DoD's $22M IT contract to Peraton Enterprise Solutions shows long-term IT support needs

Contract Overview

Contract Amount: $22,017,074 ($22.0M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2005-03-15

End Date: 2011-01-21

Contract Duration: 2,138 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. Firm Fixed Price contract type indicates predictable costs for the government. 3. Long performance period of over 6 years suggests a need for sustained IT services. 4. Awarded by the Defense Information Systems Agency (DISA), a key IT provider for the DoD. 5. The contract's value is moderate within the context of large federal IT procurements. 6. Performance in Pennsylvania highlights a specific geographic concentration for service delivery.

Value Assessment

Rating: good

The contract's total value of approximately $22 million over its duration is a reasonable figure for comprehensive IT support services. Without specific benchmarks for similar multi-year, firm-fixed-price IT support contracts from DISA, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure generally provides cost certainty. The long duration suggests that the pricing was likely negotiated to reflect sustained service delivery rather than short-term, ad-hoc support.

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 suggests a robust bidding environment where multiple companies likely vied for the contract. The level of competition is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition process typically leads to better pricing for taxpayers by fostering a competitive market where contractors strive to offer the most advantageous terms.

Public Impact

Provides essential IT infrastructure and support services to the Department of Defense. Ensures the operational readiness and effectiveness of critical defense information systems. Supports military personnel and civilian employees by maintaining reliable IT capabilities. The services are likely concentrated in Pennsylvania, impacting the local IT workforce and economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration and specialized IT services.
Risk of cost overruns if the firm-fixed-price model does not adequately account for unforeseen technological changes or scope creep.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm-fixed-price contract provides cost predictability for the government.
Long-term nature of the contract suggests a stable and reliable IT support solution.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT support and sustainment services for a major federal agency. The federal IT market is vast, with agencies like the DoD being significant spenders on maintaining and modernizing their complex information systems. Contracts of this nature are crucial for ensuring the operational continuity of government functions, and their value can range from millions to billions depending on scope and duration. Benchmarking against similar DISA IT support contracts would provide further context on pricing and service levels.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. While Peraton Enterprise Solutions LLC is a large business, the contract details do not preclude subcontracting opportunities. However, without explicit set-aside goals or subcontracting plans, the direct impact on the small business ecosystem is not detailed in this award notice.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. As a Delivery Order under a larger contract vehicle, it would be subject to standard government oversight procedures, including performance monitoring and financial accountability. The firm-fixed-price nature provides a degree of financial oversight by limiting cost variability. Transparency would be facilitated through contract award databases and reporting mechanisms.

Related Government Programs

DoD IT Modernization Programs
Defense Information Systems Agency (DISA) Network Operations
Federal Civilian IT Services Contracts
IT Support Services for National Security Agencies

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Firm-fixed-price contracts can be inflexible to changing requirements.
Lack of specific performance metrics in summary data hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to PERATON ENTERPRISE SOLUTIONS LLC. See the official description on USAspending.

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 $22.0 million.

What is the period of performance?

Start: 2005-03-15. End: 2011-01-21.

What specific IT services were included under this $22 million contract?

The provided data does not detail the specific IT services rendered under this contract. However, given the awarding agency (DISA) and the contract type (Delivery Order for IT support), it likely encompassed a range of services such as network management, system administration, help desk support, cybersecurity maintenance, and potentially hardware/software lifecycle management. The firm-fixed-price structure suggests a defined scope of work for which a set price was agreed upon. Further details would typically be found in the contract's statement of work or performance work statement, which are not included in the summary data.

How does the $22 million total contract value compare to other DISA IT support contracts?

Comparing the $22 million total contract value requires context on the typical scale of DISA's IT support procurements. DISA manages vast and complex IT infrastructures, often awarding multi-billion dollar contracts for enterprise-wide solutions. A $22 million contract, spanning over six years, represents a moderate-sized award, likely focused on specific IT functions, a particular region, or a defined set of systems rather than a comprehensive, agency-wide IT overhaul. Without access to DISA's historical contract database and specific service categories, a precise benchmark is difficult, but it appears to be a significant but not top-tier award in the context of DISA's overall IT spending.

What are the key risks associated with a long-term, firm-fixed-price IT support contract?

A primary risk with long-term, firm-fixed-price IT support contracts is the potential for scope creep or evolving technological requirements that are not adequately captured in the original agreement. If the contractor is locked into a fixed price, they may resist incorporating new technologies or expanded services without additional funding, potentially leading to performance issues or workarounds. Conversely, if the government's needs change significantly, the fixed price might become disadvantageous, leading to renegotiations or the need for new contracts. Another risk is the contractor's ability to maintain service quality and technical expertise over an extended period, especially if market conditions or personnel availability shift.

What was the track record of Peraton Enterprise Solutions LLC prior to or during this contract?

The provided data does not include specific performance history or track record details for Peraton Enterprise Solutions LLC related to this contract. However, Peraton is a known entity in the government contracting space, particularly in IT and defense sectors. To assess their track record, one would need to examine past performance evaluations, CPARS (Contractor Performance Assessment Reporting System) reports, and any awards or penalties associated with their previous government contracts. Their ability to secure a contract of this duration and value suggests a baseline level of capability and past performance acceptable to the Defense Information Systems Agency.

How did the 'full and open competition' impact the final price and service quality?

Full and open competition generally fosters a more competitive bidding environment, which tends to drive down prices as contractors vie to offer the most attractive proposals. This process allows the government to select from a wider pool of potential vendors, increasing the likelihood of finding a contractor that offers both competitive pricing and high-quality services. For this specific $22 million contract, the competitive process likely resulted in a more favorable price for the Department of Defense than a sole-source or limited competition award. It also provides assurance that the selected vendor, Peraton Enterprise Solutions LLC, was deemed capable and competitive among multiple bidders.

What is the significance of the 'Delivery Order' (aw) type for this contract?

The 'DELIVERY ORDER' (aw) designation indicates that this contract is a task order or delivery order issued against a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar contract vehicle. This means that the underlying contract was likely established earlier, possibly through a separate competitive process, to allow for the issuance of multiple orders over a period. The $22 million represents the value of this specific order. This approach allows agencies to procure services or supplies incrementally as needed, streamlining the acquisition process for recurring or variable requirements.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: HP, Inc. (UEI: 009122532)

Address: 13600 EDS DRIVE, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DCA20000D5014

IDV Type: IDC

Timeline