DoD's $7.16M contract for LPD 17 class ship systems awarded to PGFM Solutions, LLC

Contract Overview

Contract Amount: $7,161,224 ($7.2M)

Contractor: Pgfm Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2019-08-30

End Date: 2024-08-29

Contract Duration: 1,826 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING AND TECHNICAL SUPPORT HULL, MECHANICAL AND NETWORK (HM&E) SYSTEMS FOR LPD 17 CLASS SHIPS, PLATFORM INDEPENDENT MACHINERY CONTROL SYSTEM (PIMCS) AND ON-BOARD TRAINER (OBT)

Place of Performance

Location: SEWELL, GLOUCESTER County, NEW JERSEY, 08080

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $7.2 million to PGFM SOLUTIONS, LLC for work described as: ENGINEERING AND TECHNICAL SUPPORT HULL, MECHANICAL AND NETWORK (HM&E) SYSTEMS FOR LPD 17 CLASS SHIPS, PLATFORM INDEPENDENT MACHINERY CONTROL SYSTEM (PIMCS) AND ON-BOARD TRAINER (OBT) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is 5 years, indicating a long-term need for these services. 4. The contract is for engineering and technical support for critical ship systems. 5. The awardee, PGFM Solutions, LLC, is a relatively small entity based on the contract value. 6. The contract value of $7.16 million is modest for a defense contract of this nature.

Value Assessment

Rating: fair

The contract value of $7.16 million over five years averages to approximately $1.43 million annually. Benchmarking this against similar engineering and technical support contracts for naval vessels is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. This structure can sometimes lead to higher overall costs compared to fixed-price contracts if cost efficiencies are not rigorously pursued and monitored by the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 3 bids were received. While the number of bidders is relatively low for a federal contract, full and open competition generally promotes price discovery and allows the government to select the best value offering. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible price and quality through a wide range of potential providers.

Public Impact

The primary beneficiaries are the U.S. Navy's LPD 17 class ships, ensuring their operational readiness and effectiveness. Services delivered include crucial engineering and technical support for Hull, Mechanical, and Network (HM&E) systems, as well as Platform Independent Machinery Control System (PIMCS) and On-Board Trainer (OBT). The geographic impact is primarily within naval operations and maintenance facilities, supporting the fleet's readiness. Workforce implications include specialized engineering and technical roles, potentially supporting skilled labor within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs if not closely managed.
Limited number of bidders (3) may indicate potential barriers to entry or a niche market.
The contract's duration (5 years) requires sustained oversight to ensure performance and value.

Positive Signals

Awarded under full and open competition, promoting a competitive environment.
Focus on critical ship systems ensures continued operational capability for the LPD 17 class.
Contract provides specialized engineering support, contributing to naval technological advancement.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting naval platforms. The defense engineering services market is substantial, driven by the need for advanced technological solutions and ongoing maintenance for complex military assets. The LPD 17 class ships represent a significant investment in naval capability, and contracts like this are essential for their lifecycle support. Comparable spending benchmarks would typically involve other contracts for ship systems engineering, maintenance, and modernization across various naval programs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, PGFM Solutions, LLC, is likely a small business itself given the contract value, but this does not guarantee subcontracting opportunities for other small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification from the contractor. Transparency is facilitated through contract award databases, though detailed performance metrics and cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

LPD 17 Class Amphibious Transport Dock Ships
Naval Engineering Services
Shipboard Systems Support
Machinery Control Systems
Defense Logistics Agency (DLA) Support Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Limited number of bidders may reduce competitive pressure.
Need for robust government oversight to manage CPFF contract effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.2 million to PGFM SOLUTIONS, LLC. ENGINEERING AND TECHNICAL SUPPORT HULL, MECHANICAL AND NETWORK (HM&E) SYSTEMS FOR LPD 17 CLASS SHIPS, PLATFORM INDEPENDENT MACHINERY CONTROL SYSTEM (PIMCS) AND ON-BOARD TRAINER (OBT)

Who is the contractor on this award?

The obligated recipient is PGFM 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 $7.2 million.

What is the period of performance?

Start: 2019-08-30. End: 2024-08-29.

What is the track record of PGFM Solutions, LLC in delivering similar engineering and technical support services for naval vessels?

Assessing the track record of PGFM Solutions, LLC requires a deeper dive into their past performance on similar contracts. While this award indicates they were deemed capable of performing the required services for the LPD 17 class ships, specific details on their success rate, quality of work, and adherence to schedule and budget on prior naval contracts are not provided in the summary data. A review of past performance evaluations, contract close-out reports, and any documented disputes or awards would offer a more comprehensive understanding of their capabilities and reliability in this specialized domain. Without this information, it's difficult to definitively gauge their experience beyond this single award.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of service in terms of value for money?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is significant uncertainty in the cost of performance, such as in research and development or complex engineering services. For taxpayers, CPFF contracts carry a higher risk of cost overruns compared to fixed-price contracts because the government reimburses the contractor's actual costs plus a predetermined fee. While the fixed fee provides some incentive for the contractor to control costs (as their profit is capped), the primary cost control mechanism relies heavily on robust government oversight and auditing of incurred costs. In contrast, fixed-price contracts offer greater cost certainty for the government but may require more detailed upfront scope definition and can lead to contractor claims if unforeseen issues arise.

What are the potential risks associated with the limited number of bidders (3) for this contract?

A limited number of bidders, such as the three received for this contract, can present several risks. It may suggest a niche market where only a few companies possess the specialized expertise or certifications required, potentially leading to reduced competition and less favorable pricing for the government. There's also a risk that the government may not have been exposed to the full spectrum of innovative solutions or cost-saving approaches that a larger pool of bidders might offer. Furthermore, if one of the bidders is a sole-source provider for a critical component or service, it could limit negotiation leverage. While full and open competition was utilized, the low bid count warrants scrutiny to ensure that the selection process truly yielded the best value and that the government wasn't constrained by a lack of viable alternatives.

How does the $7.16 million contract value align with historical spending on engineering and technical support for the LPD 17 class?

Determining how the $7.16 million contract value aligns with historical spending for the LPD 17 class requires access to historical contract data for this specific platform. Without that comparative data, it's difficult to ascertain if this award represents an increase, decrease, or stable level of investment. Factors such as the scope of work (e.g., specific systems supported, duration of support), inflation, and changes in technology or operational requirements can all influence contract values over time. A comprehensive analysis would involve aggregating and comparing the total obligated amounts for similar engineering and technical support services awarded to various contractors for the LPD 17 class over previous fiscal years to identify trends and anomalies.

What are the implications of the 'Platform Independent Machinery Control System (PIMCS)' and 'On-Board Trainer (OBT)' components for system integration and training?

The inclusion of the Platform Independent Machinery Control System (PIMCS) and On-Board Trainer (OBT) components suggests a focus on modernizing and standardizing control systems across different naval platforms and enhancing crew training capabilities. PIMCS implies a flexible, adaptable control system architecture that can be implemented across various ship classes, potentially reducing lifecycle costs through standardization and simplifying maintenance. The OBT component is crucial for realistic, hands-on training of personnel without requiring actual ship time or risking operational equipment. This can lead to more proficient crews, reduced training costs, and improved safety. The engineering and technical support for these systems is vital for their effective implementation, integration with existing HM&E systems, and ongoing operational reliability.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6449818R3015

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gryphon Technologies, Inc.

Address: ONE CRESCENT DR STE 210, PHILADELPHIA, PA, 19112

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,260,142

Exercised Options: $9,260,142

Current Obligation: $7,161,224

Actual Outlays: $1,342,325

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017816D8942

IDV Type: IDC

Timeline