Over $148M awarded for FTI support, with a definitive contract under FAA's TEOM program
Contract Overview
Contract Amount: $148,905,729 ($148.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Transportation
Start Date: 2006-10-23
End Date: 2016-09-16
Contract Duration: 3,616 days
Daily Burn Rate: $41.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DESCRIPTION: FUNDING FOR FTI SUPPORT FOR PERIOD OCT 1 - NOV 16, 2007 UNDER TEOM DURING CR-1. CONTRACT:DTFAWA-04-C-00018.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Transportation obligated $148.9 million to PERATON INC. for work described as: DESCRIPTION: FUNDING FOR FTI SUPPORT FOR PERIOD OCT 1 - NOV 16, 2007 UNDER TEOM DURING CR-1. CONTRACT:DTFAWA-04-C-00018. Key points: 1. Contract awarded for essential FTI support services, indicating a critical need for specialized engineering. 2. The definitive contract structure suggests a long-term relationship for ongoing support requirements. 3. The contract's duration of over 3600 days points to sustained operational needs. 4. Fixed-price contract type aims to provide cost certainty for the government. 5. The award was made under the Federal Aviation Administration's TEOM program, highlighting its role in aviation infrastructure. 6. The significant funding amount underscores the scale and importance of the services provided.
Value Assessment
Rating: fair
The total award amount of $148.9 million over a period of approximately 10 years (from 2006 to 2016) suggests a substantial investment in FTI support. Benchmarking this against similar long-term engineering support contracts for critical infrastructure programs is necessary for a precise value-for-money assessment. The firm-fixed-price structure provides some cost predictability, but the overall value depends heavily on the scope and necessity of the services rendered throughout the contract's extensive duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bids suggests a reasonable level of competition for this significant contract. This competitive process is generally expected to drive more favorable pricing and ensure that the government receives a good value for the services procured.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages a wider pool of qualified contractors to participate, potentially leading to innovation and better service delivery.
Public Impact
The Federal Aviation Administration (FAA) benefits from this contract by securing essential FTI support for its operations. This contract ensures the continued functioning and maintenance of critical aviation infrastructure. The services provided likely support national airspace management and safety initiatives. The contract's impact is primarily within the federal government's aviation sector, with indirect benefits to air travelers and the broader economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The long duration of the contract (over 10 years) could lead to potential cost overruns if not managed effectively, especially with evolving technological needs.
- The substantial funding amount requires diligent oversight to ensure funds are used efficiently and for the intended purpose.
- Reliance on a single definitive contract for such a long period might limit flexibility in adapting to new technologies or service providers.
Positive Signals
- The use of full and open competition suggests a structured procurement process aimed at securing the best value.
- The firm-fixed-price contract type provides cost certainty for the government, mitigating risks associated with cost-plus arrangements.
- The contract's award to Peraton Inc. indicates a potentially established relationship and expertise in providing these specialized services.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the Federal Aviation Administration's critical infrastructure. The engineering services market is vast, encompassing design, consulting, and technical support for complex systems. The FAA's reliance on such contracts highlights the significant spending within government agencies for specialized technical expertise to maintain and upgrade national systems. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by agencies like the Department of Defense or NASA.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions or subcontracting goals for this contract. As a large definitive contract, it is possible that subcontracting opportunities may exist for small businesses, but this would require further investigation into the contractor's subcontracting plan and performance.
Oversight & Accountability
Oversight for this contract would primarily reside with the Federal Aviation Administration's contracting officers and program managers. The firm-fixed-price nature of the contract implies a focus on deliverables and performance against the agreed-upon scope. Transparency would be enhanced through regular reporting requirements and potential audits. The Inspector General of the Department of Transportation would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Federal Aviation Administration (FAA) Operations
- Aviation Systems Engineering
- Critical Infrastructure Support
- Information Technology Support Services
- Engineering and Technical Services
Risk Flags
- Long contract duration may lead to outdated technology or services.
- Potential for cost overruns if scope is not tightly managed.
- Requires robust oversight to ensure value for money over the contract's life.
Tags
engineering-services, federal-aviation-administration, department-of-transportation, definitive-contract, firm-fixed-price, full-and-open-competition, virginia, telecommunications-infrastructure, large-contract, aviation-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $148.9 million to PERATON INC.. DESCRIPTION: FUNDING FOR FTI SUPPORT FOR PERIOD OCT 1 - NOV 16, 2007 UNDER TEOM DURING CR-1. CONTRACT:DTFAWA-04-C-00018.
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $148.9 million.
What is the period of performance?
Start: 2006-10-23. End: 2016-09-16.
What specific FTI (Federal Telecommunications Infrastructure) support services were included under this contract?
The description 'FUNDING FOR FTI SUPPORT FOR PERIOD OCT 1 - NOV 16, 2007 UNDER TEOM DURING CR-1' is quite brief and does not detail the specific FTI support services. FTI typically encompasses the management, operation, and maintenance of telecommunications networks and infrastructure. For the FAA, this could involve ensuring the reliability and security of communication systems essential for air traffic control, navigation, and operational data exchange. The 'TEOM' (Technical Engineering and Operations Management) program likely outlines the specific technical and operational requirements. Further details would be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not provided here.
How does the $148.9 million award compare to other FAA engineering services contracts?
The $148.9 million award for FTI support over approximately 10 years represents a significant investment by the FAA. To benchmark this, one would need to analyze the average award values and durations for similar engineering and technical support contracts within the FAA and other federal agencies. For instance, comparing it to contracts for air traffic control system maintenance, radar system upgrades, or cybersecurity services for aviation infrastructure would provide context. Without specific comparative data on the scope and duration of other FAA contracts, it's challenging to definitively state if this award is high, low, or average. However, the scale suggests it's a major contract supporting core FAA functions.
What are the key risks associated with a long-term definitive contract like this?
Long-term definitive contracts, such as this one spanning over a decade, carry several inherent risks. Firstly, there's the risk of technological obsolescence; the technology or services required at the end of the contract term might be vastly different from those at the beginning, potentially making the contracted services less relevant or efficient. Secondly, scope creep can be a risk if the contract's scope is not tightly managed, leading to increased costs or extended timelines. Thirdly, contractor performance degradation over time is a possibility, where initial high performance might wane. Finally, market conditions and pricing can change significantly over a decade, potentially leading to the government paying above-market rates if the fixed price was set many years prior without adequate adjustment mechanisms.
What is the significance of the 'CR-1' designation mentioned in the description?
The 'CR-1' designation likely refers to a specific contingency or critical response period. In government contracting, such designations often indicate that the contract is being utilized during an emergency, a period of heightened operational tempo, or a specific phase of a larger project or mission. For the FAA, 'CR-1' could relate to a specific operational phase, a security alert level, or a critical infrastructure support requirement that necessitated immediate and sustained FTI support. Understanding the exact nature of 'CR-1' would provide crucial context for the urgency and importance of the services procured under this contract.
What does the 'NAICS code 541330' for Engineering Services imply about the contractor's capabilities?
The NAICS code 541330, 'Engineering Services,' indicates that the primary business activity of the contractor, Peraton Inc. in this case, is providing engineering services. This classification covers establishments primarily engaged in providing architectural, engineering, and related services. For this specific contract, it implies that Peraton Inc. possesses the necessary expertise, licenses, and professional staff to perform complex engineering tasks related to telecommunications infrastructure, likely including design, analysis, integration, and potentially project management. It suggests a focus on technical problem-solving and the application of engineering principles to meet the FAA's requirements.
How does the 'DEFINITIVE CONTRACT' type influence the contract's flexibility and government control?
A definitive contract is a standard, legally binding agreement that outlines the rights and obligations of both the government and the contractor. Unlike other contract types (e.g., letter contracts), it is fully negotiated and finalized before performance begins. This provides a high degree of certainty regarding terms, conditions, and pricing. For the government, it means clear expectations and a solid basis for oversight. However, definitive contracts can sometimes be less flexible in adapting to unforeseen changes compared to more agile contract vehicles. Modifications typically require formal amendments, which can be a time-consuming process. The government retains control through the defined scope, performance standards, and payment terms.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)
Address: 12975 WORLDGATE DR, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,760,000,000
Exercised Options: $151,431,219
Current Obligation: $148,905,729
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Timeline
Start Date: 2006-10-23
Current End Date: 2016-09-16
Potential End Date: 2019-07-09 00:00:00
Last Modified: 2019-11-11
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