DoD's $19.5M Comsatcom Contract Awarded to Peraton Government Communications Inc. for IT Services

Contract Overview

Contract Amount: $19,540,816 ($19.5M)

Contractor: Peraton Government Communications Inc.

Awarding Agency: Department of Defense

Start Date: 2013-04-01

End Date: 2017-06-30

Contract Duration: 1,551 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF COMSATCOM

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.5 million to PERATON GOVERNMENT COMMUNICATIONS INC. for work described as: IGF::OT::IGF COMSATCOM Key points: 1. Value for money assessed through comparison to similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are monitored through performance context and contractor track record. 4. Performance context is evaluated against contract duration and delivery order type. 5. Sector positioning within IT services, specifically telecommunications and computer-related services. 6. Contract type is a firm fixed price delivery order, offering cost certainty.

Value Assessment

Rating: good

The contract value of $19.5 million over approximately 4 years appears reasonable when benchmarked against similar government IT service contracts. The firm fixed-price structure provides cost predictability for the Department of Defense. While specific per-unit cost data is not provided, the overall award amount suggests a competitive pricing strategy was likely employed given the contract's competition level.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 7 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government receives offers from a diverse range of qualified vendors.

Taxpayer Impact: A full and open competition typically leads to more competitive pricing, which translates to better value for taxpayer dollars by potentially lowering the overall cost of the services procured.

Public Impact

The primary beneficiaries are the Department of Defense agencies requiring reliable satellite communications services. Services delivered include essential IT and telecommunications support for secure communication networks. Geographic impact is likely global, supporting DoD operations worldwide. Workforce implications may include specialized IT and telecommunications personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type provides cost certainty.
Multiple bidders (7) indicate competitive market.
Contractor has experience in government communications.
Delivery order structure allows for phased execution.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on telecommunications and computer-related services. The market for government satellite communications is substantial, driven by the need for secure and reliable connectivity for defense and intelligence operations. Comparable spending benchmarks in this area often involve significant investments in infrastructure, bandwidth, and specialized equipment, making this contract a component of a larger strategic IT investment.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award appears limited. However, the prime contractor may engage small businesses as subcontractors if it aligns with their project needs and procurement strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not be publicly available.

Related Government Programs

DoD IT Services
Defense Telecommunications
Satellite Communications Contracts
Information Technology Support Services

Risk Flags

Potential for technology obsolescence in satellite communications.
Risk of service disruption due to geopolitical factors or technical failures.
Cybersecurity vulnerabilities inherent in communication networks.
Contractor performance risk impacting critical DoD operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to PERATON GOVERNMENT COMMUNICATIONS INC.. IGF::OT::IGF COMSATCOM

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 $19.5 million.

What is the period of performance?

Start: 2013-04-01. End: 2017-06-30.

What is Peraton Government Communications Inc.'s track record with similar government contracts?

Peraton Government Communications Inc. (and its predecessors/affiliates) has a significant history of performing telecommunications and IT services for the U.S. government, including the Department of Defense. Their experience often spans complex communication systems, satellite services, and network infrastructure support. Analyzing their past performance on similar firm fixed-price delivery orders, particularly those involving satellite communications, would reveal their ability to meet performance requirements, manage costs, and adhere to schedules. A review of past performance evaluations and any contract disputes or awards would provide a comprehensive understanding of their reliability and capability in delivering these critical services.

How does the $19.5 million award compare to other government satellite communication contracts?

The $19.5 million award for satellite communications services over approximately 3.5 years (April 2013 - June 2017) is a moderate-sized contract within the federal IT and telecommunications landscape. Larger, multi-year enterprise-wide satellite communication programs can reach hundreds of millions or even billions of dollars. However, for specific delivery orders or task orders supporting particular operational needs or regional requirements, $19.5 million represents a substantial investment. Benchmarking requires comparing it against contracts with similar scope, duration, service levels, and geographic coverage. Given the firm fixed-price nature and full and open competition, this award suggests a competitive market price was achieved for the defined services.

What are the primary risks associated with this type of satellite communication contract?

Key risks for this satellite communication contract include technical obsolescence, as satellite technology evolves rapidly. Geopolitical instability or changes in orbital slot allocations could impact service availability. Contractor performance risk is also present, where delays or service disruptions could affect critical DoD operations. Furthermore, cybersecurity threats targeting communication networks pose a significant risk. Ensuring robust security protocols and contingency plans are in place is crucial. The firm fixed-price nature, while beneficial for cost control, can shift performance risks to the contractor, potentially leading to quality compromises if not managed closely.

How effective are firm fixed-price delivery orders for ensuring program effectiveness in IT services?

Firm fixed-price (FFP) delivery orders can be highly effective for ensuring program effectiveness when the scope of work is well-defined and stable, as is often the case with established IT services like satellite communications. This contract type incentivizes the contractor to control costs and manage resources efficiently to maximize profit, leading to potentially lower prices for the government. It provides cost certainty, simplifying budgeting and financial management. However, if unforeseen technical challenges arise or requirements change significantly, the FFP structure can make contract modifications costly and complex, potentially hindering flexibility and innovation. Effective oversight is still necessary to ensure the contractor meets quality standards and performance expectations.

What are the historical spending patterns for satellite communications within the Department of Defense?

The Department of Defense has consistently been one of the largest government consumers of satellite communications (SATCOM) services, reflecting its global operational requirements. Historical spending patterns show a continuous need for secure, high-bandwidth connectivity across various military branches and agencies. Spending has evolved from traditional C-band and Ku-band services to increasing reliance on Ka-band and protected SATCOM capabilities for enhanced throughput and resilience. Investments have also shifted towards commercial SATCOM providers to supplement military-owned assets, driven by cost-effectiveness and capacity demands. Overall, DoD SATCOM spending remains a significant and enduring component of its overall IT and C4ISR (Command, Control, Communications, Computers, and Intelligence, Surveillance, and Reconnaissance) budgets.

What is the significance of the NAICS code 541519 (Other Computer Related Services) for this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad classification that encompasses a wide range of IT services not specifically covered by other codes. For this satellite communications contract, it indicates that the services provided likely extend beyond simple network maintenance or software development. This could include IT consulting, systems integration, data processing, disaster recovery services, or specialized technical support related to the satellite communication infrastructure. The breadth of this code suggests the contract may involve a comprehensive suite of IT support functions essential for maintaining and operating the DoD's communication capabilities, rather than a single, narrowly defined service.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 2235 MONROE ST STE 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: $22,984,100

Exercised Options: $19,540,816

Current Obligation: $19,540,816

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F5497H

IDV Type: FSS

Timeline