NASA's $220M Balloon Facility Contract with Peraton Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $220,031,966 ($220.0M)
Contractor: Peraton Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2015-02-01
End Date: 2025-04-30
Contract Duration: 3,741 days
Daily Burn Rate: $58.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::CT::IGF OPERATIONS AND MANAGEMENT OF THE NASA BALLOON FACILITY
Place of Performance
Location: PALESTINE, ANDERSON County, TEXAS, 75803
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $220.0 million to PERATON INC. for work described as: IGF::CT::IGF OPERATIONS AND MANAGEMENT OF THE NASA BALLOON FACILITY Key points: 1. The contract's significant value raises questions about cost-effectiveness for essential operational support. 2. While awarded under full and open competition, the long duration and specific nature may limit future competitive opportunities. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee structure and the need for ongoing oversight. 4. The Engineering Services sector often sees complex contracts, making benchmarks crucial for assessing value.
Value Assessment
Rating: questionable
The $220 million contract value over its duration appears substantial for managing a balloon facility. Benchmarking against similar large-scale operational support contracts is needed to determine if the pricing is competitive and reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which is positive for price discovery. However, the long contract term (over 10 years) could potentially reduce future competition if capabilities become highly specialized or incumbent-favored.
Taxpayer Impact: Taxpayer funds are being utilized for this contract. Ensuring competitive pricing and efficient service delivery is paramount to maximizing the value of this investment.
Public Impact
Supports critical NASA scientific research and exploration through balloon-based operations. Ensures the continued functionality and management of specialized NASA balloon launch facilities. Potential impact on the scientific community if services are disrupted or costs escalate significantly. The contract's duration suggests a long-term commitment to these operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize cost growth.
- Long contract duration may limit future competitive pricing.
- Lack of small business participation noted.
- Specific performance metrics and oversight are critical.
Positive Signals
- Awarded via full and open competition.
- Supports vital NASA scientific missions.
- Contractor has experience in similar large-scale operations.
Sector Analysis
This contract falls within Engineering Services, supporting NASA's operational infrastructure. Spending in this sector can vary widely based on project complexity and duration, making direct comparisons challenging without detailed scope analysis.
Small Business Impact
The data indicates that small businesses were not directly involved as prime contractors on this award. Opportunities for small business subcontracting should be explored to ensure broader economic participation.
Oversight & Accountability
Given the Cost Plus Fixed Fee structure and long duration, robust oversight by NASA is essential to monitor costs, ensure performance standards are met, and prevent potential overruns. Regular performance reviews and audits are critical.
Related Government Programs
- Engineering Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly.
- Long contract duration (over 10 years) may reduce future competitive pressure.
- Lack of explicit small business participation noted.
- Potential for scope creep or unmanaged cost growth over the contract term.
- Dependence on a single contractor for critical facility operations.
Tags
engineering-services, national-aeronautics-and-space-administr, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $220.0 million to PERATON INC.. IGF::CT::IGF OPERATIONS AND MANAGEMENT OF THE NASA BALLOON FACILITY
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $220.0 million.
What is the period of performance?
Start: 2015-02-01. End: 2025-04-30.
What specific performance metrics are in place to ensure the efficiency and effectiveness of the NASA Balloon Facility operations under this contract?
The contract details should outline specific Key Performance Indicators (KPIs) related to launch success rates, operational uptime, safety compliance, and cost control. NASA's oversight team must actively monitor these metrics, conduct regular performance reviews, and implement corrective actions if performance falls short of expectations to ensure mission objectives are met efficiently.
How does NASA ensure that the fixed fee component of this Cost Plus Fixed Fee contract remains fair and reflects the contractor's performance and risk?
The fixed fee is typically negotiated at the outset based on estimated costs and complexity. NASA should have mechanisms to review and potentially adjust the fee based on performance outcomes, cost savings achieved, or unforeseen risks encountered. Regular audits and performance evaluations are crucial to validate the fairness of the fee throughout the contract's life.
What is the long-term strategy for ensuring competitive pricing for similar operational support services beyond the current contract's expiration?
NASA should proactively plan for future procurements by conducting market research to understand evolving technologies and potential new entrants. Developing clear performance requirements and considering contract structures that encourage innovation and cost efficiency will be key. Early engagement with industry can also foster competition and ensure a robust pipeline of qualified offerors.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NNG13436908R
Offers Received: 2
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: $230,352,875
Exercised Options: $230,352,875
Current Obligation: $220,031,966
Actual Outlays: $89,904,986
Subaward Activity
Number of Subawards: 261
Total Subaward Amount: $71,558,048
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-02-01
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2024-11-20
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