DoD awards $100.6M R&D contract to Peraton Inc. for unspecified physical, engineering, and life sciences research
Contract Overview
Contract Amount: $100,617,007 ($100.6M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2009-04-29
End Date: 2015-04-01
Contract Duration: 2,163 days
Daily Burn Rate: $46.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 55-7062-08 NEW CONTRACT AWARD
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $100.6 million to PERATON INC. for work described as: 55-7062-08 NEW CONTRACT AWARD Key points: 1. Contract value of $100.6 million over a period of 2163 days suggests a significant, long-term research initiative. 2. The 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' NAICS code indicates a broad scope of potential research areas. 3. Awarded as a 'Definitive Contract' under 'Full and Open Competition', this suggests a structured procurement process with broad market participation. 4. The 'Cost Plus Fixed Fee' contract type implies that the contractor is reimbursed for allowable costs plus a fixed fee representing profit. 5. The contractor, Peraton Inc., has a history of large federal contracts, indicating established capabilities in complex research and development. 6. The absence of specific deliverables or detailed scope in the provided data makes a precise value-for-money assessment challenging. 7. The contract duration of over 5 years necessitates ongoing oversight to ensure continued alignment with evolving research needs and objectives.
Value Assessment
Rating: fair
Benchmarking the value of this contract is difficult without specific details on the research conducted. However, a $100.6 million award for R&D over approximately 5.9 years indicates a substantial investment. The 'Cost Plus Fixed Fee' structure means that while costs are managed, the fixed fee component needs to be assessed against industry norms for similar R&D efforts to ensure fair profit margins. Without comparable contract data for the specific research domain, it's challenging to definitively state if this represents excellent value, but the scale suggests a significant undertaking.
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 bids. This typically fosters a competitive environment, potentially leading to better pricing and innovation. The data does not specify the number of bidders, which would provide further insight into the intensity of the competition. However, the designation itself suggests a robust process aimed at maximizing market participation.
Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple companies to offer their best solutions and pricing, leading to potentially lower overall costs and higher quality outcomes.
Public Impact
The primary beneficiaries are likely the Department of Defense and potentially other government agencies requiring advancements in physical, engineering, or life sciences. The services delivered are research and development activities, aiming to produce new knowledge, technologies, or methodologies. The geographic impact is not specified but could be national, depending on the research focus and the location of Peraton's research facilities. Workforce implications could include the creation or sustainment of high-skilled jobs in scientific and engineering fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific research scope makes it difficult to assess performance against defined objectives.
- Cost-plus contract types can sometimes incentivize higher spending if not closely monitored.
- The broad NAICS code could mask research areas with higher inherent risks or ethical considerations.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Peraton Inc. is an established government contractor with experience in complex R&D.
- The significant funding indicates a commitment to advancing critical research areas for the DoD.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, aiming to maintain technological superiority. The market for such R&D services is substantial, with significant government investment. Comparable spending benchmarks would depend heavily on the specific sub-discipline of research, but large-scale R&D contracts like this are common within the defense industrial base.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary competition was likely among larger, established firms. There is no explicit information on subcontracting plans for small businesses. Without this, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contractors often utilize small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), given its role in contract administration for the Department of Defense. Accountability measures would be embedded in the contract's terms, including reporting requirements and performance metrics. Transparency is facilitated through contract award databases, but the specific details of the research and its progress may be subject to security or proprietary restrictions.
Related Government Programs
- Department of Defense Research and Development Programs
- Advanced Technology Development Contracts
- Engineering Services Contracts
- Life Sciences Research Grants
- Physical Sciences Research Initiatives
Risk Flags
- Scope Ambiguity Risk
- Cost Control Challenges
- Performance Measurement Difficulty
- Long-Term Strategic Alignment Risk
Tags
research-and-development, department-of-defense, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, peraton-inc, physical-sciences, engineering, life-sciences, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $100.6 million to PERATON INC.. 55-7062-08 NEW CONTRACT AWARD
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 $100.6 million.
What is the period of performance?
Start: 2009-04-29. End: 2015-04-01.
What specific research areas are covered under this contract?
The provided data indicates the contract falls under NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. However, the specific research topics, objectives, and expected outcomes are not detailed in the award notice. This broad classification suggests the research could encompass a wide range of scientific and technical fields relevant to national security, such as materials science, advanced manufacturing, robotics, sensor technology, or biomedical research. Further details would likely be found in the contract's statement of work, which is not publicly available in this summary.
How does the $100.6 million value compare to similar R&D contracts within the DoD?
A $100.6 million contract award for R&D over approximately 5.9 years is a substantial investment, placing it in the upper tier of individual research awards. The Department of Defense awards numerous R&D contracts annually, with values ranging from small grants to multi-billion dollar programs. Contracts of this magnitude are typically for significant, long-term research initiatives aimed at developing foundational technologies or addressing major capability gaps. Without knowing the specific research domain, direct comparison is difficult, but it signifies a high-priority area for the DoD requiring significant resources and expertise.
What are the potential risks associated with a 'Cost Plus Fixed Fee' contract for R&D?
Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D, a key risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their profit is fixed regardless of the final cost. If the scope of work is not well-defined or changes frequently, cost overruns can occur, requiring careful monitoring by the government. However, CPFF is often used for R&D where the scope is uncertain, allowing flexibility while providing the contractor with a reasonable profit for undertaking the risk of innovation.
What is Peraton Inc.'s track record with large federal R&D contracts?
Peraton Inc. is a significant federal contractor with a substantial portfolio of contracts across various agencies, including the Department of Defense. They have a demonstrated history of managing large and complex programs, including those involving research, development, and advanced technology solutions. While specific R&D contract successes or failures are not detailed here, their continued success in winning large-value contracts suggests a strong capability in executing government requirements. Their experience likely includes navigating the complexities of R&D procurements and project management.
How might the 'Full and Open Competition' impact the effectiveness of this R&D investment?
Awarding this contract through 'Full and Open Competition' theoretically maximizes the pool of potential bidders, encouraging a wider range of innovative approaches and potentially more competitive pricing. This process aims to ensure that the government selects the best possible solution from the market. For R&D, this can be particularly beneficial as it allows diverse perspectives and technologies to be considered. The effectiveness of the investment hinges on the government's ability to clearly define its research needs and evaluate the proposals received, ensuring the chosen approach is scientifically sound and strategically aligned with DoD objectives.
What are the implications of the contract's long duration (2163 days)?
A contract duration of 2163 days, approximately 5.9 years, indicates a long-term commitment to the research effort. This extended timeline is typical for complex R&D projects that require sustained investigation, development, and testing. The implications include the need for consistent program management and oversight from the awarding agency to ensure the research remains on track, adapts to new findings, and continues to align with evolving strategic priorities. It also provides the contractor with stability, allowing for focused effort and investment in the research program over an extended period.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $106,631,992
Exercised Options: $106,631,992
Current Obligation: $100,617,007
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-04-29
Current End Date: 2015-04-01
Potential End Date: 2015-04-01 00:00:00
Last Modified: 2024-04-16
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