DHS awards $77M engineering services contract to Peraton Inc. under sole-source justification
Contract Overview
Contract Amount: $77,094,779 ($77.1M)
Contractor: Peraton Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2016-05-01
End Date: 2018-06-29
Contract Duration: 789 days
Daily Burn Rate: $97.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF. AWARD
Place of Performance
Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23606
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $77.1 million to PERATON INC. for work described as: IGF::CT::IGF. AWARD Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and limited market exploration. 2. The fixed-price contract structure aims to control costs, but the lack of competition may hinder optimal value. 3. Performance period of approximately 2 years suggests a focused scope, but long-term implications are unclear. 4. Engineering services are critical for infrastructure and operational support, indicating a need for reliable contractor performance. 5. The contract falls within the engineering services sector, which often requires specialized expertise and can command premium pricing. 6. Lack of small business participation noted, suggesting limited opportunities for smaller firms in this specific award.
Value Assessment
Rating: questionable
Benchmarking the value of this $77 million contract is challenging due to its sole-source nature, which limits direct comparisons to competitively bid alternatives. The firm fixed-price structure provides some cost certainty, but without competitive pressure, it's difficult to ascertain if the pricing reflects true market value or represents a premium. The contract's duration and scope would typically inform value assessment, but specific details on deliverables are not provided here. Further analysis would require understanding the specific engineering services rendered and comparing them to industry benchmarks for similar, competitively procured projects.
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 justified when only one vendor possesses the necessary specialized capabilities or when urgency precludes a full competition. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government than if multiple bids had been solicited. The justification for sole-source procurement would need to be robust to ensure taxpayer funds are used efficiently.
Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding. This can result in higher overall spending for government services.
Public Impact
The Department of Homeland Security, specifically U.S. Customs and Border Protection, is the primary beneficiary, receiving essential engineering services. These services likely support critical infrastructure, operational systems, or technological advancements within CBP's mission. The geographic impact is likely concentrated around CBP operational areas, potentially within Virginia where the contractor is located. The contract may indirectly impact the workforce by requiring specialized engineering expertise, potentially drawing from or influencing the labor market in that field.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially leading to higher costs.
- Lack of transparency in the sole-source justification could obscure potential inefficiencies.
- Absence of small business set-aside may limit opportunities for smaller, innovative firms.
- Fixed-price contract, while offering cost certainty, might not reflect the most economical pricing without competition.
Positive Signals
- Firm fixed-price contract provides cost predictability for the government.
- Award to an established entity (Peraton Inc.) may suggest a level of confidence in their capability.
- Engineering services are crucial for government operations, indicating a focus on essential needs.
Sector Analysis
The engineering services sector is diverse, encompassing a wide range of specialized technical expertise. This contract, valued at $77 million, falls within the upper-middle tier for individual federal engineering service awards. Comparable spending in this sector often involves large-scale infrastructure projects, IT system development, or specialized research and development. The market is characterized by a mix of large, established firms and smaller niche providers. Federal spending in engineering services is driven by the government's need for technical support across various agencies and missions.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Consequently, there are no explicit subcontracting requirements mandated for small businesses within this award. This means that opportunities for small businesses to participate in delivering these engineering services are limited to potential prime contracting if they were to compete in the future, or if Peraton Inc. voluntarily engages them as subcontractors. The absence of a set-aside suggests that the primary focus was on securing specialized capabilities, potentially from larger, established firms.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency regarding the specific deliverables and performance metrics would be key to assessing accountability, though such details are not fully elaborated in the provided data.
Related Government Programs
- Department of Homeland Security IT Services
- Department of Homeland Security Infrastructure Support
- Federal Engineering and Architectural Services
- Defense Engineering Services Contracts
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited transparency in justification
Tags
engineering-services, department-of-homeland-security, u.s.-customs-and-border-protection, definitive-contract, firm-fixed-price, sole-source, peraton-inc., virginia, large-contract, federal-spending
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $77.1 million to PERATON INC.. IGF::CT::IGF. AWARD
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $77.1 million.
What is the period of performance?
Start: 2016-05-01. End: 2018-06-29.
What specific engineering services were procured under this contract, and how do they align with CBP's mission objectives?
The provided data indicates the contract is for 'Engineering Services' (NAICS 541330) awarded to Peraton Inc. by U.S. Customs and Border Protection (CBP). While the specific nature of these services is not detailed, engineering services within CBP typically encompass a broad range of activities. These could include the design, development, and maintenance of physical infrastructure (e.g., border facilities, ports of entry), the integration and support of complex technological systems (e.g., surveillance, communication, data processing), or specialized technical consulting related to operational efficiency and security enhancements. The $77 million award suggests a significant scope, likely supporting critical CBP functions that require specialized technical expertise to ensure border security and facilitate lawful trade and travel.
What is Peraton Inc.'s track record with federal contracts, particularly with DHS and CBP?
Peraton Inc. is a significant federal contractor with a substantial history of awards across various agencies, including the Department of Homeland Security (DHS) and its components like U.S. Customs and Border Protection (CBP). While this specific contract is a definitive contract valued at $77 million awarded in May 2016, Peraton has secured numerous other contracts, often in areas related to technology, intelligence, and mission support. Their performance history with DHS and CBP would typically be assessed through past performance evaluations in subsequent competitive procurements. A review of federal procurement databases would reveal the breadth and depth of their contract portfolio, including contract types, values, and agencies served, providing a basis for understanding their experience and capabilities.
How does the $77 million contract value compare to historical spending on similar engineering services by CBP or DHS?
The $77 million contract value for engineering services represents a substantial investment. To benchmark this against historical spending, one would need to analyze CBP's and DHS's procurement history for similar NAICS codes (e.g., 541330 - Engineering Services) over relevant periods. Federal spending on engineering services can fluctuate significantly based on infrastructure needs, technology upgrades, and specific mission requirements. For context, large federal agencies often award contracts in the tens to hundreds of millions of dollars for complex engineering projects. Without a direct comparison to competitively bid, similarly scoped projects within CBP or DHS, it's difficult to definitively state if $77 million is high or low. However, the sole-source nature of this award warrants scrutiny regarding whether competitive market forces would have yielded a lower price.
What are the potential risks associated with a sole-source award for critical engineering services?
Sole-source awards, like the one for $77 million in engineering services to Peraton Inc., carry inherent risks. The primary risk is the potential for inflated pricing, as the absence of competition removes the downward pressure that multiple bids typically exert. This can lead to less value for taxpayer money. Another risk is reduced innovation; without the need to differentiate from competitors, the contractor may have less incentive to propose novel or more efficient solutions. Furthermore, a sole-source justification might mask underlying issues, such as a lack of market research or an over-reliance on a single vendor, which can create long-term dependencies and vulnerabilities. Ensuring robust oversight and performance management becomes even more critical in sole-source scenarios.
What is the significance of the 'Firm Fixed Price' contract type in this context?
The 'Firm Fixed Price' (FFP) contract type signifies that Peraton Inc. is obligated to complete the work for a predetermined price, regardless of the actual costs incurred. This shifts the cost risk from the government to the contractor. For the government, FFP offers budget certainty and predictability, as the total cost is known upfront. However, in a sole-source scenario, the 'fixed' price might be higher than it would be under competition. The benefit of FFP is most pronounced when the scope of work is well-defined and the risks of cost overruns are manageable. For this $77 million contract, the FFP structure aims to cap the government's expenditure, but the initial pricing's reasonableness is a key consideration given the lack of competition.
What does the contract duration of approximately 789 days imply for the project's complexity and the government's planning?
A contract duration of approximately 789 days (roughly 2 years and 2 months) suggests a project of moderate to significant complexity and duration. It indicates that the engineering services required are not short-term or easily accomplished, necessitating a sustained effort. For the government (CBP), this duration implies a need for long-term planning and resource allocation. It also suggests that the services are critical to ongoing operations or strategic initiatives. The length of performance can influence risk assessment; longer durations may increase the potential for unforeseen challenges, scope creep, or changes in requirements, which need to be managed through effective contract administration and potential modification processes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HSBP1015R0051
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 12975 WORLDGATE 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: $88,997,181
Exercised Options: $77,094,779
Current Obligation: $77,094,779
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-05-01
Current End Date: 2018-06-29
Potential End Date: 2018-06-29 00:00:00
Last Modified: 2022-09-08
More Contracts from Peraton Inc.
- 200107!000034!5700!GZ80 !smc/Pks !F0470101C0001 !A!N!*!Y! !20001103!20061031!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000016429445!n!n!000000000000!ac26!rdte/Missile and Space Systems-Mgmt Support !A2 !missile and Space Systems !3000!NOT Discernable or Classified !541710!*!*!3! ! ! !*!*!*!B!*!*!B! !A !Y!R!2!003!B! !A!N!Z! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! !Y! ! !0001! — $1.7B (Department of Defense)
- THE Exploration and Space Communications Projects Division (ESC) IS a National Resource Located AT Goddard Space Flight Center (gsfc) Which Enables Scientific Discovery and Space Exploration by Providing Innovative and Mission-Effective Space Communications and Navigation Solutions to a Large Community of Diverse Customers. ESC Manages Operational Geostationary Communications Relay Satellites and Ground Systems for the Space Communications and Navigation (scan) Program AT Nasa Headquarters. Today, Scan Network Systems Consist of the Space Network (SN), the Near Earth Network (NEN), and the Deep Space Network (DSN). the Day-To-Day Management of These Three Networks IS Currently NOT Fully Consistent. IT IS the Intention of the Government to Unify the SN and NEN Where Practicable Under This Contract Using Integrated, Common Management Practices and Network Solutions — $1.5B (National Aeronautics and Space Administration)
- Nasa Goddard Space Flight Center's (gsfc) Goal for the Space Communications Networks Services Contract (scns) IS to Enable Mission Success for Every Customer Using Scns Services. KEY Objectives of the Scns Contract ARE to Decrease Cost and Maintain or Improve Operational Efficiency and Reliability, While Maintaining an Acceptable Level of Risk and Providing for Safe Operation of the Missions. the Contractor Shall Implement a Safety, Health, and Mission Assurance Program That Provides a Safe and Healthy Work Environment, Minimizes Program Risk, and Maximizes Nasa Mission Success. the Contractor Shall BE Responsible and Accountable for Achieving the Required Results. Core Requirement Functions, Such AS Configuration Management, Quality Assurance, ETC. ARE Required to Support Idiq Task Orders. the Space Network (SN) IS Comprised of a Fleet of On-Orbit Tracking and Data Relay Satellites (tdrs) and Associated Ground Systems That Provide Telecommunications Services. the Nature of the SN Architecture, I.E., Extremely Large Capital Investment, Contractor Operated Facilities, Continuous 24X7 Requirements, ETC., Lends Itself to a Core Requirements Approach. the Ground Network (GN) Consists of an Orbital Tracking Network and the Satellite Laser Ranging Network. the Nature of the Ground Network Architecture, I.E., Diverse MIX of Commercial and Government Assets, Evolving Geographic and Technical Customer Requirements, and Legacy Systems, ETC. Lends Itself to an Idiq Approach. Other Activities, I.E., Very Long Baseline Interferometry Network Operations and Maintenance (O&M), Electronic System Test Laboratory, Requirements Development, Hardware and Software Development, ETC. ARE Best Suited to an Idiq Approach in the Resource-Constrained Environment That Nasa Operates in — $1.2B (National Aeronautics and Space Administration)
- Operational Planning Implementation and Assessment Services (opias) Base Award — $800.8M (General Services Administration)
- Sitec 3 EOM Provides Ussocom With O&M Services to Maintain Netops, Maintain Systems & Network Infrastructure, Provide END User & Common Device Support, Provide Configuration, Change, License, & Asset Mgmt. Conduct Training and Perform Imacs Services — $651.0M (General Services Administration)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)