DoD's $30.3M contract with Peraton Inc. for IT services awarded in 1999, spanning over 6 years
Contract Overview
Contract Amount: $30,337,787 ($30.3M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 1999-12-02
End Date: 2005-12-19
Contract Duration: 2,209 days
Daily Burn Rate: $13.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $30.3 million to PERATON INC. for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not managed carefully. 3. Awarded in 1999 and ending in 2005, this contract represents historical IT spending patterns. 4. The duration of 2209 days (over 6 years) indicates a long-term need for the services provided. 5. The contract was awarded by the Department of Defense, a major federal IT consumer. 6. No small business set-aside was utilized, indicating the primary awardee was not a small business.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its age and the lack of specific service details. Cost Plus Fixed Fee contracts can sometimes lead to higher costs than fixed-price contracts if cost controls are not robust. Without comparable contract data from the late 1990s and early 2000s for similar IT services, a precise value-for-money assessment is difficult. The fixed fee component provides some cost certainty for the contractor's profit, but the cost reimbursement aspect requires diligent oversight.
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 a bid. This typically suggests a robust bidding process with the potential for multiple offers. The number of bidders is not specified, but the designation implies that the government sought the best value through a competitive solicitation. This approach is generally favored for achieving competitive pricing.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from a wider pool of contractors.
Public Impact
The Department of Defense likely benefited from enhanced IT capabilities or services. The contract supported the operational needs of a major federal agency. The geographic impact is likely concentrated around the Department of Defense's operational centers, primarily in Virginia. The workforce implications would involve IT professionals employed by Peraton Inc. and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not closely monitored.
- The age of the contract makes direct comparison to current market rates difficult.
- Lack of specific service details hinders a thorough assessment of performance and value.
- Long contract duration could lead to vendor lock-in or outdated technology if not managed proactively.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- The fixed fee component provides a defined profit margin for the contractor.
- The contract was managed by the Defense Contract Management Agency, indicating established oversight processes.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically for services procured by the Department of Defense. The IT services market in the late 1990s was rapidly evolving, with significant government investment in modernizing systems. Comparable spending benchmarks from that era are scarce, but defense IT spending has historically been a substantial portion of the federal IT budget, driven by complex operational and security requirements.
Small Business Impact
The contract was not awarded as a small business set-aside, and the 'sb' field is false, indicating no specific provisions for small businesses were applied to the primary award. This suggests that the primary contractor, Peraton Inc., was not considered a small business for this procurement. There is no information provided on subcontracting plans or their impact on the small business ecosystem for this specific contract.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Oversight mechanisms for Cost Plus Fixed Fee contracts typically involve detailed review of incurred costs, progress reports, and adherence to contract terms. Transparency is generally maintained through contract databases and reporting requirements, though specific details of ongoing oversight are not publicly detailed.
Related Government Programs
- Department of Defense IT Procurement
- Cost Plus Fixed Fee Contracts
- Long-Term IT Service Contracts
- Federal IT Services
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed diligently.
- Lack of specific service details makes performance and value assessment difficult.
- Contract awarded in 1999, making direct comparison to current market rates challenging.
Tags
department-of-defense, it-services, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, virginia, peraton-inc, defense-contract-management-agency, historical-contract, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.3 million to PERATON INC.. See the official description on USAspending.
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 $30.3 million.
What is the period of performance?
Start: 1999-12-02. End: 2005-12-19.
What specific IT services were provided under this contract?
The provided data does not specify the exact IT services rendered under this contract. Contracts of this nature, awarded to large defense contractors like Peraton Inc. by the Department of Defense in the late 1990s, could encompass a wide range of services. These might include system development and integration, network management, cybersecurity, software maintenance, IT infrastructure support, or specialized defense-related IT solutions. Without further details from the contract award or associated documentation, the precise nature of the services remains undefined, making it difficult to assess their impact or value beyond general IT support.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for IT services during that period?
The Cost Plus Fixed Fee (CPFF) contract type was common for complex IT projects where the scope was not fully defined at the outset, or where innovation and research were involved. Unlike fixed-price contracts, CPFF reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. This structure can be advantageous when requirements are uncertain, as it allows for flexibility. However, it carries a risk of cost overruns if the government's oversight of incurred costs is not rigorous, potentially leading to higher overall spending compared to fixed-price contracts where the contractor bears more cost risk. Other contract types like Firm-Fixed-Price (FFP) or Cost Plus Incentive Fee (CPIF) offered different risk-reward profiles.
What was Peraton Inc.'s track record with the Department of Defense prior to or during this contract?
The provided data does not include specific details on Peraton Inc.'s track record with the Department of Defense (DoD) prior to or during this contract (1999-2005). However, Peraton has a long history of serving government clients, including the DoD. Companies awarded significant contracts like this typically have demonstrated capabilities and past performance. To assess their track record comprehensively, one would need to examine other contracts awarded to Peraton by the DoD, performance reviews, and any documented issues or successes during the period this specific contract was active. Given the contract's duration and value, it suggests a level of trust and capability established with the agency.
How does the $30.3 million award value compare to other DoD IT contracts from the late 1990s?
The $30.3 million award value for this contract, spanning over six years, represents a significant but not extraordinary sum for a Department of Defense (DoD) IT contract in the late 1990s. The DoD was a major investor in technology during that era, undertaking large-scale system modernization efforts. While specific comparable data from that exact period is difficult to pinpoint without extensive historical databases, multi-million dollar IT contracts were common for major system procurements, infrastructure upgrades, and long-term support services. This award suggests a substantial project, likely involving complex IT infrastructure or services critical to DoD operations, fitting within the typical scale of defense IT spending at the time.
What are the potential risks associated with a Cost Plus Fixed Fee contract of this duration?
A primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially one spanning over six years, is the potential for cost escalation. While the fee is fixed, the 'cost' portion is reimbursable, meaning the government pays for the contractor's expenses. If cost controls are weak or if the scope creeps without proper change management, the total cost to the government can significantly exceed initial estimates. For a long-duration contract, there's also the risk that the technology or services provided may become outdated by the end of the term, requiring costly upgrades or replacements. Furthermore, contractor efficiency might decrease over time if incentives for cost-saving are not robustly built into the contract's oversight.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 12975 WORLDGATE DR STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1999-12-02
Current End Date: 2005-12-19
Potential End Date: 2005-12-19 00:00:00
Last Modified: 2024-04-16
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