DoD's $54.8M Dark Fiber O&M Contract Awarded to Peraton Government Communications Inc

Contract Overview

Contract Amount: $54,826,354 ($54.8M)

Contractor: Peraton Government Communications Inc.

Awarding Agency: Department of Defense

Start Date: 2015-06-12

End Date: 2025-08-14

Contract Duration: 3,716 days

Daily Burn Rate: $14.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF DARK FIBER O&M

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $54.8 million to PERATON GOVERNMENT COMMUNICATIONS INC. for work described as: IGF::CT::IGF DARK FIBER O&M Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. Long contract duration (over 10 years) may not reflect current market pricing or technological advancements. 3. Firm Fixed Price contract type offers cost certainty but limits flexibility for scope changes. 4. The contract supports critical telecommunications infrastructure for the Department of Defense. 5. No small business set-aside indicated, suggesting limited direct opportunities for smaller firms. 6. Virginia is the primary state for service, indicating a concentrated geographic impact.

Value Assessment

Rating: fair

The contract's value of $54.8 million over its lifespan needs careful benchmarking against similar telecommunications infrastructure maintenance contracts. Without competitive bidding, it is difficult to assess if the pricing is optimal. The firm fixed-price structure provides predictability but may not be the most cost-effective for evolving technological needs. Further analysis of the specific services rendered and their necessity would be required to fully evaluate value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required service, often due to unique capabilities, existing infrastructure, or national security concerns. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government compared to a competed contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure to drive down prices. Without a competitive process, there's less assurance that the government is receiving the best possible value.

Public Impact

Provides essential wired telecommunications infrastructure maintenance for Department of Defense operations. Ensures reliable communication networks for military personnel and command structures. Services are primarily concentrated in Virginia, impacting the local economy and workforce in that region. Supports the operational readiness and national security missions of the U.S. military.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings.
Long contract duration may not align with rapid technological changes in telecommunications.
Lack of small business participation noted, potentially excluding smaller innovative firms.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Supports critical national security infrastructure, ensuring operational continuity.
Long-term contract provides stability for essential service delivery.

Sector Analysis

The contract falls within the Wired Telecommunications Carriers industry, a sector critical for supporting government operations. This sector is characterized by significant infrastructure investment and often involves long-term service agreements. The market size for telecommunications services to the federal government is substantial, with agencies relying heavily on robust networks. This specific contract for dark fiber O&M is essential for maintaining the backbone of secure military communications.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there an indication of subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate directly. This could mean that the benefits of this significant federal spending are not being distributed within the small business ecosystem, potentially missing opportunities for innovation and economic development among smaller contractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management offices, potentially involving the Defense Contract Management Agency (DCMA). Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is generally maintained through contract databases like FPDS, though detailed performance metrics and specific oversight activities may not always be publicly disclosed.

Related Government Programs

Defense Information Systems Agency (DISA) Contracts
Wired Telecommunications Services
Federal Network Infrastructure Maintenance
Department of Defense IT Spending

Risk Flags

Sole-source award may lead to higher costs.
Long contract duration risks technological obsolescence and unfavorable pricing.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.8 million to PERATON GOVERNMENT COMMUNICATIONS INC.. IGF::CT::IGF DARK FIBER O&M

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 $54.8 million.

What is the period of performance?

Start: 2015-06-12. End: 2025-08-14.

What specific dark fiber optic network services are covered under this contract, and how do they support DoD's mission?

This contract, IGF::CT::IGF DARK FIBER O&M, awarded to PERATON GOVERNMENT COMMUNICATIONS INC., covers the operation and maintenance (O&M) of dark fiber optic networks. Dark fiber refers to unused fiber optic cables that are laid but not yet activated or lit by a service provider. For the Department of Defense (DoD), these networks are crucial for establishing secure, high-bandwidth communication pathways. The O&M services ensure the physical integrity, connectivity, and readiness of this infrastructure, which is vital for transmitting sensitive data, supporting command and control systems, and enabling global military operations. The reliability of these networks directly impacts the DoD's ability to communicate effectively and maintain situational awareness in various operational environments.

Given the sole-source award, what is the justification for Peraton Government Communications Inc. being the only provider?

Sole-source contract awards are typically justified when a specific vendor possesses unique capabilities, proprietary technology, or controls essential infrastructure that cannot be replicated by others. For telecommunications infrastructure, this could stem from Peraton managing a pre-existing, proprietary network essential for DoD operations, or possessing specialized knowledge and access required for its maintenance and security. National security considerations often play a role, ensuring continuity of essential services with a trusted provider. Without a competitive bidding process, the specific technical or operational reasons for Peraton's exclusive selection are not publicly detailed, but they would need to meet stringent justification criteria set by the DoD and federal acquisition regulations.

How does the firm fixed-price (FFP) contract type impact cost management and potential for overspending over the contract's lifespan?

A Firm Fixed Price (FFP) contract type establishes a ceiling price that the contractor must not exceed, regardless of the actual costs incurred. This provides the government with cost certainty and shifts the risk of cost overruns to the contractor. For the DoD's $54.8 million dark fiber O&M contract, the FFP structure means Peraton Government Communications Inc. is responsible for delivering the specified services within the agreed-upon price. While this protects the government from unexpected cost increases, it also means that if Peraton can perform the services more efficiently than anticipated, the government does not benefit from those savings. Conversely, if costs escalate beyond Peraton's projections, the contractor absorbs the loss, which could incentivize them to cut corners if not properly monitored.

What are the potential risks associated with a contract spanning over 10 years (2015-2025)?

A contract duration of over 10 years, like this one from June 2015 to August 2025, carries several risks. Technological obsolescence is a primary concern; telecommunications technology evolves rapidly, and a decade-old contract might not reflect the most current or efficient solutions. Market prices for services can also fluctuate significantly over such a long period, potentially leading to the government paying above current market rates if the fixed price was set years ago. Furthermore, long-term sole-source contracts can reduce incentives for the contractor to innovate or improve service delivery over time, as competitive pressure is absent. There's also a risk that the specific needs of the DoD might change, making the contracted services less relevant or requiring costly modifications.

Are there any indications of performance issues or contractor track record concerns with Peraton Government Communications Inc. on this or similar contracts?

Based on the provided data, there are no explicit indicators of performance issues or specific concerns regarding Peraton Government Communications Inc.'s track record on this particular contract. The data focuses on the contract's administrative details (award type, value, dates, location) rather than performance metrics or past performance evaluations. To assess Peraton's track record, one would need to consult performance reports, contract award histories, and potentially CPARS (Contractor Performance Assessment Reporting System) data for this and other contracts held by the company. Without such information, it's difficult to definitively state whether their performance has been consistently satisfactory or if there have been notable issues.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC104715R4000

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $54,826,354

Exercised Options: $54,826,354

Current Obligation: $54,826,354

Actual Outlays: $3,151,320

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $12,806,101

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline