DoD awards $114M for Army research lab support, with Peraton Inc. as prime contractor
Contract Overview
Contract Amount: $114,443,587 ($114.4M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-29
End Date: 2024-09-28
Contract Duration: 1,826 days
Daily Burn Rate: $62.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: DUSA AAG RESEARCH LABORATORY FACILITATION SUPPORT SERVICES.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $114.4 million to PERATON INC. for work described as: DUSA AAG RESEARCH LABORATORY FACILITATION SUPPORT SERVICES. Key points: 1. Contract value represents a significant investment in supporting critical Army research and development functions. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. The duration of the contract (5 years) indicates a long-term need for these services. 4. The use of Time and Materials pricing may introduce cost variability if not carefully managed. 5. The North American Industry Classification System (NAICS) code 541519 points to a focus on computer-related services. 6. The contract's performance period spans a significant portion of the current fiscal year and into the next. 7. Virginia is the performance location, potentially impacting the local economy and workforce.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more specific service details. However, the total award of over $114 million over five years suggests a substantial investment. The Time and Materials pricing structure warrants close monitoring to ensure cost efficiency and prevent overruns. Comparing this to similar large-scale IT support contracts for research facilities would provide better context for value for money.
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. This typically leads to a more competitive environment, potentially driving down prices and improving the quality of services offered. The number of bidders is not specified, but the open competition suggests multiple entities vied for this award.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in research support services.
Public Impact
The primary beneficiaries are the U.S. Army's research laboratories, which will receive essential facilitation support. Services delivered likely include IT support, administrative assistance, and other operational functions crucial for research continuity. The geographic impact is concentrated in Virginia, where the contract is performed. Workforce implications may include the creation or sustainment of jobs related to IT and administrative support within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep due to Time and Materials pricing if not managed rigorously.
- Scope definition clarity is crucial to ensure services align with evolving research needs.
- Dependence on a single prime contractor for critical support functions could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a competitive marketplace was leveraged.
- Long-term contract duration suggests stability and a recognized need for the services.
- The contractor, Peraton Inc., likely has a track record in supporting government IT and research functions.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on support for research and development activities. The market for government IT support services is substantial, with agencies like the Department of Defense being major consumers. Comparable spending benchmarks would involve looking at other large-scale IT facilitation contracts awarded to support federal research institutions or laboratories, considering factors like contract duration, scope, and pricing models.
Small Business Impact
The data indicates that small business participation (sb) is marked as false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and large businesses likely dominated the bidding process. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided information. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.
Oversight & Accountability
Oversight mechanisms would typically involve the contracting officer's representative (COR) at the Department of the Army, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are embedded in the contract's performance standards and payment terms. Transparency is generally facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Support Services
- Army Research Laboratory Operations
- Federal IT Services Contracts
- Research and Development Facilitation
- Time and Materials Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Need for robust contract oversight to ensure efficient labor utilization.
- Scope definition clarity is critical for long-term success.
- Dependence on a single contractor for essential support functions.
Tags
it-services, department-of-defense, department-of-the-army, research-and-development, time-and-materials, full-and-open-competition, virginia, large-contract, it-support, computer-related-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $114.4 million to PERATON INC.. DUSA AAG RESEARCH LABORATORY FACILITATION SUPPORT SERVICES.
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 Army).
What is the total obligated amount?
The obligated amount is $114.4 million.
What is the period of performance?
Start: 2019-09-29. End: 2024-09-28.
What is Peraton Inc.'s track record with similar large-scale government IT support contracts, particularly within the Department of Defense?
Peraton Inc. has a significant history of performing large-scale IT and mission support services for various U.S. government agencies, including the Department of Defense. They have been involved in complex projects ranging from cybersecurity and enterprise IT to intelligence analysis and space systems. Their experience often includes managing large teams, complex infrastructure, and critical mission support functions. While specific details on past contracts analogous to this Army research lab facilitation would require deeper analysis of their portfolio, their general profile suggests they are a capable provider for such requirements. Evaluating their past performance metrics, client satisfaction, and any past performance issues or awards would provide a more granular understanding of their suitability for this specific contract.
How does the $114 million contract value compare to similar IT facilitation support contracts for federal research laboratories?
The $114 million contract value over five years, averaging approximately $22.8 million annually, places this award in the mid-to-large tier for federal IT support contracts. To benchmark effectively, one would need to compare it against contracts for similar functions (e.g., IT operations, administrative support, facility management) at other federal research institutions or laboratories. For instance, contracts supporting NASA research centers, national laboratories managed by the Department of Energy, or other DoD research commands could serve as comparators. Factors such as the specific services included (e.g., advanced R&D IT, basic infrastructure, cybersecurity), the complexity of the research environment, and the number of personnel supported would influence the 'fairness' of the price. Without these specific comparative data points, it's difficult to definitively state if $114 million is high or low, but it signifies a substantial commitment.
What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?
The primary risk associated with a Time and Materials (T&M) pricing structure is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This can lead to unpredictable final costs for the government, especially if project scope creeps, inefficiencies arise in labor application, or material costs escalate unexpectedly. For the government, effective oversight is crucial. This includes rigorous tracking of labor hours, validation of material costs, and ensuring that the work performed is necessary and efficient. Without strong contract management and performance monitoring, T&M contracts can become significantly more expensive than initially anticipated, potentially impacting the overall value for money.
How does the 'full and open competition' award method impact the overall effectiveness and cost-efficiency of this contract?
Awarding this contract through 'full and open competition' is generally considered a best practice for maximizing effectiveness and cost-efficiency. This method ensures that a wide range of qualified vendors can compete, fostering a competitive environment that typically drives down prices and encourages innovation. By allowing all responsible sources to submit proposals, the government increases its chances of finding the most capable contractor at the best possible price. The effectiveness is enhanced as the competitive pressure incentivizes contractors to offer high-quality services to win and retain the contract. Cost-efficiency is promoted because competition naturally pushes bidders to optimize their pricing strategies. While the specific number of bidders isn't provided, the method itself is designed to yield optimal outcomes for the taxpayer.
What are the historical spending patterns for 'Other Computer Related Services' (NAICS 541519) within the Department of the Army?
Historical spending patterns for NAICS code 541519 ('Other Computer Related Services') within the Department of the Army reveal a consistent and significant demand for a wide array of IT-related support. This category often encompasses services such as IT consulting, systems integration, custom software development, data processing, and IT support services that don't fit into more specific categories. Over the years, the Army has allocated substantial funds to these services to maintain and modernize its complex IT infrastructure, support operational needs, and facilitate research and development. Spending in this area can fluctuate based on modernization initiatives, new technology adoption, and specific project requirements. Analyzing trends would show whether spending has been increasing, decreasing, or remaining stable, providing context for the current $114 million award.
What are the implications of the contract being performed in Virginia for the local economy and workforce?
A contract of this magnitude ($114 million) performed in Virginia is likely to have a positive impact on the local economy and workforce. It suggests the creation or sustainment of numerous jobs, both directly with the prime contractor (Peraton Inc.) and potentially through subcontractors. These jobs would likely span various skill sets, including IT professionals, administrative staff, project managers, and support personnel. The influx of wages paid to these employees can stimulate local businesses through increased consumer spending. Furthermore, the presence of a large federal contract can attract related businesses and talent to the region, potentially fostering a stronger technology and support services ecosystem within Virginia. The specific economic impact would depend on the extent of local hiring and sourcing by the contractor.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 12975 WORLDGATE DR, 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: $114,443,587
Exercised Options: $114,443,587
Current Obligation: $114,443,587
Actual Outlays: $7,159,625
Subaward Activity
Number of Subawards: 223
Total Subaward Amount: $163,592,573
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F0165Y
IDV Type: FSS
Timeline
Start Date: 2019-09-29
Current End Date: 2024-09-28
Potential End Date: 2024-09-28 00:00:00
Last Modified: 2026-03-27
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