DHS awards $32.8M letter contract for TARS, citing engineering services with no competition
Contract Overview
Contract Amount: $32,876,248 ($32.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2023-01-31
End Date: 2023-12-29
Contract Duration: 332 days
Daily Burn Rate: $99.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LETTER CONTRACT FOR TARS
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $32.9 million to PERATON INC. for work described as: LETTER CONTRACT FOR TARS Key points: 1. Contract awarded on a non-competitive basis, raising questions about price discovery and potential value. 2. The contract is for engineering services, a broad category that requires further detail on specific deliverables. 3. A firm-fixed-price structure aims to control costs, but the lack of competition limits benchmarking. 4. The contract duration of 332 days suggests a significant scope of work for the awarded amount. 5. The awarding agency, U.S. Customs and Border Protection, is a major component of DHS. 6. The contractor, Peraton Inc., has a significant presence in the federal contracting space.
Value Assessment
Rating: questionable
Benchmarking the value of this $32.8 million contract is challenging due to its non-competitive nature. Without competing offers, it's difficult to assess if the pricing reflects a fair market value for the engineering services provided. The firm-fixed-price (FFP) structure is a positive indicator for cost control, but the absence of competition means there's no direct comparison to similar contracts or market rates to definitively gauge value for money. Further analysis of the specific engineering tasks and their associated costs would be necessary for a more precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically employed when only one vendor possesses the necessary capabilities or when circumstances prevent a competitive process. The lack of competition means that taxpayers did not benefit from the potential cost savings and innovation that can arise from a competitive bidding environment. It also limits the government's ability to explore alternative solutions or pricing structures.
Taxpayer Impact: The absence of competition for this significant contract means taxpayers may not have received the best possible price. Without bids from other qualified companies, the government had less leverage to negotiate favorable terms.
Public Impact
The primary beneficiary of this contract is the U.S. Customs and Border Protection (CBP), which will receive engineering services to support its operations. The services delivered are broadly categorized as engineering, likely contributing to the maintenance, development, or enhancement of CBP systems or infrastructure. The geographic impact is primarily within the United States, supporting federal agency operations. Workforce implications may include the direct employment of engineers and technical staff by Peraton Inc., as well as potential indirect impacts on related industries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition limits transparency and potential for cost savings.
- The broad nature of 'engineering services' requires detailed justification for the specific tasks and costs.
- Contract awarded as a letter contract, which may indicate urgency or evolving requirements, potentially increasing risk.
Positive Signals
- Firm-fixed-price contract type helps to establish cost certainty.
- Contract awarded to Peraton Inc., a known entity in the federal contracting space.
- Contract is for engineering services, which are critical for agency operations.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports various government functions, including defense, infrastructure, and technology. The federal government is a significant consumer of engineering services, with spending often concentrated in areas like defense procurement, infrastructure development, and IT modernization. Benchmarking this specific contract's value against the broader engineering services market is difficult without more granular details on the scope of work, but the $32.8 million award indicates a substantial project.
Small Business Impact
The data indicates that this contract was not awarded to a small business (sb=false) and does not appear to be a small business set-aside. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on a large prime contractor, Peraton Inc. Analysis of Peraton's broader subcontracting plans would be needed to understand any indirect impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Homeland Security's internal procurement and program management offices, as well as U.S. Customs and Border Protection. The firm-fixed-price nature provides some cost control, but the lack of competition necessitates robust oversight to ensure the services are necessary, performed effectively, and priced reasonably. Transparency could be enhanced by making the sole-source justification publicly available and detailing the specific engineering tasks performed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Homeland Security Contracts
- U.S. Customs and Border Protection Contracts
- Engineering Services Contracts
- Letter Contracts
- Sole Source Contracts
Risk Flags
- Lack of Competition
- Letter Contract Award
- Unspecified Scope of Work
Tags
dhs, customs-and-border-protection, engineering-services, letter-contract, sole-source, firm-fixed-price, peraton-inc, virginia, professional-scientific-and-technical-services, non-competitive
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $32.9 million to PERATON INC.. LETTER CONTRACT FOR TARS
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $32.9 million.
What is the period of performance?
Start: 2023-01-31. End: 2023-12-29.
What specific engineering services are being procured under this letter contract?
The provided data categorizes the contract under 'Engineering Services' (NAICS code 541330) but does not specify the exact nature of these services. As a letter contract, it often signifies an agreement to enter into a definitive contract at a later date, typically used when the government needs to start work quickly but the final scope, specifications, or cost are not yet finalized. Therefore, the specific engineering tasks could range widely, potentially including design, analysis, testing, or consultation related to CBP's operational needs, such as border security technology, surveillance systems, or infrastructure projects. A detailed statement of work within the definitive contract would clarify the precise services.
Why was this contract awarded on a sole-source basis instead of being competed?
The data explicitly states the contract was 'NOT COMPETED' (ct: NOT COMPETED), indicating a sole-source or non-competitive award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need where competition is not feasible. Without further justification documents (e.g., a Justification for Other Than Full and Open Competition - JOFOC), the precise reason remains unknown. However, common reasons include unique technical capabilities, proprietary technology, or a critical need that cannot be met through a competitive process within the required timeframe.
How does the firm-fixed-price (FFP) contract type mitigate risks associated with a sole-source award?
The firm-fixed-price (FFP) contract type is beneficial as it establishes a ceiling on the total cost the government will pay, shifting most of the cost risk to the contractor, Peraton Inc. This means that regardless of the contractor's actual costs, the government is obligated to pay only the agreed-upon price. While this provides cost certainty for the government, it does not inherently address the potential for overpayment due to the lack of competition. The FFP structure is most effective in controlling costs when there is robust competition to establish a fair market price. In a sole-source scenario, the FFP price itself needs to be rigorously negotiated and justified to ensure value.
What is the significance of this contract being a 'letter contract'?
A letter contract is an interim agreement used when the government needs to start work before a definitive contract can be finalized, often due to the complexity of defining the final scope or price. It authorizes the contractor to begin performance immediately. The data indicates this is a letter contract (d: LETTER CONTRACT FOR TARS), suggesting that the full details of the engineering services and their associated costs were not finalized at the time of award. A subsequent definitive contract will be issued to formalize the agreement, incorporating the finalized terms and conditions. This approach can expedite critical projects but may introduce some uncertainty until the definitive contract is in place.
What is Peraton Inc.'s track record with the Department of Homeland Security or similar agencies?
Peraton Inc. is a significant federal contractor with a substantial portfolio of work across various government agencies, including the Department of Homeland Security (DHS). While specific details of their past performance on contracts with DHS or CBP are not provided in this data snippet, Peraton is known for its work in areas such as space, intelligence, cyber, and defense. Their history suggests they possess the technical capabilities and experience to handle complex engineering services. A deeper dive into their contract history with DHS would reveal specific projects, performance ratings, and any past issues or successes relevant to this award.
How does the $32.8 million award compare to typical spending on engineering services by CBP?
Without historical spending data specifically for engineering services by U.S. Customs and Border Protection (CBP), a direct comparison is difficult. However, $32.8 million represents a substantial investment. CBP, as a large agency within DHS responsible for border security and trade, requires significant engineering support for its vast array of technologies, infrastructure, and operational systems. This award could be for a critical, large-scale project or a consolidation of several smaller engineering needs. To provide context, one would need to analyze CBP's historical obligations for NAICS code 541330 (Engineering Services) or similar service categories over several fiscal years.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $32,876,248
Exercised Options: $32,876,248
Current Obligation: $32,876,248
Actual Outlays: $31,940,726
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-01-31
Current End Date: 2023-12-29
Potential End Date: 2023-12-29 13:33:56
Last Modified: 2024-05-29
More Contracts from Peraton Inc.
- 200107!000034!5700!GZ80 !smc/Pks !F0470101C0001 !A!N!*!Y! !20001103!20061031!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000016429445!n!n!000000000000!ac26!rdte/Missile and Space Systems-Mgmt Support !A2 !missile and Space Systems !3000!NOT Discernable or Classified !541710!*!*!3! ! ! !*!*!*!B!*!*!B! !A !Y!R!2!003!B! !A!N!Z! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! !Y! ! !0001! — $1.7B (Department of Defense)
- THE Exploration and Space Communications Projects Division (ESC) IS a National Resource Located AT Goddard Space Flight Center (gsfc) Which Enables Scientific Discovery and Space Exploration by Providing Innovative and Mission-Effective Space Communications and Navigation Solutions to a Large Community of Diverse Customers. ESC Manages Operational Geostationary Communications Relay Satellites and Ground Systems for the Space Communications and Navigation (scan) Program AT Nasa Headquarters. Today, Scan Network Systems Consist of the Space Network (SN), the Near Earth Network (NEN), and the Deep Space Network (DSN). the Day-To-Day Management of These Three Networks IS Currently NOT Fully Consistent. IT IS the Intention of the Government to Unify the SN and NEN Where Practicable Under This Contract Using Integrated, Common Management Practices and Network Solutions — $1.5B (National Aeronautics and Space Administration)
- Nasa Goddard Space Flight Center's (gsfc) Goal for the Space Communications Networks Services Contract (scns) IS to Enable Mission Success for Every Customer Using Scns Services. KEY Objectives of the Scns Contract ARE to Decrease Cost and Maintain or Improve Operational Efficiency and Reliability, While Maintaining an Acceptable Level of Risk and Providing for Safe Operation of the Missions. the Contractor Shall Implement a Safety, Health, and Mission Assurance Program That Provides a Safe and Healthy Work Environment, Minimizes Program Risk, and Maximizes Nasa Mission Success. the Contractor Shall BE Responsible and Accountable for Achieving the Required Results. Core Requirement Functions, Such AS Configuration Management, Quality Assurance, ETC. ARE Required to Support Idiq Task Orders. the Space Network (SN) IS Comprised of a Fleet of On-Orbit Tracking and Data Relay Satellites (tdrs) and Associated Ground Systems That Provide Telecommunications Services. the Nature of the SN Architecture, I.E., Extremely Large Capital Investment, Contractor Operated Facilities, Continuous 24X7 Requirements, ETC., Lends Itself to a Core Requirements Approach. the Ground Network (GN) Consists of an Orbital Tracking Network and the Satellite Laser Ranging Network. the Nature of the Ground Network Architecture, I.E., Diverse MIX of Commercial and Government Assets, Evolving Geographic and Technical Customer Requirements, and Legacy Systems, ETC. Lends Itself to an Idiq Approach. Other Activities, I.E., Very Long Baseline Interferometry Network Operations and Maintenance (O&M), Electronic System Test Laboratory, Requirements Development, Hardware and Software Development, ETC. ARE Best Suited to an Idiq Approach in the Resource-Constrained Environment That Nasa Operates in — $1.2B (National Aeronautics and Space Administration)
- Operational Planning Implementation and Assessment Services (opias) Base Award — $800.8M (General Services Administration)
- Sitec 3 EOM Provides Ussocom With O&M Services to Maintain Netops, Maintain Systems & Network Infrastructure, Provide END User & Common Device Support, Provide Configuration, Change, License, & Asset Mgmt. Conduct Training and Perform Imacs Services — $651.0M (General Services Administration)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)