VA Awards $121M IT Managed Services Contract to Peraton Enterprise Solutions LLC
Contract Overview
Contract Amount: $121,135,917 ($121.1M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2021-05-21
End Date: 2026-12-20
Contract Duration: 2,039 days
Daily Burn Rate: $59.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFRASTRUCTURE AS A MANAGED SERVICE
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $121.1 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: INFRASTRUCTURE AS A MANAGED SERVICE Key points: 1. Contract awarded for Infrastructure as a Managed Service. 2. Significant award value of over $121 million. 3. Competition method was full and open. 4. Contract duration extends to December 2026. 5. Peraton Enterprise Solutions LLC is the prime contractor.
Value Assessment
Rating: good
The contract value of $121M over approximately 5 years suggests a competitive pricing strategy. Benchmarking against similar large-scale IT managed service contracts would provide further insight into its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market value.
Taxpayer Impact: A competitive bidding process for a large IT contract like this aims to secure the best value for taxpayers, minimizing overspending on essential services.
Public Impact
Ensures continued IT infrastructure support for the Department of Veterans Affairs. Supports critical operations for veteran services. Potential for technology modernization and improved service delivery. Contracting process aimed for competitive pricing.
Waste & Efficiency Indicators
Waste Risk Score: 59 / 10
Warning Flags
- Contract duration is substantial, requiring ongoing monitoring.
- No small business participation noted, potentially missing opportunities.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending benchmarks for similar managed IT services contracts can vary widely based on scope and complexity, but $121M represents a significant investment.
Small Business Impact
The data indicates that small businesses were not directly involved as prime contractors on this award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large contract.
Oversight & Accountability
The Department of Veterans Affairs is the contracting and awarding agency, suggesting internal oversight. The definitive contract award type implies a structured process, but ongoing performance monitoring is crucial for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Lack of small business participation.
- Long contract duration requires sustained oversight.
- Potential for vendor lock-in if not managed carefully.
- Dependence on a single contractor for critical IT infrastructure.
Tags
computer-systems-design-services, department-of-veterans-affairs, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $121.1 million to PERATON ENTERPRISE SOLUTIONS LLC. INFRASTRUCTURE AS A MANAGED SERVICE
Who is the contractor on this award?
The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $121.1 million.
What is the period of performance?
Start: 2021-05-21. End: 2026-12-20.
What specific IT infrastructure services are included in this managed service contract?
The contract is for 'Infrastructure as a Managed Service' and falls under NAICS code 541512 (Computer Systems Design Services). While specific details are not provided, this typically encompasses management, maintenance, and support of IT hardware, software, networks, and data centers to ensure operational efficiency and reliability for the VA.
What are the key performance indicators (KPIs) for this contract to ensure effectiveness?
Key performance indicators are not explicitly detailed in the provided data. However, for an 'Infrastructure as a Managed Service' contract, typical KPIs would likely include system uptime, response times for issue resolution, security compliance, data backup and recovery success rates, and overall service availability to support the VA's mission.
Are there any provisions for technology refresh or upgrades within the contract's scope?
The provided data does not specify provisions for technology refresh or upgrades. While the contract aims to manage existing infrastructure, the long duration suggests that future technology evolution might need to be addressed through contract modifications, change orders, or future solicitations to ensure the VA benefits from current technological advancements.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 36C10B21R0001
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
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: $484,316,722
Exercised Options: $121,135,917
Current Obligation: $121,135,917
Actual Outlays: $44,529,498
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $447,422,580
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-05-21
Current End Date: 2026-12-20
Potential End Date: 2028-12-20 00:00:00
Last Modified: 2026-03-19
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