DoD's $55.9M IT R&D Contract with Peraton Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $55,920,750 ($55.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2010-04-02
End Date: 2016-06-30
Contract Duration: 2,281 days
Daily Burn Rate: $24.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: 55-7800-09, RESEARCH AND DEVELOPMENT IN ADVANCED INFORMATION TECHNOLOGY AND ASSOCIATED APPLICATIONS
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $55.9 million to PERATON INC. for work described as: 55-7800-09, RESEARCH AND DEVELOPMENT IN ADVANCED INFORMATION TECHNOLOGY AND ASSOCIATED APPLICATIONS Key points: 1. The contract focuses on advanced information technology R&D, a critical area for defense modernization. 2. Competition was full and open, suggesting a robust price discovery process. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed closely. 4. The sector is IT, specifically R&D in physical and engineering sciences.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility for R&D, carries inherent risks of cost escalation. Benchmarking is difficult without specific deliverables and comparable projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the Cost Plus Fixed Fee structure may limit the direct impact of price discovery on the final cost.
Taxpayer Impact: Taxpayer funds are supporting advanced IT R&D, aiming for technological superiority. The effectiveness of this spending will be determined by the innovation and application of the research outcomes.
Public Impact
Advancement of critical IT capabilities for national security. Potential for technological breakthroughs with broad defense applications. Investment in a key sector for future military advantage. Ensuring U.S. technological leadership in advanced information technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration (2281 days) increases risk exposure.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Awarded under full and open competition.
- Focus on critical advanced information technology R&D.
- Contract awarded by the Department of Defense.
Sector Analysis
This contract falls within the IT sector, specifically R&D. Spending in this area is crucial for maintaining a technological edge, but R&D investments are inherently uncertain and require careful oversight to ensure value.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). This suggests the prime contractor is a large entity, and subcontracting opportunities for small businesses are not explicitly detailed in this summary.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The effectiveness of oversight will depend on rigorous monitoring of costs, progress, and adherence to research objectives under the Cost Plus Fixed Fee structure.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for R&D to become obsolete.
- Lack of specific performance metrics in summary data.
- No explicit small business participation noted.
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 $55.9 million to PERATON INC.. 55-7800-09, RESEARCH AND DEVELOPMENT IN ADVANCED INFORMATION TECHNOLOGY AND ASSOCIATED APPLICATIONS
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 $55.9 million.
What is the period of performance?
Start: 2010-04-02. End: 2016-06-30.
What specific technological advancements are expected from this R&D contract, and how will they translate into tangible defense capabilities?
The contract aims for advancements in 'Advanced Information Technology and Associated Applications.' Specific outcomes are not detailed, but potential applications could include AI, cybersecurity enhancements, advanced data analytics, or next-generation communication systems. The translation into capabilities depends on successful research and subsequent integration into defense platforms.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control cost growth and ensure the government receives value for its investment?
Cost Plus Fixed Fee contracts require robust government oversight to monitor expenditures and contractor performance. Mechanisms include regular audits, detailed cost reporting, and performance reviews. However, the fixed fee component means the contractor's profit is fixed, incentivizing them to complete the work efficiently, but the 'cost plus' aspect still allows for cost increases within the contract scope.
How does the R&D conducted under this contract align with current and future Department of Defense strategic priorities, and what is the risk of obsolescence?
The contract's focus on advanced IT aligns with DoD's modernization efforts. However, the rapid pace of technological change in IT means R&D projects risk obsolescence if not strategically aligned and executed efficiently. Continuous reassessment of research direction against evolving threats and technological landscapes is crucial to mitigate this risk.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
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
Solicitation ID: N0017309RSK01
Offers Received: 2
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: $62,839,072
Exercised Options: $62,839,072
Current Obligation: $55,920,750
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-04-02
Current End Date: 2016-06-30
Potential End Date: 2016-06-30 00:00:00
Last Modified: 2024-04-16
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