DoD's $21.18M R&D Contract with Peraton Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $21,181,609 ($21.2M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2007-05-30
End Date: 2012-05-29
Contract Duration: 1,826 days
Daily Burn Rate: $11.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 57-7001-07
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.2 million to PERATON INC. for work described as: 57-7001-07 Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is R&D, a critical area for technological advancement. 5. No small business participation was noted.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure carries inherent risk for cost escalation. Benchmarking against similar R&D contracts is difficult without more specific project details, but the fixed fee component aims to provide some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes price discovery and competitive pricing, although the Cost Plus Fixed Fee structure can complicate direct price comparisons.
Taxpayer Impact: Taxpayer funds were subject to competitive bidding, which should theoretically lead to a fair price. However, the CPFF structure requires careful oversight to manage costs effectively.
Public Impact
Advancement in physical, engineering, and life sciences research funded by taxpayers. Potential for technological breakthroughs with broad societal or defense applications. Contract duration of five years allows for sustained research efforts. Lack of small business involvement may limit broader economic impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- No small business participation noted.
- Long contract duration requires ongoing monitoring.
Positive Signals
- Awarded through full and open competition.
- Supports critical R&D in physical, engineering, and life sciences.
- Contract awarded to a single entity, Peraton Inc.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation and national security, with typical contract values varying widely based on project scope and duration.
Small Business Impact
The contract data indicates that no small business participation was involved in this award. This suggests the prime contractor, Peraton Inc., is likely a large business, and opportunities for subcontracting to small businesses were either not pursued or not mandated.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates robust oversight from the Defense Contract Management Agency to ensure costs are reasonable and the fixed fee is justified. Monitoring performance against research objectives and managing expenditures are key accountability measures.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (5 years).
- No small business participation.
- Lack of specific R&D outcome data.
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.2 million to PERATON INC.. 57-7001-07
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 $21.2 million.
What is the period of performance?
Start: 2007-05-30. End: 2012-05-29.
What specific R&D advancements were achieved under this contract, and do they justify the $21.18M investment?
The specific R&D advancements are not detailed in the provided data. To assess value, a review of project reports, milestone achievements, and the ultimate impact of the research would be necessary. Without this, it's difficult to definitively state if the investment yielded commensurate returns in terms of technological progress or strategic advantage.
Given the Cost Plus Fixed Fee structure, what mechanisms were in place to mitigate the risk of cost overruns?
Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation typically involves stringent oversight, detailed cost tracking, defined allowable cost principles, and potentially performance incentives or penalties tied to budget adherence. The effectiveness depends heavily on the agency's diligence in monitoring expenditures and contractor performance.
How effectively did the full and open competition process ensure the best value was obtained for this R&D effort?
Full and open competition is designed to maximize the pool of potential offerors, thereby increasing the likelihood of competitive pricing and innovative solutions. The effectiveness in ensuring best value depends on the clarity of the solicitation, the evaluation criteria used, and the rigor of the negotiation process. While competition is a positive indicator, the specific outcomes for this contract would require examining the proposals received and the final negotiated terms.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
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
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: $21,181,609
Exercised Options: $21,181,609
Current Obligation: $21,181,609
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-05-30
Current End Date: 2012-05-29
Potential End Date: 2012-05-29 00:00:00
Last Modified: 2024-04-16
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