Transportation DOT awards $640K for TFDM needs package to Peraton Inc
Contract Overview
Contract Amount: $6,400,000 ($6.4M)
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: $5.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: THIS DELIVERY ORDER IS FOR THE TFDM 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 $6.4 million to PERATON INC. for work described as: THIS DELIVERY ORDER IS FOR THE TFDM NEEDS PACKAGE. ALL OTHER TERMS AND CONDITIONS OF THE CONTRACT REMAIN UNCHANGED AND IN FULL EFFECT. Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Delivery order for computer systems design services indicates ongoing IT support needs. 3. Contract duration of nearly three years suggests a significant, long-term requirement. 4. Cost Plus Award Fee contract type allows for performance-based incentives. 5. The award is a delivery order against an existing contract, implying a streamlined process. 6. Focus on TFDM needs package points to modernization efforts within the FAA.
Value Assessment
Rating: good
The award amount of $640,000 for a delivery order is modest. Without specific deliverables or benchmarks for the TFDM needs package, a direct value-for-money assessment is challenging. However, the Cost Plus Award Fee structure suggests an intent to incentivize efficient and effective performance, which can be a positive indicator for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award process generally supports fair pricing and encourages vendors to offer their best value.
Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors.
Public Impact
The Federal Aviation Administration (FAA) benefits from this contract through the acquisition of essential IT services. Services delivered include computer systems design, specifically for the TFDM needs package. The contract is geographically focused on Washington D.C. This contract supports the IT workforce involved in developing and implementing aviation systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics for the TFDM needs package makes it difficult to gauge success.
- Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed tightly.
Positive Signals
- Awarded under full and open competition, indicating a healthy market and potential for good pricing.
- The Cost Plus Award Fee structure incentivizes contractor performance.
- The delivery order is against an existing contract, suggesting a mature and established relationship.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology industry. The market for these services is large and competitive, driven by government and commercial demand for specialized IT solutions. This award represents a small portion of overall federal IT spending, which is substantial and constantly evolving to support agency missions.
Small Business Impact
The data indicates that small business participation (ss and sb flags are false) was not a specific set-aside requirement for this particular delivery order. Therefore, the direct impact on small businesses through this award is likely minimal, unless Peraton Inc. engages small businesses as subcontractors. Further analysis of subcontracting plans would be needed to assess broader small business ecosystem implications.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Federal Aviation Administration. As a delivery order against an existing contract, the foundational oversight mechanisms are already in place. Transparency is generally maintained through contract databases, though specific performance details may be internal.
Related Government Programs
- Federal Aviation Administration IT Modernization Programs
- Transportation Systems Development Contracts
- Computer Systems Design Services
- TFDM (Terminal Flight Data Management) Systems
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Ambiguity in performance metrics for award fee determination.
- Dependence on existing contract infrastructure.
Tags
it, department-of-transportation, federal-aviation-administration, delivery-order, computer-systems-design-services, full-and-open-competition, cost-plus-award-fee, washington-dc, medium-value, it-modernization
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $6.4 million to PERATON INC.. THIS DELIVERY ORDER IS FOR THE TFDM 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 $6.4 million.
What is the period of performance?
Start: 2026-01-09. End: 2028-12-31.
What is the track record of Peraton Inc. in delivering similar computer systems design services to the federal government?
Peraton Inc. has a significant track record with the federal government, often securing large and complex contracts across various agencies, including defense and civilian. Their expertise spans IT modernization, cybersecurity, and mission-critical systems. While specific performance data for this TFDM needs package is not yet available, their history suggests they are a capable provider of such services. However, like any large contractor, past performance reviews and any reported issues should be examined to ensure alignment with FAA's expectations for this specific delivery order.
How does the awarded amount of $640,000 compare to similar contracts for IT needs packages or computer systems design services?
The $640,000 award for this delivery order is relatively modest for a contract spanning nearly three years. Similar contracts for IT needs packages or computer systems design services can range from tens of thousands to millions of dollars, depending on the scope, complexity, and duration. Given this is a delivery order against an existing contract, the initial contract likely had a larger ceiling. This specific award suggests a focused task or a phase of a larger project, making direct comparison difficult without more context on the TFDM needs package deliverables.
What are the primary risks associated with this Cost Plus Award Fee (CPAF) contract type for the FAA?
The primary risks with a CPAF contract for the FAA involve potential cost growth and the difficulty in precisely defining award fee criteria upfront. While CPAF incentivizes performance, if the award fee criteria are not clearly defined, measurable, and achievable, it can lead to disputes or the contractor receiving higher fees than warranted. There's also a risk that the focus on achieving award fee targets might inadvertently shift attention away from other critical, non-fee-related aspects of the project. Robust oversight and clear performance metrics are crucial to mitigate these risks.
What is the expected effectiveness of the TFDM needs package in improving air traffic management?
The effectiveness of the TFDM needs package is directly tied to its successful implementation and integration into the broader air traffic management system. TFDM aims to improve the flow of air traffic by providing more accurate and timely flight data, which can lead to reduced delays, increased capacity, and enhanced safety. The success of this specific delivery order will depend on Peraton Inc.'s ability to deliver the required computer systems design services that meet the FAA's technical specifications and operational requirements for the TFDM system.
What are the historical spending patterns for computer systems design services by the Federal Aviation Administration?
The Federal Aviation Administration (FAA) consistently spends significant amounts on computer systems design services to maintain and modernize its complex air traffic control and management systems. Historical spending patterns show a steady investment in IT infrastructure, software development, and system integration to enhance safety, efficiency, and capacity. This spending is often driven by evolving technological capabilities, regulatory requirements, and the need to replace aging systems. The TFDM needs package award aligns with this historical trend of investing in advanced IT solutions for aviation.
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: $69,632,597
Exercised Options: $6,400,000
Current Obligation: $6,400,000
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: 2035-12-31 00:00:00
Last Modified: 2026-04-06
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