DoD's $27M Space System Development Contract Awarded to Peraton Inc. for IT Services
Contract Overview
Contract Amount: $27,133,823 ($27.1M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2015-07-01
End Date: 2020-12-07
Contract Duration: 1,986 days
Daily Burn Rate: $13.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF PR # 81-0105-14 SPACE SYSTEM DEVELOPMENT, EXECUTIVE AND COMMAND SUPPORT I.T. SERVICES
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $27.1 million to PERATON INC. for work described as: IGF::OT::IGF PR # 81-0105-14 SPACE SYSTEM DEVELOPMENT, EXECUTIVE AND COMMAND SUPPORT I.T. SERVICES Key points: 1. Contract awarded to Peraton Inc. for significant IT services related to space system development. 2. The contract falls under the Computer Systems Design Services NAICS code. 3. Competition was full and open, suggesting a competitive bidding process. 4. The contract duration is substantial, spanning over 1900 days. 5. The award type is a delivery order, indicating it's part of a larger contract vehicle.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts for similar IT services is challenging due to varying scope and risk.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the CPFF pricing structure requires careful oversight to ensure fair and reasonable costs.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The effectiveness of the competition and oversight will determine the ultimate value for taxpayers.
Public Impact
Supports critical space system development for the Department of the Navy. Ensures continued IT support for executive and command functions. Potential for technological advancements in space systems. Impacts the IT services sector, particularly those supporting defense contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) pricing can incentivize contractor overspending.
- Long contract duration may require adjustments for evolving technology.
- Lack of specific performance metrics makes assessing value difficult.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security functions.
- Experienced contractor likely involved.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer systems design and support for defense applications. Spending benchmarks for similar large-scale IT development contracts vary widely based on complexity and duration.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were offered or utilized.
Oversight & Accountability
The contract type (CPFF) necessitates robust oversight to manage costs and ensure performance. The number of modifications (no: 3) suggests some level of adjustment or change during the contract period, requiring scrutiny.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) pricing model.
- Long contract duration.
- Lack of detailed performance metrics.
- No explicit small business participation noted.
- Potential for evolving technological requirements impacting scope.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.1 million to PERATON INC.. IGF::OT::IGF PR # 81-0105-14 SPACE SYSTEM DEVELOPMENT, EXECUTIVE AND COMMAND SUPPORT I.T. SERVICES
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $27.1 million.
What is the period of performance?
Start: 2015-07-01. End: 2020-12-07.
What specific IT services are included in 'SPACE SYSTEM DEVELOPMENT, EXECUTIVE AND COMMAND SUPPORT' and how do they align with current technological needs?
The contract details are broad, encompassing 'Computer Systems Design Services'. Specific services likely include system architecture, software development, integration, testing, and ongoing IT support for space-related command and control systems. Alignment with current needs requires a review of the statement of work against evolving space technologies and defense requirements, which is not fully detailed in the provided data.
How effectively did the 'full and open competition' process ensure competitive pricing for a Cost Plus Fixed Fee contract?
While 'full and open competition' is a positive indicator for price discovery, the CPFF structure inherently carries risk. The effectiveness hinges on the government's ability to establish a well-defined scope, realistic cost estimates, and robust negotiation. Without detailed pricing data and comparison, it's difficult to definitively assess if the competition yielded the best possible price, especially given the potential for cost escalation in CPFF contracts.
What is the projected taxpayer impact given the contract's duration and CPFF structure, and are there mechanisms to mitigate cost overruns?
The taxpayer impact is significant due to the $27M value and the CPFF structure, which can lead to costs exceeding initial estimates if not managed. Mitigation relies heavily on stringent government oversight, clear performance metrics, and proactive change management. The contract's duration (1986 days) amplifies the need for continuous monitoring to prevent scope creep and ensure efficient resource utilization, thereby controlling the ultimate cost to taxpayers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0017315RRS01
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)
Address: 12975 WORLDGATE 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: $28,433,799
Exercised Options: $28,433,799
Current Obligation: $27,133,823
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $811,738
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0031
IDV Type: GWAC
Timeline
Start Date: 2015-07-01
Current End Date: 2020-12-07
Potential End Date: 2020-12-07 00:00:00
Last Modified: 2021-03-02
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