DoD's Army Awards $12.9M for Computing Infrastructure in Option Year Two
Contract Overview
Contract Amount: $12,913,902 ($12.9M)
Contractor: Peraton Aerospace & Defense Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2009-09-29
Contract Duration: 364 days
Daily Burn Rate: $35.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: OPTION YEAR TWO
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $12.9 million to PERATON AEROSPACE & DEFENSE INC. for work described as: OPTION YEAR TWO Key points: 1. The contract is for computing infrastructure, data processing, web hosting, and related services. 2. Peraton Aerospace & Defense Inc. is the contractor, with the Department of the Army as the agency. 3. The award was made under full and open competition. 4. This is the second option year for the contract, with a duration of 364 days.
Value Assessment
Rating: fair
The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. The awarded amount of $12.9M for option year two needs to be benchmarked against similar contracts for computing infrastructure services to assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Time and Materials pricing structure may limit the effectiveness of competition in controlling final costs.
Taxpayer Impact: Taxpayer funds are being used for essential computing infrastructure. The cost-effectiveness will depend on efficient service delivery and diligent contract management to prevent scope creep and cost overruns.
Public Impact
Ensures continued operation of critical computing infrastructure for the Army. Supports data processing and web hosting services essential for military operations. Provides a competitive avenue for technology and service providers in the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to unpredictable costs.
- Potential for cost overruns if not closely monitored.
- Contract duration is close to one year, requiring frequent re-evaluation.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense infrastructure.
- Option year indicates successful prior performance.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on computing infrastructure and data processing. Spending in this area is crucial for modern military operations, with benchmarks varying widely based on service scope and scale.
Small Business Impact
The data does not indicate whether small businesses were involved in the subcontracting opportunities for this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight will be critical to manage the Time and Materials contract effectively, ensuring that costs remain within reasonable bounds and that the services provided meet the Army's requirements. Accountability rests with the contracting officer and the technical team.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Time and Materials contract type.
- Potential for cost overruns.
- Lack of specific performance metrics in provided data.
- Limited visibility into small business participation.
Tags
computing-infrastructure-providers-data-, department-of-defense, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.9 million to PERATON AEROSPACE & DEFENSE INC.. OPTION YEAR TWO
Who is the contractor on this award?
The obligated recipient is PERATON AEROSPACE & DEFENSE 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 $12.9 million.
What is the period of performance?
Start: 2008-09-30. End: 2009-09-29.
What is the total value of the contract across all awarded option periods, and how does this compare to similar IT infrastructure contracts awarded by the DoD?
The provided data only details the second option year's value at $12.9 million. To assess the total value and compare it to benchmarks, data on all previous and subsequent option periods would be required. Benchmarking against similar DoD IT infrastructure contracts is essential to determine if this pricing is competitive and represents good value for taxpayer money.
What are the specific risks associated with a Time and Materials contract for computing infrastructure, and what mitigation strategies are in place?
The primary risk of a Time and Materials contract is the potential for cost escalation due to undefined labor hours and material costs. Mitigation strategies typically include establishing strong oversight, setting cost ceilings, defining clear performance metrics, and ensuring rigorous invoice review to prevent overcharging and scope creep.
How effectively does this contract support the Department of the Army's mission objectives, and are there alternative solutions that could offer better value or performance?
This contract supports the Army's mission by providing essential computing infrastructure, data processing, and web hosting. Effectiveness is tied to service uptime, security, and performance. Evaluating alternative solutions would involve market research into newer technologies, cloud-based services, or different contracting vehicles to ensure continuous improvement and optimal value.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91ZLK07R0001
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Qinetiq Group PLC (UEI: 733131788)
Address: 4 RESEARCH PK DR, SAINT CHARLES, MO, 03
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,913,902
Exercised Options: $12,913,902
Current Obligation: $12,913,902
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91ZLK07D0110
IDV Type: IDC
Timeline
Start Date: 2008-09-30
Current End Date: 2009-09-29
Potential End Date: 2009-09-29 00:00:00
Last Modified: 2010-09-21
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