DoD's $18.4M R&D contract to Peraton Inc. for physical sciences research awarded in 2010
Contract Overview
Contract Amount: $18,424,970 ($18.4M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2010-12-29
End Date: 2015-12-29
Contract Duration: 1,826 days
Daily Burn Rate: $10.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 57-7027-10 NEW AWARD
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.4 million to PERATON INC. for work described as: 57-7027-10 NEW AWARD Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a critical sector for innovation. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. A duration of 5 years indicates a significant, long-term research effort. 5. The award was made by the Defense Contract Management Agency, a key oversight body. 6. The contract's value is moderate for R&D, but its impact depends on the research outcomes.
Value Assessment
Rating: fair
The contract's value of approximately $18.4 million over five years for R&D in physical sciences is within a typical range for such specialized research. However, without specific deliverables or performance metrics, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility for research, carries inherent risks of cost escalation if the scope is not tightly controlled. Benchmarking against similar R&D contracts in physical sciences would provide a clearer picture of its pricing competitiveness.
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 a bid. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The number of bidders is not specified, but the open competition suggests a healthy market for these R&D services.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs and improve the quality of services through market forces.
Public Impact
The primary beneficiaries are the Department of Defense and potentially the broader scientific community through the dissemination of research findings. The contract supports research and development in physical, engineering, and life sciences, excluding biotechnology. The geographic impact is primarily within Virginia, where the Defense Contract Management Agency is located, but the research itself 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 contracts can incentivize contractors to increase costs to maximize profit if not adequately monitored.
- The lack of specific performance metrics in the provided data makes it difficult to assess the true value and effectiveness of the R&D.
- Long contract durations can sometimes lead to scope creep or outdated research if not actively managed.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- The contract supports critical R&D in physical sciences, vital for technological advancement.
- The Defense Contract Management Agency's involvement implies a level of oversight.
Sector Analysis
The contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This sector is crucial for national security and technological innovation. The market for such specialized R&D services is often characterized by a mix of large corporations and specialized research firms. Government spending in this area is substantial, driven by the need for cutting-edge solutions across various defense and civilian applications. Comparable spending benchmarks would depend on the specific sub-field of research.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, Peraton Inc., is likely a large business, and any subcontracting would be at their discretion, not mandated by a set-aside program.
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. Accountability measures would be embedded in the contract's terms and conditions, including reporting requirements and performance standards. Transparency is generally facilitated through contract award databases, though specific research details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- National Science Foundation Grants
- Department of Energy Research Initiatives
- NASA Research Contracts
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Lack of specific performance metrics makes value assessment difficult.
- Research and Development outcomes can be uncertain and long-term.
Tags
department-of-defense, research-and-development, physical-sciences, engineering, life-sciences, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, peraton-inc, defense-contract-management-agency, virginia, 2010-award
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.4 million to PERATON INC.. 57-7027-10 NEW AWARD
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 $18.4 million.
What is the period of performance?
Start: 2010-12-29. End: 2015-12-29.
What specific research areas within physical sciences did this contract cover, and what were the expected outcomes?
The provided data classifies the contract under NAICS code 541712: Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). However, it does not specify the precise research areas within this broad category. Expected outcomes are also not detailed in the award information. Typically, R&D contracts of this nature aim to advance scientific knowledge, develop new technologies, or solve specific engineering challenges relevant to the contracting agency's mission. For the Department of Defense, this could range from materials science and advanced manufacturing to sensor technology or propulsion systems. Without further documentation, the exact scope and anticipated results remain unspecified.
How does the $18.4 million contract value compare to other R&D contracts in physical sciences awarded by the DoD around 2010?
Benchmarking the $18.4 million contract value requires access to a comprehensive database of DoD R&D contracts from the 2010-2015 period, categorized by specific scientific disciplines. Generally, R&D contracts can vary significantly in value, from small, focused projects costing a few hundred thousand dollars to large, multi-year programs exceeding hundreds of millions. An $18.4 million award over five years suggests a moderately sized, significant research effort. It is neither exceptionally large nor trivially small within the context of defense R&D. To provide a precise comparison, one would need to analyze the average, median, and range of contract values for similar research areas (e.g., physics, chemistry, engineering) awarded by the DoD during that timeframe.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they typically mitigated?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a predetermined fixed fee. This can lead to cost overruns if the scope of work is not well-defined or if the contractor's cost estimation is inaccurate. For R&D, where uncertainty is inherent, CPFF can be appropriate to encourage innovation without the contractor bearing excessive financial risk. Mitigation strategies include robust government oversight, detailed cost monitoring, clear definition of allowable costs, and strong negotiation of the fixed fee based on realistic cost projections. Regular audits and performance reviews are crucial to ensure costs are reasonable and allocable.
What is Peraton Inc.'s track record with government R&D contracts, particularly with the Department of Defense?
Peraton Inc. has a significant history of performing contracts for the U.S. government, including substantial work with the Department of Defense. While this specific contract was awarded in 2010, Peraton has since grown and evolved, often through acquisitions, to become a major government contractor. Their portfolio typically includes a wide range of services, from IT and cybersecurity to intelligence analysis and mission support, often involving complex technical and R&D components. Assessing their specific track record for R&D in physical sciences would require a detailed review of their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and the types of R&D projects they have successfully executed for the DoD and other agencies. Generally, their continued success in winning large government contracts suggests a generally positive performance history.
How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category evolved since this contract was awarded?
Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (often tracked under broader R&D or specific agency budgets) has generally seen fluctuations but an overall upward trend since 2010, driven by national security priorities, technological advancements, and public health initiatives. Agencies like the Department of Defense (DoD), National Science Foundation (NSF), National Institutes of Health (NIH), and Department of Energy (DOE) are major contributors. The DoD, in particular, consistently invests heavily in R&D to maintain technological superiority. Factors influencing spending include geopolitical events, economic conditions, and administration priorities. While specific figures for NAICS 541712 are not always isolated in high-level budget reports, the broader R&D landscape indicates continued significant federal investment in these critical scientific domains.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0017310RJR05
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: $18,424,970
Exercised Options: $18,424,970
Current Obligation: $18,424,970
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $93,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-12-29
Current End Date: 2015-12-29
Potential End Date: 2015-12-29 00:00:00
Last Modified: 2024-04-16
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