DoD awards $39.16M for Engineering Services to Peraton Inc. under Full and Open Competition

Contract Overview

Contract Amount: $39,164,035 ($39.2M)

Contractor: Peraton Inc.

Awarding Agency: Department of Defense

Start Date: 2017-12-20

End Date: 2023-02-06

Contract Duration: 1,874 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PMS 408

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.2 million to PERATON INC. for work described as: PMS 408 Key points: 1. Significant contract value of over $39 million awarded. 2. Peraton Inc. secured the contract through full and open competition. 3. Contract duration spans over 1800 days, indicating a long-term need. 4. The contract falls under Engineering Services, a critical sector for defense operations.

Value Assessment

Rating: good

The contract value of $39.16M appears reasonable for engineering services over an 1874-day period. Benchmarking against similar large-scale engineering contracts would provide a more precise assessment of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

Ensures continued engineering support for Department of Defense projects. Supports critical defense infrastructure and technological advancements. Potential for job creation within the engineering services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration is extensive, requiring ongoing monitoring.
  • Cost Plus Fixed Fee contract type can sometimes lead to cost overruns if not managed carefully.

Positive Signals

  • Awarded through full and open competition.
  • Significant investment in essential engineering services.

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for the Department of Defense's operational capabilities and technological development. Spending in this sector is often substantial due to the complexity and criticality of defense projects.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine the extent of small business participation, if any, in subcontracting opportunities.

Oversight & Accountability

The Department of Defense, through its agencies like the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial to ensure performance, cost control, and adherence to contract terms.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Contract duration
  • Cost Plus Fixed Fee contract type
  • Lack of specific service details
  • Potential for cost overruns

Tags

engineering-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.2 million to PERATON INC.. PMS 408

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 $39.2 million.

What is the period of performance?

Start: 2017-12-20. End: 2023-02-06.

What specific engineering services are being provided under this contract?

The provided data does not detail the specific engineering services. However, given the 'Engineering Services' NAICS code (541330) and the Department of Defense as the agency, these services likely encompass a broad range of technical support, design, analysis, and consulting related to military systems, infrastructure, or research and development projects.

What are the potential risks associated with a Cost Plus Fixed Fee contract for this duration?

Cost Plus Fixed Fee (CPFF) contracts carry inherent risks, particularly for long durations like 1874 days. The primary risk is that the contractor may have less incentive to control costs once the fixed fee is established, potentially leading to scope creep or inefficiencies. The government bears the risk of cost overruns if the initial cost estimates are inaccurate.

How does the competitive landscape for engineering services impact pricing for the DoD?

The competitive landscape for engineering services is generally robust, especially for large contracts awarded under full and open competition. This competition typically drives down prices as multiple qualified firms vie for the contract. However, specialized or niche engineering requirements might have a more limited pool of qualified bidders, potentially impacting price discovery.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017417R3029

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: $40,246,828

Exercised Options: $40,246,828

Current Obligation: $39,164,035

Actual Outlays: $3,872,260

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $566,498

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7714

IDV Type: IDC

Timeline

Start Date: 2017-12-20

Current End Date: 2023-02-06

Potential End Date: 2023-02-06 00:00:00

Last Modified: 2025-08-21

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