GSA Awards $77.5M for Space Weather System to Peraton, Limiting Competition

Contract Overview

Contract Amount: $77,460,077 ($77.5M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: General Services Administration

Start Date: 2021-02-19

End Date: 2026-02-18

Contract Duration: 1,825 days

Daily Burn Rate: $42.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: R&D

Official Description: SPACE WEATHER AND FORECAST SYSTEM

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $77.5 million to PERATON TECHNOLOGY SERVICES INC. for work described as: SPACE WEATHER AND FORECAST SYSTEM Key points: 1. Significant investment in space weather forecasting technology. 2. Sole-source award raises questions about price discovery and competition. 3. Contract duration of 5 years suggests a long-term need. 4. Research and Development NAICS code indicates a focus on innovation.

Value Assessment

Rating: questionable

The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal. The labor hours (pt) pricing model can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a nearly $78 million contract means taxpayers may be paying a premium for the space weather and forecast system.

Public Impact

Enhances national security by improving space weather prediction capabilities. Supports scientific research and development in atmospheric and space physics. Potential for technological advancements with applications beyond weather forecasting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for cost overruns due to labor hours pricing
Lack of transparency in pricing due to sole-source award

Positive Signals

Addresses a critical national need for space weather monitoring
Long-term contract ensures continuity of service
Supports R&D in a specialized scientific field

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical sciences. Spending in this area is crucial for technological advancement and national security, but often involves higher risk and less predictable outcomes.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this sole-source contract, suggesting limited direct impact on the small business sector.

Oversight & Accountability

The sole-source nature of this award warrants close oversight from the General Services Administration (GSA) to ensure the contractor is delivering value and managing costs effectively. Transparency in reporting and performance metrics will be key.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Sole-source award limits competitive pricing.
Labor hours pricing model can lead to cost overruns.
Potential for vendor lock-in due to specialized nature of R&D.
Lack of transparency regarding specific technical requirements and vendor qualifications.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $77.5 million to PERATON TECHNOLOGY SERVICES INC.. SPACE WEATHER AND FORECAST SYSTEM

Who is the contractor on this award?

The obligated recipient is PERATON TECHNOLOGY SERVICES INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $77.5 million.

What is the period of performance?

Start: 2021-02-19. End: 2026-02-18.

What specific justification was provided for the sole-source award, and how does it align with federal procurement regulations for limiting competition?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' A full justification would typically detail why only one vendor could meet the requirement, such as unique capabilities, urgent need, or proprietary technology. Federal regulations require rigorous justification for sole-source awards to ensure taxpayer funds are used efficiently and competitively whenever possible.

How will the government ensure cost control and value for money given the labor hours pricing model and lack of competition?

Effective oversight will be critical. This includes establishing clear performance metrics, regular progress reviews, and potentially implementing cost-plus-incentive-fee elements if feasible. The contracting officer must actively monitor labor hours, rates, and overall project progress to prevent scope creep and ensure the contractor remains within budget and delivers the expected outcomes.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure the effectiveness of the space weather system?

Key performance indicators would likely focus on the accuracy and timeliness of space weather forecasts, the reliability of the system's data output, and the successful integration of new research findings. Measuring effectiveness will involve comparing forecast accuracy against actual events, system uptime, and user feedback from agencies relying on the data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 15050 CONFERENCE CTR DR, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $81,672,228

Exercised Options: $77,735,189

Current Obligation: $77,460,077

Actual Outlays: $60,601,577

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $12,970,276

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline