DOL Awards $291M for Enterprise Operations & Maintenance Support to Peraton

Contract Overview

Contract Amount: $291,197,963 ($291.2M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Labor

Start Date: 2019-03-04

End Date: 2027-03-15

Contract Duration: 2,933 days

Daily Burn Rate: $99.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DOL ENTERPRISE OPERATIONS AND MAINTENANCE SUPPORT SERVICES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $291.2 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: DOL ENTERPRISE OPERATIONS AND MAINTENANCE SUPPORT SERVICES Key points: 1. Contract awarded to Peraton Enterprise Solutions LLC for IT support. 2. Significant value of $291M over its period of performance. 3. Full and open competition was utilized. 4. The contract falls under Computer Systems Design Services. 5. The contract is a Time and Materials type.

Value Assessment

Rating: fair

The contract's value of $291M over nearly 8 years suggests a substantial investment. Benchmarking against similar large-scale IT operations and maintenance contracts is necessary to assess if the pricing is competitive, especially given the Time and Materials pricing structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Time and Materials pricing structure can lead to cost overruns if not carefully managed and monitored.

Taxpayer Impact: The use of full and open competition is positive for taxpayer value. The Time and Materials contract type requires diligent oversight to ensure costs remain reasonable and do not exceed expectations.

Public Impact

Ensures continuity of critical IT operations for the Department of Labor. Supports essential administrative and management functions through technology. Impacts federal employees and potentially the public interacting with DOL services. The duration of the contract suggests a long-term reliance on these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost escalation.
Long contract duration requires sustained oversight.
Potential for scope creep without strict management.

Positive Signals

Awarded via full and open competition.
Supports critical government functions.
Long-term planning for IT infrastructure.

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. Spending benchmarks for similar enterprise-level IT operations and maintenance support services can vary widely based on agency size, complexity, and specific service requirements.

Small Business Impact

The contract data indicates that small business participation was not a stated factor (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Given the contract's significant value and duration, robust oversight from the Department of Labor is crucial. This includes monitoring performance, managing costs under the Time and Materials structure, and ensuring adherence to contract terms to protect taxpayer interests.

Related Government Programs

Computer Systems Design Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long contract duration increases risk of obsolescence or changing needs.
Lack of explicit small business participation noted.
Requires significant and sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $291.2 million to PERATON ENTERPRISE SOLUTIONS LLC. DOL ENTERPRISE OPERATIONS AND MAINTENANCE 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 Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $291.2 million.

What is the period of performance?

Start: 2019-03-04. End: 2027-03-15.

How does the hourly rate for labor under this Time and Materials contract compare to industry benchmarks for similar IT operations and maintenance roles?

A thorough analysis would involve comparing the specific labor categories and their associated hourly rates against established government and commercial benchmarks. Factors like geographic location, required skill sets, and experience levels are critical. Without this detailed comparison, it's difficult to definitively assess if the rates are competitive and represent good value for the taxpayer.

What mechanisms are in place to control costs and prevent overruns given the Time and Materials pricing structure over an 8-year period?

Effective cost control for Time and Materials contracts typically involves establishing labor hour limitations, setting fixed-price components for materials, implementing strict approval processes for all work performed, and conducting regular audits. The Department of Labor must have robust project management and financial oversight to monitor expenditures closely and ensure the contractor operates efficiently within defined parameters.

What is the process for evaluating the contractor's performance and ensuring the delivery of effective IT operations and maintenance support services?

Performance evaluation usually involves establishing clear Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) within the contract. The agency should have a system for tracking contractor performance against these metrics, conducting regular performance reviews, and providing feedback. A formal process for addressing any performance deficiencies and ensuring continuous improvement is essential for the contract's success.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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

Solicitation ID: 1605DC-18-Q-00108

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $335,316,203

Exercised Options: $335,316,203

Current Obligation: $291,197,963

Actual Outlays: $264,488,281

Subaward Activity

Number of Subawards: 63

Total Subaward Amount: $185,592,914

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F146DA

IDV Type: FSS

Timeline