NASA's $337M ETIS III Contract for Environmental Test Services Awarded to Peraton Inc

Contract Overview

Contract Amount: $337,188,470 ($337.2M)

Contractor: Peraton Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2019-10-01

End Date: 2026-04-30

Contract Duration: 2,403 days

Daily Burn Rate: $140.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: THE ETIS III CONTRACT WILL PROVIDE ENVIRONMENTAL TEST AND INTEGRATION RELATED SERVICES FOR NASA GSFC ENGINEERING AND TECHNOLOGY DIRECTORATE (ETD) MECHANICAL SYSTEMS DIVISION AND RELATED ORGANIZATIONS FOR THE FORMULATION, DESIGN, DEVELOPMENT, FABRICATION, INTEGRATION, TESTING, VERIFICATION, AND OPERATIONS OF SPACEFLIGHT AND GROUND SYSTEM HARDWARE AND SOFTWARE, INCLUDING DEVELOPMENT AND VALIDATION OF NEW TECHNOLOGIES TO ENABLE FUTURE SPACE AND SCIENCE MISSIONS.

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771

State: Maryland Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $337.2 million to PERATON INC. for work described as: THE ETIS III CONTRACT WILL PROVIDE ENVIRONMENTAL TEST AND INTEGRATION RELATED SERVICES FOR NASA GSFC ENGINEERING AND TECHNOLOGY DIRECTORATE (ETD) MECHANICAL SYSTEMS DIVISION AND RELATED ORGANIZATIONS FOR THE FORMULATION, DESIGN, DEVELOPMENT, FABRICATION, INTEGRATION, TESTING, VER… Key points: 1. The ETIS III contract supports critical environmental testing and integration services for NASA's spaceflight hardware and software. 2. Awarded via full and open competition, the contract aims to develop new technologies for future space missions. 3. The contract's Cost Plus Award Fee structure incentivizes performance and cost control. 4. The primary contractor, Peraton Inc., will provide services to NASA's Goddard Space Flight Center. 5. The contract duration is over 6 years, with a total value of approximately $337 million.

Value Assessment

Rating: good

The contract's Cost Plus Award Fee (CPAF) structure allows for performance incentives, potentially leading to better value if targets are met. Benchmarking against similar large-scale engineering services contracts is difficult without more granular cost data, but the total value appears reasonable for the scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The pricing discovery process is robust due to multiple bidders vying for the contract.

Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently for essential space exploration and technology development services.

Public Impact

Supports NASA's mission-critical engineering and technology development for spaceflight hardware and software. Facilitates the development of new technologies crucial for future space and science missions. Ensures the reliability and success of space missions through rigorous testing and integration. Contributes to advancements in aerospace engineering and scientific discovery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns inherent in Cost Plus Award Fee contracts.
  • Dependence on a single contractor for critical testing services.
  • Scope creep could increase the total contract value beyond initial estimates.

Positive Signals

  • Awarded through full and open competition, suggesting competitive pricing.
  • Performance incentives in CPAF structure can drive efficiency.
  • Contract supports development of cutting-edge technologies for future missions.
  • Long-term contract provides stability for critical services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting aerospace and defense. Spending in this sector is often characterized by high R&D costs, complex project management, and long development cycles, with significant government investment.

Small Business Impact

The contract data indicates that small business participation is not a primary focus, as the prime contractor is not a small business and no specific small business set-aside is mentioned. Opportunities for small businesses would likely be through subcontracting.

Oversight & Accountability

The contract is managed by NASA's Goddard Space Flight Center, which has established oversight mechanisms for its procurements. The CPAF structure includes award-fee criteria that require regular evaluation and reporting, contributing to accountability.

Related Government Programs

  • Engineering Services
  • National Aeronautics and Space Administration Contracting
  • National Aeronautics and Space Administration Programs

Risk Flags

  • Cost overrun potential in CPAF structure.
  • Contractor performance risk.
  • Dependence on single entity for critical services.
  • Technological obsolescence risk.
  • Scope creep potential.

Tags

engineering-services, national-aeronautics-and-space-administr, md, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $337.2 million to PERATON INC.. THE ETIS III CONTRACT WILL PROVIDE ENVIRONMENTAL TEST AND INTEGRATION RELATED SERVICES FOR NASA GSFC ENGINEERING AND TECHNOLOGY DIRECTORATE (ETD) MECHANICAL SYSTEMS DIVISION AND RELATED ORGANIZATIONS FOR THE FORMULATION, DESIGN, DEVELOPMENT, FABRICATION, INTEGRATION, TESTING, VERIFICATION, AND OPERATIONS OF SPACEFLIGHT AND GROUND SYSTEM HARDWARE AND SOFTWARE, INCLUDING DEVELOPMENT AND VALIDATION OF NEW TECHNOLOGIES TO ENABLE FUTURE SPACE AND SCIENCE MISSIONS.

Who is the contractor on this award?

The obligated recipient is PERATON INC..

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $337.2 million.

What is the period of performance?

Start: 2019-10-01. End: 2026-04-30.

How will the performance incentives within the Cost Plus Award Fee structure be measured and what are the potential award fee amounts?

The performance incentives are tied to specific award-fee criteria established by NASA for the ETIS III contract. These criteria likely relate to technical performance, schedule adherence, and cost management. The potential award fee amounts are determined by the degree to which the contractor meets or exceeds these defined criteria, aiming to motivate superior performance beyond basic contract requirements.

What are the specific risks associated with Peraton Inc. being the sole prime contractor for these critical integration and testing services?

The primary risk is the potential for service disruption if Peraton Inc. faces financial difficulties, operational issues, or fails to meet performance standards. This could delay NASA's critical spaceflight hardware and software development and testing. Additionally, a sole prime contractor may have less incentive to innovate or reduce costs over time compared to a more competitive environment.

How effectively will the ETIS III contract enable the development and validation of new technologies for future space missions?

The contract's effectiveness in enabling new technology development hinges on the clarity of requirements, the flexibility of the CPAF structure to accommodate innovation, and NASA's active engagement in guiding and evaluating these efforts. If well-managed, the contract can provide the necessary resources and expertise for Peraton to successfully develop and validate technologies crucial for NASA's ambitious future space and science missions.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICESARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 80GSFC18R0034

Offers Received: 5

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 STE 7322, 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: $369,400,000

Exercised Options: $369,400,000

Current Obligation: $337,188,470

Actual Outlays: $325,783,590

Subaward Activity

Number of Subawards: 207

Total Subaward Amount: $40,088,401

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2019-10-01

Current End Date: 2026-04-30

Potential End Date: 2026-04-30 00:00:00

Last Modified: 2026-03-25

More Contracts from Peraton Inc.

View all Peraton Inc. federal contracts →

Other National Aeronautics and Space Administration Contracts

View all National Aeronautics and Space Administration contracts →

Explore Related Government Spending