DoD's $53.9M Agile Task Order for Core Mission Planning awarded to Peraton Inc
Contract Overview
Contract Amount: $53,909,054 ($53.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2021-03-08
End Date: 2025-03-07
Contract Duration: 1,460 days
Daily Burn Rate: $36.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: CORE MISSION PLANNING (CMP) AGILE TASK ORDER
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $53.9 million to PERATON INC. for work described as: CORE MISSION PLANNING (CMP) AGILE TASK ORDER Key points: 1. Contract awarded on a Time and Materials basis, which can pose cost control challenges. 2. The contract duration of 1460 days (4 years) suggests a long-term need for these services. 3. Awarded under full and open competition, indicating a broad market solicitation. 4. The task order is a Delivery Order, implying it's part of a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 541512 points to Computer Systems Design Services. 6. The contract is managed by the Department of the Air Force, a major component of the DoD. 7. The contractor, Peraton Inc., has a significant presence in the federal contracting space.
Value Assessment
Rating: fair
The Time and Materials (T&M) pricing structure for this $53.9 million contract requires careful monitoring to ensure value for money. Without fixed price components, the final cost is directly tied to the hours worked and the rates charged. Benchmarking T&M contracts for similar computer systems design services is crucial. While specific comparable data is not provided, T&M contracts generally carry a higher risk of cost overruns compared to fixed-price arrangements if not managed diligently. The contract's duration of four years suggests a sustained need, making effective cost management paramount.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 3 bidders indicates a moderate level of competition for this specific task order. A competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. However, the ultimate success of the competition in driving down costs depends on the specific requirements and the number of qualified bidders willing to participate.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better pricing. The fact that three bids were received suggests that taxpayer funds are likely being used efficiently, though further analysis of the bid prices would be needed for definitive conclusions.
Public Impact
This contract directly supports the Department of Defense's core mission planning capabilities, enhancing operational effectiveness. The services provided are crucial for the Department of the Air Force's strategic and tactical planning processes. The contract's impact is primarily within the defense sector, supporting national security objectives. Workforce implications may include specialized IT and systems design professionals employed by Peraton Inc. and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure increases risk of cost overruns if not closely managed.
- Long contract duration (4 years) necessitates ongoing vigilance for scope creep and efficiency.
- Dependence on a single task order within a larger contract vehicle could obscure overall program costs.
- Specific performance metrics and their impact on contractor compensation are not detailed.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Contract awarded to Peraton Inc., a known entity in federal IT services, suggesting established capabilities.
- Task order supports critical DoD core mission planning, aligning with essential government functions.
- Delivery Order structure implies it's part of a pre-competed Indefinite Delivery/Indefinite Quantity (IDIQ) contract, potentially offering efficiencies.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. The IT services market supporting the federal government is substantial, with significant spending allocated to software development, systems integration, and IT consulting. Contracts like this, focused on mission-critical planning systems for defense agencies, represent a specialized but vital segment. Comparable spending benchmarks for similar defense-focused IT services can vary widely based on complexity, security requirements, and the specific technologies employed.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the 'ss: false' flag suggests it is not a small business prime award. This means that the primary contract is not specifically targeted towards small businesses. While there is no direct set-aside, Peraton Inc., as the prime contractor, may still engage small businesses for subcontracting opportunities to fulfill the contract requirements. The extent of small business participation would depend on Peraton's subcontracting plan and the availability of qualified small business vendors for specialized IT services.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a Delivery Order under a larger contract, oversight may also be influenced by the terms of the parent IDIQ contract. Accountability measures are typically embedded in the contract's performance work statement (PWS), including deliverables, milestones, and quality standards. Transparency is generally facilitated through contract award databases and reporting requirements, though detailed operational oversight specifics are often internal.
Related Government Programs
- Department of Defense IT Modernization Programs
- Air Force Command and Control Systems
- Agile Software Development Contracts
- Computer Systems Design Services
- Mission Planning Software
Risk Flags
- Time and Materials Pricing
- Long Contract Duration
- Potential for Cost Overruns
- Limited Competition (3 Bidders)
Tags
department-of-defense, department-of-the-air-force, it-services, computer-systems-design, agile-development, time-and-materials, full-and-open-competition, delivery-order, peraton-inc, core-mission-planning, virginia, defense-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.9 million to PERATON INC.. CORE MISSION PLANNING (CMP) AGILE TASK ORDER
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 $53.9 million.
What is the period of performance?
Start: 2021-03-08. End: 2025-03-07.
What is Peraton Inc.'s track record with similar Time and Materials contracts for the Department of Defense?
Peraton Inc. has a substantial history of performing federal contracts, including those utilizing Time and Materials (T&M) pricing structures, particularly within the Department of Defense (DoD) and intelligence community. Their experience spans various IT services, including systems integration, software development, and cybersecurity. While T&M contracts offer flexibility, they also require rigorous oversight to manage costs effectively. Peraton's performance on such contracts is generally assessed through contract performance evaluations and award fee structures, if applicable. Historical data suggests they are a capable provider, but the success of T&M awards hinges significantly on the government's ability to manage scope and monitor labor hours diligently. Specific details on their T&M performance metrics for comparable DoD contracts would require deeper access to contract performance reports and award data.
How does the $53.9 million value of this task order compare to other DoD Agile Task Orders for Computer Systems Design Services?
The $53.9 million value for this Agile Task Order for Computer Systems Design Services is a significant, but not extraordinary, figure within the context of Department of Defense (DoD) IT spending. The DoD procures a vast array of IT services, and task orders can range from a few million dollars to hundreds of millions, depending on the scope, duration, and criticality of the requirement. Agile task orders, by their nature, often focus on iterative development and rapid deployment, which can sometimes lead to fluctuating costs based on evolving requirements. Compared to large-scale system development or sustainment contracts, this task order appears to be of moderate to substantial size. Benchmarking against similar 'Computer Systems Design Services' (NAICS 541512) task orders awarded by the Air Force or other DoD components would provide a more precise comparison, but generally, a $50M+ task order indicates a complex and important project.
What are the primary risks associated with the Time and Materials (T&M) pricing model used in this contract?
The primary risk associated with the Time and Materials (T&M) pricing model is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, as payment is based on the actual labor hours expended and the cost of materials used. This can lead to unpredictability in final costs if the project scope expands, if labor productivity is lower than anticipated, or if the contractor's rates are high. For the government, effective oversight is critical to manage this risk. This includes closely monitoring the hours billed by contractor personnel, ensuring that only necessary work is performed, and verifying that the labor categories and rates are appropriate. Without stringent management and clear performance expectations, T&M contracts can become significantly more expensive than initially projected, potentially impacting the overall value for money.
How does the 'full and open competition' award strategy impact the potential for cost savings for the taxpayer?
Awarding a contract through 'full and open competition' is generally considered the most effective strategy for maximizing cost savings for the taxpayer. This approach allows any responsible source to submit a bid, thereby broadening the pool of potential offerors. A larger number of bidders typically increases competition, which in turn incentivizes contractors to offer their best pricing and most innovative solutions to win the contract. When multiple qualified companies compete, the government is more likely to receive proposals that are not only technically sound but also competitively priced. While the number of bidders (3 in this case) provides a moderate level of competition, the 'full and open' designation itself signals an intent to leverage market forces to achieve optimal value. The actual savings realized depend on the specific requirements, the market's capacity, and the government's negotiation and evaluation processes.
What are the implications of this contract being a 'Delivery Order' rather than a standalone contract?
This contract being a 'Delivery Order' signifies that it is a task order issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. This structure implies that the foundational contract, including its terms, conditions, and potentially some pricing elements, has already undergone a competitive process. Issuing a Delivery Order allows the agency to procure specific goods or services incrementally as needed, up to the ceiling of the parent IDIQ contract. For taxpayers, this can offer benefits such as streamlined procurement processes, potentially pre-negotiated favorable rates, and consolidated oversight. However, it also means that the full scope and total cost of the program might be spread across multiple delivery orders, making it essential to view this task order within the context of the larger IDIQ contract for a complete understanding of the overall investment and value.
What is the typical duration for IT services contracts of this nature within the Department of the Air Force?
The typical duration for IT services contracts, especially those involving complex systems design and development like core mission planning, within the Department of the Air Force (and the DoD broadly) can vary significantly but often spans multiple years. Contracts are frequently structured with an initial base period and multiple option periods, allowing for flexibility and adaptation to evolving technological needs and mission requirements. A four-year duration (1460 days) for a task order like this is not uncommon, particularly for projects requiring sustained development, integration, and support. Longer-term contracts provide stability for both the government and the contractor, enabling deeper understanding of requirements and fostering a more committed partnership. However, they also necessitate robust oversight mechanisms to ensure continued relevance and cost-effectiveness throughout the contract's life cycle.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $93,164,950
Exercised Options: $87,440,950
Current Obligation: $53,909,054
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $149,867
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2021-03-08
Current End Date: 2025-03-07
Potential End Date: 2025-03-07 00:00:00
Last Modified: 2025-08-08
More Contracts from Peraton Inc.
- 200107!000034!5700!GZ80 !smc/Pks !F0470101C0001 !A!N!*!Y! !20001103!20061031!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000016429445!n!n!000000000000!ac26!rdte/Missile and Space Systems-Mgmt Support !A2 !missile and Space Systems !3000!NOT Discernable or Classified !541710!*!*!3! ! ! !*!*!*!B!*!*!B! !A !Y!R!2!003!B! !A!N!Z! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! !Y! ! !0001! — $1.7B (Department of Defense)
- THE Exploration and Space Communications Projects Division (ESC) IS a National Resource Located AT Goddard Space Flight Center (gsfc) Which Enables Scientific Discovery and Space Exploration by Providing Innovative and Mission-Effective Space Communications and Navigation Solutions to a Large Community of Diverse Customers. ESC Manages Operational Geostationary Communications Relay Satellites and Ground Systems for the Space Communications and Navigation (scan) Program AT Nasa Headquarters. Today, Scan Network Systems Consist of the Space Network (SN), the Near Earth Network (NEN), and the Deep Space Network (DSN). the Day-To-Day Management of These Three Networks IS Currently NOT Fully Consistent. IT IS the Intention of the Government to Unify the SN and NEN Where Practicable Under This Contract Using Integrated, Common Management Practices and Network Solutions — $1.5B (National Aeronautics and Space Administration)
- Nasa Goddard Space Flight Center's (gsfc) Goal for the Space Communications Networks Services Contract (scns) IS to Enable Mission Success for Every Customer Using Scns Services. KEY Objectives of the Scns Contract ARE to Decrease Cost and Maintain or Improve Operational Efficiency and Reliability, While Maintaining an Acceptable Level of Risk and Providing for Safe Operation of the Missions. the Contractor Shall Implement a Safety, Health, and Mission Assurance Program That Provides a Safe and Healthy Work Environment, Minimizes Program Risk, and Maximizes Nasa Mission Success. the Contractor Shall BE Responsible and Accountable for Achieving the Required Results. Core Requirement Functions, Such AS Configuration Management, Quality Assurance, ETC. ARE Required to Support Idiq Task Orders. the Space Network (SN) IS Comprised of a Fleet of On-Orbit Tracking and Data Relay Satellites (tdrs) and Associated Ground Systems That Provide Telecommunications Services. the Nature of the SN Architecture, I.E., Extremely Large Capital Investment, Contractor Operated Facilities, Continuous 24X7 Requirements, ETC., Lends Itself to a Core Requirements Approach. the Ground Network (GN) Consists of an Orbital Tracking Network and the Satellite Laser Ranging Network. the Nature of the Ground Network Architecture, I.E., Diverse MIX of Commercial and Government Assets, Evolving Geographic and Technical Customer Requirements, and Legacy Systems, ETC. Lends Itself to an Idiq Approach. Other Activities, I.E., Very Long Baseline Interferometry Network Operations and Maintenance (O&M), Electronic System Test Laboratory, Requirements Development, Hardware and Software Development, ETC. ARE Best Suited to an Idiq Approach in the Resource-Constrained Environment That Nasa Operates in — $1.2B (National Aeronautics and Space Administration)
- Operational Planning Implementation and Assessment Services (opias) Base Award — $800.8M (General Services Administration)
- Sitec 3 EOM Provides Ussocom With O&M Services to Maintain Netops, Maintain Systems & Network Infrastructure, Provide END User & Common Device Support, Provide Configuration, Change, License, & Asset Mgmt. Conduct Training and Perform Imacs Services — $651.0M (General Services Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)