DoD's $116M Fleet Systems Engineering Contract Awarded to Peraton Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $116,294,246 ($116.3M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2013-09-16
End Date: 2019-03-15
Contract Duration: 2,006 days
Daily Burn Rate: $58.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FLEET SYSTEMS ENGINEERING SUPPORT FOR THE FLEET READINESS DIRECTORATE
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110
Plain-Language Summary
Department of Defense obligated $116.3 million to PERATON INC. for work described as: FLEET SYSTEMS ENGINEERING SUPPORT FOR THE FLEET READINESS DIRECTORATE Key points: 1. Significant contract value of $116.3 million for fleet systems engineering. 2. Awarded to Peraton Inc. through full and open competition, indicating a competitive bidding process. 3. Contract duration spans from September 2013 to March 2019. 4. The contract falls under Engineering Services (NAICS 541330) within the Department of Defense.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. However, the presence of full and open competition suggests efforts to control pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, allowing all eligible contractors to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to have a positive impact on taxpayer value by driving down costs through market forces.
Public Impact
Ensures continued operational readiness and modernization of naval fleets. Supports critical engineering services for the Fleet Readiness Directorate. Potential for technological advancements through contracted engineering expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may incentivize cost overruns if not closely monitored.
- Long contract duration (over 5 years) could lead to scope creep or outdated technology if not managed proactively.
Positive Signals
- Awarded through full and open competition, suggesting a competitive price discovery process.
- Focus on critical fleet readiness indicates a high-priority government need.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting naval fleet readiness. Spending in this sector is crucial for national defense and infrastructure maintenance, with benchmarks varying based on project complexity and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to Peraton Inc., a large business. There is no direct indication of small business subcontracting opportunities within this specific award data.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense, which has established oversight mechanisms for defense contracts. The competitive award process itself is a form of oversight.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for scope creep over the contract's duration.
- Lack of specific small business participation data.
- Contract awarded to a single large business entity.
Tags
engineering-services, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $116.3 million to PERATON INC.. FLEET SYSTEMS ENGINEERING SUPPORT FOR THE FLEET READINESS DIRECTORATE
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 $116.3 million.
What is the period of performance?
Start: 2013-09-16. End: 2019-03-15.
What specific engineering services were provided under this contract, and how did they contribute to fleet readiness?
The contract provided fleet systems engineering support for the Fleet Readiness Directorate. This likely encompassed a range of services such as design, analysis, testing, and integration of complex systems to ensure naval vessels are operationally ready and technologically current. The specific contributions would involve maintaining and improving the performance, reliability, and safety of critical fleet systems.
Given the Cost Plus Fixed Fee structure, what measures were in place to mitigate potential cost overruns and ensure value for taxpayers?
While the Cost Plus Fixed Fee (CPFF) structure can present cost risks, the full and open competition process is a primary mechanism for ensuring value. Additionally, the Department of the Navy likely implemented robust oversight, performance metrics, and regular reviews to monitor costs, control scope, and ensure that the fixed fee remained appropriate for the services rendered.
How did the competition process ensure that Peraton Inc.'s bid represented the best value for the government compared to other potential bidders?
The full and open competition allowed multiple qualified contractors to submit proposals, fostering a competitive environment. The government would have evaluated these proposals based on a combination of technical merit, past performance, and price. This process aims to identify the offer that provides the greatest overall value, not just the lowest price, ensuring the selected contractor is best suited to meet the complex engineering needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002413R3069
Offers Received: 5
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: $241,078,493
Exercised Options: $144,207,605
Current Obligation: $116,294,246
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $41,817,500
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017805D4395
IDV Type: IDC
Timeline
Start Date: 2013-09-16
Current End Date: 2019-03-15
Potential End Date: 2019-03-15 00:00:00
Last Modified: 2024-09-09
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