DoD's $121M R&D Contract for Spacecraft Electronics Awarded to Peraton Inc. Under Sole-Source Basis
Contract Overview
Contract Amount: $121,073,398 ($121.1M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2016-04-27
End Date: 2022-07-26
Contract Duration: 2,281 days
Daily Burn Rate: $53.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 82-4045-16 IGF::OT::IGF RESEARCH AND PROTOTYPE DEVELOPMENT OF SPACECRAFT ELECTRONICS AND SPACE/AIRBORNE ELECTRONICS SYSTEMS.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $121.1 million to PERATON INC. for work described as: 82-4045-16 IGF::OT::IGF RESEARCH AND PROTOTYPE DEVELOPMENT OF SPACECRAFT ELECTRONICS AND SPACE/AIRBORNE ELECTRONICS SYSTEMS. Key points: 1. Contract focuses on critical research and development for spacecraft and airborne electronics. 2. Sole-source award raises questions about potential cost efficiencies and market competition. 3. Long contract duration (2281 days) suggests a complex, multi-phase research effort. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code indicates a high-skill, specialized service. 5. Contract value of over $121 million signifies a substantial investment in advanced technology. 6. The 'COST PLUS FIXED FEE' contract type can incentivize cost control but also carries inherent risk if not managed closely.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its specialized R&D nature and sole-source award. The $121 million total value over approximately six years suggests a significant investment. Without comparable sole-source R&D contracts for similar advanced electronics, a direct price comparison is difficult. The 'COST PLUS FIXED FEE' structure means the government pays the actual costs plus a negotiated fee, which can lead to cost overruns if not rigorously monitored. Further analysis of the fee structure and cost breakdowns would be necessary to fully assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one contractor, Peraton Inc., was solicited. This approach is typically used when there is a unique capability or urgency that precludes full and open competition. The lack of competition means there was no opportunity for other companies to bid, potentially limiting price discovery and the government's ability to secure the most cost-effective solution. The rationale for this sole-source award would need to be thoroughly documented to ensure it was justified.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as competitive pressures are absent. This necessitates strong oversight to ensure fair pricing and prevent unwarranted expenditures.
Public Impact
The primary beneficiaries are the Department of Defense and potentially other government agencies requiring advanced space and airborne electronics. The contract delivers research and prototype development services for next-generation electronic systems. Geographic impact is likely concentrated around Peraton's research facilities, with potential for broader national security implications. Workforce implications include employment for highly skilled scientists, engineers, and technicians in the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
- Cost-plus contract type requires diligent oversight to prevent cost overruns.
- Long contract duration increases exposure to potential scope creep or evolving technological requirements.
- Lack of transparency inherent in sole-source awards makes independent value assessment difficult.
Positive Signals
- Focus on critical R&D for national security applications.
- Award to an established contractor (Peraton Inc.) may indicate confidence in their capabilities.
- Potential for significant technological advancements in spacecraft and airborne electronics.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering related to aerospace electronics. The market for such specialized R&D is often characterized by high barriers to entry, requiring significant expertise and infrastructure. Comparable spending benchmarks are difficult to establish without more specific details on the technology being developed, but R&D contracts of this magnitude are common within the defense industrial base for developing cutting-edge capabilities.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large prime contractor, there is a potential for subcontracting opportunities for small businesses, but this is not guaranteed. The impact on the small business ecosystem depends on whether Peraton Inc. actively seeks out and utilizes small business partners for specialized components or services related to this R&D effort.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy and potentially the Department of Defense's Inspector General. Given the sole-source nature and cost-plus contract type, rigorous financial and performance oversight is crucial. This includes regular audits of costs, review of technical progress against milestones, and ensuring compliance with contract terms. Transparency could be enhanced through public reporting of key R&D outcomes, where feasible without compromising national security.
Related Government Programs
- Spacecraft Development Programs
- Airborne Electronics Research
- Advanced Electronics Manufacturing
- Defense Research and Engineering
- National Security Technology Development
Risk Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of competition
Tags
defense, department-of-defense, department-of-the-navy, research-and-development, spacecraft-electronics, airborne-electronics, definitive-contract, cost-plus-fixed-fee, sole-source, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $121.1 million to PERATON INC.. 82-4045-16 IGF::OT::IGF RESEARCH AND PROTOTYPE DEVELOPMENT OF SPACECRAFT ELECTRONICS AND SPACE/AIRBORNE ELECTRONICS SYSTEMS.
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 $121.1 million.
What is the period of performance?
Start: 2016-04-27. End: 2022-07-26.
What is Peraton Inc.'s track record with similar sole-source R&D contracts for the Department of Defense?
Peraton Inc. has a significant history of performing complex R&D and technology integration services for the Department of Defense and other federal agencies. While specific details on their sole-source R&D contracts for spacecraft electronics are not provided in this data snippet, their broader portfolio includes work on command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, as well as space and intelligence solutions. Analyzing their past performance on cost-plus contracts and their ability to meet technical milestones on sole-source awards would be crucial for assessing their reliability on this specific $121 million contract. Publicly available contract databases and CPARS (Contractor Performance Assessment Reporting System) reports, if accessible, would offer deeper insights into their performance history.
How does the $121 million contract value compare to similar R&D efforts in spacecraft electronics?
Directly comparing the $121 million value of this sole-source contract for spacecraft electronics R&D is challenging without knowing the specific technological scope and duration of comparable efforts. However, R&D contracts in the aerospace and defense sector can range widely, from tens of millions to billions of dollars, depending on the complexity and strategic importance of the technology. Given the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code and the focus on spacecraft electronics, this contract appears to represent a substantial, multi-year investment. The sole-source nature means competitive benchmarks are absent, making it difficult to ascertain if this represents optimal value. A detailed technical review and comparison with publicly funded R&D initiatives or similar classified programs would be needed for a more precise valuation.
What are the primary risks associated with a sole-source, cost-plus contract for advanced R&D?
The primary risks associated with a sole-source, cost-plus contract for advanced R&D are multifaceted. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher costs and reduced innovation as the contractor faces less incentive to optimize efficiency. Secondly, the cost-plus structure, particularly 'Cost Plus Fixed Fee' (CPFF), shifts much of the financial risk to the government. If the contractor's costs exceed initial estimates, the government pays more, although the fixed fee provides some predictability for the contractor's profit. This structure requires robust government oversight to scrutinize costs, prevent overruns, and ensure the contractor remains focused on achieving the R&D objectives efficiently. Scope creep is another significant risk, where the project's objectives expand over time, increasing costs and delaying delivery without adequate justification or recompete.
How effective is the 'COST PLUS FIXED FEE' contract type for incentivizing innovation in R&D?
The 'Cost Plus Fixed Fee' (CPFF) contract type aims to balance risk between the government and the contractor in R&D settings. It incentivizes innovation by allowing the contractor to pursue novel approaches without being overly constrained by a fixed price, while the fixed fee provides a predictable profit margin. However, the effectiveness in driving innovation can be debated. While it permits exploration, the primary incentive is often to control costs to ensure the fee is realized without significant overruns, rather than pushing radical breakthroughs. True innovation often thrives in environments with clear performance goals and rewards for exceeding them, which CPFF can sometimes dampen if not structured with appropriate performance incentives. The government's role in defining clear, albeit flexible, R&D objectives and milestones is critical for maximizing the innovative potential under this contract type.
What are the historical spending patterns for R&D in spacecraft electronics within the Department of Defense?
Historical spending patterns for R&D in spacecraft electronics within the Department of Defense are substantial and have been a consistent priority, driven by national security needs and technological advancements. While specific figures fluctuate annually based on strategic priorities and budget allocations, the DoD consistently invests billions in space-related research, development, testing, and evaluation (RDT&E). This includes funding for satellite technology, communication systems, navigation, missile warning, and space situational awareness. Contracts like the one awarded to Peraton Inc. represent a portion of this broader investment. Analyzing historical trends would reveal shifts in focus, such as increased spending on resilient space architectures, counter-space capabilities, or advanced sensor technologies, often driven by evolving threats and the increasing reliance on space-based assets.
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 › Space R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0017316RGA06
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: $133,220,483
Exercised Options: $133,220,483
Current Obligation: $121,073,398
Actual Outlays: $404,576
Subaward Activity
Number of Subawards: 166
Total Subaward Amount: $26,804,173
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-04-27
Current End Date: 2022-07-26
Potential End Date: 2022-07-26 00:00:00
Last Modified: 2025-12-22
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 Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)