Peraton Inc. awarded $34.1M for Agile Software Development Services by the Department of the Air Force
Contract Overview
Contract Amount: $34,139,730 ($34.1M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2023-12-01
End Date: 2026-09-30
Contract Duration: 1,034 days
Daily Burn Rate: $33.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: AGILE SOFTWARE DEVELOPMENT SERIVCES
Place of Performance
Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $34.1 million to PERATON INC. for work described as: AGILE SOFTWARE DEVELOPMENT SERIVCES Key points: 1. Contract awarded for agile software development, indicating a need for adaptable and iterative solutions. 2. The contract duration of over 3 years suggests a significant, ongoing requirement for these services. 3. Awarded under full and open competition, implying a robust bidding process. 4. The use of Time and Materials pricing may present cost control challenges if not closely managed. 5. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services.
Value Assessment
Rating: fair
The contract value of $34.1 million over approximately 3 years for agile software development services appears within a reasonable range for complex IT projects. However, without specific details on the scope of work, deliverables, and the contractor's proposed labor mix and rates, a definitive value-for-money assessment is challenging. The Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not meticulously monitored and controlled by the government. Benchmarking against similar agile development contracts would provide a clearer picture of its competitiveness.
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. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the number of bidders can vary significantly based on the complexity and specialized nature of the services required.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through a competitive bidding process, ensuring the government receives the best possible value for its investment.
Public Impact
The Department of the Air Force benefits from enhanced agile software development capabilities, crucial for modernizing its IT infrastructure and operational systems. Services delivered will likely support the development and maintenance of critical software applications, potentially impacting mission readiness and efficiency. The geographic impact is primarily within the operational sphere of the Department of the Air Force, though the contractor's personnel may be located remotely or at specific sites. Workforce implications may include the need for specialized software developers, project managers, and cybersecurity professionals, both within the contractor's organization and potentially requiring government oversight personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can lead to uncontrolled cost growth if not managed effectively.
- Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services.
- The contract is a delivery order, suggesting it's part of a larger IDIQ; the overall value and performance of the parent contract are unknown.
- Limited information on the specific software being developed hinders a deeper understanding of its criticality and potential risks.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- Agile software development methodology suggests a focus on adaptability and responsiveness to evolving requirements.
- The contract duration implies a stable, long-term need for these critical IT services.
- The contractor, Peraton Inc., is a known entity in the government contracting space, suggesting some level of established capability.
Sector Analysis
The IT services sector, particularly within government contracting, is highly competitive and dynamic. Agile software development is a key capability sought by federal agencies to improve the speed and quality of software delivery. This contract fits within the broader market for computer systems design services, which encompasses a wide range of IT support and development activities. Comparable spending benchmarks for similar agile development contracts within the Department of Defense can vary widely based on scope, complexity, and security requirements.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct beneficiaries of this award. However, the prime contractor, Peraton Inc., may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their subcontracting plans and the nature of the work. The absence of a small business set-aside means opportunities for small business participation are not guaranteed through this specific contract vehicle.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are established through the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. The Inspector General's office may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.
Related Government Programs
- Agile Software Development
- Computer Systems Design Services
- Department of Defense IT Modernization Programs
- Air Force Software Factory Initiatives
- Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of detailed performance metrics in the award data.
- Scope of work and specific deliverables are not fully defined in the provided data.
- The parent IDIQ contract's overall performance and value are unknown.
Tags
it-services, software-development, agile, department-of-defense, air-force, full-and-open-competition, time-and-materials, delivery-order, computer-systems-design, peraton-inc, nebraska
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.1 million to PERATON INC.. AGILE SOFTWARE DEVELOPMENT SERIVCES
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $34.1 million.
What is the period of performance?
Start: 2023-12-01. End: 2026-09-30.
What is Peraton Inc.'s track record with the Department of Defense for similar agile software development contracts?
Peraton Inc. has a significant history of contracting with the Department of Defense (DoD) across various IT and technical services. While specific data on their performance for agile software development contracts of this exact nature is not detailed here, their broader portfolio includes work on complex systems, cybersecurity, and enterprise IT solutions. Analyzing their past performance ratings, any contract disputes, or awards for similar services within the DoD would provide a more robust assessment. Generally, Peraton is considered a large, established government contractor with substantial experience, but the success of any specific agile development effort hinges on project management, technical execution, and effective communication with the government client.
How does the $34.1 million contract value compare to other agile software development contracts awarded by the Air Force?
The $34.1 million contract value for agile software development services over approximately three years is a substantial award, but its relative size depends heavily on the specific scope and complexity of the software being developed. The Air Force, like other branches of the DoD, invests heavily in IT modernization and software capabilities, with contract values ranging from hundreds of thousands to hundreds of millions of dollars. Contracts for enterprise-level systems, large-scale platform development, or mission-critical applications can easily exceed this amount. Conversely, smaller, more focused agile development efforts for specific modules or prototypes might be valued significantly lower. Without detailed scope information, direct comparison is difficult, but this award suggests a significant, ongoing requirement.
What are the primary risks associated with Time and Materials (T&M) contracts for software development?
The primary risk associated with Time and Materials (T&M) contracts, like this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred. If not managed diligently, contractors may not have a strong incentive to control costs or improve efficiency, leading to higher-than-anticipated expenditures for the government. Effective oversight, detailed tracking of hours and expenses, and clear definition of 'materials' are crucial to mitigate these risks. The government must actively monitor progress and ensure that the effort expended is reasonable and necessary for the work performed.
How effective is 'full and open competition' in ensuring value for taxpayer money in IT services contracts?
Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in IT services contracts. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, which naturally drives down prices through competitive pressure. It also encourages innovation as contractors strive to offer the best technical solutions at the most competitive prices. Furthermore, it promotes fairness and transparency in the procurement process. While it requires more administrative effort to manage a broad competition, the potential for cost savings and access to a wider range of capabilities typically outweighs these challenges for significant IT investments.
What historical spending patterns exist for agile software development services within the Department of the Air Force?
The Department of the Air Force has consistently increased its spending on IT services, including agile software development, over the past decade. This trend is driven by the need to modernize legacy systems, enhance cybersecurity, and adopt more efficient, iterative development methodologies. Agencies like the Air Force are shifting towards agile approaches to respond more quickly to evolving threats and operational requirements. Historical data would likely show a growing proportion of the IT budget allocated to agile development, cloud services, and cybersecurity solutions, reflecting a strategic move away from traditional, waterfall-style development projects towards more flexible and responsive IT acquisition strategies.
What are the potential implications of this contract being a 'delivery order' under a larger IDIQ contract?
This contract being a 'delivery order' signifies that it is a task-specific order issued against a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The implications are several: first, the competition for this specific delivery order might have been limited to the awardees of the parent IDIQ, depending on the IDIQ's structure. Second, the overall value and performance assessment of the parent IDIQ contract are crucial for understanding the broader context. Third, the terms and conditions of the parent IDIQ govern this delivery order, including pricing structures and general requirements. This approach allows agencies to procure services more efficiently once a broader contract vehicle has been established through initial competition.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA873023R8507
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
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: $83,358,520
Exercised Options: $34,217,687
Current Obligation: $34,139,730
Actual Outlays: $1,432,626
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $81,603,769
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2023-12-01
Current End Date: 2026-09-30
Potential End Date: 2029-08-31 00:00:00
Last Modified: 2025-12-16
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