DoD's $55.8M Peraton Contract for AF DCGS DMS DRT Shows Full and Open Competition
Contract Overview
Contract Amount: $55,778,244 ($55.8M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2015-11-10
End Date: 2022-06-14
Contract Duration: 2,408 days
Daily Burn Rate: $23.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: AF DCGS DMS DRT
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $55.8 million to PERATON INC. for work described as: AF DCGS DMS DRT Key points: 1. Contract awarded to Peraton Inc. for $55.8M over 2408 days. 2. Utilized full and open competition, suggesting a competitive price discovery process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Sector is Wired Telecommunications Carriers, a mature industry.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking against similar contracts is difficult without specific performance metrics and detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. However, the Cost Plus Fixed Fee structure may still allow for costs to exceed initial expectations.
Taxpayer Impact: Taxpayer funds are utilized, and while competition aims for efficiency, the CPFF structure warrants scrutiny to ensure value for money.
Public Impact
Ensures critical Air Force Distributed Common Ground System (DCGS) operations are supported. Supports national security by maintaining vital intelligence, surveillance, and reconnaissance (ISR) capabilities. Contract duration of over 6 years suggests long-term reliance on these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of specific performance metrics for cost benchmarking
Positive Signals
- Full and open competition
- Long contract duration indicates sustained need
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, which is generally mature. Spending benchmarks for similar complex systems integration and sustainment contracts within the DoD can vary widely based on scope and technology.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, suggesting established oversight. However, the CPFF structure necessitates diligent monitoring to control costs and ensure contractor performance aligns with taxpayer interests.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type may lead to cost overruns.
- Lack of detailed performance metrics makes value assessment difficult.
- Potential for scope creep in complex IT systems.
- Long contract duration increases exposure to technological obsolescence.
Tags
wired-telecommunications-carriers, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.8 million to PERATON INC.. AF DCGS DMS DRT
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 $55.8 million.
What is the period of performance?
Start: 2015-11-10. End: 2022-06-14.
What specific services does AF DCGS DMS DRT encompass, and how do they contribute to the DoD's mission?
AF DCGS DMS DRT likely refers to services supporting the Air Force's Distributed Common Ground System, potentially involving data management, dissemination, and related technical support. These systems are crucial for processing and disseminating intelligence, surveillance, and reconnaissance (ISR) data, enabling commanders to make informed decisions and maintain situational awareness.
What are the primary risks associated with the Cost Plus Fixed Fee contract type in this context?
The primary risk with CPFF is that the contractor has less incentive to control costs, as the government bears the majority of the cost risk. While a fixed fee provides some incentive for completion, it doesn't guarantee cost efficiency. This can lead to the final cost exceeding initial estimates if not rigorously managed and audited.
How effectively does full and open competition ensure value for money given the CPFF structure?
Full and open competition is a strong mechanism for achieving competitive pricing initially. However, its effectiveness in ensuring overall value for money is tempered by the CPFF structure. While competition drives down the initial bid, the government must still actively manage the contract to prevent cost overruns and ensure the contractor delivers the required services efficiently throughout the contract's life.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $59,610,503
Exercised Options: $56,106,270
Current Obligation: $55,778,244
Actual Outlays: $495,366
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $6,917,060
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-11-10
Current End Date: 2022-06-14
Potential End Date: 2022-06-14 00:00:00
Last Modified: 2024-10-03
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