GSA awards $75.6M contract for professional services to PERATON INC., with 456 days duration

Contract Overview

Contract Amount: $75,647,327 ($75.6M)

Contractor: Peraton Inc.

Awarding Agency: General Services Administration

Start Date: 2010-07-28

End Date: 2011-10-27

Contract Duration: 456 days

Daily Burn Rate: $165.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 212093

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $75.6 million to PERATON INC. for work described as: 212093 Key points: 1. Contract value of $75.6 million represents a significant investment in professional services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The cost-plus-fixed-fee pricing structure may introduce cost escalation risks if not managed carefully. 4. The duration of 456 days indicates a medium-term engagement for the services provided. 5. The North American Industry Classification System (NAICS) code 541990 suggests a broad range of potential professional, scientific, and technical services. 6. The contract's performance is located in Virginia, a hub for federal contracting activities.

Value Assessment

Rating: fair

The contract value of $75.6 million for a 456-day period needs further benchmarking against similar professional services contracts. Without specific service details, it's difficult to assess value for money. The cost-plus-fixed-fee (CPFF) structure, while allowing for flexibility, can lead to higher costs compared to fixed-price contracts if cost overruns are not strictly controlled. The award amount itself does not inherently indicate good or bad value without context on the scope and deliverables.

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 a bid. This typically suggests a robust bidding process with the potential for multiple offers. The number of bidders is not specified, but the competitive nature of the award is a positive sign for price discovery and potentially achieving a fair market price.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from a wider pool of contractors.

Public Impact

The primary beneficiaries are likely federal agencies requiring specialized professional, scientific, and technical services. Services delivered could range widely given the broad NAICS code, potentially including research, consulting, or technical support. The geographic impact is concentrated in Virginia, where the contract is performed. Workforce implications may include the creation of jobs for professionals with expertise in the specific services rendered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The professional, scientific, and technical services sector is a large and diverse segment of the federal contracting market. NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' encompasses a wide array of specialized services not classified elsewhere. Spending in this category can fluctuate based on agency needs for expertise in areas like research, development, consulting, and specialized technical support. Benchmarking requires specific details on the services rendered, but overall federal spending on professional services is substantial.

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 or specific benefits for the small business ecosystem stemming from a set-aside provision. The prime contractor, PERATON INC., will likely manage the entire scope of work, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service. Mechanisms would include contract performance reviews, financial audits, and adherence to the terms of the Cost Plus Fixed Fee agreement. Transparency would be facilitated through contract reporting systems like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

professional-services, general-services-administration, gsa, peraton-inc, cost-plus-fixed-fee, full-and-open-competition, virginia, naics-541990, federal-acquisition-service, medium-value, medium-duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $75.6 million to PERATON INC.. 212093

Who is the contractor on this award?

The obligated recipient is PERATON INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $75.6 million.

What is the period of performance?

Start: 2010-07-28. End: 2011-10-27.

What specific services does PERATON INC. provide under this contract?

The provided data indicates the contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category that can include a wide range of activities such as research and development support, specialized consulting, technical analysis, and other professional services not specifically classified under other NAICS codes. Without access to the contract's statement of work (SOW) or detailed task orders, the precise nature of the services rendered by PERATON INC. remains unspecified. This lack of specificity makes it challenging to evaluate the contract's effectiveness or compare its value accurately against other procurements.

How does the $75.6 million award compare to similar professional services contracts awarded by GSA?

Benchmarking the $75.6 million award requires comparing it to contracts with similar scopes of work, durations, and service types within the 'All Other Professional, Scientific, and Technical Services' category. Given the broad NAICS code, direct comparisons are difficult without knowing the specific services. However, GSA awards numerous contracts in the professional services domain, ranging from millions to hundreds of millions of dollars. The value of this particular contract appears to be in the mid-to-high range for a single award of this duration, suggesting a substantial requirement. Further analysis would necessitate examining the number of bidders, the pricing structure, and the specific deliverables to determine if it represents good value for money compared to market rates and other GSA offerings.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this service?

The Cost Plus Fixed Fee (CPFF) contract structure carries inherent risks, primarily related to cost control. While the 'fixed fee' component provides the contractor with a guaranteed profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. This can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the actual expenses. For the government, the risk is potential cost escalation beyond initial estimates if cost-saving measures are not rigorously pursued and monitored. Effective oversight, detailed cost tracking, and clear definitions of allowable costs are crucial to mitigate these risks and ensure the contract remains within budget and provides value.

What is the historical spending pattern for NAICS code 541990 by the General Services Administration?

Historical spending data for NAICS code 541990 by the General Services Administration (GSA) would reveal trends in the procurement of 'All Other Professional, Scientific, and Technical Services.' Analyzing this data over several fiscal years would indicate whether GSA's reliance on this category of services is increasing, decreasing, or remaining stable. It would also highlight the typical contract values, durations, and types of agencies within GSA that utilize these services most frequently. Such analysis is vital for understanding GSA's strategic allocation of resources towards specialized professional support and for identifying potential areas of concentrated spending or emerging needs within the federal government.

What is PERATON INC.'s track record with federal contracts, particularly with GSA?

PERATON INC.'s track record with federal contracts, especially with the General Services Administration (GSA), is a critical factor in assessing the reliability and performance potential of this award. A review of their contract history would reveal the number of contracts awarded, their values, the agencies they have served, and their performance ratings (if available). Examining past performance can provide insights into their ability to manage complex projects, adhere to budgets, meet deadlines, and deliver quality services. A history of successful contract completions and positive performance feedback would increase confidence in their capability to execute this $75.6 million contract effectively. Conversely, a history of issues or poor performance would raise significant concerns.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Exelis Inc. (UEI: 969316046)

Address: 12975 WORLDGATE DR, HERNDON, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $365,319,425

Exercised Options: $75,647,327

Current Obligation: $75,647,327

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2010-07-28

Current End Date: 2011-10-27

Potential End Date: 2011-10-27 00:00:00

Last Modified: 2014-08-20

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