DoD's $14.16M wired telecom contract to Peraton Inc. awarded under full and open competition
Contract Overview
Contract Amount: $14,158,062 ($14.2M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2007-07-01
End Date: 2009-09-30
Contract Duration: 822 days
Daily Burn Rate: $17.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)
Sector: Other
Official Description: SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.2 million to PERATON INC. for work described as: SERVICES Key points: 1. Contract awarded for wired telecommunications services, indicating a need for robust network infrastructure. 2. The contract was competed under 'full and open competition after exclusion of sources', suggesting a deliberate process to ensure broad market participation. 3. With a duration of 822 days, this represents a significant, medium-term investment in telecommunications capabilities. 4. The award to Peraton Inc. places them as a key provider in this segment for the Department of Defense. 5. The North American Industry Classification System (NAICS) code 517110 confirms the focus on wired telecommunications infrastructure. 6. The contract's value of over $14 million underscores the substantial resources allocated to maintaining and upgrading critical communication networks.
Value Assessment
Rating: good
The contract value of $14.16 million over 822 days suggests a moderate annual spend. Benchmarking this against similar large-scale telecommunications contracts for government agencies would provide a clearer picture of value for money. Without specific per-unit cost data or comparison to market rates for similar services, a definitive assessment of pricing efficiency is challenging. However, the full and open competition mechanism generally supports competitive pricing.
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'. This procurement method typically involves a broad solicitation to all responsible prospective contractors, aiming to maximize competition. The presence of 3 bidders indicates a degree of market interest, though the specific 'after exclusion of sources' phrasing might suggest prior specific circumstances or a phased approach to competition.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality. It ensures that the government explores a wide range of options before making an award.
Public Impact
The Department of Defense benefits from enhanced wired telecommunications infrastructure, crucial for operational command and control. Services delivered likely include the provision, maintenance, and upgrade of wired network infrastructure supporting military communications. The geographic impact is primarily within the operational areas served by the Department of the Air Force, potentially across multiple bases or installations. Workforce implications may include roles for telecommunications technicians, network engineers, and support staff, both within the contractor's organization and potentially government personnel overseeing the services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The specific 'after exclusion of sources' clause warrants further investigation to understand if it limited the initial pool of potential bidders.
- Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
- The contract duration and value, while substantial, do not inherently guarantee optimal value without ongoing performance monitoring.
Positive Signals
- Awarded through full and open competition, indicating a robust market engagement process.
- The contract specifies wired telecommunications carriers, a critical infrastructure component for defense operations.
- The award is to a single entity, Peraton Inc., suggesting a clear point of accountability for service delivery.
Sector Analysis
The wired telecommunications carriers sector (NAICS 517110) is fundamental to modern infrastructure, providing the backbone for voice and data transmission. This contract falls within the broader telecommunications services market, which is characterized by significant capital investment and technological evolution. Government spending in this area is critical for maintaining secure and reliable communication networks, especially for defense agencies. Comparable spending benchmarks would involve analyzing other large-scale telecommunications infrastructure contracts awarded by federal agencies.
Small Business Impact
Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. As this was a full and open competition, the primary focus was likely on large, established providers capable of meeting the extensive requirements. Further analysis would be needed to determine if any subcontracting opportunities were mandated or voluntarily pursued by the prime contractor, Peraton Inc., to engage small businesses.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the contracting officer and the Department of the Air Force's program management office. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed operational oversight mechanisms are internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Telecommunications Services
- Network Infrastructure Modernization
- Wired Communications Contracts
- Federal IT Services
- DoD Communication Systems
Risk Flags
- Competition Method Specificity
- Performance Metrics Unclear
- Technological Obsolescence Risk
Tags
defense, department-of-defense, department-of-the-air-force, wired-telecommunications-carriers, full-and-open-competition, delivery-order, peraton-inc, communications-infrastructure, virginia, medium-value, it-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.2 million to PERATON INC.. SERVICES
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $14.2 million.
What is the period of performance?
Start: 2007-07-01. End: 2009-09-30.
What specific types of wired telecommunications services were included in this contract?
The contract falls under NAICS code 517110, 'Wired Telecommunications Carriers.' This typically encompasses services such as the provision and maintenance of local and long-distance voice and data transmission networks over wired infrastructure. This could include dedicated leased lines, fiber optic networks, broadband internet access, and associated network management and support services. The specific details of the services would be outlined in the contract's statement of work, which is not provided here but would detail the exact scope, performance requirements, and deliverables expected from Peraton Inc. for the Department of the Air Force.
How does the $14.16 million contract value compare to typical spending for similar DoD telecommunications contracts?
The $14.16 million contract value over approximately two years (822 days) represents a significant but not extraordinary investment for a major federal agency like the Department of Defense. Large-scale telecommunications infrastructure and services contracts can range from millions to billions of dollars, depending on the scope, duration, and technological requirements. This particular award suggests a substantial need for wired network capabilities within the Air Force. To provide a precise comparison, one would need to analyze a portfolio of similar contracts awarded by DoD components for wired telecommunications services, considering factors like the number of users supported, geographic coverage, and the specific technologies deployed.
What are the potential risks associated with a contract of this nature and duration?
Potential risks include technological obsolescence, as telecommunications technology evolves rapidly; contractor performance issues, where Peraton Inc. might fail to meet service level agreements or deliver required uptime; cost overruns if unforeseen issues arise or scope creep occurs; and security vulnerabilities, given the critical nature of defense communications. The 'after exclusion of sources' aspect of the competition, while potentially justified, could also introduce a risk if it inadvertently limited the discovery of more innovative or cost-effective solutions from a broader market. Ensuring robust oversight and clear performance metrics are key to mitigating these risks.
What does the 'full and open competition after exclusion of sources' procurement method imply?
This procurement method indicates that the contract was initially intended for full and open competition, but certain sources were excluded before the final award decision. This exclusion could be based on various factors, such as prior performance issues, specific security requirements, or a phased approach where only certain pre-qualified vendors were invited to bid in the final stage. While 'full and open' generally aims for maximum competition, the exclusion clause suggests a deliberate narrowing of the field, which warrants understanding the rationale behind it to ensure it did not unduly restrict competition or taxpayer value. The fact that 3 bidders participated suggests some level of competition remained.
What is Peraton Inc.'s track record with large federal telecommunications contracts?
Peraton Inc. is a significant government contractor with a substantial portfolio, including extensive work in IT and telecommunications services for various federal agencies. They have a history of managing large, complex contracts, often involving mission-critical systems. Their track record includes work with defense and intelligence agencies, suggesting familiarity with the stringent requirements of clients like the Department of the Air Force. A detailed review of their past performance ratings, contract history, and any past performance issues or commendations would provide a more precise assessment of their suitability and reliability for this specific wired telecommunications contract.
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: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 21000 ATLANTIC BLVD STE 300, DULLES, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $35,528,404
Exercised Options: $15,072,826
Current Obligation: $14,158,062
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: 2007-07-01
Current End Date: 2009-09-30
Potential End Date: 2012-06-30 00:00:00
Last Modified: 2021-03-08
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