DoD's $24.5M JIEDDO System Integration Contract Awarded to Peraton Inc

Contract Overview

Contract Amount: $24,481,217 ($24.5M)

Contractor: Peraton Inc

Awarding Agency: Department of Defense

Start Date: 2009-12-21

End Date: 2010-12-20

Contract Duration: 364 days

Daily Burn Rate: $67.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: JOINT IED DEFEAT ORGANIZATION (JIEDDO) SYSTEM INTEGRATION

Place of Performance

Location: ROME, ONEIDA County, NEW YORK, 13441

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to PERATON INC for work described as: JOINT IED DEFEAT ORGANIZATION (JIEDDO) SYSTEM INTEGRATION Key points: 1. Contract awarded to Peraton Inc. for JIEDDO system integration. 2. Research and Development sector, NAICS 541712. 3. Full and open competition used. 4. Cost Plus Fixed Fee contract type. 5. Small business participation not indicated.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. The awarded amount of $24.5M for a 1-year duration needs further benchmarking against similar R&D integration projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the CPFF structure requires diligent oversight to ensure fair pricing and prevent contractor profit inflation.

Taxpayer Impact: Taxpayer funds are utilized for R&D in defense systems. The effectiveness of the spending depends on the successful integration and subsequent impact on IED defeat capabilities.

Public Impact

Supports Department of Defense efforts to counter Improvised Explosive Devices (IEDs). Focuses on research and development for advanced system integration. Contract duration of one year with a fixed fee component. Awarded to Peraton Inc., a significant government contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • CPFF contract type can incentivize cost overruns.
  • No indication of small business participation.
  • Limited duration may impact long-term integration goals.

Positive Signals

  • Full and open competition promotes market efficiency.
  • Focus on critical defense capability (IED defeat).

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for technological advancement but can be subject to cost volatility and long development cycles.

Small Business Impact

The data indicates that small business participation was not a factor in this award, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities were offered or pursued.

Oversight & Accountability

Oversight for this CPFF contract would primarily focus on monitoring costs, ensuring adherence to the fixed fee, and verifying the successful integration of systems. The Department of the Air Force is the contracting activity.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • No small business participation indicated.
  • Limited contract duration.
  • R&D spending can be inherently unpredictable.

Tags

research-and-development-in-the-physical, department-of-defense, ny, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to PERATON INC. JOINT IED DEFEAT ORGANIZATION (JIEDDO) SYSTEM INTEGRATION

Who is the contractor on this award?

The obligated recipient is PERATON INC.

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 $24.5 million.

What is the period of performance?

Start: 2009-12-21. End: 2010-12-20.

What is the expected return on investment for this R&D spending in terms of improved IED defeat capabilities?

The return on investment is difficult to quantify directly in monetary terms for R&D focused on defense capabilities. Success would be measured by the enhanced effectiveness and efficiency of JIEDDO systems in countering IED threats, potentially saving lives and resources. The CPFF structure necessitates close monitoring to ensure value for money is achieved.

What are the specific risks associated with the Cost Plus Fixed Fee contract type in this R&D context?

The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. While a fixed fee provides some ceiling, potential for scope creep or inefficient practices exists. This necessitates robust government oversight to manage costs and ensure the fixed fee remains appropriate for the work performed.

How effectively does this contract contribute to the overall mission of the Joint IED Defeat Organization?

This contract's effectiveness hinges on the successful integration of systems that enhance the JIEDDO's ability to detect, diagnose, and defeat IEDs. If the integration leads to more robust, reliable, or advanced capabilities, it directly contributes to the mission. The limited duration and CPFF structure require careful management to ensure timely and valuable outcomes.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: ITT Corporation (UEI: 001216845)

Address: 474 PHOENIX DR, ROME, NY, 21

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,481,217

Exercised Options: $24,481,217

Current Obligation: $24,481,217

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA875008D0224

IDV Type: IDC

Timeline

Start Date: 2009-12-21

Current End Date: 2010-12-20

Potential End Date: 2010-12-20 00:00:00

Last Modified: 2011-10-30

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