DHS awards $47.5M for aerostat radar O&M, with a significant per-unit cost
Contract Overview
Contract Amount: $47,453,903 ($47.5M)
Contractor: Peraton Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2019-12-28
End Date: 2021-06-29
Contract Duration: 549 days
Daily Burn Rate: $86.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACT AWARD. OPERATIONS AND MAINTENANCE FOR THE TETHERED AEROSTAT RADAR PROGRAM.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $47.5 million to PERATON INC. for work described as: CONTRACT AWARD. OPERATIONS AND MAINTENANCE FOR THE TETHERED AEROSTAT RADAR PROGRAM. Key points: 1. The contract value of $47.5 million for operations and maintenance of the Tethered Aerostat Radar Program indicates a substantial investment in border surveillance. 2. The firm-fixed-price contract type suggests that the contractor, Peraton Inc., bears the primary risk for cost overruns. 3. The duration of 549 days for this definitive contract provides a clear timeframe for service delivery. 4. The award was made under full and open competition, implying a robust bidding process. 5. The absence of small business set-aside suggests the primary contractor is likely a larger entity, with potential subcontracting opportunities. 6. The contract's focus on operations and maintenance highlights the ongoing need for sustainment of critical surveillance assets.
Value Assessment
Rating: fair
The contract award of $47.5 million for operations and maintenance of the Tethered Aerostat Radar Program appears to be a significant expenditure. Benchmarking this against similar contracts for radar system sustainment is challenging without more specific details on the scope of services and the technology involved. However, the reported base value of $8.64 million suggests a substantial portion of the total award is for the core operational and maintenance tasks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple bidders were likely considered. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency sought proposals from all responsible sources.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of potential suppliers to bid, driving down costs and improving the quality of services received.
Public Impact
The primary beneficiaries of this contract are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), who will receive enhanced border surveillance capabilities. The services delivered include the operation and maintenance of the Tethered Aerostat Radar Program, crucial for detecting and tracking aerial and maritime threats along U.S. borders. The geographic impact is primarily along the U.S. borders where these aerostats are deployed, enhancing national security. The contract supports a workforce involved in the operation, maintenance, and technical support of these advanced radar systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep if the firm-fixed-price contract has extensive change orders or if the scope of 'operations and maintenance' is broader than initially anticipated.
- Dependence on a single contractor for critical surveillance infrastructure could pose a risk if performance issues arise or if the contractor faces financial instability.
- The long-term sustainment costs of aerostat systems can be significant, and this contract represents a substantial, ongoing investment.
Positive Signals
- The use of full and open competition suggests a deliberate effort to secure the best value and a competitive price.
- The firm-fixed-price contract structure places cost risk on the contractor, incentivizing efficient performance.
- The award to Peraton Inc., a known entity in defense and government services, suggests a level of confidence in their capability to perform.
- The contract directly supports a critical national security mission for DHS and CBP.
Sector Analysis
The Tethered Aerostat Radar Program falls within the broader aerospace and defense sector, specifically focusing on surveillance and reconnaissance technologies. This contract for operations and maintenance is crucial for ensuring the continued functionality of these high-altitude platforms. The market for such specialized services is often dominated by a few key defense contractors capable of handling complex systems. Comparable spending benchmarks would typically involve other long-term sustainment contracts for advanced radar or surveillance systems, which can range from tens to hundreds of millions of dollars depending on the system's complexity and operational tempo.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contract was awarded to a large business, Peraton Inc. While there is no explicit mention of subcontracting goals for small businesses within the provided data, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses. The impact on the small business ecosystem would depend on whether Peraton actively seeks small business partners for specialized services related to the aerostat radar operations and maintenance.
Oversight & Accountability
Oversight for this contract would primarily fall under the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security (DHS). As a definitive contract awarded through full and open competition, it is subject to standard federal procurement regulations and oversight. Accountability measures would be embedded in the contract's performance standards and delivery schedules. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would typically reside with the DHS Office of Inspector General, which can investigate allegations of fraud, waste, and abuse related to federal contracts.
Related Government Programs
- Tethered Aerostat Systems
- Border Surveillance Programs
- Radar Operations and Maintenance
- Department of Homeland Security Contracts
- U.S. Customs and Border Protection Procurement
Risk Flags
- Potential for performance degradation due to environmental factors.
- Reliance on a single contractor for critical infrastructure.
- Sustained high operational costs for aerostat technology.
Tags
defense, homeland-security, customs-and-border-protection, definitive-contract, firm-fixed-price, full-and-open-competition, operations-and-maintenance, surveillance-radar, aerostat-systems, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $47.5 million to PERATON INC.. CONTRACT AWARD. OPERATIONS AND MAINTENANCE FOR THE TETHERED AEROSTAT RADAR PROGRAM.
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $47.5 million.
What is the period of performance?
Start: 2019-12-28. End: 2021-06-29.
What is the historical spending trend for the Tethered Aerostat Radar Program operations and maintenance?
Analyzing the historical spending for the Tethered Aerostat Radar Program (TARP) operations and maintenance requires access to historical contract data beyond this single award. This $47.5 million contract, awarded in late 2019 and ending mid-2021, represents a significant investment over its 549-day duration. To understand trends, one would need to examine prior contracts for TARP O&M, looking at award amounts, contract types, and durations. It would also be beneficial to compare spending across different fiscal years to identify any increases or decreases in investment, potentially correlating with changes in threat assessments or program scope. Furthermore, understanding the total lifecycle cost of the TARP, including procurement and sustainment, would provide a more comprehensive view of the government's financial commitment to this surveillance capability over time.
How does the per-unit cost of operating and maintaining these aerostats compare to similar surveillance technologies?
Determining a precise 'per-unit cost' for operating and maintaining the Tethered Aerostat Radar Program (TARP) is complex without detailed breakdowns of operational hours, maintenance schedules, and the specific number of active aerostats covered under this $47.5 million contract. The provided data does not offer a clear per-unit metric. However, if we were to make a rough estimation based on the total award and an assumed number of aerostats, the cost could be substantial. Comparing this to other surveillance technologies like fixed-wing aircraft patrols, drones, or ground-based radar systems would require a standardized metric, such as cost per operational hour or cost per square mile monitored. Aerostats offer persistent surveillance, which can be cost-effective in terms of continuous coverage, but their high initial and sustainment costs need careful evaluation against alternatives that might offer different coverage patterns or flexibility.
What is Peraton Inc.'s track record with Department of Homeland Security (DHS) contracts, particularly in surveillance systems?
Peraton Inc. has a significant track record with the Department of Homeland Security (DHS) and its various components, including U.S. Customs and Border Protection (CBP). The company has been awarded numerous contracts across a wide range of services, including IT, mission support, and intelligence analysis. Their involvement with surveillance systems, such as the Tethered Aerostat Radar Program (TARP), indicates a capability in managing complex, technology-intensive programs critical to border security. Examining Peraton's past performance on similar DHS contracts, including their on-time delivery, quality of service, and adherence to budget, would provide further insight into their reliability. Publicly available contract databases and past performance reviews, if accessible, would offer a more detailed assessment of their experience and success rates with DHS and similar agencies.
What are the key performance indicators (KPIs) used to measure the effectiveness of the Tethered Aerostat Radar Program?
The effectiveness of the Tethered Aerostat Radar Program (TARP) is likely measured through a series of Key Performance Indicators (KPIs) that focus on its surveillance capabilities and operational readiness. These KPIs would typically include metrics such as detection rates for specific types of threats (e.g., low-flying aircraft, maritime vessels), the range and accuracy of the radar systems, the uptime or availability of the aerostats, and the response time for data dissemination to relevant agencies like CBP. The contract's performance standards would outline these expectations. Success in maintaining these KPIs would directly correlate with the contractor's ability to effectively operate and maintain the system as per the contract's requirements, ultimately contributing to enhanced border security.
Are there any known risks or challenges associated with the long-term operation of tethered aerostats in diverse weather conditions?
Yes, there are inherent risks and challenges associated with the long-term operation of tethered aerostats, particularly concerning diverse weather conditions. Aerostats are susceptible to high winds, lightning, extreme temperatures, and icing, which can necessitate grounding the system, leading to temporary loss of surveillance coverage. Maintaining the structural integrity of the aerostat envelope, mooring systems, and onboard electronics under these conditions requires robust engineering and frequent maintenance. Furthermore, the logistics of deploying and recovering these large platforms, especially in remote or challenging terrains, add complexity. The contract's scope for operations and maintenance would need to account for these environmental factors, including contingency plans for adverse weather and regular inspections to mitigate potential failures.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 70B02C19R00000010
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)
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: $312,243,582
Exercised Options: $47,453,903
Current Obligation: $47,453,903
Actual Outlays: $561,308
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-12-28
Current End Date: 2021-06-29
Potential End Date: 2021-06-29 08:29:22
Last Modified: 2021-09-17
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