DoD's $20.9M O&M Services Contract for STEP/Teleport Awarded to Peraton Government Communications Inc

Contract Overview

Contract Amount: $20,949,355 ($20.9M)

Contractor: Peraton Government Communications Inc.

Awarding Agency: Department of Defense

Start Date: 2007-09-10

End Date: 2013-03-31

Contract Duration: 2,029 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: O&M SERVICES FOR STEP/TELEPORT

Plain-Language Summary

Department of Defense obligated $20.9 million to PERATON GOVERNMENT COMMUNICATIONS INC. for work described as: O&M SERVICES FOR STEP/TELEPORT Key points: 1. Contract awarded for O&M services for STEP/Teleport. 2. Peraton Government Communications Inc. is the sole contractor. 3. The contract spans over 5 years with a significant value. 4. The service falls under Satellite Telecommunications. 5. This is a Firm Fixed Price contract.

Value Assessment

Rating: fair

The contract value of $20.9M over 5 years suggests a substantial investment. Without specific per-unit cost data or benchmarks for similar satellite telecommunication O&M services, it's difficult to definitively assess pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential O&M services.

Public Impact

Ensures continued operation of critical satellite telecommunication infrastructure. Supports Department of Defense communication capabilities. Potential for increased costs due to sole-source award. Long-term commitment to a single provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Long contract duration

Positive Signals

Ensures continuity of essential services
Firm Fixed Price contract limits cost overruns

Sector Analysis

This contract falls within the IT and Defense sectors, specifically for satellite telecommunications operations and maintenance. Spending in this area is critical for national security and global communication capabilities, often involving specialized providers.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature of the award further limits opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Further oversight would be beneficial to understand the justification for not competing the requirement.

Related Government Programs

Satellite Telecommunications
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competition.
Long contract duration may not reflect evolving technology needs.
Lack of transparency regarding justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to PERATON GOVERNMENT COMMUNICATIONS INC.. O&M SERVICES FOR STEP/TELEPORT

Who is the contractor on this award?

The obligated recipient is PERATON GOVERNMENT COMMUNICATIONS 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 $20.9 million.

What is the period of performance?

Start: 2007-09-10. End: 2013-03-31.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. For satellite telecommunications O&M, it might stem from proprietary technology, existing infrastructure integration, or specialized expertise held by Peraton that cannot be easily replicated or competed.

How does the per-unit cost of these O&M services compare to industry benchmarks for similar satellite telecommunication contracts?

Without specific per-unit cost breakdowns or access to industry benchmarks for comparable satellite telecommunication O&M services, a direct comparison is not possible. The lack of competition makes it harder to ascertain if the pricing is competitive or reflects a premium.

What is the long-term strategic value of this sole-source contract for the Department of Defense's communication capabilities?

The long-term value lies in ensuring the uninterrupted operation of critical STEP/Teleport facilities, which are vital for global command and control. However, the sole-source nature raises concerns about potential overspending and missed opportunities for innovation or cost savings through competition.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W91RUS07R0020

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 2751 PROSPERITY AVE STE 300, FAIRFAX, VA, 22031

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,134,516

Exercised Options: $20,973,403

Current Obligation: $20,949,355

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline