difficult to establish without further data.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Further oversight is needed to understand why competition was bypassed.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.0 million to PEGASUS GLOBAL STRATEGIC SOLUTIONS, LLC. JUKEBOX ALPHA MODEL

Who is the contractor on this award?

The obligated recipient is PEGASUS GLOBAL STRATEGIC SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $40.0 million.

What is the period of performance?

Start: 2007-02-06. End: 2007-12-31.

What was the justification for awarding this contract sole-source?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without specific documentation, it's impossible to confirm the exact reason. However, the absence of competition for a $40 million contract raises questions about whether alternative sources were thoroughly explored or if the requirement was structured in a way that precluded competition.

What is the risk associated with a sole-source contract of this magnitude?

The primary risk with a sole-source contract of this magnitude is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible value. There's also a risk of reduced innovation and a lack of transparency in the procurement process, potentially leading to inefficient use of taxpayer funds.

How effective is the JUKEBOX ALPHA MODEL in its intended application?

The provided data does not include information on the effectiveness or performance of the JUKEBOX ALPHA MODEL. To assess effectiveness, one would need to review performance metrics, user feedback, and operational reports related to the search, detection, navigation, guidance, aeronautical, and nautical systems and instruments manufactured under this contract.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11921 FREEDOM DRIVE 2 FOUNTAIN SQR., RESTON, VA, 11

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $40,014,975

Exercised Options: $40,014,975

Current Obligation: $40,014,975

Contract Characteristics

Cost or Pricing Data: NO

Timeline