Department of Transportation awards $8.4M delivery order for telecommunications infrastructure integration
Contract Overview
Contract Amount: $8,398,100 ($8.4M)
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: $7.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: THIS DELIVERY ORDER IS ISSUED TO THE BNATCS INTEGRATOR TO EXCUTE THE ACTIVITIES REQUIRED FOR THE INTEGRATION OF THE TELECOMMUNICATIONS INFRASTRUCTURE AS AGREED TO IN THE NEEDS PACKAGE FOR TDM-IP.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $8.4 million to PERATON INC. for work described as: THIS DELIVERY ORDER IS ISSUED TO THE BNATCS INTEGRATOR TO EXCUTE THE ACTIVITIES REQUIRED FOR THE INTEGRATION OF THE TELECOMMUNICATIONS INFRASTRUCTURE AS AGREED TO IN THE NEEDS PACKAGE FOR TDM-IP. Key points: 1. The contract focuses on integrating telecommunications infrastructure for TDM-IP, a critical but vaguely defined initiative. 2. The award is a delivery order under a larger contract, suggesting a phased approach to a broader program. 3. The contract type is Cost Plus Award Fee (CPAF), which can incentivize performance but also carries inherent cost-reimbursement risks. 4. The duration of over 3 years indicates a significant, ongoing need for these integration services. 5. The specific services, Computer Systems Design Services, are broad and require further definition to assess value. 6. The contract was awarded through full and open competition, which is a positive indicator for price discovery.
Value Assessment
Rating: fair
The contract value of $8.4 million for Computer Systems Design Services over approximately three years appears within a reasonable range for complex integration projects. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. The Cost Plus Award Fee (CPAF) structure allows for performance incentives but also necessitates careful monitoring to ensure costs remain controlled and that award fees are justified by exceptional performance, not just meeting basic requirements. Benchmarking against similar telecommunications integration projects would provide a clearer picture of cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This delivery order was awarded under a 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 is a positive sign for achieving a fair market price. Full and open competition generally leads to a wider pool of potential contractors and encourages them to offer competitive pricing and innovative solutions to win the contract.
Taxpayer Impact: Taxpayers benefit from the potential for lower costs and better service quality due to the competitive bidding process. This approach helps ensure that federal funds are used efficiently by driving down prices and encouraging contractors to provide the best value.
Public Impact
The primary beneficiaries are likely the Federal Aviation Administration (FAA) and the Department of Transportation (DOT) through improved telecommunications infrastructure. The services delivered will focus on the integration of telecommunications infrastructure, crucial for modernizing communication systems. The geographic impact is centered in the District of Columbia, where the contract is managed and likely where some integration activities will occur. Workforce implications may include the need for specialized IT and telecommunications integration professionals, potentially creating or sustaining jobs in these fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Award Fee (CPAF) contract type can lead to cost overruns if not managed diligently, as contractor profits are tied to performance metrics that may be subjective or difficult to quantify.
- The broad description of 'integration of telecommunications infrastructure' lacks specificity, making it difficult to fully assess the scope, risks, and potential for cost escalation.
- The duration of the contract (over 3 years) for a delivery order suggests a potentially complex and long-term integration effort, increasing the risk of unforeseen challenges.
- The specific needs package for 'TDM-IP' is not detailed, making it hard to evaluate the necessity and potential risks associated with the underlying technology or system being integrated.
Positive Signals
- The contract was awarded through full and open competition, which typically fosters competitive pricing and a wider selection of qualified vendors.
- The delivery order is issued under an existing contract, suggesting that the prime contractor has already been vetted and possesses relevant capabilities.
- The contract has defined start and end dates, providing a clear timeline for the project and allowing for future planning.
- The award to Peraton Inc. indicates a known entity in the government contracting space, potentially bringing established expertise.
Sector Analysis
The IT services sector, particularly Computer Systems Design Services (NAICS 541512), is a significant area of federal spending. This contract fits within the broader trend of government modernization efforts, focusing on upgrading and integrating telecommunications infrastructure. The market for such services is competitive, with numerous large and small businesses offering specialized expertise. Federal spending in this category often supports critical national infrastructure and operational capabilities, with contracts ranging from small, targeted projects to large-scale enterprise-wide transformations.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Peraton Inc., may choose to subcontract portions of this work to small businesses as part of their overall business strategy or to meet broader federal small business utilization goals. The absence of a small business set-aside means that opportunities for small businesses are dependent on the prime contractor's subcontracting plan rather than a direct requirement of this specific award.
Oversight & Accountability
Oversight for this delivery order will likely fall under the Federal Aviation Administration (FAA) and the Department of Transportation (DOT). The Cost Plus Award Fee (CPAF) structure necessitates robust oversight to ensure that costs are reasonable and that award fees are earned based on demonstrable performance exceeding basic requirements. Accountability measures will be tied to the contract's performance metrics and deliverables. Transparency is generally facilitated through contract award databases, but detailed project-specific reporting may vary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- DOT IT Modernization Programs
- FAA Telecommunications Modernization
- Government-wide IT Services Contracts
- Network Integration Services
- Computer Systems Design Services
Risk Flags
- Potential for cost overruns due to CPAF structure
- Lack of specific scope definition for 'TDM-IP' integration
- Dependency on contractor performance for award fee justification
- Risk of integration challenges with legacy systems
Tags
it, defense, transportation, computer-systems-design-services, delivery-order, full-and-open-competition, cost-plus-award-fee, peraton-inc, department-of-transportation, federal-aviation-administration, district-of-columbia, medium-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $8.4 million to PERATON INC.. THIS DELIVERY ORDER IS ISSUED TO THE BNATCS INTEGRATOR TO EXCUTE THE ACTIVITIES REQUIRED FOR THE INTEGRATION OF THE TELECOMMUNICATIONS INFRASTRUCTURE AS AGREED TO IN THE NEEDS PACKAGE FOR TDM-IP.
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 $8.4 million.
What is the period of performance?
Start: 2026-01-09. End: 2028-12-31.
What is the specific nature of the 'TDM-IP' initiative and the critical telecommunications infrastructure being integrated?
The provided data offers limited insight into the 'TDM-IP' initiative beyond its mention as the context for telecommunications infrastructure integration. TDM (Time-Division Multiplexing) is a traditional method for transmitting multiple digital data streams over a single communication channel, while IP (Internet Protocol) is the standard for data transmission over the internet. The integration likely involves modernizing or transitioning legacy TDM-based systems to IP-based networks, a common but complex undertaking in telecommunications. This could encompass upgrading routers, switches, voice systems, and data networks to enhance speed, efficiency, and interoperability. Without further details, the exact scope, the specific technologies involved, and the criticality of this integration to the FAA's operations remain unclear, making a full assessment of the project's necessity and potential risks challenging.
How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for similar IT integration projects, and what are the associated risks?
Cost Plus Award Fee (CPAF) contracts reimburse the contractor for allowable costs plus a base fee, with an additional award fee determined by the government based on performance against specific criteria. This structure is often used when the scope of work is not precisely defined or when innovation and high performance are critical. Compared to Firm-Fixed-Price (FFP) contracts, CPAF offers more flexibility but carries a higher risk of cost growth, as the government bears the cost risk. It differs from Cost Plus Incentive Fee (CPIF) by having a more subjective award fee determination. The primary risk with CPAF is that poorly defined performance metrics can lead to inflated costs if award fees are granted too liberally, or contractor dissatisfaction if metrics are perceived as unfair. Diligent oversight and clearly defined, measurable performance standards are crucial to mitigate these risks and ensure value for money.
What is Peraton Inc.'s track record with similar large-scale telecommunications integration projects for federal agencies?
Peraton Inc. has a significant track record in providing IT and telecommunications services to various U.S. federal agencies, including defense and civilian departments. They have been involved in complex system integration, network modernization, and cybersecurity projects. For instance, Peraton has held contracts related to enterprise IT services, satellite communications, and intelligence support. While specific details on their past performance with TDM-to-IP integration for the FAA are not immediately available in this data, their general experience suggests they possess the technical capabilities and security clearances necessary for such work. A deeper dive into their contract history, past performance evaluations, and any reported issues on similar projects would be necessary for a comprehensive assessment of their suitability and reliability for this specific delivery order.
What are the potential long-term implications of this telecommunications infrastructure integration for the FAA's operational efficiency and future technological adoption?
The successful integration of telecommunications infrastructure, particularly the transition from TDM to IP, can have profound long-term implications for the FAA. An IP-based network generally offers greater bandwidth, flexibility, and scalability compared to older TDM systems. This can lead to enhanced operational efficiency through improved data transmission speeds, more reliable communication channels for air traffic control, and better integration of various IT systems. Furthermore, a modernized IP infrastructure is a prerequisite for adopting newer technologies such as advanced data analytics, cloud computing, and next-generation communication systems, which are crucial for the FAA's future modernization efforts and maintaining safety and efficiency in the national airspace. Conversely, if the integration is poorly executed or becomes obsolete quickly, it could hinder future advancements and require costly rework.
How does the $8.4 million award compare to historical federal spending on similar computer systems design and integration services?
The $8.4 million award for Computer Systems Design Services (NAICS 541512) for telecommunications infrastructure integration is a moderate-sized contract within the vast landscape of federal IT spending. Federal agencies collectively spend billions annually on IT services, including system design, integration, and maintenance. Contracts for large-scale infrastructure integration can range from a few million to hundreds of millions of dollars, depending on the complexity, duration, and scope. This specific award, covering approximately three years, appears reasonable for a focused integration effort within a larger modernization program. Benchmarking against similar FAA or DOT projects, or against government-wide contract vehicles for IT services, would provide a more precise comparison. However, in the context of overall federal IT expenditures, $8.4 million represents a specific, targeted investment rather than a massive program outlay.
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
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: $200,000,000
Exercised Options: $8,398,100
Current Obligation: $8,398,100
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: 2026-01-09
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