DoD's $46.7M MDA Mobile Range Instrumentation Support Contract Awarded to Peraton Inc
Contract Overview
Contract Amount: $46,651,077 ($46.7M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2008-12-11
End Date: 2013-12-11
Contract Duration: 1,826 days
Daily Burn Rate: $25.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MDA MOBILE RANGE INSTRUMENTATION SUPPORT
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $46.7 million to PERATON INC. for work described as: MDA MOBILE RANGE INSTRUMENTATION SUPPORT Key points: 1. Contract awarded to Peraton Inc. for $46.7M over 5 years. 2. Engineering Services (NAICS 541330) sector, with a focus on defense instrumentation. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns. 5. This contract falls under the Defense Contract Management Agency's purview.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee. While common in complex projects, it carries inherent risk of cost escalation compared to fixed-price contracts. Benchmarking against similar CPFF contracts for engineering services is crucial to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes competitive pricing and ensures the government receives the best value. The specific price discovery mechanisms within the bidding process are not detailed.
Taxpayer Impact: The use of full and open competition aims to secure competitive pricing, potentially saving taxpayer dollars. However, the CPFF contract type introduces risk of costs exceeding initial estimates, impacting the ultimate taxpayer burden.
Public Impact
Supports critical Department of Defense (DoD) operations through instrumentation services. Ensures the functionality and maintenance of mobile range instrumentation systems. Impacts national security by providing essential support for testing and training exercises. The long-term nature of the contract suggests ongoing reliance on these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type increases risk of cost overruns.
- Limited information on specific performance metrics and quality assurance.
- Potential for scope creep in complex engineering services contracts.
Positive Signals
- Awarded under full and open competition, promoting competitive pricing.
- Long-term contract indicates a stable and ongoing need for services.
- Experienced contractor likely provides reliable support.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense instrumentation. Spending in this sector is often driven by national security requirements and technological advancements. Benchmarks for similar DoD engineering services contracts would provide further context on cost-effectiveness.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further investigation would be needed to determine if small businesses were involved or had opportunities to participate.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract. Their role includes ensuring contractor performance, compliance with contract terms, and proper financial management. The effectiveness of oversight is critical given the CPFF contract type.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Potential for cost overruns.
- Limited transparency on performance metrics.
- Lack of small business participation data.
- Engineering services can be prone to scope creep.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.7 million to PERATON INC.. MDA MOBILE RANGE INSTRUMENTATION SUPPORT
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 $46.7 million.
What is the period of performance?
Start: 2008-12-11. End: 2013-12-11.
What were the key performance indicators (KPIs) used to evaluate Peraton Inc.'s performance under this contract, and how did they align with the fixed fee?
The provided data does not detail the specific Key Performance Indicators (KPIs) used for this contract. For a Cost Plus Fixed Fee (CPFF) contract, KPIs are crucial for ensuring the contractor meets performance standards while managing costs. Understanding these KPIs would allow for a better assessment of whether the fixed fee was justified by the delivered value and performance outcomes.
How did the competitive bidding process for this 'full and open' contract ensure the government secured the most cost-effective solution, given the CPFF structure?
While 'full and open' competition suggests multiple bids were considered, the Cost Plus Fixed Fee (CPFF) structure inherently introduces cost uncertainty. The government likely evaluated not only the proposed fixed fee but also the contractor's proposed cost structure, management approach, and past performance. A thorough evaluation of these elements would be necessary to ensure cost-effectiveness despite the CPFF risk.
What is the potential for cost overruns with this CPFF contract, and what mechanisms are in place to mitigate such risks for taxpayer funds?
CPFF contracts carry a inherent risk of cost overruns as the government reimburses allowable costs plus a fixed fee. Mitigation strategies typically include robust oversight by the contracting officer's representative (COR), detailed cost tracking and auditing, clear definition of allowable costs, and potentially incentive clauses. Without specific details on these mechanisms, the risk to taxpayer funds remains elevated.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002408R3336
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 12975 WORLDGATE DR STE 2413, 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: $49,507,542
Exercised Options: $49,507,542
Current Obligation: $46,651,077
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017805D4395
IDV Type: IDC
Timeline
Start Date: 2008-12-11
Current End Date: 2013-12-11
Potential End Date: 2013-12-11 00:00:00
Last Modified: 2024-09-09
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