DoD Awards $18.5M for Peraton Product Upgrades, Lacking Competition

Contract Overview

Contract Amount: $18,533,189 ($18.5M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: Department of Defense

Start Date: 2024-11-09

End Date: 2026-05-28

Contract Duration: 565 days

Daily Burn Rate: $32.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PRODUCT UPGRADES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to PERATON TECHNOLOGY SERVICES INC. for work described as: PRODUCT UPGRADES Key points: 1. Significant award value for product upgrades. 2. Sole provider Peraton Technology Services Inc. dominates. 3. Lack of competition raises cost-effectiveness concerns. 4. Engineering services sector sees substantial investment.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes it difficult to assess value. The award amount of $18.5M for product upgrades needs further scrutiny against industry benchmarks for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Peraton Technology Services Inc. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these product upgrades.

Public Impact

Taxpayers may be overpaying due to the sole-source nature of the contract. The Department of the Navy is investing heavily in product upgrades. Peraton Technology Services Inc. is the sole beneficiary of this award. The long duration of the contract (565 days) warrants close monitoring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in pricing

Positive Signals

Addresses critical product upgrades
Long-term engagement with a single vendor

Sector Analysis

This award falls within the Engineering Services sector (NAICS 541330). Spending in this sector often involves complex technical solutions and can be subject to significant cost overruns if not managed properly.

Small Business Impact

The contract was awarded to Peraton Technology Services Inc., a large business. There is no indication that small businesses were involved in this procurement, missing an opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure fair pricing and effective delivery. The Department of Defense should actively monitor contract performance and costs.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits price competition.
CPFF contract type shifts cost risk to the government.
Potential for cost overruns without strong oversight.
Lack of small business participation.
Limited transparency on specific deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to PERATON TECHNOLOGY SERVICES INC.. PRODUCT UPGRADES

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 $18.5 million.

What is the period of performance?

Start: 2024-11-09. End: 2026-05-28.

What specific product upgrades are being procured, and what is the justification for a sole-source award?

The specific product upgrades are not detailed in the provided data. A sole-source award typically requires a compelling justification, such as unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without this information, it's difficult to assess the necessity and potential value of this procurement method.

How does the Cost Plus Fixed Fee structure impact the government's risk and the vendor's incentive for cost control?

The Cost Plus Fixed Fee (CPFF) structure means the government pays the vendor's actual costs plus a predetermined fixed fee. While the fee is fixed, the government bears the risk of cost overruns. This can reduce the vendor's incentive to control costs aggressively, as their profit (the fee) remains constant regardless of the total project cost.

What mechanisms are in place to ensure the $18.5M award represents a fair and reasonable price given the lack of competition?

Given the sole-source nature, standard competitive price discovery is absent. The government should rely on robust cost analysis, benchmarking against similar historical contracts (if available), and potentially independent government cost estimates. Strong contract oversight and negotiation expertise are crucial to ensure the price is fair and reasonable.

Industry Classification

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

Product/Service Code: GUIDED MISSLES

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: $21,149,779

Exercised Options: $18,533,189

Current Obligation: $18,533,189

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