DoD's $25.7M Missile Applications and Software Support Contract Awarded to Peraton Inc
Contract Overview
Contract Amount: $25,672,341 ($25.7M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2021-04-05
End Date: 2026-11-30
Contract Duration: 2,065 days
Daily Burn Rate: $12.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: MISSILE APPLICATIONS AND SOFTWARE SUPPORT 3 (MASS3) AGILE SOFTWARE DEVELOPMENT SERVICES
Place of Performance
Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $25.7 million to PERATON INC. for work described as: MISSILE APPLICATIONS AND SOFTWARE SUPPORT 3 (MASS3) AGILE SOFTWARE DEVELOPMENT SERVICES Key points: 1. Contract focuses on agile software development for missile applications, indicating a need for adaptable and evolving systems. 2. The award to Peraton Inc. suggests a competitive process, though specific details on bidder numbers are not provided. 3. A Time and Materials contract type can pose cost control risks if not closely managed. 4. The duration of over 5 years suggests a long-term strategic need for these services. 5. This contract falls under Computer Systems Design Services, a critical area for defense modernization. 6. The absence of small business set-aside flags a potential missed opportunity for smaller defense contractors.
Value Assessment
Rating: fair
The contract value of approximately $25.7 million over five years for agile software development services is difficult to benchmark without more specific details on the scope of work and deliverables. Time and Materials contracts can sometimes lead to higher costs than fixed-price agreements if not managed diligently, as the contractor is reimbursed for actual labor and material costs plus a fee. Comparing this to similar agile software development contracts within the Department of Defense would provide better insight into its value for money. The provided data does not include specific performance metrics or unit costs to facilitate a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While this generally promotes a competitive environment and potentially better pricing, the specific number of bidders and the nature of the competition are not detailed in the provided data. A robust competition typically involves multiple qualified bidders vying for the contract, which can drive down costs and improve the quality of services offered. The lack of further detail prevents a deeper analysis of the competitive dynamics.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers. However, without knowing the number of bids received, it's challenging to definitively state the extent of cost savings realized for taxpayers.
Public Impact
The Department of the Air Force benefits from enhanced missile application and software support capabilities. This contract supports the development of advanced software for critical defense systems. The services delivered are expected to improve the performance and adaptability of missile systems. The geographic impact is likely concentrated within defense installations and contractor facilities involved in software development and testing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type may lead to cost overruns if not closely monitored.
- Lack of specific performance metrics makes it difficult to assess contractor efficiency.
- Limited information on the number of bidders hinders a full understanding of competitive pressure on pricing.
Positive Signals
- Awarded under full and open competition, suggesting a broad search for qualified contractors.
- Long contract duration indicates a strategic and sustained need for these specialized services.
- Focus on agile software development aligns with modern defense acquisition needs for flexibility.
Sector Analysis
The defense sector heavily relies on advanced software development for command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, including missile applications. Agile methodologies are increasingly adopted to ensure rapid iteration and adaptation to evolving threats and technological advancements. The market for defense software development services is substantial, with significant government spending allocated to modernization efforts. This contract fits within the broader category of IT services supporting defense readiness and technological superiority.
Small Business Impact
The contract data indicates that this was not a small business set-aside, and the prime contractor, Peraton Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, it is difficult to assess the direct impact on the small business defense contracting ecosystem. Large prime contractors often utilize small businesses for specialized support, but this is not guaranteed without contractual mandates.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The contract's Time and Materials nature necessitates robust oversight to ensure that labor hours and material costs are reasonable and allocable to the contract's objectives. Transparency is generally maintained through contract reporting mechanisms and potential audits by the Defense Contract Audit Agency (DCAA) or the Inspector General. Specific details on unique oversight mechanisms or accountability measures beyond standard procurement regulations are not provided.
Related Government Programs
- Missile Defense Systems
- Agile Software Development Services
- Department of Defense IT Modernization
- Air Force Weapon Systems Support
- Computer Systems Design Services
Risk Flags
- Cost Control Risk (T&M Contract)
- Performance Monitoring Difficulty (Lack of KPIs)
- Potential for Scope Creep
Tags
department-of-defense, department-of-the-air-force, it-services, software-development, missile-applications, agile-methodology, time-and-materials, full-and-open-competition, peraton-inc, defense-contracting, computer-systems-design-services, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.7 million to PERATON INC.. MISSILE APPLICATIONS AND SOFTWARE SUPPORT 3 (MASS3) AGILE SOFTWARE DEVELOPMENT SERVICES
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $25.7 million.
What is the period of performance?
Start: 2021-04-05. End: 2026-11-30.
What is Peraton Inc.'s track record with similar Department of Defense software development contracts?
Peraton Inc. has a significant history of performing IT and technical services for the Department of Defense across various agencies, including the Air Force, Space Force, and intelligence community. Their portfolio often includes complex software development, systems integration, and cybersecurity solutions. While specific details on past performance for missile application software development are not provided here, their general experience suggests a capability to handle large-scale defense IT projects. A deeper dive into their contract history, including past performance reviews and any documented issues, would be necessary for a comprehensive assessment of their track record on this specific type of work.
How does the estimated value of this contract compare to similar agile software development contracts for missile systems?
Benchmarking this $25.7 million contract against similar agile software development contracts for missile systems is challenging without more granular data on the scope of work, deliverables, and specific technologies involved. However, for a multi-year effort (over 5 years) involving complex defense applications, this value appears within a reasonable range for specialized agile development services. Contracts for highly specialized defense software can vary widely based on the criticality of the system, the level of security required, and the complexity of integration. A comparative analysis would ideally look at contracts with similar durations, technical requirements, and agency focus.
What are the primary risks associated with a Time and Materials contract for agile software development in a defense context?
The primary risk with a Time and Materials (T&M) contract, especially for agile software development in a defense context, is the potential for cost overruns. Unlike fixed-price contracts, T&M reimburses the contractor for actual labor hours and material costs incurred, plus a fee. If project scope creeps, development is inefficient, or labor rates are high, costs can escalate beyond initial expectations. For agile development, where requirements can evolve, T&M can be suitable, but it requires stringent oversight, detailed tracking of hours, and clear definition of what constitutes a 'material.' Without robust monitoring by the government, the contractor may lack incentives to control costs efficiently, leading to reduced value for taxpayers.
How effective are agile methodologies in delivering complex missile application software for the DoD?
Agile methodologies are generally considered effective for delivering complex software, including for defense applications, because they promote iterative development, flexibility, and continuous feedback. This allows for adaptation to changing requirements, which is common in defense projects due to evolving threats and technological advancements. For missile applications, agile can help in rapidly developing and testing software components, integrating new features, and ensuring the system remains current. However, the success of agile in such a critical domain depends heavily on strong program management, clear communication between developers and stakeholders, and rigorous testing and validation processes to ensure reliability and security.
What is the historical spending trend for Computer Systems Design Services within the Department of the Air Force?
Historical spending on Computer Systems Design Services (NAICS code 541512) by the Department of the Air Force has generally trended upwards over the past decade, reflecting the increasing reliance on advanced IT infrastructure and software solutions for modernization and operational readiness. This category encompasses a wide range of services, including system design, integration, and development, which are crucial for maintaining and upgrading complex defense systems like those related to missile applications. While specific annual figures fluctuate based on program priorities and budget allocations, the overall demand for these services remains consistently high as the Air Force continues to invest in digital transformation and advanced capabilities.
Are there specific performance metrics or KPIs associated with this contract that are publicly available?
The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) associated with this contract. For Time and Materials contracts, performance is often assessed through the efficient use of labor hours, adherence to project milestones (if defined), and the quality of the delivered software increments. Government oversight typically involves regular reviews of progress reports, timesheets, and delivered software. Publicly available information on specific KPIs for individual contracts is often limited due to security and proprietary concerns, but agencies typically track these internally to manage contractor performance effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
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: $25,678,949
Exercised Options: $25,678,949
Current Obligation: $25,672,341
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2021-04-05
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2026-01-14
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