DoD's $21M Research Contract for Multinational Support Services Awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $21,011,454 ($21.0M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2009-03-17

End Date: 2014-09-26

Contract Duration: 2,019 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Official Description: MULTINATIONAL SUPPORT SERVICES (MNIS)

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: MULTINATIONAL SUPPORT SERVICES (MNIS) Key points: 1. Contract awarded through full and open competition, suggesting a robust bidding process. 2. The contract's duration of 2019 days (approx. 5.5 years) indicates a long-term need for these services. 3. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a critical area for defense innovation. 4. The contract type is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 5. The base contract value is over $10 million, signifying a substantial investment. 6. The specific NAICS code (541712) points to specialized R&D services.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without knowing the full scope of work and the specific R&D objectives. The base award amount of $10,407,000 is a starting point, but the total value could be significantly higher over its duration. Comparing it to similar R&D contracts within the Department of Defense for multinational support services would provide better context for pricing and value for money. The 'COST NO FEE' contract type suggests that the government is primarily reimbursing the contractor for allowable costs, which can sometimes lead to less price certainty compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a degree of competition, though the exact number of solicitations and proposals received is not detailed. A full and open competition generally aims to foster price discovery and ensure the government receives the best value by allowing a wide range of potential contractors to participate.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of competitive pricing and allows for a broader selection of qualified contractors, potentially leading to better service delivery at a more reasonable cost.

Public Impact

The primary beneficiaries are likely the Department of Defense and its multinational partners, who will receive support services crucial for research and development initiatives. The services delivered fall under Research and Development in Physical, Engineering, and Life Sciences, contributing to advancements in defense technology and capabilities. The geographic impact is likely global, given the 'multinational' aspect of the support services, potentially affecting various operational theaters. Workforce implications could include specialized R&D personnel, project managers, and support staff employed by Peraton Enterprise Solutions LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type can sometimes lead to cost overruns if not managed meticulously by the government.
The specific details of the R&D objectives and deliverables are not provided, making it difficult to assess the true value and impact of the research.
The duration of the contract (2019 days) is substantial, requiring ongoing oversight to ensure performance remains aligned with evolving defense needs.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contract addresses a critical area of defense: Research and Development in Physical, Engineering, and Life Sciences.
The base award amount suggests a significant commitment and investment in advancing defense capabilities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. This is a highly specialized area within the broader defense industry, often characterized by long development cycles, significant investment, and the need for highly skilled personnel. The market for defense R&D is substantial, with agencies like the Department of Defense being major clients. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by DoD for similar scientific and engineering support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, as a large prime contract, Peraton Enterprise Solutions LLC may engage small businesses as subcontractors to fulfill specific aspects of the R&D requirements, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Information Systems Agency (DISA) within the Department of Defense. Accountability measures would be embedded in the contract's performance work statement (PWS), requiring Peraton Enterprise Solutions LLC to meet specific milestones and deliverables. Transparency is facilitated by the contract award notice, but detailed programmatic information and ongoing performance metrics may be less publicly accessible due to the sensitive nature of defense R&D. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Defense Information Systems Agency (DISA) Contracts
Multinational Military Support Initiatives
Advanced Technology Development Contracts

Risk Flags

Cost Overrun Risk (due to 'COST NO FEE' type)
Technological Obsolescence Risk (due to long duration)
Scope Creep Risk (common in R&D)
Performance Monitoring Challenges (over extended period)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to PERATON ENTERPRISE SOLUTIONS LLC. MULTINATIONAL SUPPORT SERVICES (MNIS)

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $21.0 million.

What is the period of performance?

Start: 2009-03-17. End: 2014-09-26.

What is the specific nature of the 'Multinational Support Services (MNIS)' being researched under this contract?

The provided data identifies the contract as 'MULTINATIONAL SUPPORT SERVICES (MNIS)' and categorizes it under 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' (NAICS 541712). While the specific services are not detailed, this suggests the research likely pertains to developing or enhancing technologies, methodologies, or operational support frameworks that facilitate collaboration and effectiveness among multiple nations in defense-related scientific and engineering endeavors. This could encompass areas like secure communication systems for multinational operations, joint R&D platforms, logistical support for international research projects, or scientific analysis supporting multinational defense initiatives.

How does the 'COST NO FEE' contract type impact the government's financial risk and oversight requirements?

A 'COST NO FEE' contract type means the government reimburses the contractor for all allowable costs incurred in performing the contract, but the contractor does not receive any additional fee or profit. This shifts the financial risk more towards the government, as the total cost is not fixed upfront. Consequently, robust government oversight is crucial to ensure that all claimed costs are reasonable, allocable, and allowable according to the contract terms and federal acquisition regulations. The government must actively monitor expenditures, review invoices, and audit costs to prevent overspending and ensure taxpayer funds are used efficiently. This contract type is often used when the scope of work is uncertain or when the contractor's profit is tied to factors other than direct cost accumulation.

What does the base award amount of $10,407,000 signify in the context of the total contract value and duration?

The base award amount of $10,407,000 represents the initial funding allocated to the contract upon its award. Given the contract's duration of 2019 days (approximately 5.5 years), this base amount likely covers the initial phase of the R&D work or represents a guaranteed minimum if the contract includes options or is an IDIQ task order. The total potential value of the contract could be significantly higher if exercised options or subsequent task orders are issued. Without further details on the contract's structure (e.g., if it's a single award task order under a larger IDIQ), it's difficult to ascertain the full financial commitment. However, a base award exceeding $10 million indicates a substantial initial investment in the specified R&D services.

What are the potential risks associated with a long-duration R&D contract like this one?

Long-duration R&D contracts, such as this one spanning over 2000 days, carry several inherent risks. Firstly, the technological landscape can evolve rapidly, potentially rendering the research objectives or outcomes obsolete before the contract concludes. Secondly, the initial cost estimates may prove inaccurate over an extended period, especially with a 'COST NO FEE' structure, leading to budget overruns. Thirdly, maintaining consistent performance and contractor engagement over several years can be challenging, requiring sustained oversight. Finally, shifts in strategic priorities within the Department of Defense could lead to changes in the contract's scope or even its termination, impacting the contractor's investment and the government's expected return.

How does the NAICS code 541712 specifically define the scope of this contract?

The North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' precisely defines the domain of this contract. It signifies that Peraton Enterprise Solutions LLC is engaged in systematic study to gain new knowledge and understanding in fields like physics, chemistry, mathematics, computer science, materials science, environmental science, and various engineering disciplines. The exclusion of biotechnology means the R&D efforts are focused on non-biological scientific and technical applications. This code suggests the contract involves activities such as theoretical analysis, experimental investigation, and the development of prototypes or processes within these scientific and engineering domains, excluding those primarily related to biological organisms or processes.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 13600 EDS DR A3S, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,420,236

Exercised Options: $36,420,236

Current Obligation: $21,011,454

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2018

IDV Type: IDC

Timeline