Treasury's $14.8M IT contract for shared services bridge extension awarded to Peraton Inc
Contract Overview
Contract Amount: $14,793,097 ($14.8M)
Contractor: Peraton Inc.
Awarding Agency: Department of the Treasury
Start Date: 2025-04-08
End Date: 2026-03-29
Contract Duration: 355 days
Daily Burn Rate: $41.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFRASTRUCTURE SHARED SERVICES BRIDGE EXTENSION.
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $14.8 million to PERATON INC. for work described as: INFRASTRUCTURE SHARED SERVICES BRIDGE EXTENSION. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for computer systems design services, a common IT support function. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of 355 days indicates a short-to-medium term need for these services. 5. The award value is within a typical range for IT support contracts of this nature. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.
Value Assessment
Rating: good
The contract value of approximately $14.8 million for a 355-day period appears reasonable for IT shared services bridge extension. Benchmarking against similar contracts for computer systems design services would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the price seems aligned with market expectations for this type of service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that the agency sought the best value through a competitive process. The number of bidders is not specified, but a full and open competition generally leads to more robust price discovery and potentially better pricing for the government compared to limited or sole-source procurements.
Taxpayer Impact: A full and open competition allows taxpayers to benefit from potentially lower prices due to contractor rivalry. It ensures that government funds are used efficiently by selecting the most cost-effective solution available in the market.
Public Impact
Federal agencies requiring IT shared services will benefit from the continuity provided by this bridge extension. The contract delivers essential computer systems design services to support ongoing operations. The primary geographic impact is within Maryland, where the contractor is located. The contract supports the IT workforce within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if this bridge extension leads to longer-term sole-source arrangements.
- Reliance on a single contractor for critical IT shared services could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a competitive market for these services.
- Firm fixed-price contract type helps manage budget predictability.
- The contract supports essential IT infrastructure, contributing to government operational continuity.
Sector Analysis
The IT services sector is a significant area of federal spending, encompassing a wide range of needs from software development to systems integration and maintenance. This contract for computer systems design services falls within the broader category of IT support and infrastructure. Federal spending in this area is driven by the need to modernize legacy systems, enhance cybersecurity, and improve the efficiency of government operations. Comparable spending benchmarks for IT services contracts of this size and scope are readily available within government databases.
Small Business Impact
The contract was not awarded as a small business set-aside, and there is no indication of a small business subcontracting plan requirement. This suggests that the primary focus was on securing the most capable contractor, likely a larger entity, for these specialized IT services. The absence of a set-aside means that opportunities for small businesses to participate as prime contractors on this specific award are limited. However, the prime contractor may still engage small businesses as subcontractors, depending on their own procurement practices.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant program officials within the Department of the Treasury's Internal Revenue Service. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and internal oversight processes are typically not publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- IT Infrastructure Modernization Programs
- Shared Services Centers
- Computer Systems Design Services Contracts
- Federal IT Support Services
Risk Flags
- Potential for vendor lock-in
- Reliance on single contractor for critical services
Tags
it-services, computer-systems-design, department-of-the-treasury, internal-revenue-service, firm-fixed-price, full-and-open-competition, delivery-order, maryland, medium-contract-value, it-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $14.8 million to PERATON INC.. INFRASTRUCTURE SHARED SERVICES BRIDGE EXTENSION.
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 $14.8 million.
What is the period of performance?
Start: 2025-04-08. End: 2026-03-29.
What is Peraton Inc.'s track record with the Department of the Treasury and similar IT service contracts?
Peraton Inc. has a significant history of contracting with various U.S. federal agencies, including the Department of the Treasury. Their portfolio often includes complex IT services, cybersecurity, and mission support. Analyzing Peraton's past performance on similar computer systems design and shared services contracts, particularly with the Treasury or IRS, would reveal their reliability, technical capabilities, and adherence to contract terms. This includes reviewing past performance evaluations, any documented issues or successes, and their overall experience in delivering services within the federal government landscape. Their ability to successfully manage and execute this current $14.8 million contract will depend on leveraging this prior experience effectively.
How does the $14.8 million award value compare to similar IT shared services bridge extension contracts?
The $14.8 million award for a 355-day IT shared services bridge extension contract is a substantial investment. To benchmark its value, one would compare it to contracts of similar scope, duration, and service type (computer systems design) awarded by the Treasury or other agencies. Factors such as the complexity of the systems being supported, the specific services included (e.g., design, implementation, maintenance), and the prevailing market rates for IT professionals in Maryland would influence this comparison. If similar contracts for comparable services are consistently awarded at lower price points or for longer durations at this price, it might indicate a fair, but not exceptional, value. Conversely, if this contract's terms are more favorable or the scope is broader than comparable contracts, it suggests strong value for money.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks for this contract include potential performance issues by Peraton Inc., leading to disruptions in IT shared services, and the risk of cost overruns if the firm fixed-price model proves inadequate for unforeseen complexities. Another risk is the potential for vendor lock-in if this bridge extension is seen as a precursor to a longer-term, sole-source engagement. Mitigation strategies likely involve robust performance monitoring by the IRS, clear service level agreements (SLAs), and contingency planning for service continuity. The firm fixed-price structure itself is a risk mitigation tool for the government, transferring some cost risk to the contractor. The full and open competition process also mitigates the risk of awarding to an unqualified vendor.
How effective is the 'full and open competition' approach in ensuring the best value for this specific IT service?
The 'full and open competition' approach is generally considered the most effective method for ensuring the best value for IT services, as it maximizes the pool of potential bidders and fosters price competition. For this $14.8 million contract, it means that numerous qualified IT service providers had the opportunity to compete, theoretically driving down prices and encouraging innovation. The effectiveness hinges on the clarity of the solicitation requirements and the evaluation criteria used by the IRS. If the competition was robust (i.e., attracted multiple strong bids), it significantly increases the likelihood that the government secured a competitive price and a technically sound solution. The absence of specified bidder numbers means we cannot definitively confirm the *degree* of competition, but the process itself is a strong indicator of intent to achieve best value.
What is the historical spending pattern for 'Computer Systems Design Services' by the IRS?
Historical spending by the IRS on 'Computer Systems Design Services' (NAICS code 541512) provides crucial context for this $14.8 million award. Analyzing past expenditures in this category would reveal trends in contract values, durations, and the types of services procured. For instance, has the IRS consistently awarded similar contracts to Peraton Inc. or other large IT firms? Is this $14.8 million award an outlier, or does it align with previous spending levels for IT modernization, system upgrades, or shared services support? Understanding these patterns helps assess whether this contract represents a typical investment or a significant shift in IT procurement strategy for the agency, and whether spending has been efficient over time.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12975 WORLDGATE DR STE 7322, 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: $15,071,579
Exercised Options: $14,793,097
Current Obligation: $14,793,097
Actual Outlays: $12,528,894
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $3,175,795
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2025-04-08
Current End Date: 2026-03-29
Potential End Date: 2026-03-29 17:17:44
Last Modified: 2026-01-29
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