DOT awards $60.6M for radar systems, extending services through late 2028
Contract Overview
Contract Amount: $60,653,374 ($60.7M)
Contractor: Peraton Inc.
Awarding Agency: Department of Transportation
Start Date: 2026-01-09
End Date: 2028-12-31
Contract Duration: 1,087 days
Daily Burn Rate: $55.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: THIS DELIVERY ORDER IS FOR THE RADARS NEEDS PACKAGE. ALL OTHER TERMS AND CONDITIONS OF THE CONTRACT REMAIN UNCHANGED AND IN FULL EFFECT.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $60.7 million to PERATON INC. for work described as: THIS DELIVERY ORDER IS FOR THE RADARS NEEDS PACKAGE. ALL OTHER TERMS AND CONDITIONS OF THE CONTRACT REMAIN UNCHANGED AND IN FULL EFFECT. Key points: 1. Contract value represents a significant investment in critical aviation infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this delivery order. 3. Performance risk is moderate, given the established contract and defined scope. 4. The duration of the delivery order extends service provision over several years. 5. This contract falls within the broader IT services sector, supporting essential government functions. 6. The cost-plus award fee structure incentivizes performance and cost control.
Value Assessment
Rating: good
The total award of $60.6 million for this delivery order, spanning nearly three years, appears reasonable for specialized radar systems and associated computer systems design services. Benchmarking against similar large-scale IT service contracts for federal agencies, the per-year cost of approximately $20.2 million is within expected ranges. The cost-plus award fee (CPAF) structure allows for flexibility and incentivizes contractor performance, which can lead to better value if managed effectively, though it also carries inherent cost escalation risks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This delivery order was issued under a contract that underwent full and open competition, indicating that multiple bidders had the opportunity to compete. While the specific number of bidders for the original contract is not detailed here, the 'full and open' designation suggests a robust competitive environment. This approach is designed to foster price discovery and ensure the government receives competitive pricing by allowing all responsible sources to participate.
Taxpayer Impact: A full and open competition process generally benefits taxpayers by driving down costs through market forces and encouraging innovation from a wider pool of potential contractors.
Public Impact
The Federal Aviation Administration (FAA) benefits from enhanced radar capabilities, crucial for air traffic control and safety. Services delivered include computer systems design, supporting the maintenance and potential upgrades of radar systems. The geographic impact is national, as radar systems are fundamental to the entire U.S. air traffic management system. Workforce implications may include specialized IT and engineering roles required for system design and support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee contracts can lead to higher final costs if not closely monitored.
- The long duration of the delivery order may present challenges in adapting to rapidly evolving technologies.
- Reliance on a single contractor for critical systems could pose supply chain or vendor lock-in risks.
Positive Signals
- The contract was awarded under full and open competition, suggesting a competitive pricing environment.
- The cost-plus award fee structure incentivizes performance and potentially better outcomes.
- The established contract vehicle provides a known framework for service delivery.
Sector Analysis
This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer systems design and support for critical infrastructure. The market for IT services supporting federal agencies is substantial, with significant spending allocated to maintaining and upgrading complex systems like air traffic control. Comparable spending benchmarks in this area often involve multi-year contracts for specialized hardware and software integration, reflecting the high cost and complexity of such endeavors.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this delivery order. The contract was awarded under full and open competition, which typically allows for participation by businesses of all sizes. However, the prime contractor, Peraton Inc., is a large business, suggesting that subcontracting opportunities may arise for small businesses within the IT services or specialized radar components supply chain. Further analysis of the original contract's subcontracting plan would be necessary to fully assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this delivery order likely falls under the existing contract management framework of the Federal Aviation Administration (FAA). The cost-plus award fee structure necessitates robust performance monitoring and financial oversight to ensure that award fees are justified and that costs remain reasonable. Transparency is generally maintained through contract reporting requirements, and the FAA's Office of Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Air Traffic Control Modernization Programs
- Federal Aviation Administration IT Infrastructure
- NextGen Air Transportation System
- Department of Transportation IT Services
Risk Flags
- Cost Overrun Potential (CPAF)
- Technology Obsolescence Risk
- Performance Measurement Complexity
Tags
it-services, computer-systems-design, department-of-transportation, federal-aviation-administration, delivery-order, cost-plus-award-fee, full-and-open-competition, radar-systems, national-geography, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $60.7 million to PERATON INC.. THIS DELIVERY ORDER IS FOR THE RADARS NEEDS PACKAGE. ALL OTHER TERMS AND CONDITIONS OF THE CONTRACT REMAIN UNCHANGED AND IN FULL EFFECT.
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $60.7 million.
What is the period of performance?
Start: 2026-01-09. End: 2028-12-31.
What is Peraton Inc.'s track record with the Federal Aviation Administration and similar government contracts?
Peraton Inc. has a significant history of performing IT and technical services for various U.S. government agencies, including the FAA. Their portfolio often includes complex system integration, cybersecurity, and mission-critical support. For the FAA specifically, Peraton has been involved in contracts related to air traffic management systems, communication infrastructure, and data services. Their performance on similar large-scale, long-duration contracts suggests a capacity to manage complex projects. However, a detailed review of past performance evaluations, any past disputes, or contract modifications on prior FAA or equivalent contracts would be necessary for a comprehensive assessment of their track record and reliability for this specific radar needs package.
How does the $60.6 million award compare to previous spending on radar systems by the FAA?
The $60.6 million award for this specific delivery order represents a significant, but likely not unprecedented, investment in radar systems and associated IT services by the FAA. The FAA has historically invested billions in modernizing its air traffic control infrastructure, including radar technology, through programs like NextGen. This $60.6 million figure should be viewed in the context of the overall lifecycle costs of radar systems, which include initial procurement, installation, integration, maintenance, and upgrades over many years. To provide a precise comparison, one would need to analyze historical spending data for similar radar system procurements or sustainment contracts over the past decade, considering inflation and technological advancements. This single delivery order likely covers a defined period of sustainment and potential upgrades rather than a full system replacement.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for radar systems?
The primary risks associated with a Cost Plus Award Fee (CPAF) contract for radar systems revolve around cost control and performance measurement. While CPAF incentivizes performance by offering award fees for meeting or exceeding targets, it can also lead to higher overall costs if the base cost projections are inaccurate or if the award fee criteria are not sufficiently stringent. There's a risk that the contractor may focus on achieving award fee targets at the expense of true cost efficiency or innovation beyond the defined scope. Furthermore, the government must invest significant resources in robust oversight to accurately assess performance and determine appropriate award fees, which can be resource-intensive. Without meticulous monitoring and clear performance metrics, the 'cost plus' element can lead to cost overruns, while the 'award fee' can become subjective or overly generous.
What is the expected impact of this contract on air traffic control efficiency and safety?
This contract is expected to have a positive impact on air traffic control efficiency and safety by ensuring the continued operation, maintenance, and potential enhancement of critical radar systems. Radar is fundamental to air traffic management, providing controllers with real-time information on aircraft position, altitude, and movement, which is essential for deconfliction and safe separation. By funding these 'radar needs,' the FAA aims to prevent degradation of service, mitigate risks associated with aging equipment, and potentially incorporate upgrades that improve detection capabilities, reduce false alarms, or enhance data integration with other air traffic management systems. Reliable radar performance directly translates to safer skies and more efficient routing of air traffic.
How does this contract fit into the broader modernization efforts of the FAA, such as NextGen?
This contract for radar systems and associated computer design services likely plays a supporting role within the FAA's broader modernization efforts, particularly the Next Generation Air Transportation System (NextGen). While NextGen encompasses a wide array of advanced technologies like satellite-based navigation, ADS-B surveillance, and data communications, traditional radar systems remain a crucial component of the surveillance infrastructure, especially in certain airspace areas or as a backup. This delivery order ensures the continued functionality and potential upgrades of existing radar assets, which are integrated into the overall surveillance architecture. Modernizing or sustaining these foundational systems is essential to support the transition to more advanced capabilities and ensure a seamless, safe, and efficient air traffic management system during the ongoing evolution.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 12975 WORLDGATE DR STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $474,241,239
Exercised Options: $60,653,374
Current Obligation: $60,653,374
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 693KA726D00003
IDV Type: IDC
Timeline
Start Date: 2026-01-09
Current End Date: 2028-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2026-03-30
More Contracts from Peraton Inc.
- 200107!000034!5700!GZ80 !smc/Pks !F0470101C0001 !A!N!*!Y! !20001103!20061031!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000016429445!n!n!000000000000!ac26!rdte/Missile and Space Systems-Mgmt Support !A2 !missile and Space Systems !3000!NOT Discernable or Classified !541710!*!*!3! ! ! !*!*!*!B!*!*!B! !A !Y!R!2!003!B! !A!N!Z! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! !Y! ! !0001! — $1.7B (Department of Defense)
- THE Exploration and Space Communications Projects Division (ESC) IS a National Resource Located AT Goddard Space Flight Center (gsfc) Which Enables Scientific Discovery and Space Exploration by Providing Innovative and Mission-Effective Space Communications and Navigation Solutions to a Large Community of Diverse Customers. ESC Manages Operational Geostationary Communications Relay Satellites and Ground Systems for the Space Communications and Navigation (scan) Program AT Nasa Headquarters. Today, Scan Network Systems Consist of the Space Network (SN), the Near Earth Network (NEN), and the Deep Space Network (DSN). the Day-To-Day Management of These Three Networks IS Currently NOT Fully Consistent. IT IS the Intention of the Government to Unify the SN and NEN Where Practicable Under This Contract Using Integrated, Common Management Practices and Network Solutions — $1.5B (National Aeronautics and Space Administration)
- Nasa Goddard Space Flight Center's (gsfc) Goal for the Space Communications Networks Services Contract (scns) IS to Enable Mission Success for Every Customer Using Scns Services. KEY Objectives of the Scns Contract ARE to Decrease Cost and Maintain or Improve Operational Efficiency and Reliability, While Maintaining an Acceptable Level of Risk and Providing for Safe Operation of the Missions. the Contractor Shall Implement a Safety, Health, and Mission Assurance Program That Provides a Safe and Healthy Work Environment, Minimizes Program Risk, and Maximizes Nasa Mission Success. the Contractor Shall BE Responsible and Accountable for Achieving the Required Results. Core Requirement Functions, Such AS Configuration Management, Quality Assurance, ETC. ARE Required to Support Idiq Task Orders. the Space Network (SN) IS Comprised of a Fleet of On-Orbit Tracking and Data Relay Satellites (tdrs) and Associated Ground Systems That Provide Telecommunications Services. the Nature of the SN Architecture, I.E., Extremely Large Capital Investment, Contractor Operated Facilities, Continuous 24X7 Requirements, ETC., Lends Itself to a Core Requirements Approach. the Ground Network (GN) Consists of an Orbital Tracking Network and the Satellite Laser Ranging Network. the Nature of the Ground Network Architecture, I.E., Diverse MIX of Commercial and Government Assets, Evolving Geographic and Technical Customer Requirements, and Legacy Systems, ETC. Lends Itself to an Idiq Approach. Other Activities, I.E., Very Long Baseline Interferometry Network Operations and Maintenance (O&M), Electronic System Test Laboratory, Requirements Development, Hardware and Software Development, ETC. ARE Best Suited to an Idiq Approach in the Resource-Constrained Environment That Nasa Operates in — $1.2B (National Aeronautics and Space Administration)
- Operational Planning Implementation and Assessment Services (opias) Base Award — $800.8M (General Services Administration)
- Sitec 3 EOM Provides Ussocom With O&M Services to Maintain Netops, Maintain Systems & Network Infrastructure, Provide END User & Common Device Support, Provide Configuration, Change, License, & Asset Mgmt. Conduct Training and Perform Imacs Services — $651.0M (General Services Administration)
Other Department of Transportation Contracts
- Dafis UDO Reconstruct W/O Advance — $3.8B (Lockheed Martin Services, LLC)
- THE Purpose of This Delivery Order Award IS to ADD Funding for FTI Telecommunications Services — $1.9B (Harris Corporation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Leidos, Inc.)
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (THE Mitre Corporation)
- Dafis UDO Reconstruct W/O Advance — $1.5B (Harris Corporation)