GSA awards $800M+ engineering services contract to Peraton Inc. for operational planning and assessment
Contract Overview
Contract Amount: $800,826,345 ($800.8M)
Contractor: Peraton Inc.
Awarding Agency: General Services Administration
Start Date: 2021-07-06
End Date: 2026-07-05
Contract Duration: 1,825 days
Daily Burn Rate: $438.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: OPERATIONAL PLANNING IMPLEMENTATION AND ASSESSMENT SERVICES (OPIAS) BASE AWARD.
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621
State: Florida Government Spending
Plain-Language Summary
General Services Administration obligated $800.8 million to PERATON INC. for work described as: OPERATIONAL PLANNING IMPLEMENTATION AND ASSESSMENT SERVICES (OPIAS) BASE AWARD. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee (CPAF), which incentivizes contractor performance. 3. A significant contract value of over $800 million indicates a substantial need for these services. 4. The contract duration of 5 years (1825 days) allows for long-term planning and execution. 5. The base award amount is substantial, with potential for additional task orders. 6. The contract is for Engineering Services, a critical sector for government operations.
Value Assessment
Rating: good
The contract value of over $800 million for 5 years is substantial. Benchmarking this against similar large-scale engineering services contracts is challenging without more specific service details. However, the Cost Plus Award Fee (CPAF) structure suggests an effort to ensure value for money by tying a portion of the contractor's fee to performance metrics. The base award amount of $438,809 appears to be an initial funding allocation, with the total contract value representing the ceiling. Further analysis would require comparing the proposed award fees and cost structures to industry standards for comparable services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders suggests a reasonably competitive environment for this type of service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bids received (4) provides a moderate level of competition, which is generally positive for ensuring value.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among bidders.
Public Impact
The primary beneficiaries are likely federal agencies requiring operational planning, implementation, and assessment services. The contract will deliver critical engineering and technical support to government programs. The geographic impact is primarily Florida (ST), where the contract is managed or services are delivered. This contract supports a workforce of engineers and technical specialists, potentially creating or sustaining jobs in the engineering sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed diligently.
- The large contract value could indicate a high degree of complexity and associated risks.
- Reliance on a single prime contractor for such a broad scope may present single points of failure.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- The Cost Plus Award Fee structure incentivizes contractor performance and value.
- The contract duration allows for sustained support and development of expertise.
- The contractor, Peraton Inc., likely has a track record in providing similar services.
Sector Analysis
The engineering services sector is a vital component of government contracting, supporting a wide range of activities from infrastructure development to complex system design and analysis. This contract falls under NAICS code 541330 (Engineering Services), a broad category encompassing various specialized engineering disciplines. The market for these services is substantial, with significant government spending allocated annually. This specific contract for operational planning, implementation, and assessment services likely supports a critical government function, fitting within the broader landscape of federal IT, defense, or other operational support sectors.
Small Business Impact
The data indicates that small business participation (sb) is false, meaning this contract was not set aside for small businesses. There is no explicit information on subcontracting plans. Without a small business set-aside, the prime contractor has discretion over subcontracting opportunities. This could limit opportunities for small businesses unless Peraton Inc. proactively includes them in its subcontracting strategy. Further investigation into subcontracting goals would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the General Services Administration (GSA) through its Federal Acquisition Service. The Cost Plus Award Fee (CPAF) structure inherently includes performance metrics that require monitoring and evaluation. Transparency will depend on GSA's reporting practices and the public availability of contract performance data. Inspector General jurisdiction would typically fall under the GSA's IG, responsible for investigating fraud, waste, and abuse within the agency's contracts.
Related Government Programs
- Operational Planning Services
- Engineering Consulting
- Federal IT Support Services
- Defense Support Services
- Government Program Management
Risk Flags
- Contract type (CPAF) requires careful performance monitoring.
- Large contract value may indicate significant complexity and risk.
- Potential for cost overruns in CPAF contracts if not managed properly.
Tags
engineering-services, general-services-administration, cost-plus-award-fee, full-and-open-competition, large-contract, operational-planning, peraton-inc, florida, federal-acquisition-service, professional-services
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $800.8 million to PERATON INC.. OPERATIONAL PLANNING IMPLEMENTATION AND ASSESSMENT SERVICES (OPIAS) BASE AWARD.
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $800.8 million.
What is the period of performance?
Start: 2021-07-06. End: 2026-07-05.
What is Peraton Inc.'s track record with large federal engineering services contracts?
Peraton Inc. has a significant history of securing and performing large federal contracts, particularly in areas related to defense, intelligence, and government IT modernization. They have been involved in numerous complex projects requiring engineering, cybersecurity, and mission support services. Their experience often includes managing large teams, complex supply chains, and delivering mission-critical solutions. While specific details on their performance for similar operational planning and assessment contracts would require deeper dives into past performance reviews and contract awards, their overall profile suggests a capacity to handle contracts of this magnitude and complexity. Analyzing their past performance on CPAF contracts would be particularly relevant to understanding their ability to meet award fee criteria.
How does the $800M+ contract value compare to similar engineering services contracts awarded by GSA?
The $800 million contract value for operational planning, implementation, and assessment services awarded to Peraton Inc. by GSA is substantial. To benchmark this, one would typically compare it against other large-scale engineering services contracts (NAICS 541330) awarded by GSA or other federal agencies over the past few years. Contracts in this range often involve multi-year durations and broad scopes of work, supporting critical agency functions. For instance, similar contracts might focus on areas like infrastructure engineering, IT systems engineering, or specialized technical consulting. Without access to a comprehensive database of comparable contract values and scopes, a precise comparison is difficult. However, a value exceeding $800 million over five years suggests this contract is among the larger awards within the federal engineering services domain, indicating a significant requirement and investment by the government.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this size?
The primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude include potential for cost growth if performance metrics are not rigorously defined and monitored, and the possibility of the contractor focusing on achieving award fees rather than overall mission success if the incentive structure is misaligned. For the government, there's a risk of paying higher overall costs compared to a fixed-price contract if the contractor performs exceptionally well and earns significant award fees. Effective oversight is crucial to ensure that costs are reasonable and allocable, and that award fees are earned based on objective, mission-critical performance. Contractor selection based on demonstrated capability to manage costs and achieve performance targets is also a key risk mitigation factor.
How effective is full and open competition in ensuring value for money for engineering services contracts?
Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for engineering services. By allowing all responsible sources to compete, it fosters a robust marketplace where contractors are incentivized to offer competitive pricing, innovative solutions, and high-quality services to win the contract. This process enhances price discovery and reduces the likelihood of paying above-market rates. While the administrative effort to manage a full and open competition can be higher, the potential savings and improved outcomes typically outweigh these costs. The presence of multiple bidders, as indicated by the 4 bidders in this case, further strengthens the competitive dynamic and the likelihood of achieving best value for the taxpayer.
What are the historical spending patterns for engineering services (NAICS 541330) by the General Services Administration?
Historical spending patterns for engineering services (NAICS 541330) by the General Services Administration (GSA) reflect a consistent and significant investment in technical and professional services to support various federal agencies. GSA, through its various acquisition vehicles and direct contracting efforts, procures engineering services for a wide array of needs, including facility design and management, IT infrastructure, program management support, and specialized technical consulting. Annual spending in this category can fluctuate based on agency needs, infrastructure projects, and the lifecycle of major government programs. Analyzing GSA's historical spending data would reveal trends in the types of engineering services most frequently procured, the average contract values, and the dominant contracting vehicles used. This particular $800M+ award represents a substantial single commitment within this category.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 47QFCA21R0074
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
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: $979,290,295
Exercised Options: $979,290,295
Current Obligation: $800,826,345
Actual Outlays: $-276
Subaward Activity
Number of Subawards: 93
Total Subaward Amount: $244,872,277
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU117
IDV Type: IDC
Timeline
Start Date: 2021-07-06
Current End Date: 2026-07-05
Potential End Date: 2026-07-05 00:00:00
Last Modified: 2026-04-13
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