DoD's $28.7M R&D contract with Peraton Inc. for physical sciences research shows fair value, but limited competition raises concerns
Contract Overview
Contract Amount: $28,667,914 ($28.7M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-12
End Date: 2013-12-10
Contract Duration: 2,281 days
Daily Burn Rate: $12.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 57-2020-07
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.7 million to PERATON INC. for work described as: 57-2020-07 Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Demonstrates a commitment to advancing scientific knowledge and technological capabilities. 3. The contract duration of 2281 days suggests a long-term investment in research. 4. Analysis indicates a fair value for the services rendered, considering the specialized nature of R&D. 5. Competition dynamics reveal a sole-source award, potentially limiting price discovery and innovation. 6. Risk indicators are moderate, primarily stemming from the lack of competitive bidding. 7. Performance context is tied to the Department of Defense's strategic research objectives. 8. Sector positioning is within the R&D segment, crucial for national security and technological advancement.
Value Assessment
Rating: fair
The contract's value of approximately $28.7 million over 2281 days (roughly 6.25 years) appears reasonable for specialized research and development in physical sciences. Benchmarking against similar R&D contracts is challenging due to the unique nature of scientific inquiry and the specific requirements of the Department of Defense. However, the cost-plus-fixed-fee (CPFF) structure suggests that while the contractor is incentivized to control costs, the government bears the risk of cost overruns. Without more detailed cost breakdowns, a definitive value-for-money assessment is difficult, but the price does not appear exorbitant given the potential for groundbreaking discoveries.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically employed when only one contractor possesses the unique capabilities, technology, or intellectual property necessary to fulfill the requirement. While this can ensure access to specialized expertise, it bypasses the competitive process, which normally drives down prices and fosters innovation through market forces. The lack of competition means taxpayers may not have received the best possible price or the most innovative solutions available in the market.
Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure lower prices, potentially resulting in higher costs for taxpayers. It also reduces the incentive for contractors to offer their most competitive terms.
Public Impact
The primary beneficiaries are the Department of Defense and the nation, through advancements in physical sciences and related technologies. Services delivered include cutting-edge research and development aimed at enhancing national security capabilities. The geographic impact is primarily within the United States, supporting domestic scientific innovation. Workforce implications include the employment of highly skilled scientists, engineers, and researchers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential innovation.
- Cost-plus-fixed-fee contract structure carries inherent risk of cost overruns for the government.
- Lack of transparency in the sole-source justification process could obscure potential alternatives.
- Limited public information on specific research outcomes makes performance assessment difficult.
- Contract duration is long, increasing the risk of scope creep or evolving requirements.
Positive Signals
- Contract supports critical R&D in physical sciences, vital for national security.
- Peraton Inc. is a known entity in the government contracting space, suggesting some level of established capability.
- The fixed-fee component of the contract provides some cost certainty for the government.
- The contract is for research and development, which by its nature is high-risk, high-reward.
Sector Analysis
The Research and Development (R&D) sector within the federal government is crucial for maintaining technological superiority and addressing complex national challenges. This contract falls under NAICS code 541710, which covers R&D in the physical, engineering, and life sciences. Spending in this area is highly variable, driven by strategic priorities and emerging threats. Comparable spending benchmarks are difficult to establish due to the bespoke nature of R&D projects, but the $28.7 million awarded to Peraton Inc. represents a significant investment in a specific area of scientific inquiry within the broader defense R&D landscape.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal. However, Peraton Inc. may engage small businesses as subcontractors for specialized support, but this is not explicitly detailed. The absence of a small business set-aside suggests that the primary focus was on securing specialized R&D capabilities, potentially overlooking opportunities to foster small business growth in this specific research area.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are embedded within the Cost Plus Fixed Fee (CPFF) structure, requiring the contractor to manage costs within the agreed-upon fee. Transparency is limited due to the sole-source nature of the award and the proprietary aspects of R&D. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Research and Development Programs
- Advanced Technology Development Contracts
- Physical Sciences Research Initiatives
- Engineering and Technical Services Contracts
- Life Sciences Research Grants
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Long contract duration
- Lack of public detail on specific R&D outcomes
Tags
research-and-development, department-of-defense, physical-sciences, engineering, life-sciences, definitive-contract, sole-source, cost-plus-fixed-fee, peraton-inc, virginia, large-business, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.7 million to PERATON INC.. 57-2020-07
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 $28.7 million.
What is the period of performance?
Start: 2007-09-12. End: 2013-12-10.
What is Peraton Inc.'s track record with similar sole-source R&D contracts for the Department of Defense?
Peraton Inc. has a significant history of performing complex R&D and technical services for various government agencies, including the Department of Defense. While specific details on their sole-source R&D contracts in physical sciences are not readily available in the public domain without deeper database searches, their overall portfolio indicates experience in areas requiring specialized technical expertise. Their performance on other large, complex contracts would be a key indicator of their capability to execute this specific R&D effort. A review of past performance evaluations and any contract disputes or awards would provide further insight into their reliability and effectiveness in delivering on government requirements, particularly in sole-source scenarios where competition is absent.
How does the $28.7 million contract value compare to other DoD R&D investments in physical sciences?
The $28.7 million contract value for this specific R&D effort in physical sciences represents a substantial, but not extraordinary, investment within the broader Department of Defense R&D budget. DoD's annual R&D spending often runs into the tens of billions of dollars, encompassing a wide array of projects from basic research to advanced technology development. While this contract is significant for a single project, it is one component of a much larger strategic investment. To provide a precise comparison, one would need to analyze spending trends for similar NAICS codes (541710) and contract types (CPFF, sole-source) within DoD over the contract's duration. However, it is reasonable to assume that DoD funds numerous R&D contracts of similar or larger magnitudes to maintain its technological edge.
What are the primary risks associated with a sole-source award for R&D, and how are they mitigated?
The primary risks associated with a sole-source award for R&D include a lack of competitive pricing, potentially leading to higher costs for the government, and a reduced incentive for the contractor to innovate aggressively or deliver exceptional value. Without competition, there's less market pressure to ensure the most cost-effective solution or the most cutting-edge approach. Mitigation strategies often involve rigorous negotiation of the contract terms, detailed cost analysis by the government, strong oversight of contractor performance, and clear performance metrics. For R&D, the government may also rely on independent technical reviews and expert consultation to validate the contractor's approach and progress. The CPFF structure itself aims to manage risk by providing a fixed fee while requiring the contractor to manage costs.
What specific advancements or outcomes are expected from this $28.7 million R&D contract?
The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) awarded to Peraton Inc. by the Department of Defense. Specific advancements or outcomes are not detailed in the summary data. R&D contracts of this nature typically aim to explore new scientific principles, develop novel technologies, or improve existing systems to enhance national security capabilities. The outcomes could range from theoretical breakthroughs to the development of prototypes or proof-of-concept systems in areas like materials science, advanced physics, or complex engineering challenges. The exact deliverables would be defined in the contract's Statement of Work (SOW), which is not publicly available in this dataset.
How has the Department of Defense's spending on R&D in physical sciences evolved over the past decade?
Department of Defense spending on R&D in physical sciences, generally categorized under NAICS code 541710, has historically been a significant portion of its overall research budget. While specific figures fluctuate annually based on strategic priorities, technological advancements, and geopolitical factors, DoD consistently invests billions of dollars in this domain. Trends often show increased emphasis on areas like artificial intelligence, quantum computing, advanced materials, and cybersecurity, which have strong ties to physical sciences. The shift towards more agile acquisition and rapid prototyping may also influence how R&D funds are allocated and contracted. Analyzing historical budget requests and enacted appropriations for DoD R&D would reveal specific growth or contraction patterns in physical sciences research over the past decade.
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 › C – National Defense 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: $30,452,210
Exercised Options: $30,452,210
Current Obligation: $28,667,914
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-12
Current End Date: 2013-12-10
Potential End Date: 2013-12-10 00:00:00
Last Modified: 2024-04-16
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