DoD's $34.7M R&D Contract with Peraton Inc. Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $34,768,838 ($34.8M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2016-06-01
End Date: 2022-07-31
Contract Duration: 2,251 days
Daily Burn Rate: $15.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF O&M LABOR, R&D LABOR, O&M ODCS (TRAVEL AND MATERIAL)
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $34.8 million to PERATON INC. for work described as: IGF::OT::IGF O&M LABOR, R&D LABOR, O&M ODCS (TRAVEL AND MATERIAL) Key points: 1. Significant spending on R&D labor and materials for the Department of Defense. 2. Sole-source award to Peraton Inc. raises questions about competitive pricing. 3. Contract duration of 2251 days suggests long-term reliance on this vendor. 4. NAICS code 541712 indicates a focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a lack of competition, makes it difficult to benchmark pricing effectively. Without competitive bids, it's hard to ascertain if the $34.7M represents a fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on this large contract may result in taxpayers paying more than necessary for R&D services.
Public Impact
Taxpayers may be overpaying for critical R&D services due to the absence of competitive bidding. The long contract duration could indicate a lack of readily available alternative vendors or a strategic decision to maintain a single provider. The specific nature of the R&D is not detailed, making it challenging to assess its broader public benefit or necessity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- CPFF contract type
- Long contract duration
Positive Signals
- Supports critical R&D for the Department of Defense
- Contract awarded to an established entity (Peraton Inc.)
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value for money, especially when awarded non-competitively.
Small Business Impact
The data does not indicate any specific involvement or benefit to small businesses under this contract. Sole-source awards often bypass opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants increased oversight to ensure Peraton Inc. is delivering services efficiently and at a reasonable cost. Transparency regarding the justification for the sole-source award is crucial for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Sole-source award justification unclear
- Potential for cost overruns (CPFF)
- Limited transparency on R&D outcomes
- Long contract duration without clear milestones
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.8 million to PERATON INC.. IGF::OT::IGF O&M LABOR, R&D LABOR, O&M ODCS (TRAVEL AND MATERIAL)
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $34.8 million.
What is the period of performance?
Start: 2016-06-01. End: 2022-07-31.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive approaches considered?
The justification for a sole-source award is critical for understanding the procurement process. Agencies typically must demonstrate that only one responsible source can satisfy the agency's needs. Without this justification, it's impossible to assess if competitive options were overlooked, potentially leading to suboptimal pricing and reduced innovation.
How does the cost-plus-fixed-fee structure impact cost control and efficiency for this R&D contract?
Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, as the fee is a percentage of the total costs. While it allows for flexibility in R&D where costs can be unpredictable, it necessitates robust oversight to prevent cost overruns and ensure the fixed fee remains reasonable relative to the effort and risk involved.
What specific R&D outcomes or deliverables are expected from this $34.7M contract, and how is their success being measured?
Understanding the specific R&D outcomes and the metrics for success is vital for evaluating the contract's effectiveness. Without clear deliverables and performance measures, it's difficult to determine if the significant investment is yielding the intended technological advancements or strategic advantages for the Department of Defense.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › NATURAL RESOURCES R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA702215R0016
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $37,302,496
Exercised Options: $36,201,296
Current Obligation: $34,768,838
Actual Outlays: $1,662,978
Subaward Activity
Number of Subawards: 461
Total Subaward Amount: $233,026,365
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-06-01
Current End Date: 2022-07-31
Potential End Date: 2022-07-31 00:00:00
Last Modified: 2024-06-25
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