DoD's $143.8M R&D Contract to Peraton Inc. for Physical Sciences Research
Contract Overview
Contract Amount: $14,378,147 ($14.4M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2002-01-29
End Date: 2008-08-31
Contract Duration: 2,406 days
Daily Burn Rate: $6.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375
Plain-Language Summary
Department of Defense obligated $14.4 million to PERATON INC. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 2000 days indicates a long-term research and development effort. 3. Awarded under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code. 4. The Cost Plus Fixed Fee (CPFF) contract type may incentivize cost control by the contractor. 5. No specific small business set-aside was noted, potentially limiting direct opportunities for smaller firms. 6. The contract was awarded by the Department of the Navy, a major component of the DoD. 7. The contract's value of $143.8 million places it as a significant investment in R&D.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables or comparable projects. The CPFF structure can lead to cost overruns if not managed tightly. However, the fixed fee component provides some predictability for the contractor's profit. The total award amount of $143.8 million over approximately 6.6 years suggests a substantial investment in research, averaging around $21.8 million per year.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders is not specified, but the designation implies a market where multiple entities could vie for the work.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from a wider pool of contractors.
Public Impact
This contract supports advancements in physical, engineering, and life sciences research, potentially benefiting national security and technological development. The research outcomes could lead to new technologies or improved capabilities for the Department of the Navy. The contract's impact on the workforce is likely concentrated among highly skilled scientists, engineers, and researchers. Geographic impact is primarily tied to the contractor's location and research facilities, with potential for broader application of findings.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns are a potential risk with Cost Plus Fixed Fee contracts if not rigorously monitored.
- The long duration of the contract could lead to scope creep or evolving research needs that may not be fully captured in the initial award.
- Dependence on a single contractor for a significant R&D effort can pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that could yield good value.
- The fixed fee component provides a degree of cost certainty for the government regarding contractor profit.
- The contract supports critical research and development in vital scientific fields.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, enabling the development of new technologies and capabilities. The market for R&D services within the defense sector is substantial, with significant government investment aimed at maintaining a technological edge. Comparable spending benchmarks would typically be found within other large-scale R&D contracts awarded by DoD components for similar scientific pursuits.
Small Business Impact
The contract details indicate that this was not specifically set aside for small businesses, nor is there an indication of significant subcontracting requirements for small businesses. This suggests that the primary awardee, Peraton Inc., likely possesses the capabilities to perform the extensive research independently or through larger partners. The direct impact on the small business ecosystem may be limited unless Peraton actively engages small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Navy. Accountability measures are inherent in the CPFF structure, with the fixed fee contingent on meeting contract terms and the government monitoring costs. Transparency is generally maintained through contract reporting mechanisms, though specific research details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- Naval Research Laboratory Contracts
- Advanced Technology Development Contracts
- Physical Sciences Research Initiatives
Risk Flags
- Long contract duration may increase risk of scope creep.
- CPFF contract type requires diligent cost oversight.
- Lack of specific small business set-aside may limit broader economic impact.
Tags
research-and-development, department-of-defense, department-of-the-navy, cost-plus-fixed-fee, full-and-open-competition, physical-sciences, engineering, life-sciences, peraton-inc, district-of-columbia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.4 million to PERATON INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $14.4 million.
What is the period of performance?
Start: 2002-01-29. End: 2008-08-31.
What is Peraton Inc.'s track record with the Department of the Navy and similar R&D contracts?
Peraton Inc. has a significant history of contracting with the U.S. government, including the Department of Defense and its various branches like the Navy. Their portfolio often includes complex technology solutions, IT services, and R&D support. While specific details on past performance for this exact R&D scope require deeper analysis of contract databases and performance reviews, Peraton's general profile suggests they are a capable large business accustomed to handling substantial government contracts. Their experience likely encompasses managing large teams, adhering to strict compliance requirements, and delivering on technically challenging projects. Further investigation into their specific awards related to physical sciences and engineering research would provide a more precise understanding of their relevant expertise and historical success rates.
How does the $143.8 million value compare to similar R&D contracts in physical sciences for the Navy?
The $143.8 million award to Peraton Inc. for physical, engineering, and life sciences R&D represents a substantial investment. To benchmark this value, one would typically compare it against other large-scale R&D contracts awarded by the Department of the Navy or other DoD entities for similar research areas over comparable timeframes. For instance, contracts for advanced materials research, propulsion systems development, or sensor technology innovation could serve as benchmarks. The duration of this contract (over 6.6 years) means the annual spend averages around $21.8 million. This figure needs to be contextualized against the typical funding levels for major R&D programs within the Navy, which can vary significantly based on technological priorities and program maturity. Without access to a comprehensive database of comparable contracts, a precise value-for-money assessment is difficult, but the amount suggests a program of significant strategic importance.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?
The primary risks associated with a CPFF contract of this magnitude ($143.8M) and duration (over 6.6 years) revolve around cost control and potential for scope creep. For the government, the risk is that the contractor may not exert sufficient effort to control costs, as the government ultimately bears the allowable costs incurred. While the fixed fee provides a ceiling on the contractor's profit, it doesn't cap the total contract cost. Rigorous oversight, detailed cost tracking, and performance metrics are crucial to mitigate this. For the contractor, the risk lies in accurately estimating the effort required to achieve the fixed fee, especially over a long period where research objectives might evolve. Unforeseen technical challenges or changes in government requirements could strain resources and impact profitability if not managed through contract modifications. Effective communication and a collaborative approach between the government and contractor are essential to navigate these risks.
What is the expected program effectiveness or outcome based on the contract's description?
The contract is described under NAICS code 541712: Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). This broad classification suggests the program aims to advance scientific knowledge and develop new technologies or methodologies within these fields. The effectiveness and outcomes are not explicitly detailed in the provided data but would typically be measured against specific research milestones, the successful development of prototypes, the validation of new scientific principles, or the creation of intellectual property. For the Department of the Navy, the ultimate goal is likely to enhance operational capabilities, improve existing systems, or develop next-generation technologies critical for national security. The success of the program hinges on the contractor's ability to meet defined research objectives and deliver innovative solutions within the agreed-upon cost and schedule parameters.
How has federal spending in R&D for physical and engineering sciences evolved, and where does this contract fit?
Federal spending in R&D for physical and engineering sciences has historically been a cornerstone of national security and technological advancement, particularly within the Department of Defense. This sector consistently receives substantial funding aimed at maintaining a technological edge. The $143.8 million awarded to Peraton Inc. fits within this broader trend of significant government investment in foundational and applied research. Such contracts are crucial for exploring new frontiers in areas like materials science, advanced manufacturing, energy systems, and complex simulations. The evolution of spending in this area is often driven by geopolitical factors, emerging technological threats, and the pursuit of disruptive innovations. This specific contract, awarded by the Navy, underscores the ongoing commitment to advancing capabilities through scientific inquiry and engineering excellence within critical defense-related disciplines.
What are the implications of awarding a large R&D contract to a single entity like Peraton Inc.?
Awarding a large R&D contract like this ($143.8M) to a single entity, Peraton Inc., has several implications. On the positive side, it allows for focused effort, streamlined management, and the potential for deep integration of research activities. A single prime contractor can foster a cohesive research team and ensure continuity. However, it also concentrates risk. If Peraton encounters significant performance issues, faces financial instability, or experiences key personnel departures, the entire program could be jeopardized. Furthermore, it limits the direct involvement of other potential innovators or specialized small businesses that might have contributed unique expertise had the contract been structured differently (e.g., with multiple awards or specific subcontracting requirements). The government relies heavily on robust oversight and performance management to mitigate the risks associated with a single-award approach for such a critical R&D effort.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: ITT Corporation (UEI: 001216845)
Address: 2560 HUNTINGTON AVENUE, ALEXANDRIA, VA, 08
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-01-29
Current End Date: 2008-08-31
Potential End Date: 2008-08-31 00:00:00
Last Modified: 2008-05-09
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