DoD's $20.4M contract for on-site support awarded to Peraton Technology Services Inc. with 1256 days duration

Contract Overview

Contract Amount: $20,413,611 ($20.4M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: Department of Defense

Start Date: 2021-10-22

End Date: 2025-03-31

Contract Duration: 1,256 days

Daily Burn Rate: $16.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TMPC ON-SITE SUPPORT AND SUSTAINMENT SUPPORT.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to PERATON TECHNOLOGY SERVICES INC. for work described as: TMPC ON-SITE SUPPORT AND SUSTAINMENT SUPPORT. Key points: 1. Value for money is difficult to assess without detailed cost breakdowns and performance metrics. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery and innovation. 3. Risk indicators include the sole-source nature and the Cost Plus Fixed Fee contract type, which can incentivize cost overruns. 4. Performance context is limited to the duration and type of service provided. 5. Sector positioning is within engineering services supporting naval operations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of publicly available comparable sole-source awards for similar on-site support and sustainment services. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, can lead to higher costs if not managed rigorously. Without detailed performance data and cost breakdowns, it's difficult to definitively assess if the government is receiving optimal value for the $20.4 million obligation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, or in urgent situations. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation from a wider pool of contractors.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to ensure the most cost-effective solution is selected.

Public Impact

The Department of the Navy benefits from specialized on-site support and sustainment services. These services are crucial for maintaining operational readiness and technical capabilities within naval facilities. The contract's geographic impact is likely concentrated in Virginia, where the contractor is located and services are presumably rendered. The contract supports a workforce of personnel required to deliver these specialized engineering and sustainment services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
Cost Plus Fixed Fee contract type can lead to cost escalation.
Limited transparency on specific performance metrics and value realization.

Positive Signals

Contract provides essential sustainment and on-site support for critical naval operations.
Long-term duration suggests a stable and ongoing need for these services.
Contractor is based in Virginia, potentially supporting local economic activity.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a significant part of the federal procurement landscape, particularly for defense agencies. The market for specialized technical support and sustainment services is competitive, but specific niche capabilities, as potentially required here, can lead to sole-source awards. Comparable spending in this sector often involves complex systems integration, maintenance, and operational support for military assets.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. Furthermore, the 'ss' field is also false, suggesting it's not a small business prime contractor. This means that opportunities for small businesses to participate as subcontractors may be limited or dependent on the prime contractor's subcontracting plan, if any.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. Accountability measures would be defined within the contract's terms and conditions, including performance standards and payment schedules. Transparency is limited due to the sole-source nature and the CPFF structure, making detailed public scrutiny of cost-effectiveness challenging. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Naval Operations Support Contracts
Defense Engineering Services
On-Site Technical Support
Sustainment Services Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to PERATON TECHNOLOGY SERVICES INC.. TMPC ON-SITE SUPPORT AND SUSTAINMENT SUPPORT.

Who is the contractor on this award?

The obligated recipient is PERATON TECHNOLOGY SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2021-10-22. End: 2025-03-31.

What is Peraton Technology Services Inc.'s track record with the Department of Defense, particularly for similar on-site support and sustainment contracts?

Peraton Technology Services Inc. has a significant history of contracting with the Department of Defense across various service areas. While specific details on their track record for 'TMPC ON-SITE SUPPORT AND SUSTAINMENT SUPPORT' are not fully detailed in this data, their broader portfolio often includes complex technical services, IT modernization, and mission support for defense agencies. Analyzing their past performance on similar contracts, including on-time delivery, quality of service, and adherence to budget, would provide a clearer picture of their capabilities and reliability in fulfilling this specific requirement. Publicly available contract databases and performance reports (if accessible) would be the primary sources for such an assessment.

How does the $20.4 million cost for 1256 days of support compare to market rates for similar engineering and sustainment services?

Determining the precise value for money requires a detailed breakdown of the services rendered and the labor categories involved. However, a rough estimate can be made by dividing the total contract value by the duration: $20,413,611 / 1256 days ≈ $16,253 per day. This daily rate encompasses all direct and indirect costs, profit, and overhead. Benchmarking this against industry standards for specialized on-site engineering and sustainment support, especially in a defense context, is complex. Factors like security clearances, specialized skills, and the criticality of the support influence pricing. Without specific service level agreements and labor rates, a definitive comparison to market rates is difficult, but this figure provides a starting point for internal government cost analysis.

What are the primary risks associated with a sole-source, Cost Plus Fixed Fee (CPFF) contract for sustainment services?

The primary risks associated with a sole-source, CPFF contract are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher prices than might be achieved in a competed environment. The government lacks the benefit of multiple bids to ensure optimal price discovery. Secondly, the CPFF structure, while providing flexibility, carries inherent risks of cost escalation. The contractor is reimbursed for allowable costs plus a fixed fee representing profit. If costs increase, the contractor's profit margin (as a percentage of total cost) decreases, which can incentivize them to incur costs to reach a target profit level, rather than focusing on cost efficiency. Robust government oversight and detailed cost monitoring are crucial to mitigate these risks.

What specific sustainment and on-site support functions are covered under this contract, and how do they contribute to naval readiness?

The contract data indicates 'TMPC ON-SITE SUPPORT AND SUSTAINMENT SUPPORT.' While specific functional details are not provided, this typically encompasses a range of activities critical to maintaining the operational effectiveness of naval systems, equipment, or facilities. This could include preventative maintenance, corrective maintenance, technical assistance, system upgrades, logistical support, and potentially training. By ensuring that critical naval assets are functional, reliable, and up-to-date, these services directly contribute to the Department of the Navy's overall readiness, enabling them to execute their missions effectively and respond to operational demands.

How has federal spending on engineering services (NAICS 541330) by the Department of the Navy trended over the past five years?

Analyzing the precise spending trend for engineering services (NAICS 541330) specifically by the Department of the Navy over the past five years requires access to comprehensive federal procurement data. Generally, spending in this category by defense agencies tends to be substantial and relatively stable, reflecting the ongoing need for technical expertise in areas like system design, development, testing, and sustainment. However, fluctuations can occur based on specific program requirements, budget allocations, and strategic priorities. For a precise trend analysis, one would need to query databases like FPDS-NG or USAspending.gov for all contracts awarded under NAICS 541330 by the Department of the Navy within the specified timeframe.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 15050 CONFERENCE CTR DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,671,031

Exercised Options: $20,413,611

Current Obligation: $20,413,611

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001921G0010

IDV Type: BOA

Timeline