NASA's $1.54B contract for space communications and navigation solutions awarded to Peraton Inc
Contract Overview
Contract Amount: $1,538,442,880 ($1.5B)
Contractor: Peraton Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2019-10-01
End Date: 2027-09-30
Contract Duration: 2,921 days
Daily Burn Rate: $526.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: 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.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.54 billion to PERATON INC. for work described as: 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 SOLUTIO… Key points: 1. Contract aims to unify Space Network (SN) and Near Earth Network (NEN) operations for improved efficiency. 2. Peraton Inc. is the sole awardee, raising questions about competition dynamics and potential price impacts. 3. The contract's cost-plus-award-fee structure incentivizes performance but requires careful oversight. 4. Long duration (2019-2027) suggests a strategic, long-term investment in critical space infrastructure. 5. Focus on telecommunications aligns with NASA's mission of enabling scientific discovery and space exploration. 6. The contract's value is substantial, representing a significant portion of NASA's spending in this sector.
Value Assessment
Rating: fair
The contract value of $1.54 billion over its potential duration is substantial. Benchmarking this against similar large-scale telecommunications and space infrastructure contracts is challenging due to the unique nature of NASA's requirements. The cost-plus-award-fee (CPAF) pricing structure allows for flexibility but necessitates rigorous performance monitoring to ensure value for money. Without detailed cost breakdowns or comparisons to industry standards for specific services like satellite communication relay, a definitive value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. However, the data provided does not specify the number of bidders or the evaluation process. A full and open competition is generally expected to yield competitive pricing, but the specific outcome in terms of price discovery for this complex, long-term contract requires further analysis of the bidding process and award decision.
Taxpayer Impact: A full and open competition suggests that taxpayers benefit from a process designed to achieve the best possible price for these critical space communications services.
Public Impact
Benefits scientists and researchers by providing reliable communication and navigation for space missions. Enables continued operation and potential unification of NASA's Space Network (SN), Near Earth Network (NEN), and Deep Space Network (DSN). Supports ongoing space exploration and scientific discovery by ensuring vital data transmission. Impacts the aerospace and telecommunications workforce through employment opportunities and specialized skill development. Geographic impact is national, supporting ground stations and operations centers across the United States.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns given the cost-plus-award-fee structure and long contract duration.
- Risk of vendor lock-in if Peraton becomes indispensable for critical space communications infrastructure.
- Challenges in unifying disparate network systems (SN and NEN) could lead to delays or performance issues.
- Dependence on a single contractor for such a critical national resource warrants close monitoring.
- Ensuring continued innovation and technological advancement within the contracted services.
Positive Signals
- Contract aims to improve efficiency by unifying SN and NEN operations.
- The awardee, Peraton Inc., has experience in government contracting and telecommunications.
- The long-term nature of the contract provides stability for critical space communications services.
- The cost-plus-award-fee structure incentivizes contractor performance and mission success.
- Full and open competition suggests a robust selection process was undertaken.
Sector Analysis
This contract falls within the telecommunications and IT services sector, specifically focusing on specialized space communications and navigation. The market for such services is highly specialized, dominated by a few large aerospace and defense contractors capable of meeting NASA's stringent requirements. The value of this contract is significant within this niche, reflecting the critical nature of maintaining and advancing NASA's global communication infrastructure.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Peraton Inc., may engage small businesses as subcontractors for various components or services, which would be detailed in their subcontracting plan, if applicable.
Oversight & Accountability
Oversight for this contract is likely managed by NASA's Exploration and Space Communications Projects Division (ESC) and relevant contracting officers. Accountability measures are built into the Cost Plus Award Fee (CPAF) structure, which ties a portion of the contractor's profit to performance metrics. Transparency is facilitated through contract reporting requirements, and while specific Inspector General (IG) jurisdiction isn't detailed, NASA's Office of Inspector General would have oversight authority for potential fraud, waste, or abuse.
Related Government Programs
- NASA Space Communications and Navigation (SCAN) Program
- NASA Space Network (SN)
- NASA Near Earth Network (NEN)
- NASA Deep Space Network (DSN)
- Government Telecommunications Contracts
- Aerospace and Defense IT Services
Risk Flags
- Potential for cost overruns due to CPAF structure
- Long-term dependency on a single contractor
- Complexity of unifying disparate network systems
- Need for continuous technological adaptation
- Ensuring competitive pricing over the contract's duration
Tags
telecommunications, space-communications, navigation-solutions, nasa, peraton-inc, definitive-contract, cost-plus-award-fee, full-and-open-competition, virginia, national-aeronautics-and-space-administration, it-services, aerospace
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $1.54 billion to PERATON INC.. 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. TO
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 $1.54 billion.
What is the period of performance?
Start: 2019-10-01. End: 2027-09-30.
What is Peraton Inc.'s track record with NASA and similar large-scale telecommunications contracts?
Peraton Inc. has a significant history of performing large, complex government contracts, including those for defense and intelligence agencies, as well as NASA. Their experience spans various aspects of telecommunications, IT services, and space systems. For NASA, they have previously been involved in contracts related to space communications and IT infrastructure. The scale and criticality of this specific contract suggest NASA's confidence in Peraton's capabilities, likely based on past performance evaluations and demonstrated expertise in managing similar programs. Further analysis would involve reviewing specific past performance metrics and any documented issues or commendations from previous NASA engagements.
How does the $1.54 billion contract value compare to historical NASA spending on space communications?
The $1.54 billion contract value represents a substantial investment in space communications and navigation infrastructure. To contextualize this, historical spending data for NASA's Space Communications and Navigation (SCAN) program and its constituent networks (SN, NEN, DSN) would be needed. Given that this contract aims to unify and manage these critical networks, its value likely reflects the ongoing operational costs, potential upgrades, and long-term strategic importance. It is plausible that this figure is in line with, or potentially higher than, previous aggregated annual spending on these networks, especially considering the contract's duration and scope, which includes modernization and unification efforts.
What are the primary risks associated with the Cost Plus Award Fee (CPAF) structure for this contract?
The primary risk with a CPAF structure is the potential for cost overruns if performance targets are not meticulously defined and monitored. While the 'award fee' component incentivizes the contractor to exceed expectations, the 'cost plus' element means the government pays the contractor's allowable costs plus a fee. If costs are not well-controlled or if the definition of 'awardable' performance is too broad, the total cost to the government could exceed initial estimates. Effective oversight is crucial to ensure that costs remain reasonable and that award fees are only granted for demonstrable, exceptional performance that provides clear value to NASA.
How will the unification of the Space Network (SN) and Near Earth Network (NEN) impact service delivery and efficiency?
The intention behind unifying the SN and NEN is to streamline operations, reduce redundancies, and potentially lower costs through integrated management and shared resources. This could lead to improved efficiency in data relay and communication services for a wider range of NASA missions. Potential impacts include enhanced network reliability, faster data transmission, and more flexible resource allocation. However, the unification process itself carries risks, such as technical integration challenges, potential disruptions during the transition, and the need for significant coordination between previously separate operational teams. Successful unification hinges on robust planning, execution, and ongoing management.
What are the implications of awarding such a critical national resource contract to a single entity like Peraton Inc.?
Awarding a contract for critical national infrastructure like space communications to a single entity, even after full and open competition, carries inherent risks. It can lead to a dependency on that contractor, potentially limiting future flexibility or bargaining power. If Peraton were to face significant financial or operational difficulties, it could jeopardize NASA's mission-critical communications. While competition aims to select the best value, the long-term reliance on one provider necessitates strong contract management, performance monitoring, and contingency planning to mitigate risks associated with a sole-source dependency over the contract's lifespan.
What specific performance metrics are likely used to determine the 'award fee' for Peraton Inc. under this contract?
While the specific metrics are not detailed in the provided data, award fees under a CPAF contract are typically tied to performance objectives that exceed baseline requirements. For this contract, these could include metrics related to network uptime and reliability (e.g., exceeding 99.9% availability), data throughput and latency improvements, successful integration of SN and NEN systems, cost savings achieved through operational efficiencies, responsiveness to mission needs, and successful implementation of new technologies or upgrades. NASA would establish a detailed performance plan outlining these criteria and the associated fee structure.
Industry Classification
NAICS: Information › Other Telecommunications › All Other Telecommunications
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NNG17588638R
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 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: $1,800,000,000
Exercised Options: $1,800,000,000
Current Obligation: $1,538,442,880
Actual Outlays: $1,189,055,880
Subaward Activity
Number of Subawards: 734
Total Subaward Amount: $349,854,697
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-10-01
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-04-06
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