Naval Research Lab contract for advanced engineering and science services awarded to Peraton Inc. for over $16.3 million
Contract Overview
Contract Amount: $16,357,089 ($16.4M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2004-02-12
End Date: 2009-09-30
Contract Duration: 2,057 days
Daily Burn Rate: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200406!004430!1700!E3220 !NAVAL RESEARCH LABORATORY !N0017304C2010 !A!N! !N! ! !20040212!20050211!120731484!120731484!001216845!N!ADVANCED ENGINEERING & SCIENCE!2560 HUNTINGTON AVENUE !ALEXANDRIA !VA!22303!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000095000!N!N!000000000000!AJ43!RDTE/ENGINEERING SCIENCES - ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!001!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!D!N! ! ! ! ! ! !0001! !
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $16.4 million to PERATON INC. for work described as: 200406!004430!1700!E3220 !NAVAL RESEARCH LABORATORY !N0017304C2010 !A!N! !N! ! !20040212!20050211!120731484!120731484!001216845!N!ADVANCED ENGINEERING & SCIENCE!2560 HUNTINGTON AVENUE !ALEXANDRIA !VA!22303!50000!001!11!WASHINGTON !DIST… Key points: 1. Contract awarded for advanced engineering and science services, indicating a need for specialized technical expertise. 2. The contract duration of over 5 years suggests a long-term requirement for these services. 3. Awarded to Peraton Inc., a significant player in the government contracting space. 4. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 5. The primary service area is Engineering Services, with a specific focus on RDTE/Engineering Sciences - Adv Tech Dev. 6. The contract was awarded under full and open competition, suggesting a robust bidding process.
Value Assessment
Rating: fair
The contract value of $16.3 million over approximately 5.7 years averages to about $2.85 million per year. Without specific benchmarks for similar advanced engineering and science contracts, it is difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs if not managed closely, as the contractor is reimbursed for allowable costs plus a fixed fee.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive environment where multiple companies likely vied for the contract. The number of bidders is not specified in the provided data, but the designation implies a fair process aimed at achieving the best value.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.
Public Impact
The Naval Research Laboratory benefits from access to advanced engineering and science expertise. Services delivered likely support research, development, testing, and evaluation for advanced technologies. The geographic impact is centered around Alexandria, Virginia, where the contractor is located, and potentially extends to Naval research facilities. Workforce implications include employment opportunities for engineers, scientists, and technical staff at Peraton Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
- Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
- The long contract duration could potentially lead to contractor complacency if not actively managed.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process that likely yielded a reasonable price.
- The contractor, Peraton Inc., is a known entity in the federal contracting space, implying some level of established capability.
- The contract supports critical research and development for the Naval Research Laboratory, aligning with national defense objectives.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting advanced technology development and research for the Department of Defense. The market for such specialized engineering services is competitive, with numerous firms capable of supporting complex R&D efforts. Comparable spending benchmarks would typically be found within broader R&D or professional services categories for defense agencies, often running into millions or tens of millions of dollars annually for significant projects.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Peraton Inc., may engage small businesses as subcontractors for specialized support, though this is not explicitly detailed in the data.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Naval Research Laboratory's contracting and program management offices, with potential involvement from the Defense Contract Management Agency (DCMA) given its role in contract administration. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, which provide public access to award details.
Related Government Programs
- Naval Research Laboratory Research and Development Contracts
- Department of Defense Engineering Services
- Advanced Technology Development Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Potential for scope creep in advanced engineering and science projects.
- Need for robust government oversight to ensure contractor performance and cost control.
Tags
department-of-defense, naval-research-laboratory, engineering-services, rdte, advanced-technology-development, cost-plus-fixed-fee, full-and-open-competition, definitive-contract, virginia, peraton-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.4 million to PERATON INC.. 200406!004430!1700!E3220 !NAVAL RESEARCH LABORATORY !N0017304C2010 !A!N! !N! ! !20040212!20050211!120731484!120731484!001216845!N!ADVANCED ENGINEERING & SCIENCE!2560 HUNTINGTON AVENUE !ALEXANDRIA !VA!22303!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000095000!N!N!000000000000!AJ43!RDTE/ENGINEERING SCIENCES - ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !3! ! ! ! ! !999
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 $16.4 million.
What is the period of performance?
Start: 2004-02-12. End: 2009-09-30.
What is the track record of Peraton Inc. in delivering similar advanced engineering and science services to the federal government?
Peraton Inc. has a significant history of performing various services for the federal government, including IT, cybersecurity, and mission support. While the provided data focuses on a specific contract for advanced engineering and science, Peraton's broader portfolio suggests experience in complex technical domains. To fully assess their track record for this specific type of service, a deeper dive into their past performance on similar contracts, including customer satisfaction ratings and any past performance issues or awards, would be necessary. Their extensive experience with defense agencies like the Department of Defense indicates a familiarity with the operational and technical requirements common in such environments.
How does the awarded amount of $16.3 million compare to similar advanced engineering and science contracts awarded by the Naval Research Laboratory or other DoD entities?
The $16.3 million award for advanced engineering and science services over approximately 5.7 years represents an average annual value of roughly $2.85 million. This figure falls within a common range for specialized engineering support contracts within the Department of Defense. Larger, more complex R&D programs can easily exceed tens or hundreds of millions of dollars. Without specific details on the scope of work, deliverables, and the specific technological areas covered, a precise comparison is challenging. However, for a contract focused on advanced technology development and engineering sciences, this value suggests a substantial but not exceptionally large project.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced engineering services?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Peraton Inc., is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. If the contractor's costs exceed initial estimates, the government bears the burden of these increased costs, while the contractor's profit (the fixed fee) remains constant. This can incentivize contractors to be less cost-conscious than in fixed-price contracts. For advanced engineering services, where the scope of work can be inherently uncertain and subject to unforeseen technical challenges, managing costs effectively is crucial to mitigate this risk.
How effective is the 'full and open competition' process in ensuring value for money for advanced R&D contracts?
Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for advanced R&D. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. This process typically leads to a wider range of technical solutions and pricing structures, allowing the government to select the best overall value. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess technical merit and cost proposals.
What is the historical spending pattern for advanced engineering and science services at the Naval Research Laboratory?
Historical spending patterns for advanced engineering and science services at the Naval Research Laboratory (NRL) would likely show consistent investment in R&D to maintain technological superiority. NRL typically awards numerous contracts across various engineering disciplines and scientific research areas. Analyzing past spending would reveal trends in specific technology focus areas, the average contract values, and the dominant contract types (e.g., CPFF, cost-plus-incentive-fee, fixed-price). This contract's value of $16.3 million appears consistent with significant, multi-year R&D efforts that NRL undertakes to advance naval capabilities and address emerging technological challenges.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)
Address: 12975 WORLDGATE DR STE 7117, 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: $17,176,141
Exercised Options: $17,176,143
Current Obligation: $16,357,089
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-02-12
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2017-12-14
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