DoD's $23M Information Assurance Contract Awarded to Peraton Enterprise Solutions for IT Support

Contract Overview

Contract Amount: $22,981,830 ($23.0M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2007-04-11

End Date: 2008-11-14

Contract Duration: 583 days

Daily Burn Rate: $39.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFORMATION ASSURANCE SUPPORT SERVICES

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: INFORMATION ASSURANCE SUPPORT SERVICES Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose risks if not managed closely. 3. The duration of the contract was 583 days, indicating a medium-term engagement. 4. The award was made by the Defense Information Systems Agency (DISA), a key IT provider for the DoD. 5. The North American Industry Classification System (NAICS) code 541519 covers 'Other Computer Related Services'. 6. The contract was awarded in Pennsylvania, indicating a specific geographic focus for service delivery. 7. The base contract value was approximately $3.94 million, with potential for growth.

Value Assessment

Rating: fair

The contract's value of $22.98 million over its period of performance is difficult to benchmark without more detailed service descriptions and performance metrics. The Time and Materials (T&M) contract type, while flexible, can lead to cost overruns if not meticulously monitored. Comparing this to similar information assurance support contracts within the DoD would provide better insight into its value-for-money proposition. The relatively low base award of $3.94 million suggests significant potential for task order growth, which warrants scrutiny.

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. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The fact that it was competed suggests that multiple companies likely vied for this opportunity, allowing the agency to select the most advantageous offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process and encourages market-driven pricing.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, receiving critical information assurance support. Services delivered include support for information assurance, crucial for maintaining the security and integrity of military networks and data. The geographic impact is centered in Pennsylvania, where the contract was awarded, likely indicating the location of service delivery or contractor operations. Workforce implications include the creation or maintenance of jobs for IT and cybersecurity professionals employed by Peraton Enterprise Solutions LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to uncontrolled cost growth if not closely managed.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
The significant difference between the base award and the total contract value suggests substantial growth potential that needs careful oversight.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should yield fair pricing.
The Defense Information Systems Agency (DISA) is a reputable agency with experience in managing complex IT contracts.
The contract supports critical information assurance functions for the Department of Defense.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on information assurance and cybersecurity. The market for these services is substantial, driven by increasing cyber threats and the critical need for secure data and systems, particularly within government and defense. Comparable spending benchmarks would involve analyzing other DoD contracts for similar IT support and cybersecurity services, considering factors like contract type, duration, and scope.

Small Business Impact

The provided 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. The prime contractor, Peraton Enterprise Solutions LLC, is likely a large business, and any subcontracting would be at their discretion, not mandated by a set-aside program.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers at the Defense Information Systems Agency (DISA). As a Department of Defense contract, it is also subject to oversight by the DoD Inspector General, who investigates fraud, waste, and abuse. Transparency is facilitated through contract award databases like FPDS, though detailed performance reports are often not publicly available.

Related Government Programs

DoD Cybersecurity Services
Defense Information Systems Agency IT Support
Information Assurance Contracts
Federal IT Services
Time and Materials IT Contracts

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Limited Public Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to PERATON ENTERPRISE SOLUTIONS LLC. INFORMATION ASSURANCE SUPPORT SERVICES

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 $23.0 million.

What is the period of performance?

Start: 2007-04-11. End: 2008-11-14.

What was the specific nature of the 'Information Assurance Support Services' provided under this contract?

The provided data identifies the contract's purpose as 'INFORMATION ASSURANCE SUPPORT SERVICES' under NAICS code 541519 ('Other Computer Related Services'). While the specific tasks are not detailed, information assurance typically encompasses a range of activities aimed at protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction. This could include network security, vulnerability assessments, security policy development and implementation, incident response, and compliance with security regulations. The Defense Information Systems Agency (DISA) often requires such services to maintain the security posture of the DoD's vast communication and information networks.

How does the $22.98 million total contract value compare to similar information assurance contracts awarded by DISA?

Benchmarking this $22.98 million contract against similar DISA information assurance contracts requires access to a broader dataset of DISA awards for the period around 2007-2008. However, as a general observation, contracts of this magnitude for specialized IT support services were common within large federal agencies like the DoD during that era. The value is influenced by factors such as the duration (583 days), the labor categories and rates involved (typical for Time and Materials contracts), and the criticality of the services. Without specific comparable contract details (e.g., scope, duration, specific services), a precise comparison is challenging, but the amount suggests a significant, multi-year support requirement.

What are the primary risks associated with the Time and Materials (T&M) contract type used for this award?

The primary risk associated with a Time and Materials (T&M) contract type is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fixed fee or profit. If the scope of work is not well-defined, or if project duration extends beyond initial estimates, costs can escalate significantly. For the government, effective oversight is crucial to ensure that labor hours are reasonable and necessary, and that material costs are justified. The relatively low base award ($3.94M) compared to the total potential ($22.98M) highlights this risk, as the final cost could be substantially higher than initially anticipated if not managed diligently.

What was the competitive landscape for this contract, and what does 'full and open competition' imply?

The contract was awarded under 'full and open competition,' meaning that the solicitation was made available to all responsible prospective contractors without restriction. This implies that multiple companies were likely aware of the opportunity and had the chance to submit proposals. The Defense Information Systems Agency (DISA) would have evaluated these proposals based on pre-defined criteria, selecting the offer that represented the best value to the government. This competitive process is generally favored as it promotes market competition, potentially leading to better pricing, innovation, and quality of services for the taxpayer.

How does the contractor, Peraton Enterprise Solutions LLC, perform on other federal contracts, particularly those with DISA?

Assessing Peraton Enterprise Solutions LLC's overall performance requires a comprehensive review of their contract history across federal agencies, including past performance evaluations and any reported issues. As Peraton has evolved through various acquisitions (e.g., acquiring Perspecta), its contract portfolio and performance history are extensive. For this specific contract (awarded in 2007), detailed performance metrics are not publicly available. However, agencies like DISA typically maintain internal past performance databases used in source selection for future awards. A thorough analysis would involve examining federal procurement data systems for ratings and awards related to Peraton and its predecessor entities.

What is the significance of the NAICS code 541519 ('Other Computer Related Services') in the context of this contract?

The NAICS code 541519 signifies that the primary services procured under this contract fall into the broad category of computer-related services that are not elsewhere classified. This can encompass a wide array of IT support functions beyond standard software development or hardware installation. For an 'Information Assurance Support Services' contract, this code is appropriate as it covers services like IT consulting, systems integration, network management, and potentially cybersecurity support, which are essential components of ensuring the security and operational integrity of complex defense information systems.

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: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

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

Address: 13600 EDS DRIVE, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,227,422

Exercised Options: $30,227,422

Current Obligation: $22,981,830

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DCA20000D5014

IDV Type: IDC

Timeline