DoD Awards $9.9M for Product Upgrades to Peraton Technology Services Inc

Contract Overview

Contract Amount: $9,903,821 ($9.9M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: Department of Defense

Start Date: 2025-11-09

End Date: 2026-12-22

Contract Duration: 408 days

Daily Burn Rate: $24.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PRODUCT UPGRADES FMS

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to PERATON TECHNOLOGY SERVICES INC. for work described as: PRODUCT UPGRADES FMS Key points: 1. Contract awarded to Peraton Technology Services Inc. for product upgrades. 2. Significant value of $9.9 million for engineering services. 3. Procurement method is 'NOT COMPETED', raising potential competition concerns. 4. The contract falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar 'NOT COMPETED' contracts is difficult due to lack of transparency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these product upgrades.

Public Impact

Taxpayers may be overpaying due to the sole-source nature of the award. Lack of transparency in the procurement process hinders public scrutiny. Potential for reduced innovation due to absence of competitive pressure.

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

Specific product upgrades identified
Defined end date for services

Sector Analysis

Engineering services are crucial for defense modernization. The benchmark for similar contracts can vary widely based on complexity and scope, but competitive bidding typically ensures better value.

Small Business Impact

This contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or excluded from this procurement.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement is valid and that taxpayer funds are used efficiently.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competition.
Cost Plus Fixed Fee contract type can lead to cost overruns.
Limited transparency on pricing and justification.
Potential for reduced innovation.
No small business participation identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to PERATON TECHNOLOGY SERVICES INC.. PRODUCT UPGRADES FMS

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 $9.9 million.

What is the period of performance?

Start: 2025-11-09. End: 2026-12-22.

What is the specific justification for awarding this contract on a sole-source basis, and how does it ensure best value for the government?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. Without this specific justification, it's difficult to assess if best value was achieved. A competitive process usually drives down costs and fosters innovation, making sole-source awards a point of scrutiny for ensuring efficiency and fairness.

What are the potential risks associated with a Cost Plus Fixed Fee contract for product upgrades, especially when not competed?

Cost Plus Fixed Fee contracts carry the risk of cost overruns as the contractor is reimbursed for actual costs plus a fixed fee. When not competed, there's less incentive for the contractor to control costs tightly, potentially leading to higher overall expenditure for the government. Robust oversight is critical to manage these risks.

How will the effectiveness of these product upgrades be measured, and what metrics will be used to ensure they meet the Department of the Navy's requirements?

Effectiveness is typically measured through performance metrics outlined in the contract's statement of work. This includes meeting technical specifications, achieving desired performance improvements, and successful integration. The Department of the Navy should have clear acceptance criteria and testing protocols to validate the upgrades' success.

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: $40,313,063

Exercised Options: $23,955,323

Current Obligation: $9,903,821

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