Commerce Department Awards Peraton $276M for Low-Earth Orbit Ground Services
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
Sector: Other
Official Description: LOW-EARTH ORBIT (LEO) GROUND SUSTAINMENT SERVICES (LGSS)
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 supports critical satellite ground operations. 2. Peraton Inc. is the sole awardee. 3. Potential for future contract growth exists. 4. Long-term sustainment services are essential for LEO operations.
Value Assessment
Rating: good
The contract value of over $276 million over its period of performance is substantial, indicating a significant investment in LEO ground sustainment. The award to a single entity suggests a focus on specialized capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award, likely due to Peraton's existing capabilities or specialized knowledge in LEO ground sustainment. Further justification for the sole-source nature would be beneficial.
Taxpayer Impact: Taxpayers are funding essential infrastructure for national and scientific satellite operations.
Public Impact
Ensures continuity of satellite data collection. Supports weather forecasting and climate monitoring. Maintains national security and scientific research capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Risk of vendor lock-in due to sole-source award.
- Potential for cost overruns if scope expands.
- Dependence on a single provider for critical services.
Positive Signals
- Establishes a stable provider for essential LEO services.
- Supports long-term operational planning for NOAA.
- Leverages existing Peraton expertise.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on the ground segment of space operations. The increasing number of satellites in Low-Earth Orbit necessitates robust and reliable ground sustainment services.
Small Business Impact
The contract was not set aside for small businesses. There is no indication of specific provisions to include small business participation in this award.
Oversight & Accountability
Oversight will be managed by the National Oceanic and Atmospheric Administration (NOAA) within the Department of Commerce. Performance monitoring and contract compliance will be key areas of focus.
Related Government Programs
- Low-Earth Orbit Ground Sustainment Services (LGSS)
- Satellite Ground Operations
- NOAA Satellite Systems
Risk Flags
- Sole-source award
- Long-term contract
Tags
leo, ground-sustainment, peraton, department-of-commerce, noaa, satellite-operations, definitive-contract, sole-source
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.
Analysis insight 1
The contract's duration suggests a long-term commitment to maintaining LEO infrastructure.
Analysis insight 2
Understanding the specific technical requirements met by Peraton is crucial for assessing value.
Analysis insight 3
Future competition for similar services will depend on market evolution and agency strategy.