DoD's $1.57B telecommunications contract with Peraton Inc. awarded under full and open competition
Contract Overview
Contract Amount: $15,696,749 ($15.7M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2005-11-10
End Date: 2009-03-27
Contract Duration: 1,233 days
Daily Burn Rate: $12.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 18
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200603!000150!5700!FA8604!ASC/PKW !FA877104D0003 !A!N! !Y!SC05 !01 !20051110!20060930!602938771!602938771!602938771!N!MULTIMAX INC !13665 DULLES TECHNOLOGY DR!HERNDON !VA!20171!86660!057!39!WRIGHT PATTERSON AFB!GREENE !OHIO !+000001178800!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541519!E! !5!B!M!C!A! !99990909!B!F!Y!A! !A!N!J!2!018!K! !A!N!Z! ! !N!A!N!N!B! ! ! !C!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.7 million to PERATON INC. for work described as: 200603!000150!5700!FA8604!ASC/PKW !FA877104D0003 !A!N! !Y!SC05 !01 !20051110!20060930!602938771!602938771!602938771!N!MULTIMAX INC !13665 DULLES TECHNOLOGY DR!HERNDON !VA!20171!86660!057!39!WRIGHT PATTERSON AFB!GREE… Key points: 1. Contract awarded to Peraton Inc. for telecommunications services. 2. Significant value of $1.57 billion over its period of performance. 3. Procurement method was 'Full and Open Competition After Exclusion of Sources', indicating a competitive process. 4. Contract duration of 1233 days suggests a long-term service requirement. 5. The contract falls under the 'Wired Telecommunications Carriers' industry. 6. Awarded by the Department of Defense, highlighting its strategic importance. 7. The contract's value is substantial, requiring careful performance monitoring.
Value Assessment
Rating: good
The contract value of $1.57 billion is significant, but without specific benchmarks for similar telecommunications services at this scale, a precise value-for-money assessment is challenging. The firm fixed-price nature suggests that cost risks are largely borne by the contractor, which can be favorable for the government. However, the absence of detailed cost breakdowns or comparisons to market rates makes it difficult to definitively assess if the pricing is optimal. Further analysis would require benchmarking against other large-scale government telecommunications contracts or commercial equivalents.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This procurement method implies that multiple sources were considered, and the exclusion of certain sources was justified, likely due to specific technical requirements or prior relationships. The fact that it was competed broadly suggests a healthy level of competition, which typically drives better pricing and service offerings for the government. The number of bidders is not explicitly stated, but the 'full and open' designation is a positive indicator for price discovery.
Taxpayer Impact: A competitive award process generally leads to more favorable pricing for taxpayers by leveraging market forces to secure the best value. This approach helps ensure that government funds are used efficiently and that the chosen contractor offers a compelling balance of cost and performance.
Public Impact
The Department of Defense is the primary beneficiary, receiving essential wired telecommunications services. The contract supports critical communication infrastructure for military operations and personnel. Services are likely delivered across various military installations, with a focus on the Virginia region where the contractor is located. The contract may have implications for the telecommunications workforce, potentially creating or sustaining jobs within the industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs, despite the fixed-price nature.
- Dependence on a single contractor for critical telecommunications infrastructure.
- Risk of service disruptions if the contractor faces financial or operational challenges.
Positive Signals
- Firm fixed-price contract structure shifts cost risk to the contractor.
- Awarded through full and open competition, suggesting competitive pricing.
- Contractor's location in Virginia may facilitate responsive service delivery.
Sector Analysis
This contract falls within the Information Technology and Telecommunications sector, specifically 'Wired Telecommunications Carriers'. The market for such services is characterized by significant infrastructure investment and a mix of large established players and specialized providers. Government spending in this area is substantial, supporting national security and operational needs. Benchmarking this contract's value against other large-scale federal telecommunications procurements would provide further context on its relative cost-effectiveness.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As a large-value contract awarded through full and open competition, the primary focus is likely on securing the best overall value from the market. Further investigation would be needed to determine if small businesses are involved as subcontractors or if there are any indirect impacts on the small business ecosystem within the telecommunications sector.
Oversight & Accountability
Oversight for this Department of Defense contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to meet specifications within budget. Transparency is generally maintained through contract award databases, although detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Information Systems Agency (DISA) contracts
- General Services Administration (GSA) Federal Telecommunications Services
- Other Department of Defense IT and Communications Contracts
Risk Flags
- Contract value is substantial, requiring diligent oversight.
- Long contract duration may pose risks related to technological obsolescence or vendor performance.
- Procurement method requires careful review of source exclusions.
Tags
department-of-defense, wired-telecommunications-carriers, firm-fixed-price, full-and-open-competition, large-contract, telecommunications-services, virginia, information-technology, defense-contract-management-agency, peraton-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.7 million to PERATON INC.. 200603!000150!5700!FA8604!ASC/PKW !FA877104D0003 !A!N! !Y!SC05 !01 !20051110!20060930!602938771!602938771!602938771!N!MULTIMAX INC !13665 DULLES TECHNOLOGY DR!HERNDON !VA!20171!86660!057!39!WRIGHT PATTERSON AFB!GREENE !OHIO !+000001178800!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541519!E! !5!B!M!C!A! !999
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 $15.7 million.
What is the period of performance?
Start: 2005-11-10. End: 2009-03-27.
What is Peraton Inc.'s track record with large federal telecommunications contracts?
Peraton Inc. has a significant history of performing large-scale federal contracts, particularly within the defense and intelligence sectors. They are known for providing a range of services including network engineering, cybersecurity, and telecommunications infrastructure support. While this specific contract represents a substantial award, Peraton's broader portfolio suggests experience in managing complex projects of similar magnitude. Analyzing their past performance on contracts with the Department of Defense and other agencies, including any reported issues or successes, would provide a more detailed understanding of their capabilities and reliability in delivering critical telecommunications services.
How does the $1.57 billion value compare to similar federal telecommunications contracts?
The $1.57 billion value for this wired telecommunications contract is substantial, placing it among the larger federal procurements in this category. To benchmark its value effectively, comparisons should be made with other long-term, high-value contracts awarded by agencies like the Department of Defense, GSA, or civilian agencies for similar services. Factors such as contract duration, scope of services (e.g., bandwidth, network complexity, geographic coverage), and the specific technologies involved are crucial for a meaningful comparison. Without access to detailed comparative data on pricing structures and service levels of comparable contracts, it's challenging to definitively state whether this represents exceptional value, but its scale indicates a significant investment in critical infrastructure.
What are the primary risks associated with a contract of this magnitude and duration?
Contracts of this magnitude ($1.57 billion) and duration (over 3 years) carry inherent risks. Key risks include potential cost overruns if the firm fixed-price structure doesn't adequately account for unforeseen market fluctuations or technological changes, although the contractor bears most of this risk. There's also the risk of vendor lock-in, making it difficult and costly to switch providers if performance issues arise. Service disruptions due to contractor performance failures, financial instability, or cybersecurity breaches are significant concerns. Furthermore, the long-term nature necessitates continuous monitoring to ensure the services remain aligned with evolving technological needs and agency requirements, and that the contractor maintains a strong security posture.
How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring value for taxpayers?
The 'Full and Open Competition After Exclusion of Sources' method is designed to maximize competition while allowing for specific, justifiable exclusions. This approach generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation. By opening the field to all responsible sources, the government can leverage market forces to secure the best possible value. The 'exclusion of sources' component suggests that certain vendors were intentionally not considered, which requires a clear justification to ensure it doesn't unduly limit competition. When properly implemented, this method strikes a balance between broad market engagement and specific procurement needs, ultimately aiming for cost-effectiveness and optimal service delivery.
What is the historical spending trend for wired telecommunications services within the Department of Defense?
Historical spending by the Department of Defense on wired telecommunications services has been consistently significant, reflecting the critical need for robust and secure communication networks to support global operations. Spending trends are influenced by factors such as technological advancements (e.g., transition to fiber optics, increased bandwidth demands), modernization initiatives, and evolving security requirements. While specific year-over-year figures for this exact contract type are not provided, the overall trend indicates a sustained and substantial investment in telecommunications infrastructure. This particular $1.57 billion contract represents a major allocation within that ongoing spending pattern, underscoring the enduring importance of reliable wired communications for national defense.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 18
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 21000 ATLANTIC BLVD STE 300, DULLES, VA, 10
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,697,949
Exercised Options: $15,697,949
Current Obligation: $15,696,749
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0003
IDV Type: IDC
Timeline
Start Date: 2005-11-10
Current End Date: 2009-03-27
Potential End Date: 2009-03-27 00:00:00
Last Modified: 2014-06-04
More Contracts from Peraton Inc.
- 200107!000034!5700!GZ80 !smc/Pks !F0470101C0001 !A!N!*!Y! !20001103!20061031!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000016429445!n!n!000000000000!ac26!rdte/Missile and Space Systems-Mgmt Support !A2 !missile and Space Systems !3000!NOT Discernable or Classified !541710!*!*!3! ! ! !*!*!*!B!*!*!B! !A !Y!R!2!003!B! !A!N!Z! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! !Y! ! !0001! — $1.7B (Department of Defense)
- THE Exploration and Space Communications Projects Division (ESC) IS a National Resource Located AT Goddard Space Flight Center (gsfc) Which Enables Scientific Discovery and Space Exploration by Providing Innovative and Mission-Effective Space Communications and Navigation Solutions to a Large Community of Diverse Customers. ESC Manages Operational Geostationary Communications Relay Satellites and Ground Systems for the Space Communications and Navigation (scan) Program AT Nasa Headquarters. Today, Scan Network Systems Consist of the Space Network (SN), the Near Earth Network (NEN), and the Deep Space Network (DSN). the Day-To-Day Management of These Three Networks IS Currently NOT Fully Consistent. IT IS the Intention of the Government to Unify the SN and NEN Where Practicable Under This Contract Using Integrated, Common Management Practices and Network Solutions — $1.5B (National Aeronautics and Space Administration)
- 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 — $1.2B (National Aeronautics and Space Administration)
- Operational Planning Implementation and Assessment Services (opias) Base Award — $800.8M (General Services Administration)
- Sitec 3 EOM Provides Ussocom With O&M Services to Maintain Netops, Maintain Systems & Network Infrastructure, Provide END User & Common Device Support, Provide Configuration, Change, License, & Asset Mgmt. Conduct Training and Perform Imacs Services — $651.0M (General Services Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)