DoD's $15.4M R&D contract awarded to Peraton Technology Services Inc. for 6 years

Contract Overview

Contract Amount: $15,425,694 ($15.4M)

Contractor: Peraton Technology Services Inc

Awarding Agency: Department of Defense

Start Date: 2007-09-10

End Date: 2013-09-09

Contract Duration: 2,191 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 73-0302-07

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.4 million to PERATON TECHNOLOGY SERVICES INC for work described as: 73-0302-07 Key points: 1. Contract value appears reasonable for a multi-year R&D effort. 2. Full and open competition suggests a competitive bidding process. 3. Contract type (Cost Plus Fixed Fee) may pose cost control risks. 4. Performance period of 6 years indicates a long-term project. 5. Contractor has a track record with the Department of Defense. 6. Research and Development in Physical, Engineering, and Life Sciences is a critical sector.

Value Assessment

Rating: good

The contract value of approximately $15.4 million over six years for R&D services is within a reasonable range for complex federal research projects. Benchmarking against similar contracts in the Physical, Engineering, and Life Sciences sector would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D where costs are uncertain, can sometimes lead to higher overall expenditures compared to fixed-price contracts if not managed diligently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific R&D requirement. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially better pricing for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, potentially driving down costs and increasing innovation. However, with only two bidders, the cost savings might be less significant than in scenarios with more robust competition.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research initiatives, aiming to advance physical, engineering, and life sciences. The services delivered are focused on research and development, contributing to technological advancements and national security. The geographic impact is primarily within Virginia, where the contractor is located, but the R&D outcomes could have national implications. Workforce implications include employment for scientists, engineers, and support staff involved in the research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
Limited competition (2 bidders) may not have yielded the most cost-effective solution.
Long contract duration (6 years) requires sustained oversight to ensure continued value.

Positive Signals

Awarded under full and open competition, maximizing potential sources.
Contractor has prior experience with the Department of Defense.
Focus on R&D aligns with strategic government objectives.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, a critical area for technological advancement and national security. The market for such services is characterized by specialized expertise and significant investment. Comparable spending benchmarks would typically involve analyzing other DoD R&D contracts awarded to firms with similar capabilities and project scopes.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The focus on specialized R&D may limit opportunities for broad small business participation unless specific expertise is required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. Accountability measures would be embedded in the contract terms, including reporting requirements and performance metrics. Transparency is generally facilitated through contract award databases, though specific R&D details might be sensitive.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering and Scientific Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
Limited number of bidders (2) may reduce competitive pressure.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to PERATON TECHNOLOGY SERVICES INC. 73-0302-07

Who is the contractor on this award?

The obligated recipient is PERATON TECHNOLOGY SERVICES 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 $15.4 million.

What is the period of performance?

Start: 2007-09-10. End: 2013-09-09.

What is Peraton Technology Services Inc.'s track record with the Department of Defense?

Peraton Technology Services Inc. has a history of contracting with the Department of Defense. While this specific contract is for R&D, their broader portfolio with the DoD likely includes various services. Analyzing past performance reviews, contract modifications, and any past performance issues or successes would provide a clearer picture of their reliability and capability in fulfilling government requirements. A review of their award history and the types of services previously rendered can indicate their experience level and suitability for complex R&D projects.

How does the $15.4 million value compare to similar R&D contracts?

The $15.4 million contract value over a 6-year period averages approximately $2.57 million per year. This figure needs to be benchmarked against similar R&D contracts within the Physical, Engineering, and Life Sciences domain awarded by the Department of Defense or other federal agencies. Factors such as the specific research area, the complexity of the work, the required expertise, and the duration of the project heavily influence cost. Without direct comparisons to contracts with identical scopes and objectives, it's challenging to definitively state if this represents excellent or fair value, but it appears within a plausible range for specialized R&D.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased costs. This can incentivize less cost-conscious behavior from the contractor, as their profit (the fixed fee) remains constant regardless of the actual costs incurred. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate this risk.

How effective is full and open competition in ensuring value for this type of R&D contract?

Full and open competition is generally the most effective method for ensuring value in federal contracting, as it allows the widest possible pool of potential offerors to compete. This broad competition can drive innovation, improve quality, and lead to more competitive pricing. However, for highly specialized R&D, the number of capable bidders might be limited. In this case, only two bids were received, suggesting that while the process was open, the competitive intensity might have been moderate. The effectiveness is thus dependent on the actual number of qualified bidders and the vigor of their proposals.

What are the implications of the 6-year performance period for oversight and accountability?

A 6-year performance period for an R&D contract necessitates robust, long-term oversight and accountability mechanisms. It requires consistent monitoring of contractor performance against evolving research objectives and milestones. Agencies must ensure that performance metrics remain relevant throughout the contract's life and that regular reviews are conducted to assess progress and identify any deviations or emerging risks. Accountability is maintained through contractual clauses, performance evaluations, and the potential for contract modifications or termination if performance falters. Sustained commitment from contracting officers and technical monitors is essential.

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: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Technology Services Inc. (UEI: 078279641)

Address: 12030 SUNRISE VALLEY DR STE 400, RESTON, VA, 20191

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,425,944

Exercised Options: $15,425,944

Current Obligation: $15,425,694

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline