DoD's $41.3M Army-TENCAP SETA support contract awarded to Peraton Technology Services Inc

Contract Overview

Contract Amount: $41,340,063 ($41.3M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: Department of Defense

Start Date: 2018-03-01

End Date: 2022-02-28

Contract Duration: 1,460 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS GSA OASIS UNRESTRICTED POOL #1 TASK ORDER IS TO PROVIDE SYSTEMS ENGINEERING&TECHNICAL ASSISTANCE (SETA) SUPPORT SERVICES TO PROGRAM DIRECTOR (PD) ARMY TACTICAL EXPLOITATION OF NATIONAL CAPABILITIES (ARMY-TENCAP) FOR ONE (1) BASE PERIOD, AND FOUR (4) OPTIONAL PERIODS IF EXERCISED.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.3 million to PERATON TECHNOLOGY SERVICES INC. for work described as: THE PURPOSE OF THIS GSA OASIS UNRESTRICTED POOL #1 TASK ORDER IS TO PROVIDE SYSTEMS ENGINEERING&TECHNICAL ASSISTANCE (SETA) SUPPORT SERVICES TO PROGRAM DIRECTOR (PD) ARMY TACTICAL EXPLOITATION OF NATIONAL CAPABILITIES (ARMY-TENCAP) FOR ONE (1) BASE PERIOD, AND FOUR (4) OPTIONAL P… Key points: 1. Contract provides critical systems engineering and technical assistance for Army's exploitation of national capabilities. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Contract duration of 4 years (base + 3 option years) allows for sustained support. 4. Awarded as a Delivery Order under GSA OASIS Unrestricted Pool #1, indicating use of an existing contract vehicle. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: good

The contract's value of approximately $41.3 million over its potential 4-year period appears reasonable for specialized systems engineering and technical assistance (SETA) to a program like Army-TENCAP. Benchmarking against similar SETA contracts within the Department of Defense (DoD) would provide a more precise value-for-money assessment. However, the use of a GSA OASIS contract vehicle often implies pre-negotiated rates that can offer competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a moderate level of competition for this specific task order. A higher number of bidders would typically lead to more aggressive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are the Army's Tactical Exploitation of National Capabilities (Army-TENCAP) program, receiving essential technical and engineering support. Services delivered include systems engineering and technical assistance, crucial for integrating and leveraging national capabilities. The geographic impact is primarily within the Department of Defense's operational and intelligence communities. Workforce implications include the need for specialized engineers and technical experts to support the program's objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if performance is consistently good, making future competition more challenging.
Reliance on a single contractor for critical SETA support could pose a risk if the contractor's performance degrades.

Positive Signals

Awarded through a competitive process, suggesting a baseline level of quality and fair pricing.
The contract is managed under the GSA OASIS vehicle, which typically has established oversight and performance management standards.
The duration allows for continuity of essential support services to a vital Army program.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related technology integration and exploitation. The market for SETA support services within the DoD is substantial, driven by the complexity of modern defense systems and the need to leverage advanced technologies, including national capabilities. Comparable spending benchmarks would likely be found within other large-scale defense programs requiring similar technical expertise.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. The award to Peraton Technology Services Inc., a large business, indicates that the primary focus was on obtaining the required specialized services through the most competitive means available, rather than prioritizing small business participation.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA) and the contracting officer's representative (COR) within the Department of the Army. The use of a GSA OASIS contract vehicle implies adherence to established federal procurement regulations and oversight mechanisms. Transparency is facilitated through contract award databases and reporting requirements.

Related Government Programs

Army TENCAP Program
GSA OASIS Contracts
Systems Engineering and Technical Assistance (SETA)
Intelligence, Surveillance, and Reconnaissance (ISR) Support

Risk Flags

Contract Duration
Sole Source Potential (if options exercised)
Reliance on Contractor Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.3 million to PERATON TECHNOLOGY SERVICES INC.. THE PURPOSE OF THIS GSA OASIS UNRESTRICTED POOL #1 TASK ORDER IS TO PROVIDE SYSTEMS ENGINEERING&TECHNICAL ASSISTANCE (SETA) SUPPORT SERVICES TO PROGRAM DIRECTOR (PD) ARMY TACTICAL EXPLOITATION OF NATIONAL CAPABILITIES (ARMY-TENCAP) FOR ONE (1) BASE PERIOD, AND FOUR (4) OPTIONAL PERIODS IF EXERCISED.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $41.3 million.

What is the period of performance?

Start: 2018-03-01. End: 2022-02-28.

What is the track record of Peraton Technology Services Inc. in delivering SETA support for similar defense programs?

Peraton Technology Services Inc. has a significant history of providing a wide range of services to the U.S. government, including IT, mission support, and intelligence solutions. While specific details on their performance for Army-TENCAP are not provided in this data snippet, their extensive experience in the defense sector suggests a capacity to handle complex technical assistance requirements. A deeper dive into their past performance evaluations, contract awards, and client feedback for similar SETA contracts would be necessary to fully assess their track record for this specific task order. This would include examining any past performance issues, awards for excellence, and the scope of services previously rendered in comparable environments.

How does the awarded price compare to market rates for similar SETA services?

The total contract value of approximately $41.3 million over a potential four-year period translates to an average annual value of roughly $10.3 million. Without specific details on the labor categories, hours, and skill levels required for this SETA support, a precise market rate comparison is challenging. However, given that the contract was awarded under full and open competition via a GSA OASIS vehicle, it suggests that the pricing was deemed competitive at the time of award. Benchmarking against other DoD SETA contracts with similar scopes and durations, particularly those awarded through competitive processes, would provide a more robust comparison. Factors such as the level of security clearance required, specialized technical expertise, and geographic location of service delivery would significantly influence market rates.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential contractor performance issues, reliance on a single provider for critical support, and the possibility of cost overruns if not managed effectively. Mitigation strategies likely involve robust contract oversight by the government, including regular performance reviews, clear deliverable tracking, and defined quality assurance measures. The competitive nature of the award provides an initial mitigation by selecting a vendor based on proposed technical solutions and price. Furthermore, the contract structure, potentially including fixed-price components or performance-based metrics, can help manage cost risks. The government's ability to exercise or not exercise option periods also provides flexibility to address performance concerns.

How effective is the Army-TENCAP program in achieving its objectives, and how does this contract contribute to that effectiveness?

The effectiveness of the Army-TENCAP program is crucial for enabling the Army to leverage national intelligence and reconnaissance capabilities for tactical advantage. This contract directly supports that mission by providing essential Systems Engineering and Technical Assistance (SETA). The SETA support likely involves advising on technology integration, system design, operational planning, and ensuring that the capabilities are effectively translated into actionable intelligence for ground forces. The success of the program is therefore highly dependent on the quality of the SETA support provided under this contract. Measuring the program's effectiveness would involve assessing improvements in intelligence dissemination, operational decision-making speed, and overall mission success rates attributed to TENCAP.

What are the historical spending patterns for SETA support within the Army-TENCAP program or similar initiatives?

Historical spending on SETA support for programs like Army-TENCAP within the Department of Defense can vary significantly based on program maturity, technological evolution, and strategic priorities. While the specific historical spending for Army-TENCAP is not detailed here, large-scale defense programs often allocate substantial budgets to SETA services due to the complexity and criticality of their missions. This $41.3 million contract represents a significant investment over its four-year period. Analyzing past contracts for Army-TENCAP or comparable programs (e.g., other intelligence exploitation initiatives) would reveal trends in contract values, durations, and the types of SETA services procured, providing context for the current award's scale and scope.

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

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 15050 CONFERENCE CENTER 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: $61,557,096

Exercised Options: $42,509,642

Current Obligation: $41,340,063

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU128

IDV Type: IDC

Timeline