Treasury's IRS Awards $30.9M for Enterprise Business Solutions O&M to Peraton Inc
Contract Overview
Contract Amount: $30,875,808 ($30.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of the Treasury
Start Date: 2019-11-01
End Date: 2025-04-30
Contract Duration: 2,007 days
Daily Burn Rate: $15.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE BUSINESS SOLUTIONS OPERATIONS AND MAINTENANCE SUPPORT
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $30.9 million to PERATON INC. for work described as: ENTERPRISE BUSINESS SOLUTIONS OPERATIONS AND MAINTENANCE SUPPORT Key points: 1. Contract value of $30.9M over its period of performance. 2. Peraton Inc. is the sole awardee. 3. The contract is for IT operations and maintenance support. 4. This falls under 'Other Computer Related Services' NAICS code. 5. The contract has a firm fixed price structure.
Value Assessment
Rating: fair
The contract value of $30.9M for a period of nearly 6 years suggests a moderate annual spend. Benchmarking against similar IT operations and maintenance contracts would be necessary to fully assess pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. The BPA Call award mechanism suggests it was sourced from an existing contract vehicle.
Taxpayer Impact: The competitive nature of the award aims to ensure taxpayer funds are used efficiently for essential IT support.
Public Impact
Ensures continuity of critical IRS business operations through IT support. Supports tax administration and revenue collection functions. Potential for impact on taxpayer services if IT systems are not maintained effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not managed properly.
- Reliance on a single vendor for critical IT operations.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on operations and maintenance. Spending benchmarks for similar IT support contracts can vary widely based on complexity and scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business participation was a goal or requirement.
Oversight & Accountability
Oversight will be crucial to ensure Peraton Inc. meets performance requirements and that the IRS is receiving value for money throughout the contract's duration.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Long contract duration may lead to vendor lock-in.
- Reliance on a single vendor for critical IT functions.
- Potential for scope creep if not managed tightly.
- Performance risks associated with complex IT systems.
Tags
other-computer-related-services, department-of-the-treasury, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $30.9 million to PERATON INC.. ENTERPRISE BUSINESS SOLUTIONS OPERATIONS AND MAINTENANCE SUPPORT
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $30.9 million.
What is the period of performance?
Start: 2019-11-01. End: 2025-04-30.
What specific IT systems and services are covered under this Enterprise Business Solutions Operations and Maintenance Support contract?
The contract likely covers a range of critical IT infrastructure, applications, and services essential for the IRS's operations. This could include servers, networks, databases, software maintenance, help desk support, and system monitoring to ensure the smooth functioning of the agency's technological backbone and support tax administration.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to measure Peraton Inc.'s performance?
Key performance indicators and SLAs are essential for ensuring the contractor meets expectations. These would typically include metrics related to system uptime, response times for issue resolution, security compliance, and successful completion of maintenance tasks. Regular performance reviews against these KPIs would be conducted by the IRS.
How does the IRS ensure ongoing cost-effectiveness and value for money with this long-term contract?
The IRS can ensure cost-effectiveness through regular market research, benchmarking against similar contracts, and potentially negotiating favorable terms during option periods. Strong contract management, performance monitoring, and a clear understanding of the evolving IT needs will help in maximizing value and preventing cost overruns.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12975 WORLDGATE DR, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,658,536
Exercised Options: $30,875,808
Current Obligation: $30,875,808
Actual Outlays: $27,525,805
Subaward Activity
Number of Subawards: 135
Total Subaward Amount: $61,117,941
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 2032H518A00009
IDV Type: BPA
Timeline
Start Date: 2019-11-01
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-04-29
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