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 Services › Architectural, Engineering, and Related Services › Engineering 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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