DoD's $81.9M Engineering & Installation Contract Awarded to Peraton Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $81,903,217 ($81.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2007-02-13
End Date: 2011-08-12
Contract Duration: 1,641 days
Daily Burn Rate: $49.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: Engineering Services
Official Description: USCENTAF ENGINEERING & INSTALLATION (E&I) SUPPORT
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $81.9 million to PERATON INC. for work described as: USCENTAF ENGINEERING & INSTALLATION (E&I) SUPPORT Key points: 1. Contract value of $81.9 million for engineering and installation support. 2. Awarded to Peraton Inc. through full and open competition. 3. Potential risk associated with cost-plus award fee structure. 4. Spending falls within the Engineering Services sector.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee (CPAF) structure can incentivize performance but may lead to higher costs if not managed carefully. Benchmarking against similar CPAF contracts for engineering services is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which generally promotes competitive pricing and allows for a broad range of potential contractors. The delivery order structure suggests task-specific pricing.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by fostering a competitive environment. However, the CPAF structure requires diligent oversight to ensure cost efficiency.
Public Impact
Supports USCENTAF's engineering and installation needs, crucial for operational readiness. Long-term contract duration (over 4 years) indicates significant ongoing requirements. Potential for cost overruns due to the CPAF payment structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Experienced contractor (Peraton Inc.)
Sector Analysis
This contract falls under Engineering Services, a sector critical for government infrastructure and operational support. Spending benchmarks for similar E&I contracts vary widely based on scope and complexity.
Small Business Impact
The contract was awarded under full and open competition and Peraton Inc. is not listed as a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The contract's Cost Plus Award Fee structure necessitates robust oversight from the Defense Contract Management Agency (DCMA) to ensure performance standards are met and costs are controlled effectively.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Lack of transparency on specific performance metrics and award fee criteria.
- Contract duration may not align with rapidly changing technological needs.
- No explicit mention of small business subcontracting goals.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $81.9 million to PERATON INC.. USCENTAF ENGINEERING & INSTALLATION (E&I) SUPPORT
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $81.9 million.
What is the period of performance?
Start: 2007-02-13. End: 2011-08-12.
What specific engineering and installation services are covered under this contract, and how do they align with USCENTAF's mission requirements?
The contract covers Engineering & Installation (E&I) support for USCENTAF. While the exact services aren't detailed, E&I typically includes design, planning, procurement, installation, and maintenance of facilities and systems. These services are vital for establishing and maintaining operational infrastructure, command centers, and communication networks essential for USCENTAF's mission in its area of responsibility.
How effectively is the Cost Plus Award Fee (CPAF) structure being managed to control costs and incentivize desired performance outcomes?
Effective management of the CPAF structure relies heavily on clearly defined performance metrics and rigorous oversight by the contracting officer. Without insight into the award fee criteria and the contractor's performance against them, it's difficult to assess cost control. Regular audits and performance reviews are crucial to ensure taxpayer funds are used efficiently and that the contractor is motivated to achieve optimal results.
What is the long-term strategic value of this contract for the Department of Defense, considering its duration and scope?
The long-term value lies in providing consistent, specialized engineering and installation support to USCENTAF, ensuring operational readiness and infrastructure resilience. A multi-year contract like this allows for predictable support and fosters a strong working relationship. However, the value must be continuously assessed against evolving mission needs and technological advancements to avoid obsolescence or over-reliance on a single solution.
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: N0002407R3071
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
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: $1,006,291,356
Exercised Options: $289,091,593
Current Obligation: $81,903,217
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017805D4395
IDV Type: IDC
Timeline
Start Date: 2007-02-13
Current End Date: 2011-08-12
Potential End Date: 2011-08-12 00:00:00
Last Modified: 2024-09-12
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