DoD's $14.7M contract for telecom services awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $14,744,285 ($14.7M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2010-02-28

End Date: 2010-09-30

Contract Duration: 214 days

Daily Burn Rate: $68.9K/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 $14.7 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: OTHER ADP & TELECOMMUNICATIONS SERVICES Key points: 1. Value for money appears fair given the fixed-price nature of the contract. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract potentially mitigating cost overruns. 4. Performance context is limited to a short duration, making long-term effectiveness difficult to assess. 5. Sector positioning is within IT services, specifically telecommunications support. 6. The contract was awarded as a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

The contract's total value of $14.7 million for a six-month period suggests a significant but not exorbitant expenditure for telecommunications services. As a firm-fixed-price contract, it aims to control costs, but without detailed performance metrics or comparisons to similar, contemporaneous contracts, a precise value-for-money assessment is challenging. The benchmark for per-unit costs is not readily available, making direct pricing comparisons difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 4 bids suggests a reasonable level of competition, which typically aids in price discovery and can lead to more favorable pricing for the government. The specific details of the bidding process and the evaluation criteria are not provided, limiting a deeper analysis of the competitive landscape.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from multiple vendors.

Public Impact

The Department of the Navy benefits from enhanced telecommunications infrastructure and support. Services delivered likely include network management, communication system maintenance, and potentially upgrades. The geographic impact is focused on the specific locations where the Navy operates within Louisiana. Workforce implications may involve specialized IT and telecommunications personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited duration of the contract makes it difficult to assess long-term performance and value.
Lack of detailed performance metrics hinders a comprehensive evaluation of service quality.
Specific details of the competition, beyond the number of bidders, are not provided.

Positive Signals

Firm-fixed-price contract structure helps control costs.
Awarded under full and open competition, suggesting a competitive bidding process.
Contractor is Peraton Enterprise Solutions LLC, a known entity in the government contracting space.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on telecommunications services. The IT services market is vast and highly competitive, with significant government spending allocated to network infrastructure, communication systems, and related support. Comparable spending benchmarks for similar telecommunications support contracts within the Department of Defense can vary widely based on scope, duration, and specific technological requirements.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Peraton Enterprise Solutions LLC voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting plans would be needed for a definitive assessment.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract award notice, but detailed performance reports or Inspector General involvement are not specified in the provided data.

Related Government Programs

Defense Information Systems Agency (DISA) contracts
General Services Administration (GSA) IT Schedule contracts
Department of Defense telecommunications infrastructure projects

Risk Flags

Limited performance data available for the contract duration.
Specific details of services rendered are not fully elaborated in the summary.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 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 $14.7 million.

What is the period of performance?

Start: 2010-02-28. End: 2010-09-30.

What was the specific nature of the 'OTHER ADP & TELECOMMUNICATIONS SERVICES' provided under this contract?

The provided data categorizes this contract under NAICS code 541519, 'Other Computer Related Services,' and the PSC code is listed as blank, suggesting a broad scope. 'OTHER ADP & TELECOMMUNICATIONS SERVICES' typically encompasses a wide range of IT and communication support functions. This could include network installation and maintenance, telecommunications equipment management, voice and data communication services, IT system integration, and potentially cybersecurity support related to communication networks. Without more specific contract line item numbers (CLINs) or a detailed statement of work (SOW), the precise services rendered remain general. However, given the awarding agency (Department of the Navy) and the location (Louisiana), it likely supported operational communication needs for naval facilities or personnel in that region.

How does the awarded amount of $14.7 million compare to similar telecommunications contracts awarded by the Department of the Navy during the 2010 fiscal year?

Comparing the $14.7 million award to similar contracts requires access to a broader dataset of Department of the Navy (DoN) procurements from fiscal year 2010. However, as a single delivery order with a duration of approximately six months (February 28, 2010, to September 30, 2010), this amount represents a substantial investment for a short period. The average value of DoN telecommunications contracts can vary significantly based on whether they are for large-scale infrastructure projects, ongoing service support, or specific equipment procurements. Given the 'FULL AND OPEN COMPETITION' and the presence of 4 bidders, the price achieved was likely competitive for the services rendered. To provide a precise benchmark, one would need to analyze contracts with similar NAICS codes (e.g., 541519, 517312) and service scopes awarded by the DoN in the same fiscal year.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for telecommunications services, KPIs might include network uptime percentages, data transmission speeds, response times for technical support, and resolution times for service disruptions. SLAs would define the minimum acceptable levels for these metrics and potential penalties for non-compliance. As this was a firm-fixed-price contract, the focus would be on the contractor's ability to deliver the defined services within the agreed-upon scope and cost. The absence of explicit KPI/SLA data in the summary suggests that either they were not a primary focus for this particular award notice or they are detailed within the full contract documentation, which is not accessible here.

What is Peraton Enterprise Solutions LLC's track record with the Department of Defense for similar telecommunications services?

Peraton Enterprise Solutions LLC, and its parent company Peraton, have a significant track record of providing IT and telecommunications services to various U.S. government agencies, including the Department of Defense (DoD). While this specific contract was a delivery order valued at $14.7 million over six months, Peraton has been involved in numerous larger and longer-term contracts with the DoD for complex communication systems, network modernization, and managed IT services. Their experience spans a wide range of telecommunications technologies and support functions. A comprehensive assessment of their track record would involve reviewing their past performance evaluations (e.g., CPARS reports), the scale and complexity of previous DoD contracts, and their overall performance history in delivering mission-critical communication capabilities to defense clients.

What is the historical spending pattern for 'OTHER ADP & TELECOMMUNICATIONS SERVICES' by the Department of the Navy, and how does this contract fit within that pattern?

Historical spending by the Department of the Navy (DoN) on 'Other ADP & Telecommunications Services' (NAICS 541519) is substantial, reflecting the critical role of robust IT and communication infrastructure in naval operations. This $14.7 million contract, awarded in FY 2010 for a six-month period, represents a specific instance of this spending. To understand its place within the broader pattern, one would need to analyze the DoN's total obligations for NAICS 541519 across multiple fiscal years. This particular contract appears to be a focused procurement, possibly addressing a specific need or supplementing existing services. Its value relative to the DoN's overall IT budget and its duration suggest it was a tactical award rather than a foundational, long-term program, fitting within a pattern of ongoing, diverse IT service procurements.

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: $14,744,285

Exercised Options: $14,744,285

Current Obligation: $14,744,285

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002400D6000

IDV Type: IDC

Timeline