Physical Electronics Usa, Inc.

Physical Electronics Usa, Inc., a foreign-owned manufacturer of advanced surface analysis instrumentation based in Chanhassen, Minnesota, sells X-ray photoelectron spectrometer (XPS) systems, time-of-flight secondary ion mass spectrometer (TOF-SIMS) equipment, and associated maintenance and repair services to federal research and defense agencies as a prime contractor (94% of recent awards), competing in full-and-open procurements with no set-aside designations. The company is a subsidiary of ULVAC PHI, a Japanese parent specializing in ultrahigh vacuum analytical technologies.

Physical Electronics' customer footprint is concentrated in defense and civilian research agencies. The top five funding customers account for 62% of recent awards by count: the Department of the Army Materiel Command Research Development and Engineering Command (19 awards, $5.1 million combined potential value), the Department of the Navy Naval Sea Systems Command (21 awards, $2.9 million), NASA's Shared Services Center and Glenn Research Center (12 and 11 awards respectively, $617 thousand combined), and the Department of the Navy Strategic Systems Programs (10 awards, $730 thousand). By potential value, the rankings shift modestly — the Army's combined value share expands to anchor 29% of all dollars, while NIST's two awards ($2.6 million) surface as the third-largest value customer, reflecting a $2.56 million XPS system procurement award from September 2025 supporting CHIPS for America semiconductor research. The Department of Energy Office of Fossil Energy accounts for $1.3 million across nine maintenance renewal contracts for VersaProbe III instruments at NETL facilities.

Physical Electronics' capability portfolio centers on equipment sales and preventive-maintenance contracts. Representative prime work includes a $2.56 million firm fixed-price purchase order from NIST (September 2025, ultimate completion August 2032) for a complete XPS system manufactured and delivered from Japan to support advanced packaging metrology; a $2.32 million definitive contract from Army Materiel Command (September 2025) for a single XPS system delivery and installation at Aberdeen Proving Ground; a $1.5 million TOF-SIMS procurement (May 2023) from Army TACOM for depth-profiling and MS/MS analysis at Watervliet Arsenal supporting hexavalent chromium elimination research; and recurring $52–60 thousand annual maintenance renewals from DOE NETL for VersaProbe III systems (most recent: April 2026). Most work is awarded on a sole-source basis, justified by proprietary equipment design and the requirement that factory-trained technicians perform specialized servicing to prevent equipment damage and ensure user safety.

Activity has been episodic rather than steadily growing. The source data show five awards in 2022, six in 2023, four in 2024, ten in 2025, and three in 2026 (through April). The combined potential value across all 118 awards (prime and sub) stands at $17.7 million, with $20 million obligated to date — indicating actual invoicing has exceeded ceiling values on a portfolio basis, typical for recurring maintenance contracts renewed at stable or escalating rates. Six awards with completion dates in the next twenty-four months carry combined potential value of $2.9 million and face recompete exposure.

In its subcontractor role — which accounts for 6% of recent awards — Physical Electronics provides equipment and maintenance services to primes managing large federal laboratories and defense programs. Recent sub engagements include maintenance and repair services under Triad National Security's Los Alamos National Laboratory management contract (three sub awards, August–September 2025), equipment supply under Amentum Services' Naval Surface Warfare Center Crane microelectronics facilities contract (August 2025), support for Honeywell Federal's National Security Campus M&O contract (November 2024), and material supply under Fluor Marine Propulsion's Naval Nuclear Laboratory contract (February 2026).

The company's award footprint concentrates in analytical laboratory instrument manufacturing (81 awards) and related equipment repair and maintenance (22 awards), with top PSC codes reflecting maintenance and repair of laboratory instruments and chemical analysis equipment. Physical Electronics competes in full-and-open procurements; the source carries no set-aside designations across its federal prime or sub portfolio. Most awards are purchase orders for equipment delivery or recurring annual maintenance, with contract values typically ranging from $23 thousand to $2.56 million, reflecting specialized equipment and services where Physical Electronics holds or approaches monopoly technical capability as the sole authorized provider of proprietary systems and factory-trained maintenance.