DoD Awards $24.9M Contract for Defense Applied Research to ITT Industries, Inc
Contract Overview
Contract Amount: $24,922,869 ($24.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2000-09-30
End Date: 2005-10-30
Contract Duration: 1,856 days
Daily Burn Rate: $13.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200012!1700!000867!E3220 !NAVAL RESEARCH LABORATORY !N0017300C2086 !A!*!* !20000930!20011012!052819732!001216845!001216845!N!1JGQ0!ITT INDUSTRIES, INC !4410 E FOUNTAIN BLVD !COLORADO SPRIN !CO!80916!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !0001!+000000471081!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8731!3!B!S!*!B!A!*!A !N!U!2!001!B!* !Z!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.9 million to PERATON INC. for work described as: 200012!1700!000867!E3220 !NAVAL RESEARCH LABORATORY !N0017300C2086 !A!*!* !20000930!20011012!052819732!001216845!001216845!N!1JGQ0!ITT INDUSTRIES, INC !4410 E FOUNTAIN BLVD !COLORADO SPRIN !CO!80916!50000!001!11!WASHINGTON !DIS… Key points: 1. The contract, valued at $24,922,869, is for RDTE/Other Defense-Applied Research. 2. ITT Industries, Inc. secured this contract through full and open competition. 3. The contract duration is 1856 days, spanning from September 30, 2000, to October 30, 2005. 4. The primary sector for this spending is Defense, specifically applied research. 5. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns.
Value Assessment
Rating: fair
The contract value of $24.9M for applied research is within a reasonable range for such specialized work. However, the Cost Plus Fixed Fee structure warrants scrutiny for potential cost escalation compared to fixed-price contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for defense research.
Public Impact
Advancement in defense technologies through applied research. Potential for innovation in military capabilities. Support for specialized research and development workforce. Contribution to national security through technological superiority.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs than anticipated.
- Long contract duration (over 5 years) increases risk of scope creep or changing requirements.
- Specific research outcomes are not detailed, making it hard to assess direct impact.
Positive Signals
- Awarded through full and open competition, suggesting fair pricing.
- Focus on applied research aligns with strategic defense needs.
- Contract awarded to a known entity (ITT Industries, Inc.) potentially indicating capability.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on applied research and development. Spending in this area is critical for maintaining technological advantage but can be complex to benchmark due to the unique nature of R&D projects.
Small Business Impact
The provided data does not indicate any specific subcontracting or participation by small businesses in this contract. Further investigation would be needed to determine small business involvement.
Oversight & Accountability
The Department of Defense, through agencies like the Naval Research Laboratory and Defense Contract Management Agency, is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust oversight to manage costs effectively.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of specific research outcome details.
- Potential for cost overruns.
- No explicit mention of small business participation.
Tags
department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.9 million to PERATON INC.. 200012!1700!000867!E3220 !NAVAL RESEARCH LABORATORY !N0017300C2086 !A!*!* !20000930!20011012!052819732!001216845!001216845!N!1JGQ0!ITT INDUSTRIES, INC !4410 E FOUNTAIN BLVD !COLORADO SPRIN !CO!80916!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !0001!+000000471081!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8731!3!B!S!*!B!A!*!A !N!U!
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 $24.9 million.
What is the period of performance?
Start: 2000-09-30. End: 2005-10-30.
What specific defense applications or technologies did this applied research aim to develop, and what was the expected return on investment for the $24.9M expenditure?
The data indicates the contract is for 'RDTE/OTHER DEFENSE-APPLIED RESEARCH' but lacks specifics on the exact technologies or applications. Without detailed project scope and deliverables, assessing the return on investment for the $24.9M is challenging. Applied research aims to solve specific problems or create new capabilities, but its value is often realized in future systems or operational improvements, making direct ROI calculation difficult at the time of award.
Given the Cost Plus Fixed Fee structure, what mechanisms were in place to control costs and prevent overruns during the 5-year contract period?
Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Effective oversight by the contracting agency, including regular audits, performance reviews, and strict adherence to the contract's allowable cost principles, would be crucial. Milestones and reporting requirements would also help monitor progress and spending, allowing for early intervention if costs deviate significantly from projections.
How did the full and open competition process ensure that ITT Industries, Inc. offered the best value and technical solution for the Naval Research Laboratory's applied research needs?
Full and open competition theoretically allows any responsible source to submit an offer, fostering a competitive environment. The evaluation criteria used by the Naval Research Laboratory would determine the 'best value,' likely considering technical merit, past performance, and price. The agency would have assessed ITT Industries, Inc.'s proposal against these criteria and potentially other competing offers to ensure the selected solution met the research objectives effectively and at a reasonable cost.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)
Address: 12975 WORLDGATE DR, HERNDON, VA, 20170
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2000-09-30
Current End Date: 2005-10-30
Potential End Date: 2005-10-30 00:00:00
Last Modified: 2018-01-31
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