DoD's $16.75M Engineering Services Contract Awarded to Peraton Inc. for CSSD FOLLOW-ON
Contract Overview
Contract Amount: $16,753,680 ($16.8M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2023-02-01
End Date: 2026-01-31
Contract Duration: 1,095 days
Daily Burn Rate: $15.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CSSD FOLLOW-ON
Place of Performance
Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $16.8 million to PERATON INC. for work described as: CSSD FOLLOW-ON Key points: 1. Contract value represents a significant investment in engineering services for the Department of the Navy. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract duration of 1095 days indicates a long-term need for these engineering services. 4. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to ensure cost control. 5. This contract falls within the Engineering Services sector, a critical area for defense operations. 6. The specific North American Industry Classification System (NAICS) code 541330 points to specialized engineering expertise.
Value Assessment
Rating: good
The contract value of $16.75 million over three years for engineering services appears reasonable given the specialized nature of defense contracts. Benchmarking against similar contracts for complex engineering support within the Department of Defense would provide a clearer picture of value for money. The CPFF structure necessitates diligent oversight to prevent cost overruns, but it allows for flexibility in scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 3 bids suggests a healthy level of competition for this requirement, which typically leads to more competitive pricing and better value for the government.
Taxpayer Impact: A competitive bidding process for this contract is beneficial for taxpayers as it helps ensure that the government is not overpaying for the engineering services required.
Public Impact
The Department of the Navy benefits from specialized engineering expertise to support its CSSD FOLLOW-ON program. This contract will likely support critical defense infrastructure and operational capabilities. The services delivered are expected to enhance the effectiveness and efficiency of naval operations. The primary beneficiaries are the military personnel and the overall defense readiness of the United States.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the Cost Plus Fixed Fee (CPFF) contract type if not managed stringently.
- Dependence on a single contractor for a critical follow-on effort could pose a risk if performance issues arise.
- The long-term nature of the contract requires ongoing performance monitoring to ensure sustained quality.
Positive Signals
- Awarded through full and open competition, indicating a competitive selection process.
- The contract duration suggests a stable and predictable need for the services, allowing for focused execution.
- The specific NAICS code indicates that the contractor possesses specialized engineering capabilities relevant to the requirement.
Sector Analysis
This contract falls within the Engineering Services sector, which is a vital component of the defense industrial base. The market for specialized engineering services supporting defense applications is competitive, with a focus on technical expertise, security clearances, and proven performance. The $16.75 million award is a moderate-sized contract within this sector, reflecting a specific project need rather than broad-based support.
Small Business Impact
The data does not indicate any specific small business set-aside provisions for this contract. However, the prime contractor, Peraton Inc., may engage small businesses as subcontractors to fulfill portions of the work, contributing to the small business ecosystem. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures will be tied to the performance metrics outlined in the Cost Plus Fixed Fee contract. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details may be sensitive.
Related Government Programs
- Department of Defense Engineering Services
- Naval Systems Engineering Support
- Defense Contract Management
- CSSD Program Support
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
- Long contract duration necessitates continuous performance monitoring.
- Dependence on a single contractor for a critical follow-on effort.
Tags
defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, peraton-inc, cssd-follow-on, virginia, delivery-order, naics-541330
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to PERATON INC.. CSSD FOLLOW-ON
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 $16.8 million.
What is the period of performance?
Start: 2023-02-01. End: 2026-01-31.
What is Peraton Inc.'s track record with the Department of the Navy and similar engineering contracts?
Peraton Inc. has a significant history of contracting with the Department of Defense, including the Department of the Navy. They are known for providing a range of services, including IT, cyber, and engineering solutions. For similar engineering services contracts, their performance has generally been rated positively, though specific contract details and performance metrics are often proprietary. Their experience in complex defense environments suggests a capability to handle the demands of the CSSD FOLLOW-ON project. It is advisable to review specific past performance evaluations available through government contracting databases for a more granular understanding of their success on comparable projects.
How does the $16.75 million contract value compare to other engineering services contracts awarded by the Navy?
The $16.75 million contract value for engineering services awarded to Peraton Inc. is within a moderate range for specialized defense contracts. The Department of the Navy awards numerous engineering services contracts annually, with values varying significantly based on scope, duration, and complexity. Contracts for large-scale system development or infrastructure projects can easily exceed hundreds of millions of dollars, while smaller, more focused support contracts might be in the single-digit millions. This $16.75 million award suggests a substantial but not exceptionally large project, likely focused on specific engineering challenges within the CSSD program. Benchmarking against contracts with similar NAICS codes (541330) and contract types (CPFF) would provide a more precise comparison.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to maximize their fixed fee, the government bears the risk of increased direct costs. This structure can lead to higher overall expenditures if the contractor's cost estimates are inaccurate or if unforeseen technical challenges arise, driving up expenses. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are crucial to mitigate these risks. The government must ensure that all costs claimed are reasonable, allocable, and allowable under the contract terms to protect taxpayer interests.
How effective is full and open competition in ensuring value for money in defense engineering contracts?
Full and open competition is generally considered the most effective method for ensuring value for money in defense engineering contracts. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. When multiple companies vie for a contract, they are motivated to offer their best technical solutions at the most competitive prices. This process also increases transparency and reduces the likelihood of favoritism or sole-source awards that might be less cost-effective. The presence of multiple bidders, as indicated by the 3 bids received for this contract, strengthens the argument for competitive pricing and better overall value for the taxpayer.
What is the historical spending trend for engineering services within the Department of the Navy?
Historical spending on engineering services within the Department of the Navy has consistently been substantial, reflecting the complexity and ongoing evolution of naval systems and infrastructure. The Navy relies heavily on external engineering expertise for research and development, system design, modernization, maintenance, and specialized technical support. Annual expenditures in this category can range from billions to tens of billions of dollars, depending on major acquisition programs, fleet readiness initiatives, and technological advancements. Spending patterns are influenced by defense budgets, geopolitical priorities, and the lifecycle of naval assets. The CSSD FOLLOW-ON contract represents a portion of this broader, consistent demand for engineering services.
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: N0017822R3011
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: $34,877,094
Exercised Options: $18,607,291
Current Obligation: $16,753,680
Actual Outlays: $180,679
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $8,130,834
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: 2023-02-01
Current End Date: 2026-01-31
Potential End Date: 2028-07-31 00:00:00
Last Modified: 2026-01-20
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