DoD's $19.4M R&D contract for space science engineering services awarded to Peraton Inc
Contract Overview
Contract Amount: $19,393,143 ($19.4M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2008-12-12
End Date: 2015-03-11
Contract Duration: 2,280 days
Daily Burn Rate: $8.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 76-0009-09 RESEARCH AND DEVELOPMENT IN SUPPORT OF SPACE SCIENCE
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.4 million to PERATON INC. for work described as: 76-0009-09 RESEARCH AND DEVELOPMENT IN SUPPORT OF SPACE SCIENCE Key points: 1. Contract awarded for research and development in space science, indicating a focus on advanced technological capabilities. 2. The contract duration of 2280 days (approximately 6.2 years) suggests a long-term investment in the specified R&D area. 3. Awarded to a single contractor, Peraton Inc., highlighting potential specialization or a competitive bidding process outcome. 4. The contract type 'COST PLUS FIXED FEE' implies that costs are reimbursed, plus a fixed fee, which can incentivize efficiency. 5. The contract was awarded under 'FULL AND OPEN COMPETITION', suggesting a broad solicitation and potential for multiple bids. 6. The contract value of $19.4 million represents a significant investment in space science R&D.
Value Assessment
Rating: good
The contract value of $19.4 million for over six years of R&D in space science engineering services appears reasonable given the specialized nature of the work. Benchmarking against similar long-term, high-complexity R&D contracts is challenging without more specific details on the scope of 'space science'. However, the Cost Plus Fixed Fee (CPFF) contract type, while allowing for cost reimbursement, includes a fixed fee which can provide some cost control for the government. The fixed fee component aims to align contractor incentives with project completion and quality, rather than simply cost escalation.
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 bids. This suggests a robust bidding process designed to solicit the best possible offers. While the number of bidders is not specified, the 'full and open' designation generally implies a competitive environment that should drive price discovery and potentially lead to more favorable terms for the government.
Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative solutions, thereby ensuring better value for public funds.
Public Impact
This contract directly benefits the Department of Defense by advancing research and development capabilities in space science. The services delivered are critical for enhancing national security and technological superiority in space-based operations. The geographic impact is primarily national, focusing on research facilities and potentially contributing to the broader aerospace industry ecosystem. Workforce implications include the employment of highly skilled engineers, scientists, and researchers specializing in aerospace and defense R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to higher overall costs if not managed diligently, as the contractor is reimbursed for expenses.
- The specific scope of 'space science' is broad and could encompass a wide range of R&D activities, making precise value assessment difficult without further detail.
- Reliance on a single contractor, Peraton Inc., for this significant R&D effort could pose a risk if performance issues arise or if future needs evolve beyond their capabilities.
Positive Signals
- Awarded under 'full and open competition', suggesting a competitive process that likely yielded a qualified contractor at a reasonable price.
- The long contract duration (over 6 years) indicates a strategic, long-term commitment to advancing space science R&D, which is crucial for national security.
- The Cost Plus Fixed Fee structure, when properly managed, can provide a balance between cost control and incentivizing contractor performance.
- The contract supports critical research and development in a high-priority technological domain for the Department of Defense.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on Research and Development (R&D) related to space science. The aerospace and defense R&D market is characterized by high barriers to entry, significant government investment, and a focus on innovation and technological advancement. Comparable spending benchmarks would typically be found within large-scale defense contracts for advanced technology development, satellite systems, or space exploration initiatives. The market size for defense R&D is substantial, with agencies like the Department of Defense being major clients.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses stemming from a set-aside provision. The primary contractor, Peraton Inc., would determine any subcontracting opportunities based on their own business needs and project requirements, which are not detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractor compliance with contract terms, monitoring performance, and verifying costs. Accountability measures are inherent in the CPFF contract type, which requires detailed reporting and justification of costs. Transparency is generally maintained through contract databases and reporting requirements, though specific project details might be sensitive.
Related Government Programs
- Department of Defense Research and Development Programs
- Space Science and Technology Initiatives
- Aerospace Engineering Services Contracts
- Advanced Technology Development Contracts
- National Security Space Programs
Risk Flags
- Long-term R&D contracts can face evolving technological requirements.
- Cost Plus Fixed Fee contracts require diligent cost monitoring.
- Reliance on a single contractor for extended periods can limit flexibility.
- Scope definition in R&D can be challenging and subject to change.
Tags
defense, department-of-defense, research-and-development, space-science, engineering-services, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, peraton-inc, virginia, large-contract, technology-development
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.4 million to PERATON INC.. 76-0009-09 RESEARCH AND DEVELOPMENT IN SUPPORT OF SPACE SCIENCE
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 $19.4 million.
What is the period of performance?
Start: 2008-12-12. End: 2015-03-11.
What specific areas within 'space science' does this R&D contract cover, and how do these align with current DoD strategic priorities?
The provided data abbreviates the contract description as 'RESEARCH AND DEVELOPMENT IN SUPPORT OF SPACE SCIENCE' (d: '76-0009-09'). This broad description lacks specificity regarding the exact R&D focus areas. However, within the Department of Defense (DoD), 'space science' R&D typically supports strategic priorities such as space domain awareness, satellite technology enhancement (communication, navigation, intelligence), missile defense capabilities, and understanding the space environment for operational resilience. Given the contract's duration and value, it likely supports foundational research or development of novel technologies rather than incremental improvements. Without further details on the Statement of Work (SOW), it's difficult to pinpoint the exact alignment, but it can be inferred that the work contributes to maintaining or advancing the US's technological edge in the space domain, which is a critical component of national security strategy.
How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other R&D contract types in terms of risk and benefit for the government?
The Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D, CPFF can be advantageous when the scope of work is uncertain or subject to change, as it allows flexibility to explore different avenues. The 'fixed fee' component provides the government with a predictable profit margin, unlike Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) contracts where profit can vary based on performance. However, CPFF carries a risk of cost overrun if the contractor's initial cost estimates are inaccurate or if unforeseen challenges arise, as the government bears the cost risk. The government's benefit lies in its ability to pursue complex, high-risk R&D projects that might not be feasible under fixed-price contracts, while the fixed fee offers some level of cost predictability compared to other cost-reimbursement types. Effective oversight is crucial to manage allowable costs.
What is Peraton Inc.'s track record with similar large-scale R&D contracts, particularly within the defense sector?
Peraton Inc. is a significant government contractor with a substantial portfolio, often involved in complex technology, defense, and intelligence programs. While specific R&D contract history for 'space science' isn't detailed in the provided data, Peraton has a known presence in areas like space systems, cyber security, and mission solutions for defense and intelligence agencies. Their track record generally involves managing large, complex programs. Assessing their specific performance on similar R&D contracts would require examining past performance evaluations, contract awards, and any publicly available information on project outcomes. Given their size and focus, it's probable they have experience with R&D efforts, though the unique demands of 'space science' R&D would be a key factor in evaluating their suitability for this specific contract.
How does the $19.4 million contract value compare to historical spending on space science R&D by the Department of Defense?
The $19.4 million contract value represents a specific investment in R&D for space science. To contextualize this, one would need to compare it against the DoD's overall R&D budget and specific allocations for space-related research over the contract's period (2008-2015) and subsequent years. The DoD's R&D spending is substantial, often in the tens of billions annually, covering a wide array of technological domains. A $19.4 million contract, while significant for a single award, is a component within a much larger budget. Historical data would show if this amount is typical for focused R&D efforts in space science, or if it represents a particularly large or small investment relative to other similar initiatives undertaken by the DoD during that timeframe. Without broader budget context, it's difficult to definitively state if it's high or low, but it signifies a dedicated funding stream for this area.
What are the potential risks associated with a 'full and open competition' award to a single contractor for a long-term R&D project?
While 'full and open competition' is generally positive, awarding a long-term R&D project to a single contractor can introduce specific risks. Firstly, the initial competition might have resulted in only one highly qualified bidder, or the chosen contractor might have offered the most compelling technical solution, even if others bid. The risk then becomes a lack of ongoing competitive pressure throughout the contract's duration, potentially leading to complacency or less aggressive cost management by the contractor. Secondly, for long-term R&D, the technological landscape can shift rapidly. If the chosen contractor's capabilities become misaligned with evolving requirements or if they face internal challenges (financial, technical, or personnel), the government has limited immediate alternatives without potentially disrupting the project significantly. This underscores the importance of robust contract management, clear performance metrics, and contingency planning.
What performance metrics or oversight mechanisms are typically employed for a CPFF contract of this nature to ensure value for money?
For a Cost Plus Fixed Fee (CPFF) contract like this, effective oversight is critical to ensure value for money. Key mechanisms include rigorous monitoring of allowable costs through regular audits and reviews, ensuring that expenditures align with the contract's objectives and are reasonable and allocable. Performance metrics would be defined in the Statement of Work (SOW) and could include milestones, deliverables (e.g., research reports, prototypes, technical data), and adherence to project schedules. The fixed fee itself acts as an incentive for the contractor to complete the project efficiently, as their profit is capped. The Defense Contract Management Agency (DCMA) or the contracting officer's representative (COR) would typically be responsible for day-to-day oversight, performance assessment, and ensuring compliance with contractual terms. Regular progress reviews and technical evaluations are standard practices.
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
Solicitation ID: N0017308RJR06
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
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: $19,687,557
Exercised Options: $19,687,557
Current Obligation: $19,393,143
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-12-12
Current End Date: 2015-03-11
Potential End Date: 2015-03-11 00:00:00
Last Modified: 2023-04-13
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