NASA's SCNS Contract: $1.2B for Space Communications Services Awarded to Peraton Inc

Contract Overview

Contract Amount: $1,200,320,663 ($1.2B)

Contractor: Peraton Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2008-10-11

End Date: 2019-10-08

Contract Duration: 4,014 days

Daily Burn Rate: $299.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: NASA GODDARD SPACE FLIGHT CENTER'S (GSFC) GOAL FOR THE SPACE COMMUNICATIONS NETWORKS SERVICES CONTRACT (SCNS) IS TO ENABLE MISSION SUCCESS FOR EVERY CUSTOMER USING SCNS SERVICES. KEY OBJECTIVES OF THE SCNS CONTRACT ARE TO DECREASE COST AND MAINTAIN OR IMPROVE OPERATIONAL EFFICIENCY AND RELIABILITY, WHILE MAINTAINING AN ACCEPTABLE LEVEL OF RISK AND PROVIDING FOR SAFE OPERATION OF THE MISSIONS. THE CONTRACTOR SHALL IMPLEMENT A SAFETY, HEALTH, AND MISSION ASSURANCE PROGRAM THAT PROVIDES A SAFE AND HEALTHY WORK ENVIRONMENT, MINIMIZES PROGRAM RISK, AND MAXIMIZES NASA MISSION SUCCESS. THE CONTRACTOR SHALL BE RESPONSIBLE AND ACCOUNTABLE FOR ACHIEVING THE REQUIRED RESULTS. CORE REQUIREMENT FUNCTIONS, SUCH AS CONFIGURATION MANAGEMENT, QUALITY ASSURANCE, ETC. ARE REQUIRED TO SUPPORT IDIQ TASK ORDERS. THE SPACE NETWORK (SN) IS COMPRISED OF A FLEET OF ON-ORBIT TRACKING AND DATA RELAY SATELLITES (TDRS) AND ASSOCIATED GROUND SYSTEMS THAT PROVIDE TELECOMMUNICATIONS SERVICES. THE NATURE OF THE SN ARCHITECTURE, I.E., EXTREMELY LARGE CAPITAL INVESTMENT, CONTRACTOR OPERATED FACILITIES, CONTINUOUS 24X7 REQUIREMENTS, ETC., LENDS ITSELF TO A CORE REQUIREMENTS APPROACH. THE GROUND NETWORK (GN) CONSISTS OF AN ORBITAL TRACKING NETWORK AND THE SATELLITE LASER RANGING NETWORK. THE NATURE OF THE GROUND NETWORK ARCHITECTURE, I.E., DIVERSE MIX OF COMMERCIAL AND GOVERNMENT ASSETS, EVOLVING GEOGRAPHIC AND TECHNICAL CUSTOMER REQUIREMENTS, AND LEGACY SYSTEMS, ETC. LENDS ITSELF TO AN IDIQ APPROACH. OTHER ACTIVITIES, I.E., VERY LONG BASELINE INTERFEROMETRY NETWORK OPERATIONS AND MAINTENANCE (O&M), ELECTRONIC SYSTEM TEST LABORATORY, REQUIREMENTS DEVELOPMENT, HARDWARE AND SOFTWARE DEVELOPMENT, ETC. ARE BEST SUITED TO AN IDIQ APPROACH IN THE RESOURCE-CONSTRAINED ENVIRONMENT THAT NASA OPERATES IN.

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771

State: Maryland Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $1.20 billion to PERATON INC. for work described as: NASA GODDARD SPACE FLIGHT CENTER'S (GSFC) GOAL FOR THE SPACE COMMUNICATIONS NETWORKS SERVICES CONTRACT (SCNS) IS TO ENABLE MISSION SUCCESS FOR EVERY CUSTOMER USING SCNS SERVICES. KEY OBJECTIVES OF THE SCNS CONTRACT ARE TO DECREASE COST AND MAINTAIN OR IMPROVE OPERATIONAL EFFICIEN… Key points: 1. The Space Communications Networks Services (SCNS) contract aims to ensure mission success for NASA customers through cost reduction and improved operational efficiency. 2. Peraton Inc. is the sole contractor, responsible for implementing safety, health, and mission assurance programs. 3. The contract emphasizes risk minimization and accountability for achieving required results, including configuration management and quality assurance. 4. While aiming for cost reduction, the contract's effectiveness in achieving this goal against benchmarks requires further analysis.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can incentivize performance but may lead to higher costs if not managed carefully. Benchmarking against similar telecommunications service contracts is needed to assess if the $1.2B value is competitive.

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 pricing discovery mechanisms and the impact of the Cost Plus Award Fee structure on the final price are not detailed.

Taxpayer Impact: The primary taxpayer impact is the $1.2B expenditure. The effectiveness of the contract in achieving cost savings and operational efficiencies will determine the overall value for taxpayer investment.

Public Impact

Ensures reliable communication for NASA missions, critical for scientific discovery and national security. Supports technological advancement in space communication infrastructure. Provides a stable contract for a key service provider in the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns due to Cost Plus Award Fee structure.
  • Lack of detailed cost breakdown and performance metrics for cost savings.
  • Sole contractor for a critical service could pose a risk if performance falters.

Positive Signals

  • Clear objectives for mission success and operational efficiency.
  • Emphasis on safety, health, and mission assurance.
  • Awarded through full and open competition.

Sector Analysis

This contract falls within the 'All Other Telecommunications' sector, which is vital for supporting government operations, particularly in space exploration and communication. Benchmarks for similar large-scale telecommunications service contracts would be necessary for a precise comparison.

Small Business Impact

The data indicates that small business participation was not a stated objective or outcome for this contract (ss: false, sb: false). Further analysis would be needed to determine if small businesses were subcontracted.

Oversight & Accountability

The contract mandates the contractor to implement a safety, health, and mission assurance program, implying a level of oversight. However, specific details on NASA's oversight mechanisms and accountability reporting are not provided.

Related Government Programs

  • All Other Telecommunications
  • National Aeronautics and Space Administration Contracting
  • National Aeronautics and Space Administration Programs

Risk Flags

  • Cost Plus Award Fee structure may lead to higher costs.
  • Sole contractor for critical service.
  • Lack of detailed performance metrics for cost savings.
  • Limited information on specific oversight and accountability mechanisms.

Tags

all-other-telecommunications, national-aeronautics-and-space-administr, md, definitive-contract, billion-dollar

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $1.20 billion to PERATON INC.. NASA GODDARD SPACE FLIGHT CENTER'S (GSFC) GOAL FOR THE SPACE COMMUNICATIONS NETWORKS SERVICES CONTRACT (SCNS) IS TO ENABLE MISSION SUCCESS FOR EVERY CUSTOMER USING SCNS SERVICES. KEY OBJECTIVES OF THE SCNS CONTRACT ARE TO DECREASE COST AND MAINTAIN OR IMPROVE OPERATIONAL EFFICIENCY AND RELIABILITY, WHILE MAINTAINING AN ACCEPTABLE LEVEL OF RISK AND PROVIDING FOR SAFE OPERATION OF THE MISSIONS. THE CONTRACTOR SHALL IMPLEMENT A SAFETY, HEALTH, AND MISSION ASSURANCE PROGRAM THAT PROVIDES A SAFE AND

Who is the contractor on this award?

The obligated recipient is PERATON INC..

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $1.20 billion.

What is the period of performance?

Start: 2008-10-11. End: 2019-10-08.

How effectively has Peraton Inc. reduced costs and maintained or improved operational efficiency and reliability compared to pre-contract benchmarks or industry standards?

The contract's objectives include decreasing cost and maintaining or improving operational efficiency and reliability. Without specific performance data and post-award reviews, it's difficult to definitively assess Peraton's effectiveness. A comparative analysis against similar contracts and historical performance would be required to determine if these goals were met within the $1.2B expenditure.

What is the potential risk associated with a single contractor (Peraton Inc.) being responsible for such a critical service, and what mitigation strategies are in place?

The primary risk is service disruption or performance degradation due to the sole-source nature of the contract. Mitigation strategies likely involve stringent performance requirements, service level agreements, and contingency planning by NASA. However, the provided data does not detail these specific mitigation efforts or their effectiveness.

Does the Cost Plus Award Fee (CPAF) contract structure adequately balance incentivizing performance with controlling taxpayer costs for space communications services?

CPAF contracts aim to incentivize contractor performance by offering award fees for exceeding targets. However, they can also lead to higher overall costs if not carefully managed and monitored. The effectiveness hinges on clearly defined award criteria and robust oversight to ensure that increased costs directly correlate with superior performance and mission success.

Industry Classification

NAICS: InformationOther TelecommunicationsAll Other Telecommunications

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NNG08218142R

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 12975 WORLDGATE DR STE 7118, 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: $1,512,337,468

Exercised Options: $1,512,337,468

Current Obligation: $1,200,320,663

Actual Outlays: $34,280,432

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline

Start Date: 2008-10-11

Current End Date: 2019-10-08

Potential End Date: 2019-10-08 00:00:00

Last Modified: 2025-02-06

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