DOT Awards $15.45M for FAA Computer Systems Design Services to Peraton Inc
Contract Overview
Contract Amount: $15,451,063 ($15.5M)
Contractor: Peraton Inc.
Awarding Agency: Department of Transportation
Start Date: 2026-03-06
End Date: 2028-12-31
Contract Duration: 1,031 days
Daily Burn Rate: $15.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: AAC NEEDS PACKAGE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $15.5 million to PERATON INC. for work described as: AAC NEEDS PACKAGE Key points: 1. Contract awarded to Peraton Inc. for computer systems design services. 2. Significant value of $15.45 million over a 1031-day period. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Services are categorized under Computer Systems Design Services (NAICS 541512).
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. Benchmarking against similar contracts for computer systems design services is needed to assess pricing effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The $15.45 million award represents taxpayer investment in essential IT infrastructure for the FAA.
Public Impact
Ensures continued operation and modernization of critical FAA computer systems. Supports the Department of Transportation's mission to maintain safe and efficient air travel. Potential for job creation within the IT sector through Peraton Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type requires diligent oversight to control costs.
- Long contract duration (1031 days) necessitates ongoing performance monitoring.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Supports critical aviation infrastructure.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is crucial for government modernization efforts, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
No explicit mention of small business participation. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
The use of a Cost Plus Award Fee contract necessitates robust oversight from the FAA to ensure performance targets are met and costs are managed effectively. Regular reviews and audits are essential.
Related Government Programs
- Computer Systems Design Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Cost Plus Award Fee contract type.
- Long contract duration.
- Potential for scope creep.
- Need for strong oversight to ensure cost control.
Tags
computer-systems-design-services, department-of-transportation, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $15.5 million to PERATON INC.. AAC NEEDS PACKAGE
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 $15.5 million.
What is the period of performance?
Start: 2026-03-06. End: 2028-12-31.
What is the expected value for money given the Cost Plus Award Fee structure?
The Cost Plus Award Fee (CPAF) structure incentivizes contractor performance but can lead to higher overall costs compared to fixed-price contracts. Value for money will depend heavily on the clarity of award fee criteria and the FAA's ability to effectively monitor performance and control costs. Without detailed performance metrics and cost tracking, it's difficult to definitively assess value.
What are the primary risks associated with this contract's duration and type?
The primary risks include potential cost overruns due to the CPAF structure and the long duration (1031 days), which increases the likelihood of scope creep or evolving technological needs. Inadequate oversight could exacerbate these risks, leading to inefficient spending and potentially outdated systems by contract end. Ensuring clear deliverables and performance standards is crucial.
How effectively will this contract support the FAA's long-term IT modernization goals?
The effectiveness hinges on the specific technical requirements outlined in the delivery order and Peraton's ability to meet them. While the contract provides funding for computer systems design, its alignment with broader FAA modernization strategies and the adaptability of the designed systems to future technological advancements will determine its long-term success. Continuous evaluation against strategic goals is necessary.
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: $54,472,002
Exercised Options: $30,902,127
Current Obligation: $15,451,063
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: 2026-03-06
Current End Date: 2028-12-31
Potential End Date: 2035-12-31 00:00:00
Last Modified: 2026-04-09
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