DoD awards $12.1M engineering services contract to Peraton Inc. for West Coast FSR support
Contract Overview
Contract Amount: $12,109,273 ($12.1M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2025-05-05
End Date: 2026-05-04
Contract Duration: 364 days
Daily Burn Rate: $33.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SOW 3.2.1 WEST COAST FSR (NECC - OMN)
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152
Plain-Language Summary
Department of Defense obligated $12.1 million to PERATON INC. for work described as: SOW 3.2.1 WEST COAST FSR (NECC - OMN) Key points: 1. Contract value appears reasonable for specialized engineering services over a one-year period. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include performance execution and contractor capacity for the specified services. 4. This contract supports critical naval operations on the West Coast. 5. Engineering services sector sees significant government investment. 6. Contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost monitoring.
Value Assessment
Rating: good
The contract value of $12.1 million for a 364-day period for engineering services is within a reasonable range for specialized support. Benchmarking against similar contracts for FSR (Fleet Support Representative) services on the West Coast would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent oversight to ensure costs remain aligned with the fixed fee and the overall value delivered.
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. The number of bidders is not specified, but this procurement method generally fosters competitive pricing and encourages a wider range of potential contractors to participate, leading to potentially better value for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives offers from the most capable and cost-effective providers.
Public Impact
The Department of the Navy benefits from enhanced operational readiness and support for its West Coast fleet. Services include engineering support critical for maintaining and operating fleet systems. Geographic impact is concentrated on the West Coast, supporting naval installations and operations. The contract supports specialized engineering roles, potentially impacting the civilian workforce in these fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns under the CPFF contract type if not closely managed.
- Dependence on a single contractor for critical engineering services could pose a risk if performance issues arise.
Positive Signals
- Awarded under full and open competition, suggesting a robust selection process.
- Contract duration of one year provides a defined period for service delivery and performance evaluation.
- The specified services are crucial for naval operational effectiveness.
Sector Analysis
The engineering services sector is a significant component of government contracting, particularly for defense agencies. This contract falls within the broader engineering and architectural services industry (NAICS 541330), which encompasses firms providing specialized engineering expertise. Government spending in this area is driven by the need for technical support, system design, and operational maintenance across various platforms and infrastructure.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The primary contractor, Peraton Inc., will likely manage the execution of the services, with potential for subcontracting opportunities determined by their internal strategy rather than a set-aside requirement.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Navy. As a delivery order under a larger contract vehicle, specific oversight mechanisms would be detailed within the parent contract's terms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Fleet Readiness
- Engineering and Technical Services
- Defense Logistics Agency Support
- Department of Defense IT Services
- Naval Sea Systems Command Contracts
Risk Flags
- Contract Type Risk (CPFF)
- Contractor Performance Risk
- Scope Creep Potential
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, west-coast, california, peraton-inc, naval-operations, fleet-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to PERATON INC.. SOW 3.2.1 WEST COAST FSR (NECC - OMN)
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 $12.1 million.
What is the period of performance?
Start: 2025-05-05. End: 2026-05-04.
What is Peraton Inc.'s track record with similar Department of Defense engineering contracts?
Peraton Inc. has a substantial history of contracting with the Department of Defense across various service areas, including IT, intelligence, and engineering support. Their past performance on similar contracts would be a key factor in the evaluation process for this award. Reviewing their performance metrics, any past issues or commendations on prior DoD engineering contracts, and their overall financial stability would provide insight into their capability to execute this SOW. Specific details on their track record for FSR services would be most relevant, though broader engineering support experience is also indicative of their capacity.
How does the $12.1 million contract value compare to similar engineering support contracts for naval fleet operations?
The $12.1 million contract value for one year of engineering services for West Coast FSR support is a significant but not necessarily excessive amount, given the specialized nature of naval fleet operations. To benchmark effectively, one would need to compare this to other contracts awarded by the Department of the Navy or other branches for similar FSR or fleet technical representative services, considering factors like contract duration, scope of work complexity, geographic location, and the specific systems supported. Without direct comparable data, it's difficult to definitively state if it represents excellent or questionable value, but it falls within a plausible range for specialized defense support.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the government bears the risk of increased costs above the estimated amount. Effective oversight is crucial to ensure that all costs submitted by the contractor are reasonable, allocable, and allowable. There's also a risk that the contractor might not be as motivated to find the most cost-effective solutions if they are confident that costs will be reimbursed, potentially impacting overall value for money if not managed diligently.
How effective is the 'full and open competition' process in ensuring optimal value for this type of specialized engineering service?
Full and open competition is generally considered the most effective method for ensuring optimal value for specialized engineering services. It maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. For complex services like FSR support, this approach allows the government to solicit proposals from a wide range of qualified firms, compare technical approaches and pricing, and select the best overall value. The effectiveness hinges on clear SOWs and robust evaluation criteria to ensure the lowest price isn't chosen at the expense of quality or capability.
What is the historical spending trend for engineering services by the Department of the Navy on the West Coast?
Historical spending data for engineering services by the Department of the Navy on the West Coast would reveal trends in investment in technical support and operational readiness. Analyzing past years' spending on similar contracts (e.g., FSR, fleet technical support, systems engineering) would indicate whether this $12.1 million award represents an increase, decrease, or stable level of investment. Such analysis could also highlight dominant contractors in the region and the typical contract values and durations, providing context for the current award and potential future needs.
What are the potential performance challenges for Peraton Inc. in delivering FSR services under this contract?
Potential performance challenges for Peraton Inc. in delivering FSR services could include maintaining adequate staffing levels with qualified personnel, ensuring timely response to fleet needs, adapting to evolving technological requirements of naval systems, and effectively coordinating with various naval commands and personnel on the West Coast. The complexity of the systems supported and the dynamic operational environment of the fleet present inherent challenges. Successful execution will depend on Peraton's project management, technical expertise, and ability to integrate seamlessly with naval operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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
Solicitation ID: N6600120R3412
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: $16,234,872
Exercised Options: $14,043,307
Current Obligation: $12,109,273
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600121D0060
IDV Type: IDC
Timeline
Start Date: 2025-05-05
Current End Date: 2026-05-04
Potential End Date: 2026-05-04 00:00:00
Last Modified: 2026-01-07
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)