DoD's $26.5M Advanced Systems Hardening Contract Awarded to Peraton Inc. Lacks Competition
Contract Overview
Contract Amount: $26,560,820 ($26.6M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2015-09-17
End Date: 2020-05-23
Contract Duration: 1,710 days
Daily Burn Rate: $15.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS ADVANCED SYSTEMS HARDENING AND VULNERABILITY ASSESSMENT (ASHVA)
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $26.6 million to PERATON INC. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS ADVANCED SYSTEMS HARDENING AND VULNERABILITY ASSESSMENT (ASHVA) Key points: 1. Significant spending on advanced systems hardening and vulnerability assessment. 2. Sole-source award to Peraton Inc. raises questions about competition. 3. Contract duration of 1710 days suggests a long-term need. 4. Potential for higher costs due to lack of competitive bidding.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a sole-source award, makes a direct pricing assessment difficult without comparable data. The fixed fee component provides some cost control, but the lack of competition limits the government's ability to ensure the most favorable pricing.
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. This significantly limits price discovery and potentially leads to higher costs for the government compared to a fully competed contract. The justification for the sole-source award is not provided.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying more than necessary for these critical cybersecurity services.
Public Impact
Enhances critical defense systems against cyber threats. Ensures the security and integrity of advanced government systems. Supports national security by hardening vulnerabilities. Potential for increased cybersecurity resilience across DoD. Long-term contract may indicate ongoing and evolving cyber threats.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Addresses critical cybersecurity needs
- Focus on advanced systems hardening
- Contract awarded to a single, established vendor
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on cybersecurity and vulnerability assessment for advanced systems. Spending in this area is crucial for national security, and benchmarks often vary widely based on the complexity and criticality of the systems being protected.
Small Business Impact
The contract was not awarded to a small business. The sole-source nature of the award further limits opportunities for small businesses to participate in providing these specialized services.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services effectively and at a reasonable cost. Transparency regarding the justification for the sole-source award is essential for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for cost overruns
- Limited transparency on justification
- CPFF contract type in a sole-source scenario
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.6 million to PERATON INC.. IGF::OT::IGF FOR OTHER FUNCTIONS ADVANCED SYSTEMS HARDENING AND VULNERABILITY ASSESSMENT (ASHVA)
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 $26.6 million.
What is the period of performance?
Start: 2015-09-17. End: 2020-05-23.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data indicates a sole-source award, meaning it was not competed. A thorough review would require access to the contract file to understand the specific justification cited by the agency, such as a unique capability, urgent need, or lack of available sources. Without this documentation, it's impossible to assess if alternative competitive strategies were adequately explored or if the sole-source determination was fully warranted.
How does the cost-plus-fixed-fee structure impact the government's ability to control costs given the sole-source nature of the contract?
The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's actual costs plus a predetermined fixed fee. While the fixed fee provides some cost certainty for the contractor's profit, the overall cost is still subject to the actual expenses incurred. In a sole-source scenario, the government lacks the leverage of competitive bidding to ensure these costs are minimized, potentially leading to higher overall expenditures than if the contract had been competed.
What metrics are in place to measure the effectiveness of Peraton Inc.'s advanced systems hardening and vulnerability assessment services?
Effectiveness metrics for cybersecurity services like hardening and vulnerability assessment typically include quantifiable outcomes such as the reduction in identified vulnerabilities, the successful mitigation of threats, improved system resilience scores, and timely reporting. The contract's performance work statement (PWS) would detail these specific metrics and deliverables. Oversight by the Defense Contract Management Agency (DCMA) would focus on ensuring these performance standards are met.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: 12975 WORLDGATE DR STE 7322, 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: $26,560,820
Exercised Options: $26,560,820
Current Obligation: $26,560,820
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $2,675,421
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-09-17
Current End Date: 2020-05-23
Potential End Date: 2020-05-23 00:00:00
Last Modified: 2024-04-16
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