DoD's $34.9M R&D Contract for High-Performance Computing Awarded to Peraton Inc
Contract Overview
Contract Amount: $34,926,734 ($34.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2017-09-25
End Date: 2020-11-30
Contract Duration: 1,162 days
Daily Burn Rate: $30.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF PR 55-9103-17 NRL-ITD MAC ORDER R&D FOR HIGH PERFORMANCE COMPUTING
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375
Plain-Language Summary
Department of Defense obligated $34.9 million to PERATON INC. for work described as: IGF::OT::IGF PR 55-9103-17 NRL-ITD MAC ORDER R&D FOR HIGH PERFORMANCE COMPUTING Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Peraton Inc. secured the contract under full and open competition. 3. The contract duration was 1162 days, ending in November 2020. 4. Spending falls under the IT sector, specifically R&D for HPC.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult due to the specialized nature of high-performance computing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the specific R&D focus might limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds were used for advanced R&D, aiming for technological advancements. The effectiveness of this spending depends on the successful outcomes of the research.
Public Impact
Supports advancements in high-performance computing, crucial for scientific research and national security. Potential for technological breakthroughs that could have broad applications across various sectors. Investment in R&D signifies a commitment to maintaining technological superiority.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Limited visibility into specific R&D deliverables and their ultimate value.
- Long contract duration increases exposure to changing technological landscapes.
Positive Signals
- Awarded under full and open competition.
- Focus on critical R&D for high-performance computing.
- Contract supports a key technological area for national interest.
Sector Analysis
This contract falls within the IT sector, specifically focusing on Research and Development for High-Performance Computing. Spending benchmarks for specialized R&D are hard to establish, but significant investment is typical for cutting-edge technology development.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this contract.
Oversight & Accountability
Oversight would typically be managed by the Department of the Navy's IT division. The effectiveness of oversight depends on rigorous monitoring of R&D progress and cost controls.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Specialized R&D focus may limit competitive landscape.
- Lack of specific performance metrics in provided data.
Tags
research-and-development-in-the-physical, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.9 million to PERATON INC.. IGF::OT::IGF PR 55-9103-17 NRL-ITD MAC ORDER R&D FOR HIGH PERFORMANCE COMPUTING
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 $34.9 million.
What is the period of performance?
Start: 2017-09-25. End: 2020-11-30.
What were the key performance indicators and deliverables for this R&D contract, and how were they measured to ensure value for money?
The specific performance indicators and deliverables are not detailed in the provided data. For a Cost Plus Fixed Fee contract in R&D, success is often measured by milestones achieved, technical advancements, and the final output's utility. Rigorous oversight by the contracting officer and technical representatives would be crucial to track progress against defined objectives and ensure the contractor is meeting expectations within the agreed-upon cost structure.
Given the Cost Plus Fixed Fee structure, what mechanisms were in place to mitigate the risk of cost overruns and ensure efficient use of taxpayer funds?
Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns. Mitigation strategies would typically include detailed baseline cost estimates, regular financial reviews, strict adherence to the Statement of Work, and strong oversight from the government. The 'fixed fee' component provides some incentive for the contractor to control costs, as their profit is capped. However, the government bears the risk of actual costs exceeding the estimate.
How does the outcome of this high-performance computing R&D contract contribute to the Department of Defense's broader technological capabilities and strategic goals?
High-performance computing is fundamental to advanced modeling, simulation, data analysis, and artificial intelligence, all critical for modern defense operations. Successful R&D in this area can lead to enhanced intelligence gathering, improved weapon system design, more effective cybersecurity, and faster decision-making. The specific contribution depends on the innovations achieved, which would ideally align with and advance the DoD's strategic objectives for technological superiority.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 12975 WORLDGATE DR STE 2413, 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: $34,926,734
Exercised Options: $34,926,734
Current Obligation: $34,926,734
Subaward Activity
Number of Subawards: 57
Total Subaward Amount: $26,727,474
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017316D2009
IDV Type: IDC
Timeline
Start Date: 2017-09-25
Current End Date: 2020-11-30
Potential End Date: 2020-11-30 00:00:00
Last Modified: 2025-12-09
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