DoD's $16.4M satellite service contract awarded to Peraton Government Communications Inc. for 385 days

Contract Overview

Contract Amount: $16,415,031 ($16.4M)

Contractor: Peraton Government Communications Inc.

Awarding Agency: Department of Defense

Start Date: 2010-01-26

End Date: 2011-02-15

Contract Duration: 385 days

Daily Burn Rate: $42.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SATELLITE SERVICE

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to PERATON GOVERNMENT COMMUNICATIONS INC. for work described as: SATELLITE SERVICE Key points: 1. The contract's value of $16.4 million over approximately 13 months suggests a significant investment in satellite telecommunications. 2. Awarded under full and open competition, this contract indicates a competitive bidding process for essential defense communication services. 3. The firm-fixed-price contract structure implies that the contractor bears the risk of cost overruns, potentially benefiting the government. 4. The relatively short duration of 385 days may point to a need for agile or evolving satellite service requirements. 5. The contract's focus on satellite telecommunications places it within a critical sector for modern defense operations and global reach. 6. The absence of small business set-aside flags suggests the primary award was not specifically targeted to small businesses.

Value Assessment

Rating: good

The total award of $16.4 million for a 385-day satellite service contract averages to approximately $42,636 per day. Benchmarking this against similar satellite communication contracts is challenging without more specific service details (e.g., bandwidth, data rates, satellite type). However, the daily rate appears within a reasonable range for specialized government telecommunications services, especially considering the potential for secure and reliable delivery required by the Department of Defense. The firm-fixed-price nature of the contract also suggests a degree of cost certainty for the government.

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 open, certain sources may have been excluded prior to the final award. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions. However, the exclusion of sources might indicate specific technical requirements or pre-qualification steps that narrowed the field, potentially impacting the ultimate price discovery.

Taxpayer Impact: The open competition, even with exclusions, aims to secure the best value for taxpayers by encouraging multiple vendors to offer competitive bids. The fact that there were at least two bidders suggests that taxpayers likely benefited from some level of price negotiation and comparison.

Public Impact

The primary beneficiaries of this contract are the Department of Defense and its various branches, ensuring reliable communication capabilities. The services delivered are critical for command and control, intelligence gathering, and operational coordination across global theaters. Geographic impact is potentially worldwide, as satellite services are not bound by terrestrial infrastructure limitations. Workforce implications may include specialized technical personnel required for managing and operating satellite communication systems, both within the government and potentially at the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary technologies are used.
Reliance on a single contract for critical communication infrastructure could pose a risk if performance issues arise.
The exclusion of sources in the competition process warrants scrutiny to ensure fairness and optimal value.

Positive Signals

Awarded through a competitive process, suggesting a selection based on merit and price.
Firm-fixed-price contract provides cost certainty for the government.
The contract supports essential defense communication infrastructure, a high-priority area.

Sector Analysis

The satellite telecommunications sector is a vital component of the broader information technology and defense industries. It encompasses the provision of communication services via satellites, crucial for data transmission, broadcasting, and navigation. The global market for satellite services is substantial, driven by demand from government, commercial, and consumer sectors. This contract fits within the defense segment of the market, where reliable, secure, and high-bandwidth communication is paramount for national security operations. Comparable spending benchmarks would depend on the specific service level agreements, data throughput, and satellite constellations utilized.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside objective, as 'sb' is false. This suggests that the contract was likely awarded based on technical capabilities and price, rather than a specific mandate to support small businesses. While there's no explicit mention of subcontracting requirements for small businesses, it is common practice for larger prime contractors to engage small businesses for specialized services. The impact on the small business ecosystem would depend on whether Peraton Government Communications Inc. actively seeks out and utilizes small business subcontractors for portions of this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Information Systems Agency (DISA). Accountability measures are typically embedded within the contract's performance work statement (PWS), outlining specific deliverables, service levels, and reporting requirements. Transparency is facilitated through contract award databases and reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Defense Information Systems Agency (DISA) Contracts
Department of Defense Satellite Communications
Federal Telecommunications Services
Global Satellite Network Services
Secure Communication Contracts

Risk Flags

Competition level may be limited due to source exclusion.
Specific service details are not provided, hindering in-depth value assessment.
Contract duration is relatively short, potentially indicating evolving needs or interim solutions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to PERATON GOVERNMENT COMMUNICATIONS INC.. SATELLITE SERVICE

Who is the contractor on this award?

The obligated recipient is PERATON GOVERNMENT COMMUNICATIONS INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2010-01-26. End: 2011-02-15.

What specific satellite services were provided under this contract, and what was the expected data throughput or bandwidth?

The provided data abbreviates the service as 'SATELLITE SERVICE' and the North American Industry Classification System (NAICS) code as '517410' (Satellite Telecommunications). However, specific details regarding data throughput, bandwidth, satellite type (e.g., geostationary, low-earth orbit), or the exact nature of the services (e.g., dedicated links, shared capacity, managed services) are not present in the summary data. These specifics are crucial for a granular assessment of value and performance, as they directly influence the cost and utility of the service. Without this information, comparisons to market rates or other contracts remain high-level.

How did Peraton Government Communications Inc.'s bid compare to other potential bidders in terms of price and technical solution?

The data indicates that the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' with two bidders. While the total award amount of $16.4 million is known, the specific bid prices of the competing offers are not publicly detailed in this summary. To assess how Peraton's bid compared, one would need access to the bid tabulation or source selection decision document. This would reveal if Peraton was the lowest priced technically acceptable offer, the highest rated, or if there was a significant price difference between the bidders. The 'exclusion of sources' clause also suggests that the initial pool of potential bidders might have been narrowed down based on specific criteria before the final competition.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this satellite service contract?

Key performance indicators and service level agreements (SLAs) are typically detailed within the Performance Work Statement (PWS) or Statement of Work (SOW) of the contract, which are not provided in the summary data. For satellite telecommunications, common KPIs and SLAs would likely include metrics such as network availability (uptime percentage), latency, jitter, packet loss, data transfer rates, and response times for technical support or issue resolution. The firm-fixed-price nature of the contract implies that meeting these defined performance standards is critical for the contractor's profitability and successful contract completion. Adherence to these SLAs would be a primary focus of government oversight.

What is the historical spending pattern for similar satellite telecommunications services by the Defense Information Systems Agency (DISA)?

Analyzing historical spending patterns for DISA's satellite telecommunications services requires access to historical contract databases and procurement records. This summary data only provides details for a single contract awarded in 2010. To establish a pattern, one would need to examine DISA's spending over multiple fiscal years, identifying all contracts for satellite services, their values, durations, awardees, and the specific services rendered. This would help determine if $16.4 million for a 385-day contract is typical, high, or low relative to past procurements, and whether spending in this category has increased or decreased over time.

What is Peraton Government Communications Inc.'s track record with the Department of Defense, particularly in satellite communications?

Peraton Government Communications Inc. (and its predecessor entities) has a significant track record with the Department of Defense and other federal agencies, often involved in complex communication and IT services. While this specific contract is from 2010, Peraton has continued to win substantial contracts in areas like space, intelligence, cyber, and defense communications. Their performance history would be documented in contract performance reports (e.g., Contractor Performance Assessment Reporting System - CPARS), which assess factors like technical performance, cost control, schedule adherence, and management. A thorough review of CPARS data and other contract awards would provide a comprehensive view of their reliability and capability in delivering satellite services.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 2235 MONROE ST STE 500, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,415,031

Exercised Options: $16,415,031

Current Obligation: $16,415,031

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DCA20001D5004

IDV Type: IDC

Timeline