DoD Awards $141M for JCREW Systems to Peraton Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $14,116,054 ($14.1M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2007-12-07
End Date: 2010-08-28
Contract Duration: 995 days
Daily Burn Rate: $14.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 30
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: ALL MATERIAL AND SERVICES REQUIRED TO MANUFACTURE, ENGINEER, BUILD, AND DEVELOP JOINT COUNTER RADIO-CONTROLLED IMPROVISED EXPLOSIVE DEVICE ELECTRONIC WAREFARE (JCREW) SYSTEMS.
Place of Performance
Location: ANNAPOLIS JUNCTION, ANNE ARUNDEL County, MARYLAND, 20701
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $14.1 million to PERATON INC. for work described as: ALL MATERIAL AND SERVICES REQUIRED TO MANUFACTURE, ENGINEER, BUILD, AND DEVELOP JOINT COUNTER RADIO-CONTROLLED IMPROVISED EXPLOSIVE DEVICE ELECTRONIC WAREFARE (JCREW) SYSTEMS. Key points: 1. Contract awarded for critical JCREW systems to counter IED threats. 2. Peraton Inc. secured the award, indicating strong capabilities in EW. 3. Full and open competition suggests a robust market and potential for competitive pricing. 4. The contract's cost-plus award fee structure incentivizes performance and cost control.
Value Assessment
Rating: good
The contract value of $141.16M for JCREW systems appears reasonable given the complexity and critical nature of electronic warfare systems. Benchmarking against similar advanced defense technology contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating that multiple vendors were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Full and open competition is expected to yield a fair price for these essential defense systems, maximizing taxpayer value.
Public Impact
Enhances soldier safety by countering radio-controlled IEDs. Supports ongoing military operations in theaters with IED threats. Drives innovation in electronic warfare technology. Contributes to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires careful monitoring to ensure cost efficiency.
- Long contract duration (995 days) necessitates ongoing performance evaluation.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical national security need.
- Contract awarded to a known defense contractor.
Sector Analysis
This contract falls within the defense sector, specifically electronic warfare systems. Spending in this area is driven by evolving threats and the need for advanced technological solutions to maintain military superiority.
Small Business Impact
The data indicates this contract was not set aside for small businesses, suggesting the prime contractor, Peraton Inc., is a large business. Subcontracting opportunities for small businesses may exist but are not explicitly detailed.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial for managing cost-plus award fee contracts and ensuring successful delivery.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Award Fee (CPAF) requires stringent oversight.
- Long contract duration may lead to technological obsolescence.
- Potential for cost escalation over the contract period.
- Dependence on a single contractor for critical systems.
Tags
search-detection-navigation-guidance-aer, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.1 million to PERATON INC.. ALL MATERIAL AND SERVICES REQUIRED TO MANUFACTURE, ENGINEER, BUILD, AND DEVELOP JOINT COUNTER RADIO-CONTROLLED IMPROVISED EXPLOSIVE DEVICE ELECTRONIC WAREFARE (JCREW) SYSTEMS.
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 $14.1 million.
What is the period of performance?
Start: 2007-12-07. End: 2010-08-28.
What is the projected cost savings or value added by using a Cost Plus Award Fee (CPAF) structure compared to a fixed-price contract for these JCREW systems?
A CPAF structure aims to incentivize contractor performance and cost control by linking a portion of the fee to achieving specific performance targets and managing costs effectively. While it offers flexibility for complex projects, it requires diligent oversight to prevent cost overruns. The value added lies in potentially achieving higher quality and performance than a fixed-price contract might allow, but the ultimate cost savings depend heavily on the effectiveness of the award fee criteria and the government's oversight.
What are the primary risks associated with the long contract duration (995 days) for manufacturing and developing advanced electronic warfare systems?
The long duration presents risks such as technological obsolescence, as EW technology evolves rapidly. There's also a risk of increased costs due to inflation or unforeseen material shortages over time. Furthermore, maintaining consistent contractor performance and focus over an extended period can be challenging, potentially impacting the final system's effectiveness and timely delivery.
How effectively does the 'full and open competition' ensure that the JCREW systems meet the evolving threat landscape and technological advancements?
Full and open competition is designed to solicit the best solutions from the widest possible pool of qualified vendors, theoretically leading to more innovative and advanced systems. However, its effectiveness in keeping pace with evolving threats depends on the clarity and foresight of the requirements defined by the DoD. If requirements are well-defined and anticipate future needs, competition can drive technological advancement; otherwise, it might simply yield the best solution for current, potentially outdated, specifications.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002407R6304
Offers Received: 30
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)
Address: 141 NATIONAL BUSINEMD PKWY STE 200, ANNAPOLIS JUNCTION, MD, 20701
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,242,410
Exercised Options: $14,116,054
Current Obligation: $14,116,054
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-12-07
Current End Date: 2010-08-28
Potential End Date: 2010-08-28 00:00:00
Last Modified: 2021-11-03
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