DoD's $185.6M Contract for Other Management Consulting Services Awarded to Peraton Inc
Contract Overview
Contract Amount: $18,560,430 ($18.6M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2010-05-18
End Date: 2013-05-17
Contract Duration: 1,095 days
Daily Burn Rate: $16.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: CSG
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310
Plain-Language Summary
Department of Defense obligated $18.6 million to PERATON INC. for work described as: CSG Key points: 1. The contract value is substantial at $185.6 million. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration is 3 years, ending in May 2013. 4. The North American Industry Classification System (NAICS) code is 541618, 'Other Management Consulting Services'.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. The awarded amount of $185.6 million needs to be benchmarked against similar consulting services contracts to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the CPFF structure might still allow for costs to exceed initial expectations.
Taxpayer Impact: Taxpayer funds are utilized for management consulting services, with the ultimate impact depending on the effectiveness and efficiency of the services rendered.
Public Impact
Provides essential management consulting services to the Department of the Army. Supports critical operational needs within the Department of Defense. The contract's duration allows for sustained support and potential long-term impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Potential for scope creep in consulting services.
- Need to ensure effective performance monitoring for value realization.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and end date.
- Specific NAICS code provides clarity on service type.
Sector Analysis
This contract falls under management consulting services, a broad sector supporting government operations. Benchmarks for similar contracts would typically focus on hourly rates, project success metrics, and overall cost-effectiveness.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. Further investigation would be needed to determine small business participation.
Oversight & Accountability
Oversight would be crucial to ensure the CPFF contract delivers value and stays within reasonable cost parameters. Performance metrics and regular reviews are essential for accountability.
Related Government Programs
- Other Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns.
- Lack of specific service details.
- No indication of small business participation.
Tags
other-management-consulting-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.6 million to PERATON INC.. CSG
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 Army).
What is the total obligated amount?
The obligated amount is $18.6 million.
What is the period of performance?
Start: 2010-05-18. End: 2013-05-17.
What specific management consulting services were provided under this contract, and how did they contribute to the Department of the Army's mission?
The contract, NAICS 541618, covers 'Other Management Consulting Services.' While specific details are not provided, these services typically involve advising on management policies, strategies, and operational improvements. For the Department of the Army, this could range from organizational restructuring and process optimization to strategic planning and resource management, ultimately aiming to enhance efficiency and effectiveness in military operations.
Given the Cost Plus Fixed Fee structure, what mechanisms were in place to control costs and ensure the government received good value for the $185.6 million expenditure?
A Cost Plus Fixed Fee (CPFF) contract includes a predetermined fixed fee, which is the contractor's profit. To control costs, the government would typically establish detailed cost accounting standards, require regular reporting of incurred costs, and implement robust oversight through contract officers and technical representatives. Performance metrics and milestones would also be critical to ensure the contractor was meeting objectives efficiently.
How did the 'full and open competition' process ensure competitive pricing and the selection of the most capable contractor for these management consulting services?
Full and open competition means that all responsible sources were permitted to submit a bid. This process typically involves a detailed solicitation outlining requirements, followed by a period for proposals. The bids are then evaluated based on predefined criteria, which usually include both technical approach and price. This competitive environment incentivizes contractors to offer their best pricing and most effective solutions to win the contract.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91CRB08R0092
Offers Received: 8
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Exelis Inc. (UEI: 969316046)
Address: 12975 WORLDGATE DR STE 700, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,155,168
Exercised Options: $20,155,168
Current Obligation: $18,560,430
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB09D0058
IDV Type: IDC
Timeline
Start Date: 2010-05-18
Current End Date: 2013-05-17
Potential End Date: 2013-05-17 00:00:00
Last Modified: 2021-07-06
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