DoD's $35.2M IT services contract awarded to Peraton Enterprise Solutions LLC shows fair value with 4 bidders

Contract Overview

Contract Amount: $35,212,104 ($35.2M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2009-12-31

End Date: 2010-09-30

Contract Duration: 273 days

Daily Burn Rate: $129.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OTHER ADP & TELECOMMUNICATIONS SERVICES

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70146

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $35.2 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: OTHER ADP & TELECOMMUNICATIONS SERVICES Key points: 1. Contract value appears reasonable given the scope of IT services provided. 2. Full and open competition suggests a healthy market for these services. 3. The contract duration of 273 days is relatively short, indicating a focused task. 4. Performance was in Louisiana, suggesting a specific geographic need. 5. The contract type is firm fixed price, which transfers risk to the contractor. 6. This award falls under 'Other Computer Related Services', a broad IT category.

Value Assessment

Rating: good

The total award amount of $35.2 million for IT services over approximately 9 months appears to be within a reasonable range for similar government contracts. Benchmarking against other 'Other Computer Related Services' contracts of similar scope and duration would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government when the scope is well-defined, as it caps costs. However, without detailed service breakdowns, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 4 bidders suggests a competitive environment for this specific IT services requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions, benefiting the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. The government secured services through a process that encouraged multiple companies to vie for the contract.

Public Impact

The Department of the Navy benefited from the provision of essential IT services. Services delivered likely supported critical operational or administrative functions within the Navy. The contract's performance was geographically located in Louisiana. The contract supported jobs within the IT services sector, potentially including specialized technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service descriptions makes it difficult to fully assess value for money.
Contract duration is short, raising questions about the long-term sustainability of the services provided.
Specific performance metrics or outcomes are not detailed in the provided data.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract type transfers cost risk to the contractor.
The contractor, Peraton Enterprise Solutions LLC, is a known entity in the government contracting space.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically under 'Other Computer Related Services'. This category encompasses a wide array of IT support and consulting services. The federal IT market is substantial, with agencies consistently investing in technology to support operations. This contract represents a small portion of overall federal IT spending, likely addressing a specific, localized need for the Department of the Navy.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, as a large contract, there may be opportunities for small businesses to participate as subcontractors to the prime contractor, Peraton Enterprise Solutions LLC, depending on their business model and subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Systems Design Services
Information Technology Professional Services
Department of Defense IT Contracts
Navy IT Procurement

Risk Flags

Potential for scope creep if SOW is not precisely defined.
Risk of contractor underperformance if cost estimates were too low.
Limited insight into specific service deliverables and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.2 million to PERATON ENTERPRISE SOLUTIONS LLC. OTHER ADP & TELECOMMUNICATIONS 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 Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $35.2 million.

What is the period of performance?

Start: 2009-12-31. End: 2010-09-30.

What specific IT services were provided under this contract?

The provided data classifies this contract under NAICS code 541519, 'Other Computer Related Services'. This is a broad category that can include a wide range of IT services such as IT consulting, systems integration, IT support, and custom software development. Without more specific details from the contract's statement of work, it is difficult to pinpoint the exact services rendered. However, given the award amount and duration, it likely involved significant IT support or project-based work for the Department of the Navy in Louisiana.

How does the $35.2 million award compare to similar IT contracts awarded by the Department of the Navy?

Comparing the $35.2 million award requires access to a broader dataset of similar contracts. However, for a contract lasting approximately 9 months (December 2009 to September 2010), this represents a substantial investment. The Department of the Navy procures a vast array of IT services, ranging from small, specialized support tasks to large-scale system modernizations. This particular award, under 'Other Computer Related Services' and awarded via full and open competition, suggests a significant but potentially discrete IT requirement. Further analysis would involve benchmarking against contracts with similar NAICS codes, durations, and agencies to determine if the pricing was competitive.

What are the potential risks associated with a firm fixed-price contract for IT services?

Firm fixed-price (FFP) contracts are designed to provide price certainty and transfer risk to the contractor. However, for complex IT services, risks can still exist. If the scope of work is not clearly defined, the contractor may face unexpected costs, potentially leading to requests for change orders or, in extreme cases, performance issues if they cannot absorb the extra costs. Conversely, if the scope is too narrowly defined, the government might not receive all the necessary services. For the government, the primary risk with FFP is paying a premium if the contractor's cost estimates were overly conservative. Effective contract management and a well-defined SOW are crucial to mitigate these risks.

What does the 'LA' (Louisiana) designation signify for this contract?

The 'LA' designation indicates that the place of performance for this contract was Louisiana. This suggests that the IT services provided were likely in direct support of Department of the Navy operations or facilities located within that state. This could range from supporting a naval base, a specific command, or a regional IT infrastructure. The geographic focus helps contextualize the need for these services and may imply a localized impact on the IT workforce or economy within Louisiana.

How has Peraton Enterprise Solutions LLC's performance been on other federal contracts?

Assessing Peraton Enterprise Solutions LLC's overall track record requires a comprehensive review of their past federal contract performance data, which is not fully detailed in the provided snippet. Peraton is a significant government contractor, and like many large firms, they likely have a diverse performance history across numerous contracts. Key indicators to examine would include past performance ratings, any contract disputes or terminations, and the successful completion of similar IT service contracts. A detailed review would involve searching federal procurement databases for their award history and associated performance evaluations.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: HP, Inc.

Address: 13600 EDS DRIVE, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $35,212,104

Exercised Options: $35,212,104

Current Obligation: $35,212,104

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002400D6000

IDV Type: IDC

Timeline