DoD's $29.6M Satellite Bandwidth Contract Awarded to Peraton Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $29,624,344 ($29.6M)
Contractor: Peraton Government Communications Inc.
Awarding Agency: Department of Defense
Start Date: 2012-06-01
End Date: 2015-05-31
Contract Duration: 1,094 days
Daily Burn Rate: $27.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SATELLITE BANDWIDTH
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $29.6 million to PERATON GOVERNMENT COMMUNICATIONS INC. for work described as: SATELLITE BANDWIDTH Key points: 1. The contract awarded to Peraton Government Communications Inc. for satellite bandwidth represents a significant expenditure. 2. The 'full and open competition' method was used, but the effectiveness of price discovery needs further examination. 3. Potential risks include ensuring competitive pricing over the contract's duration and the overall value for taxpayer money. 4. The sector context involves critical defense communication infrastructure, where reliable and cost-effective solutions are paramount.
Value Assessment
Rating: fair
The award amount of $29.6 million for satellite bandwidth needs to be benchmarked against similar contracts. Without specific per-unit cost data or comparison to market rates for comparable services, it's difficult to definitively assess if the pricing is excellent or concerning.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally a positive sign for price discovery. However, the specific details of the bidding process and the number of bidders are crucial to understanding how effectively competition drove down prices.
Taxpayer Impact: The primary taxpayer impact lies in ensuring that the $29.6 million spent on satellite bandwidth provides optimal value and that competitive processes were robust enough to secure the best possible pricing.
Public Impact
Ensures critical communication capabilities for Department of Defense operations. Supports national security by providing essential satellite bandwidth. Potential for cost savings if competitive bidding was highly effective. Highlights the government's reliance on specialized communication services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Value for money assessment is difficult without more granular cost data.
- Effectiveness of competition in driving optimal pricing requires deeper analysis.
- Contract duration and potential for price escalation over time.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense information systems.
- Contract has a defined end date, allowing for re-evaluation.
Sector Analysis
This contract falls within the IT and telecommunications sector, specifically focusing on satellite bandwidth, which is crucial for secure and reliable communication for defense agencies. Benchmarks for similar satellite bandwidth contracts would be essential for a comprehensive value assessment.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would focus on ensuring Peraton meets all contractual obligations for satellite bandwidth delivery and performance. Accountability would involve tracking expenditures against deliverables and verifying that the services provided align with the stated needs of the Defense Information Systems Agency.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of detailed cost breakdown for per-unit analysis.
- Effectiveness of competition needs further verification.
- Potential for cost overruns if not closely managed.
- Dependence on a single contractor for critical bandwidth.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.6 million to PERATON GOVERNMENT COMMUNICATIONS INC.. SATELLITE BANDWIDTH
Who is the contractor on this award?
The obligated recipient is PERATON GOVERNMENT COMMUNICATIONS INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $29.6 million.
What is the period of performance?
Start: 2012-06-01. End: 2015-05-31.
What was the average cost per unit of bandwidth awarded under this contract, and how does it compare to industry benchmarks for similar services during the contract period?
The provided data does not include specific per-unit cost information for the satellite bandwidth. To assess value, a detailed analysis comparing the contract's pricing structure against prevailing market rates for comparable bandwidth services during the 2012-2015 period would be necessary. This would involve examining factors like data transfer rates, geographic coverage, and service level agreements to determine if the government received competitive pricing.
Given the 'full and open competition' designation, what was the level of actual competition, and did it effectively drive down costs for the government?
While designated as 'full and open competition,' the effectiveness in driving down costs is not explicitly detailed. A thorough review would require examining the number of bids received, the qualifications of the bidders, and the final negotiated price relative to initial proposals. A low number of responsive bids or a significant difference between the winning bid and others could indicate limitations in the competitive landscape, potentially impacting the final price achieved.
How effectively did this contract meet the critical communication needs of the Department of Defense, and were there any performance issues or service disruptions?
The data provided does not contain information on the performance or effectiveness of the satellite bandwidth services delivered by Peraton. Assessing this would require reviewing performance metrics, user feedback, and any documented issues or successes related to the service's reliability, speed, and coverage during the contract's lifespan. This qualitative assessment is vital for understanding the true value beyond the financial expenditure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 2235 MONROE STREET SUITE 500, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,624,344
Exercised Options: $29,624,344
Current Obligation: $29,624,344
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F5497H
IDV Type: FSS
Timeline
Start Date: 2012-06-01
Current End Date: 2015-05-31
Potential End Date: 2015-05-31 00:00:00
Last Modified: 2021-11-25
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