DoD Awards $20M Cyber Tool Contract to Peraton Technology Services Inc. for MARFORCYBER

Contract Overview

Contract Amount: $20,042,719 ($20.0M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-20

End Date: 2026-05-06

Contract Duration: 959 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: IT

Official Description: CONSOLIDATED CYBER TOOL DEVELOPMENT FOR MARINE CORPS FORCES CYBERSPACE COMMAND (MARFORCYBER)

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $20.0 million to PERATON TECHNOLOGY SERVICES INC. for work described as: CONSOLIDATED CYBER TOOL DEVELOPMENT FOR MARINE CORPS FORCES CYBERSPACE COMMAND (MARFORCYBER) Key points: 1. Significant investment in cyber capabilities for the Marine Corps. 2. Peraton Technology Services Inc. is the sole awardee. 3. Contract duration extends to May 2026. 4. Engineering Services sector, NAICS 541330.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking against similar cyber tool development contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award mechanism (Delivery Order) implies it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit direct price comparison for this specific order.

Taxpayer Impact: Taxpayer funds are being used to enhance critical cyber defense capabilities for the Marine Corps, aiming for improved operational effectiveness.

Public Impact

Enhances cybersecurity posture for Marine Corps Forces Cyberspace Command. Supports critical mission functions through advanced cyber tools. Potential for improved threat detection and response capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can incentivize cost increases.
Limited visibility into specific cost drivers for the development.
Potential for scope creep in complex cyber tool development.

Positive Signals

Awarded under full and open competition.
Addresses a critical national security need.
Long-term contract duration allows for sustained development.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to defense and IT infrastructure. Spending in this area is substantial across the DoD, driven by the constant need to modernize and secure digital systems against evolving threats.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor, Peraton Technology Services Inc., is a large business. There is no information provided on small business subcontracting goals or performance.

Oversight & Accountability

The contract is managed by the Department of the Navy for MARFORCYBER. Oversight would typically involve program managers ensuring adherence to scope, schedule, and budget, with regular reporting requirements.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost overrun potential due to CPFF structure.
Dependency on a single large business contractor.
Potential for scope creep in complex development.
Limited public detail on specific performance metrics.
Cybersecurity risks inherent in tool development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to PERATON TECHNOLOGY SERVICES INC.. CONSOLIDATED CYBER TOOL DEVELOPMENT FOR MARINE CORPS FORCES CYBERSPACE COMMAND (MARFORCYBER)

Who is the contractor on this award?

The obligated recipient is PERATON TECHNOLOGY SERVICES 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 $20.0 million.

What is the period of performance?

Start: 2023-09-20. End: 2026-05-06.

What specific cyber capabilities will this tool development provide to MARFORCYBER?

The contract aims to develop consolidated cyber tools for MARFORCYBER, likely encompassing capabilities such as threat intelligence gathering, network defense, vulnerability assessment, and incident response. The specific functionalities would be detailed in the contract's statement of work, focusing on enhancing the command's operational effectiveness in cyberspace.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this project?

The primary risk with CPFF is that the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. If costs escalate beyond initial projections, the government bears the burden. This can incentivize contractors to incur higher costs if not rigorously monitored, potentially leading to budget overruns and reduced value for money.

How will the effectiveness of the developed cyber tools be measured and validated?

Effectiveness will likely be measured through a combination of technical performance metrics defined in the contract, user acceptance testing by MARFORCYBER personnel, and operational impact assessments. Independent verification and validation (IV&V) may also be employed to ensure the tools meet security standards and operational requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6600118R0001

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 15050 CONFERENCE CTR DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,531,218

Exercised Options: $40,586,788

Current Obligation: $20,042,719

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $35,137,682

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600119D3415

IDV Type: IDC

Timeline