DoD's $76M IGF System Assessment Contract Awarded Sole-Source to Peraton Inc
Contract Overview
Contract Amount: $76,060,150 ($76.1M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2015-10-01
End Date: 2019-03-31
Contract Duration: 1,277 days
Daily Burn Rate: $59.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::CT::IGF SYSTEM ASSESSMENT AND VULNERABILITY
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $76.1 million to PERATON INC. for work described as: IGF::CT::IGF SYSTEM ASSESSMENT AND VULNERABILITY Key points: 1. The contract's sole-source nature raises questions about potential overpayment and lack of competitive pressure. 2. A significant duration of 1277 days suggests a long-term need for these critical cybersecurity services. 3. The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored. 4. The absence of small business participation is noted, with no set-aside or subcontracting requirements. 5. The contract's focus on vulnerability assessment is crucial for maintaining the integrity of defense systems. 6. Performance was managed by the Defense Contract Management Agency, indicating a level of oversight.
Value Assessment
Rating: questionable
Benchmarking the value of this $76 million contract is challenging due to its sole-source nature and the specific, potentially niche, nature of 'IGF System Assessment and Vulnerability'. Without competitive bids, it's difficult to ascertain if Peraton Inc. provided the best possible price. The CPFF structure, while allowing for flexibility, also carries inherent risks of cost escalation compared to fixed-price contracts. Further analysis would require access to Peraton's cost breakdowns and comparisons with similar vulnerability assessment contracts across the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning the Department of Defense did not conduct a competitive bidding process. This typically occurs when a specific contractor is deemed uniquely qualified or when urgency precludes a full competition. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price and may indicate a lack of available vendors for this specialized service.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the price reductions typically driven by competitive bidding.
Public Impact
The primary beneficiary is the Department of Defense, which receives critical cybersecurity assessments to protect its information systems. The services delivered include vulnerability assessments and potentially other security-related analyses for the IGF system. The geographic impact is primarily within the operational sphere of the Department of Defense, likely supporting its global mission. While not directly creating new jobs, the contract supports existing roles within Peraton Inc. and potentially within the DoD's cybersecurity workforce by ensuring system security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potentially increases costs for taxpayers.
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed stringently.
- Lack of transparency in the sole-source justification makes it difficult to assess necessity.
- No small business participation noted, potentially missing opportunities to support smaller enterprises.
- Contract duration of over three years requires sustained oversight to ensure continued value.
Positive Signals
- Contract addresses critical cybersecurity needs for the Department of Defense.
- Peraton Inc. is a known entity in the government contracting space, suggesting some level of established capability.
- The contract was managed by the Defense Contract Management Agency, implying a degree of oversight.
- The focus on vulnerability assessment is a proactive measure to enhance system security.
Sector Analysis
The Information Technology and Cybersecurity sector is a rapidly growing area of federal spending. This contract falls under Engineering Services (NAICS 541330), specifically related to defense-related IT and cybersecurity. The market for these services is substantial, with numerous large and small businesses competing for government contracts. However, specialized areas like 'IGF System Assessment and Vulnerability' might have fewer qualified providers, potentially leading to sole-source awards. Comparable spending benchmarks would typically involve looking at other large cybersecurity assessment contracts awarded by the DoD or other federal agencies.
Small Business Impact
This contract shows no indication of small business involvement, either through set-asides or subcontracting requirements. The award was made to Peraton Inc., a large business. This suggests that opportunities for small businesses to participate in this specific contract were either not pursued or not available. Federal policy encourages small business participation, and the absence here warrants attention, especially if similar specialized services could be sourced from smaller, innovative firms.
Oversight & Accountability
Oversight for this contract was provided by the Defense Contract Management Agency (DCMA). As a Cost Plus Fixed Fee contract, DCMA would be responsible for monitoring costs, ensuring compliance with contract terms, and verifying the allowability and allocability of costs incurred by Peraton Inc. Transparency regarding the specific oversight activities and performance reviews is limited in the provided data. The Inspector General for the Department of Defense would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.
Related Government Programs
- DoD Cybersecurity Modernization Programs
- Federal Information Security Management Act (FISMA) Compliance
- Defense Information Systems Agency (DISA) Contracts
- Cybersecurity Vulnerability Assessment Services
- IT Services for National Security Agencies
Risk Flags
- Sole-source award
- Cost-plus contract type
- Lack of small business participation
- Potential for cost overruns
- Limited transparency on justification
Tags
it, defense, cybersecurity, engineering-services, sole-source, cost-plus-fixed-fee, department-of-defense, virginia, large-contract, vulnerability-assessment, peraton-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $76.1 million to PERATON INC.. IGF::CT::IGF SYSTEM ASSESSMENT AND VULNERABILITY
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $76.1 million.
What is the period of performance?
Start: 2015-10-01. End: 2019-03-31.
What specific services fall under 'IGF System Assessment and Vulnerability'?
The term 'IGF System Assessment and Vulnerability' likely refers to a comprehensive evaluation of the security posture of the 'IGF' system, which is presumably an Information/Intelligence/Infrastructure Grid Facility or a similar critical defense network. This would typically involve identifying weaknesses, vulnerabilities, and potential threats within the system's architecture, software, hardware, and operational procedures. Services could include penetration testing, security audits, risk assessments, code reviews, and the development of remediation plans to address identified security gaps. The exact scope is defined by the contract's Statement of Work (SOW), which is not publicly detailed here but would specify the methodologies, tools, and reporting requirements.
Why was this contract awarded on a sole-source basis?
Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's needs. For a contract valued at $76 million over nearly four years for specialized services like 'IGF System Assessment and Vulnerability,' potential justifications could include: Peraton Inc. possessing unique proprietary technology or expertise essential for the IGF system; the system being so specialized that only Peraton, as the incumbent or developer, understands its intricacies; or urgent and compelling circumstances that precluded a full and open competition. Without the specific justification documentation (e.g., a Justification and Approval - J&A document), the precise reason remains speculative but implies a perceived lack of alternatives.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of risk and value?
The Cost Plus Fixed Fee (CPFF) contract type is characterized by the government reimbursing the contractor for all allowable costs plus a fixed fee representing profit. This structure is often used for research and development or services where the scope is not well-defined, offering flexibility. However, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the contractor is incentivized to incur costs to cover their overhead, though the profit (fee) remains fixed. Value for money can be harder to ascertain with CPFF, as the final cost is not predetermined. Effective oversight is crucial to ensure costs are reasonable and allocable. Fixed-price contracts, conversely, offer greater cost certainty but may be less suitable for uncertain scopes.
What is the historical spending trend for 'IGF System Assessment and Vulnerability' or similar services by the DoD?
Analyzing historical spending trends for 'IGF System Assessment and Vulnerability' specifically is difficult without more granular data or contract identifiers. However, federal spending on cybersecurity and IT services, particularly within the Department of Defense, has been on a significant upward trajectory for years, driven by increasing cyber threats and the modernization of defense systems. Contracts for vulnerability assessments, penetration testing, and overall system security evaluations represent a substantial portion of this spending. The DoD consistently ranks as one of the largest federal buyers of IT and cybersecurity services, with annual expenditures in the hundreds of billions, making this $76 million contract a relatively small component of the overall cybersecurity budget but indicative of a sustained need.
What are the potential implications of Peraton Inc. being the sole contractor for this service?
Peraton Inc. holding this sole-source contract implies they have a unique capability or relationship with the DoD regarding the IGF system's security. For Peraton, it signifies a significant revenue stream and a deep understanding of the client's needs. For the DoD, it means reliance on a single vendor, which can reduce negotiating leverage and potentially lead to complacency or higher prices over time if not managed carefully. It also raises questions about the depth of the market for such specialized services and whether opportunities for new entrants or smaller, innovative firms are being overlooked. Long-term reliance on a sole source can also pose risks if the contractor faces financial difficulties or strategic shifts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12975 WORLDGATE DR 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: $78,775,178
Exercised Options: $78,441,520
Current Obligation: $76,060,150
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $1,943,712
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-10-01
Current End Date: 2019-03-31
Potential End Date: 2019-03-31 00:00:00
Last Modified: 2024-04-16
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