DoD Awards $22.9M Cybersecurity Engineering Support Contract to Peraton Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $22,939,224 ($22.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2022-12-02
End Date: 2026-12-01
Contract Duration: 1,460 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: CYBERSECURITY ENGINEERING SUPPORT
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.9 million to PERATON INC. for work described as: CYBERSECURITY ENGINEERING SUPPORT Key points: 1. Contract Value: $22.9 million over approximately 4 years. 2. Competition: Awarded via full and open competition, indicating a competitive bidding process. 3. Risk: Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. 4. Sector: Cybersecurity engineering services are critical for national defense.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure costs remain reasonable. Benchmarking against similar CPFF contracts for specialized engineering services is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The competitive nature of the award is expected to result in fair pricing, maximizing taxpayer value for essential cybersecurity engineering services.
Public Impact
Ensures critical cybersecurity infrastructure and capabilities for the Department of the Navy. Supports national security by protecting sensitive defense systems from cyber threats. Provides specialized engineering expertise for advanced cybersecurity solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type carries inherent cost overrun risk.
- Long-term contract duration requires ongoing performance monitoring.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical national security need.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on cybersecurity. Spending in this area is crucial for maintaining technological superiority and protecting government assets from evolving cyber threats.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy's oversight will be crucial in managing the CPFF contract to ensure cost control and effective delivery of cybersecurity engineering services. Regular performance reviews and audits are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Potential for cost overruns.
- Long contract duration.
- Cybersecurity is a high-stakes, evolving field.
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 $22.9 million to PERATON INC.. CYBERSECURITY ENGINEERING SUPPORT
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 $22.9 million.
What is the period of performance?
Start: 2022-12-02. End: 2026-12-01.
What is the typical profit margin for CPFF contracts in the cybersecurity engineering sector?
Profit margins for Cost Plus Fixed Fee (CPFF) contracts in the cybersecurity engineering sector can vary based on contract complexity, risk, and market conditions. Generally, the fixed fee is negotiated as a percentage of the estimated cost. While specific benchmarks are proprietary, agencies often aim for fees that are competitive yet reflect the contractor's performance and the specialized nature of the services provided. Oversight is key to ensuring the fee remains reasonable.
How does the CPFF contract type impact the government's ability to control costs compared to fixed-price contracts?
The CPFF contract type shifts cost risk to the government, meaning the contractor is reimbursed for all allowable costs plus a negotiated fixed fee. This contrasts with fixed-price contracts where the contractor bears the risk of cost overruns. While CPFF allows for flexibility in scope changes and is suitable for research and development or uncertain requirements, it necessitates robust government oversight to prevent cost escalation and ensure efficient resource utilization.
What are the key performance indicators (KPIs) likely to be used to measure the effectiveness of this cybersecurity engineering support contract?
Key performance indicators for this contract would likely include metrics related to system uptime, vulnerability remediation rates, response times to security incidents, successful implementation of security controls, and adherence to cybersecurity standards and protocols. Performance would also be assessed based on the quality of engineering documentation, project milestones achieved, and overall contribution to enhancing the Department of the Navy's cyber defense posture.
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: N0017822R3004
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
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: $77,488,905
Exercised Options: $55,629,720
Current Obligation: $22,939,224
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $33,775,065
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8284
IDV Type: IDC
Timeline
Start Date: 2022-12-02
Current End Date: 2026-12-01
Potential End Date: 2028-12-01 00:00:00
Last Modified: 2026-01-20
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