Department of Defense awards $6.6M sole-source contract for nuclear software analysis to Peraton Inc
Contract Overview
Contract Amount: $6,594,518 ($6.6M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2025-05-01
End Date: 2026-04-30
Contract Duration: 364 days
Daily Burn Rate: $18.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NUCLEAR SOFTWARE CROSS CHECK ANALYSIS (NSCCA)/NUCLEAR SAFETY ANALYSIS AND TECHNICAL EVALUATION (NSATE)
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $6.6 million to PERATON INC. for work described as: NUCLEAR SOFTWARE CROSS CHECK ANALYSIS (NSCCA)/NUCLEAR SAFETY ANALYSIS AND TECHNICAL EVALUATION (NSATE) Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities and potentially impacting price. 2. The contract is for nuclear software cross-check and safety analysis, a critical but specialized service. 3. Performance period of one year suggests a focused scope of work. 4. The contractor, Peraton Inc., has a significant presence in government contracting, particularly in defense. 5. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not closely managed. 6. No small business set-aside was applied, indicating a focus on specialized capabilities.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging due to its specialized nature and sole-source award. However, the cost-plus-fixed-fee structure requires careful monitoring to ensure costs remain reasonable and do not escalate beyond initial estimates. Without competitive bids, it's difficult to definitively assess if the pricing represents optimal value for money. The fixed fee component provides some cost control, but the variable cost component necessitates diligent oversight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning the Department of Defense did not solicit bids from multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency precludes a full and open competition. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids had been received.
Taxpayer Impact: Taxpayers may not benefit from the cost savings that can arise from a competitive bidding process. The absence of competition means the government did not leverage market dynamics to secure the most economical price for these critical nuclear safety services.
Public Impact
The primary beneficiaries are the Department of the Air Force, which will receive critical nuclear software analysis and safety evaluations. This contract supports national security by ensuring the integrity and safety of nuclear-related software systems. The services delivered are highly specialized, focusing on technical evaluation and cross-checking of complex software. The geographic impact is likely concentrated within the Department of Defense's nuclear operations and facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition, potentially increasing costs for taxpayers.
- Cost-plus-fixed-fee contract type requires robust oversight to manage cost escalations.
- Specialized nature of the work may limit the pool of qualified contractors, justifying sole-source in some cases but still warrants scrutiny.
- Lack of small business involvement means potential missed opportunities for smaller, specialized firms.
Positive Signals
- Contract addresses critical nuclear safety and software integrity, a high-priority area for national security.
- Peraton Inc. is an established contractor with experience in defense and specialized technical services.
- The fixed fee component provides a degree of cost certainty for the contractor's effort.
- The contract duration is relatively short, allowing for reassessment of needs and contractor performance.
Sector Analysis
The engineering services sector, particularly within defense, is characterized by highly specialized technical expertise and significant government spending. This contract falls under the engineering services NAICS code (541330) and specifically addresses nuclear safety and software analysis, a niche within the broader defense engineering market. The market for such specialized services is often concentrated among a few large, experienced contractors due to the high barriers to entry, including security clearances, specialized knowledge, and established relationships.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The specialized nature of nuclear software analysis likely requires capabilities that are more readily available from larger, established defense contractors. This means that opportunities for small businesses to participate in this specific contract are limited, potentially impacting the broader small business ecosystem in this niche sector.
Oversight & Accountability
Oversight for this contract will primarily fall under the Department of the Air Force's contracting and program management offices. Given the critical nature of nuclear safety, robust oversight is expected to focus on the technical accuracy and completeness of the software analysis and safety evaluations. Transparency may be limited due to the sole-source nature and the sensitive aspects of nuclear operations. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Nuclear Weapons Complex Support Services
- Defense Software Engineering Services
- Government Technical Consulting
- National Nuclear Security Administration Contracts
- Air Force Research and Development
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of small business participation
Tags
defense, department-of-defense, department-of-the-air-force, engineering-services, nuclear-safety, software-analysis, sole-source, cost-plus-fixed-fee, peraton-inc, virginia, delivery-order, not-competed
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.6 million to PERATON INC.. NUCLEAR SOFTWARE CROSS CHECK ANALYSIS (NSCCA)/NUCLEAR SAFETY ANALYSIS AND TECHNICAL EVALUATION (NSATE)
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 $6.6 million.
What is the period of performance?
Start: 2025-05-01. End: 2026-04-30.
What is Peraton Inc.'s track record with similar sole-source contracts for nuclear safety analysis?
Peraton Inc. has a substantial history of performing complex technical services for the U.S. government, including significant work within the defense sector. While specific details on their track record with sole-source nuclear safety analysis contracts are not publicly itemized in this data, their broader portfolio suggests experience in high-security, technically demanding environments. Their past performance in areas like intelligence, cybersecurity, and space operations indicates a capacity to handle specialized government requirements. However, the absence of competitive bidding for this particular contract means that direct comparisons of Peraton's pricing and performance against other potential bidders for this specific service are not available, making a detailed track record assessment challenging without further internal government data.
How does the $6.6 million award compare to historical spending on similar nuclear software analysis services?
Direct historical spending comparisons for this specific 'NUCLEAR SOFTWARE CROSS CHECK ANALYSIS (NSCCA)/NUCLEAR SAFETY ANALYSIS AND TECHNICAL EVALUATION (NSATE)' service are difficult without access to detailed historical contract databases. The $6.6 million figure for a one-year contract (2025-04-30 to 2026-04-30) represents a significant investment in specialized technical analysis. However, the value is highly dependent on the scope and complexity of the software being analyzed. If similar analyses have been conducted in the past, either by Peraton or other contractors, a comparison of the cost per analysis or cost per system evaluated would be more meaningful. Given the sole-source nature, it's challenging to benchmark against competitive pricing, making it difficult to definitively state if this represents an increase or decrease in value compared to potentially competed efforts.
What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for nuclear safety analysis?
The primary risks associated with this contract structure are twofold. Firstly, the sole-source award inherently limits competition, which can lead to higher prices than might be achieved in a competitive environment. The government does not benefit from the price discovery mechanisms that multiple bids provide. Secondly, the Cost Plus Fixed Fee (CPFF) contract type, while providing some cost certainty through the fixed fee, allows the contractor to recoup all allowable costs. This can create a potential incentive for cost overruns, as the contractor is guaranteed to cover their expenses and earn a fee. Without rigorous oversight and detailed cost tracking, there's a risk that costs could escalate beyond what is necessary or efficient for the required services, impacting overall value for taxpayers.
How effective is the Cost Plus Fixed Fee (CPFF) structure in ensuring value for money in specialized defense contracts?
The effectiveness of the CPFF structure in ensuring value for money is highly dependent on the specific contract and the level of oversight applied. In highly specialized or R&D-intensive areas where the scope of work is uncertain or difficult to define precisely upfront, CPFF can be a suitable choice as it allows for flexibility and covers necessary costs. However, it carries inherent risks of cost escalation if not managed diligently. For value for money, the government must have robust mechanisms in place to audit costs, ensure efficiency, and scrutinize the necessity of expenditures. The fixed fee component provides a ceiling on profit, but the variable cost component requires constant vigilance. In contexts where scope is well-defined, fixed-price contracts often offer better value, but for complex, evolving technical challenges, CPFF can be justified if managed properly.
What are the implications of the 'NOT COMPETED' status for future procurements in this specialized nuclear safety analysis domain?
The 'NOT COMPETED' status for this contract suggests that either there are very few contractors capable of performing this highly specialized work, or there were specific circumstances (e.g., urgency, unique capabilities) that precluded a competitive process. For future procurements in this domain, this could indicate a market concentration where a few firms dominate. It might also signal to potential new entrants that the barriers to entry are high. If the government intends to foster more competition in the future, it may need to invest in market research, potentially break down requirements into smaller components, or explore ways to develop new sources of supply. Otherwise, sole-source awards may continue to be the norm, limiting competitive pressure on pricing and innovation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $6,594,518
Exercised Options: $6,594,518
Current Obligation: $6,594,518
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA820721D1001
IDV Type: IDC
Timeline
Start Date: 2025-05-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-21
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