Peraton Inc. awarded $15.87M for engineering and integration services by the Department of Defense
Contract Overview
Contract Amount: $15,870,822 ($15.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-28
End Date: 2010-09-06
Contract Duration: 708 days
Daily Burn Rate: $22.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST NO FEE
Sector: IT
Official Description: ENGINEERING AND INTEGRATION
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.9 million to PERATON INC. for work described as: ENGINEERING AND INTEGRATION Key points: 1. Contract value represents a significant investment in specialized engineering and integration capabilities. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (708 days) indicates a medium-term engagement for service delivery. 4. The award type as a delivery order suggests it's part of a larger contract vehicle. 5. The contractor, Peraton Inc., has a substantial presence in the federal contracting space. 6. The North American Industry Classification System (NAICS) code 517110 points to telecommunications infrastructure services.
Value Assessment
Rating: good
The contract value of $15.87 million for engineering and integration services appears reasonable given the scope and duration. Benchmarking against similar defense contracts for complex integration projects would provide a more precise value-for-money assessment. The cost-no-fee (Cost Plus Fixed Fee) pricing structure, while not detailed here, typically involves close monitoring of costs to ensure efficiency. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the competitive award process suggests a degree of price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on predefined criteria. The presence of 3 bids suggests a moderate level of competition. A higher number of bidders generally leads to more robust price discovery and potentially lower costs for the government. The exclusion of sources, if not clearly justified, could limit the competitive landscape.
Taxpayer Impact: The competitive bidding process, even with some exclusions, likely resulted in a more favorable price for taxpayers compared to a sole-source award. However, understanding the rationale behind source exclusion is crucial to ensure maximum taxpayer benefit.
Public Impact
The Department of Defense benefits from enhanced engineering and integration capabilities, crucial for its operational effectiveness. Services delivered likely support complex defense systems, contributing to national security. The geographic impact is primarily within the operational sphere of the Department of Defense, potentially worldwide. Workforce implications include specialized engineering and technical roles, supporting high-skilled employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if not managed tightly under the Cost Plus Fixed Fee structure.
- Risk of vendor lock-in if integration services create proprietary dependencies.
- Dependence on a single contractor for critical engineering and integration functions.
- The 'exclusion of sources' clause warrants scrutiny to ensure it doesn't unduly limit competition.
- Performance risks associated with complex system integration projects.
Positive Signals
- Awarded through full and open competition, indicating a competitive market.
- Contractor (Peraton Inc.) is an established player in the federal contracting arena.
- The contract addresses a clear need for specialized engineering and integration services within the DoD.
- Delivery order structure suggests flexibility within a broader framework.
Sector Analysis
This contract falls within the broader Information Technology and Telecommunications sector, specifically focusing on engineering and integration services. The market for such services within the defense sector is substantial, driven by the constant need to upgrade and integrate complex communication and operational systems. Comparable spending benchmarks would involve analyzing other large-scale engineering and integration contracts awarded by the DoD and other federal agencies for similar technological solutions.
Small Business Impact
The data provided does not indicate any specific small business set-aside provisions for this contract. Therefore, the direct impact on small businesses is likely limited unless Peraton Inc. engages them as subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its implications for the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, though detailed performance data may be restricted. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Services
- Defense Communications Systems
- Federal Engineering and Integration Contracts
- Wired Telecommunications Carrier Services
- Cost Plus Fixed Fee Contracts
Risk Flags
- Competition Level: While 'Full and Open', the exclusion of sources warrants review.
- Pricing Structure: Cost Plus Fixed Fee requires diligent oversight to prevent overruns.
- Contract Duration: Medium-term engagement (708 days) requires performance monitoring.
- Contract Type: Delivery Order implies it's part of a larger contract vehicle, requiring understanding of the parent contract.
Tags
department-of-defense, engineering-and-integration, peraton-inc, wired-telecommunications-carriers, full-and-open-competition, delivery-order, cost-plus-fixed-fee, defense-contract-management-agency, virginia, it-services, defense-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.9 million to PERATON INC.. ENGINEERING AND INTEGRATION
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 $15.9 million.
What is the period of performance?
Start: 2008-09-28. End: 2010-09-06.
What is Peraton Inc.'s track record with similar Department of Defense engineering and integration contracts?
Peraton Inc. has a significant history of contracting with the Department of Defense, often in areas related to intelligence, cyber, and space systems. Their track record includes managing complex integration projects and providing advanced engineering solutions. While specific details on past performance for contracts identical in scope to this $15.87 million award are not provided here, their overall profile suggests experience in handling large-scale, technically demanding defense initiatives. A deeper dive into their past performance evaluations, contract awards, and any reported issues on similar projects would offer a more comprehensive understanding of their capabilities and reliability in this domain.
How does the $15.87 million value compare to similar engineering and integration contracts within the DoD?
The $15.87 million contract value for engineering and integration services by Peraton Inc. is a moderate-sized award within the Department of Defense. The DoD frequently awards contracts for these types of services that range from a few million to hundreds of millions of dollars, depending on the complexity, duration, and scope. This particular award, with a duration of 708 days (approximately 2 years), suggests a focused effort rather than a long-term, broad-based program. Benchmarking would require comparing it against contracts with similar NAICS codes (517110), service descriptions (engineering and integration), and agency components. Without more granular data on comparable contracts, it's difficult to definitively state if this represents exceptional value, but it falls within a common range for specialized technical support.
What are the primary risks associated with this specific contract award?
The primary risks associated with this contract include potential performance issues in complex system integration, cost overruns if the Cost Plus Fixed Fee structure is not rigorously managed, and the possibility of vendor lock-in if the delivered solutions are highly proprietary. The 'Full and Open Competition After Exclusion of Sources' aspect introduces a risk related to the justification and impact of excluding potential bidders, which could affect overall competition and price discovery. Furthermore, reliance on a single contractor for critical engineering and integration functions poses a strategic risk if the contractor's capabilities degrade or if they face financial instability.
How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring optimal value for taxpayers?
The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring optimal value for taxpayers is contingent on the justification for excluding sources. When exclusions are based on legitimate technical requirements, security clearances, or specific capabilities that only a limited number of firms possess, it can still lead to competitive pricing among the remaining qualified bidders. However, if sources are excluded without clear, objective reasons, it can artificially limit competition, potentially leading to higher prices and reduced innovation. The fact that 3 bids were received suggests some level of competition, but understanding the rationale behind any exclusions is key to assessing the true value realized by taxpayers.
What are the historical spending patterns for engineering and integration services by the Department of Defense?
The Department of Defense historically spends billions of dollars annually on engineering and integration services, reflecting its vast and complex technological infrastructure. Spending in this category is driven by the need to develop, upgrade, and interconnect sophisticated defense systems, including command and control, communications, intelligence, surveillance, and reconnaissance (ISR) platforms. Spending patterns are influenced by geopolitical events, technological advancements, and evolving military requirements. Contracts like this one, awarded under specific NAICS codes related to telecommunications and IT, represent a portion of this larger, consistent investment in maintaining and advancing defense capabilities.
What is the significance of the NAICS code 517110 (Wired Telecommunications Carriers) for this engineering and integration contract?
The NAICS code 517110, 'Wired Telecommunications Carriers,' is significant as it indicates the contract's focus likely involves the infrastructure, deployment, or integration of wired communication networks. For an engineering and integration contract within the Department of Defense, this could encompass a wide range of activities, such as designing, building, or upgrading secure communication lines, network backbone infrastructure, or integrating various wired systems into larger defense platforms. While the code points to telecommunications, the 'engineering and integration' aspect suggests a service-oriented approach rather than the direct provision of carrier services, focusing on the technical expertise required to make these systems function effectively within a defense context.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)
Address: 12975 WORLDGATE STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $26,242,778
Exercised Options: $26,242,778
Current Obligation: $15,870,822
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0003
IDV Type: IDC
Timeline
Start Date: 2008-09-28
Current End Date: 2010-09-06
Potential End Date: 2010-09-06 00:00:00
Last Modified: 2020-06-02
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