USCYBERCOM awards $46.5M for cyberspace operations support, with 2 bidders competing

Contract Overview

Contract Amount: $46,538,025 ($46.5M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: General Services Administration

Start Date: 2021-07-27

End Date: 2023-07-31

Contract Duration: 734 days

Daily Burn Rate: $63.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: USCYBERCOM CYBERSPACE OPERATIONS SUPPORT SERVICES

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $46.5 million to PERATON TECHNOLOGY SERVICES INC. for work described as: USCYBERCOM CYBERSPACE OPERATIONS SUPPORT SERVICES Key points: 1. Contract awarded to Peraton Technology Services Inc. for critical cyberspace operations support. 2. Competition was robust with two bidders vying for the contract. 3. The contract type is Cost Plus Fixed Fee, which can introduce cost-reimbursement risks. 4. Performance period spans over two years, indicating a need for sustained support. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 7. The primary place of performance is Maryland, a hub for defense and cybersecurity activities.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns. However, the total award amount of $46.5 million over approximately two years suggests a significant investment in cyberspace operations. Comparing this to similar support services contracts for military branches or intelligence agencies would be necessary for a more precise value assessment. The fixed fee component provides some cost control, but the cost-reimbursement nature requires diligent oversight to ensure efficiency and prevent overspending.

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. With two bidders participating, the competition level was moderate. While two bidders are better than one, a higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions. The agency's approach ensured a fair process, but the limited number of bids might have influenced the final price.

Taxpayer Impact: The full and open competition, despite having only two bidders, aimed to secure the best value for taxpayers. The moderate competition suggests that while some price pressure was applied, there may be opportunities for increased savings in future procurements with broader participation.

Public Impact

USCYBERCOM benefits from enhanced capabilities in cyberspace operations, crucial for national security. The contract delivers essential support services for maintaining and advancing cyber defense and offense. The geographic impact is concentrated in Maryland, supporting the region's role as a defense technology center. Workforce implications include potential employment opportunities for skilled cybersecurity professionals in the Maryland area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
Limited competition (2 bidders) may not have driven the most aggressive pricing.
The contract is a delivery order, meaning its specific scope and value are tied to a broader IDIQ, requiring understanding of the parent contract's terms.

Positive Signals

Awarded under full and open competition, ensuring a fair and transparent process.
The contract supports a critical national security mission (USCYBERCOM).
The fixed fee component provides a degree of cost certainty for the contractor's profit.

Sector Analysis

The cybersecurity services sector is a rapidly growing and critical area within the broader IT services market. Government spending in this sector is substantial, driven by increasing cyber threats. This contract for cyberspace operations support fits within the custom computer programming and IT services sub-sector. Comparable spending benchmarks would involve analyzing other large contracts awarded to support military cyber commands or intelligence agencies for similar operational and technical services.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Peraton Technology Services Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Peraton actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and the U.S. Cyber Command (USCYBERCOM) contracting officers. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract award databases, but detailed cost performance reports are typically internal. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

USCYBERCOM Operations Support
Cybersecurity Services Contracts
IT Support Services
Custom Computer Programming Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited competition (2 bidders) may impact price competitiveness.
Cybersecurity services are subject to rapid technological change and evolving threats.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $46.5 million to PERATON TECHNOLOGY SERVICES INC.. USCYBERCOM CYBERSPACE OPERATIONS SUPPORT SERVICES

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 $46.5 million.

What is the period of performance?

Start: 2021-07-27. End: 2023-07-31.

What is Peraton Technology Services Inc.'s track record with government contracts, particularly with USCYBERCOM or similar defense agencies?

Peraton Technology Services Inc. has a significant history of performing government contracts, particularly within the defense and intelligence sectors. They have been involved in various large-scale IT and cybersecurity programs for agencies like the Department of Defense, intelligence community, and civilian agencies. Their experience often includes complex system integration, network operations, and cyber defense services. While specific performance details for this particular contract are not publicly detailed, Peraton's general track record suggests they possess the technical capabilities and security clearances required for sensitive operations. However, like any large contractor, past performance reviews and any past issues or disputes would be crucial for a comprehensive assessment.

How does the $46.5 million award compare to historical spending on similar cyberspace operations support services by USCYBERCOM or other defense entities?

Comparing the $46.5 million award requires context regarding the duration and scope of services. This contract spans approximately two years. Historical spending on similar cyberspace operations support services can vary widely based on mission requirements, technological advancements, and the specific services procured. For instance, larger, multi-year contracts for comprehensive cyber defense infrastructure or offensive cyber capabilities could easily exceed this amount annually. Conversely, smaller, more specialized support contracts might be in the single-digit millions. To benchmark effectively, one would need to identify comparable contracts for 'cyberspace operations support' or 'cyber mission support' awarded by USCYBERCOM or other combatant commands over the last 3-5 years, considering factors like the number of personnel supported, the complexity of systems managed, and the specific deliverables.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for cyberspace operations support?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for cyberspace operations support revolve around cost control and contractor efficiency. While the fixed fee provides the contractor with a predetermined profit margin, the government bears the risk of reimbursing all allowable costs. This structure can incentivize contractors to incur higher costs if not managed diligently, as their fee remains constant regardless of the actual expenses. For cyberspace operations, which can involve rapidly evolving technologies and unforeseen challenges, cost overruns are a significant concern. Effective risk mitigation requires robust government oversight, detailed cost tracking, regular audits, and clear definitions of allowable and unallowable costs within the contract terms to ensure value for taxpayer money.

How effective is the competition level (2 bidders) in ensuring optimal value for taxpayer money in this contract?

A competition level with only two bidders is generally considered moderate and presents a mixed picture for ensuring optimal taxpayer value. On one hand, it signifies that the requirement was not a sole-source procurement, allowing for at least some degree of price discovery and comparison between qualified vendors. On the other hand, a higher number of bidders typically intensifies competition, driving down prices and encouraging more innovative solutions. With only two bidders, there's a risk that the pricing may not be as aggressive as it could be in a more crowded field. The government's ability to negotiate favorable terms and ensure the best value is somewhat constrained compared to a scenario with multiple, competing proposals. Therefore, while 'full and open' competition was utilized, the limited number of bids suggests potential for improvement in future procurements to maximize taxpayer savings.

What are the potential performance implications of awarding a delivery order under a larger IDIQ contract for these services?

Awarding a delivery order under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract for cyberspace operations support services means that the specific scope, terms, and conditions are governed by the parent IDIQ contract, with the delivery order defining the specific task, quantity, and delivery schedule. This approach offers flexibility for the government to procure services as needed. However, it can also mean that the performance metrics and oversight mechanisms are pre-defined by the IDIQ, potentially limiting tailored performance management for this specific task. The contractor's performance on the IDIQ overall influences their ability to receive delivery orders. Ensuring effective performance requires that the delivery order clearly outlines expectations and that the government actively monitors performance against those expectations, leveraging the oversight framework established by the IDIQ.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA21R0018

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Address: 15050 CONFERENCE CENTER 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: $97,035,932

Exercised Options: $47,861,025

Current Obligation: $46,538,025

Actual Outlays: $-53,641

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,812,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q16AJD0002

IDV Type: IDC

Timeline