NOAA Awards $276M LEO Ground Sustainment Services Contract to Peraton Inc
Contract Overview
Contract Amount: $276,103,302 ($276.1M)
Contractor: Peraton Inc.
Awarding Agency: Department of Commerce
Start Date: 2023-03-01
End Date: 2028-02-16
Contract Duration: 1,813 days
Daily Burn Rate: $152.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: LOW-EARTH ORBIT (LEO) GROUND SUSTAINMENT SERVICES (LGSS)
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Commerce obligated $276.1 million to PERATON INC. for work described as: LOW-EARTH ORBIT (LEO) GROUND SUSTAINMENT SERVICES (LGSS) Key points: 1. Contract awarded to Peraton Inc. for Low-Earth Orbit Ground Sustainment Services. 2. Significant contract value of $276.1 million over its duration. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under the 'All Other Telecommunications' sector. 5. This award highlights the government's investment in satellite ground infrastructure.
Value Assessment
Rating: good
The contract type is Cost Plus Award Fee (CPAF), which allows for performance incentives. The award amount of $276.1 million is substantial for ground sustainment services. Benchmarking against similar telecommunications infrastructure contracts would provide further insight into its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the services rendered, though a detailed cost analysis would confirm this.
Public Impact
Ensures continued operation and maintenance of critical Low-Earth Orbit satellite ground systems. Supports NOAA's mission for weather forecasting, climate monitoring, and environmental data collection. Potential for technological advancements in ground station capabilities through performance incentives. Impacts the telecommunications sector by securing a large contract for ground support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively long (1813 days).
- Small business participation is not indicated (ss: false, sb: false).
Positive Signals
- Awarded under full and open competition.
- Performance-based contract type (CPAF) can incentivize efficiency.
Sector Analysis
This contract falls within the 'All Other Telecommunications' sector, which encompasses a broad range of services related to communication networks and infrastructure. Government spending in this area is crucial for maintaining national communication capabilities and supporting scientific missions.
Small Business Impact
The data indicates that small business participation was not a stated requirement or outcome for this contract (ss: false, sb: false). This suggests that the prime contractor, Peraton Inc., is likely a large business, and opportunities for small businesses may be limited to subcontracting roles.
Oversight & Accountability
The contract is managed by the Department of Commerce's National Oceanic and Atmospheric Administration (NOAA). Oversight will focus on ensuring Peraton Inc. meets performance requirements and manages costs effectively under the Cost Plus Award Fee structure.
Related Government Programs
- All Other Telecommunications
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Potential for technological obsolescence over the contract duration.
- Lack of explicit small business participation noted.
- Cost Plus Award Fee contracts require diligent oversight to ensure value.
- Long contract duration may reduce flexibility for evolving needs.
Tags
all-other-telecommunications, department-of-commerce, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $276.1 million to PERATON INC.. LOW-EARTH ORBIT (LEO) GROUND SUSTAINMENT SERVICES (LGSS)
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $276.1 million.
What is the period of performance?
Start: 2023-03-01. End: 2028-02-16.
What is the projected cost-effectiveness of the CPAF structure in driving performance improvements for LEO ground sustainment?
The Cost Plus Award Fee (CPAF) structure is designed to incentivize contractors to exceed performance targets by offering award fees based on achieving specific metrics. For LEO ground sustainment, this could translate to improved uptime, faster response times, and enhanced system reliability. However, the effectiveness hinges on well-defined performance standards and objective measurement criteria. Without these, the award fees might not directly correlate with optimal value for the government.
What are the potential risks associated with a long-term contract for critical ground sustainment services?
Long-term contracts, like this 1813-day award, carry risks such as technological obsolescence, potential for contractor complacency, and difficulty in adapting to evolving mission needs. If technology advances rapidly, the contracted services might become outdated. Furthermore, a prolonged relationship without strong oversight could lead to reduced vigilance in cost control or performance. Regular reviews and contract modifications are essential to mitigate these risks.
How does the 'All Other Telecommunications' sector spending benchmark compare to this specific contract's value?
The 'All Other Telecommunications' sector is broad, encompassing various services from network maintenance to satellite communications. A $276 million contract for LEO ground sustainment is substantial within this category, reflecting the complexity and criticality of supporting satellite operations. Benchmarking would require comparing it to similar-sized contracts for satellite ground infrastructure or advanced telecommunications services, considering factors like duration, scope, and performance requirements.
Industry Classification
NAICS: Information › All Other Telecommunications › All Other Telecommunications
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 12975 WORLDGATE DR, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $471,637,430
Exercised Options: $303,469,102
Current Obligation: $276,103,302
Actual Outlays: $177,628,741
Subaward Activity
Number of Subawards: 105
Total Subaward Amount: $158,985,697
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-03-01
Current End Date: 2028-02-16
Potential End Date: 2031-02-16 00:00:00
Last Modified: 2026-03-09
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