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 ServicesArchitectural, Engineering, and Related ServicesEngineering 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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