USSOCOM's $651M SITEC 3 EOM Contract for IT Operations and Maintenance Awarded to Peraton Inc
Contract Overview
Contract Amount: $651,011,432 ($651.0M)
Contractor: Peraton Inc.
Awarding Agency: General Services Administration
Start Date: 2023-10-31
End Date: 2027-05-16
Contract Duration: 1,293 days
Daily Burn Rate: $503.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SITEC 3 EOM PROVIDES USSOCOM WITH O&M SERVICES TO MAINTAIN NETOPS, MAINTAIN SYSTEMS & NETWORK INFRASTRUCTURE, PROVIDE END USER & COMMON DEVICE SUPPORT, PROVIDE CONFIGURATION, CHANGE, LICENSE, & ASSET MGMT. CONDUCT TRAINING AND PERFORM IMACS SERVICES.
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621
State: Florida Government Spending
Plain-Language Summary
General Services Administration obligated $651.0 million to PERATON INC. for work described as: SITEC 3 EOM PROVIDES USSOCOM WITH O&M SERVICES TO MAINTAIN NETOPS, MAINTAIN SYSTEMS & NETWORK INFRASTRUCTURE, PROVIDE END USER & COMMON DEVICE SUPPORT, PROVIDE CONFIGURATION, CHANGE, LICENSE, & ASSET MGMT. CONDUCT TRAINING AND PERFORM IMACS SERVICES. Key points: 1. The contract focuses on critical IT operations and maintenance for USSOCOM, including network operations, infrastructure support, and end-user services. 2. Peraton Inc. is the sole awardee, raising questions about the extent of competition. 3. The contract's duration of over three years and significant value present a notable taxpayer investment. 4. The IT services sector, particularly for defense agencies, often involves complex and high-value contracts.
Value Assessment
Rating: questionable
The contract is a delivery order under a larger contract, making direct pricing comparisons difficult without knowing the base contract's terms. The Cost Plus Fixed Fee structure requires careful monitoring to ensure cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While the contract type is listed as 'Full and Open Competition,' the award is a delivery order to Peraton Inc. Further details on the initial competition for the base contract are needed to fully assess price discovery.
Taxpayer Impact: The significant value of this contract represents a substantial allocation of taxpayer funds for essential IT support services.
Public Impact
Ensures continued operational readiness for USSOCOM's critical IT infrastructure. Supports a wide range of services from network maintenance to end-user support. Potential for long-term reliance on Peraton Inc. for these vital services. Impacts the efficiency and effectiveness of military communication and operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of transparency on competition for the base contract.
- Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly.
- Sole awardee for this delivery order may limit competitive pressure on pricing.
Positive Signals
- Provides essential IT services to a critical defense agency.
- Contract aims to maintain and improve network infrastructure.
- Includes comprehensive support from end-user to configuration management.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design services, supporting a major defense command. Spending benchmarks in this area are highly variable based on scope and agency.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and Peraton Inc. is a large business. There is no indication of small business participation within this specific delivery order.
Oversight & Accountability
The General Services Administration (GSA) is overseeing this contract through its Federal Acquisition Service. Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure value for taxpayer money.
Related Government Programs
- Computer Systems Design Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Limited visibility into initial contract competition.
- Reliance on a single vendor for critical IT services.
- Need for stringent performance monitoring and oversight.
Tags
computer-systems-design-services, general-services-administration, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $651.0 million to PERATON INC.. SITEC 3 EOM PROVIDES USSOCOM WITH O&M SERVICES TO MAINTAIN NETOPS, MAINTAIN SYSTEMS & NETWORK INFRASTRUCTURE, PROVIDE END USER & COMMON DEVICE SUPPORT, PROVIDE CONFIGURATION, CHANGE, LICENSE, & ASSET MGMT. CONDUCT TRAINING AND PERFORM IMACS SERVICES.
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $651.0 million.
What is the period of performance?
Start: 2023-10-31. End: 2027-05-16.
What was the competitive landscape during the initial award of the base contract that led to this delivery order?
Information regarding the initial competition for the base contract is not provided in the data. Understanding the number of bidders, the evaluation criteria, and the final award decision process for the base contract is crucial for assessing the overall value and competitive fairness of the SITEC 3 EOM program.
How will the Cost Plus Fixed Fee structure be managed to prevent potential cost overruns and ensure optimal value for the government?
Effective management of the Cost Plus Fixed Fee (CPFF) structure requires robust oversight from the GSA. This includes detailed tracking of all incurred costs, regular performance reviews, and strict adherence to the fixed fee component. The government must ensure that Peraton Inc. demonstrates efficiency and cost-consciousness throughout the contract lifecycle.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to measure the effectiveness of the O&M services provided?
The provided data does not specify the KPIs or SLAs for this contract. Establishing and rigorously monitoring clear performance metrics related to network uptime, system availability, incident response times, and user satisfaction is essential to gauge the effectiveness of the O&M services and ensure USSOCOM's operational needs are met.
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 - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 47QFCA23R0003
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
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: $2,840,386,863
Exercised Options: $1,206,617,722
Current Obligation: $651,011,432
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $1,012,270,735
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2023-10-31
Current End Date: 2027-05-16
Potential End Date: 2031-10-30 00:00:00
Last Modified: 2026-03-11
More Contracts from Peraton Inc.
- 200107!000034!5700!GZ80 !smc/Pks !F0470101C0001 !A!N!*!Y! !20001103!20061031!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000016429445!n!n!000000000000!ac26!rdte/Missile and Space Systems-Mgmt Support !A2 !missile and Space Systems !3000!NOT Discernable or Classified !541710!*!*!3! ! ! !*!*!*!B!*!*!B! !A !Y!R!2!003!B! !A!N!Z! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! !Y! ! !0001! — $1.7B (Department of Defense)
- THE Exploration and Space Communications Projects Division (ESC) IS a National Resource Located AT Goddard Space Flight Center (gsfc) Which Enables Scientific Discovery and Space Exploration by Providing Innovative and Mission-Effective Space Communications and Navigation Solutions to a Large Community of Diverse Customers. ESC Manages Operational Geostationary Communications Relay Satellites and Ground Systems for the Space Communications and Navigation (scan) Program AT Nasa Headquarters. Today, Scan Network Systems Consist of the Space Network (SN), the Near Earth Network (NEN), and the Deep Space Network (DSN). the Day-To-Day Management of These Three Networks IS Currently NOT Fully Consistent. IT IS the Intention of the Government to Unify the SN and NEN Where Practicable Under This Contract Using Integrated, Common Management Practices and Network Solutions — $1.5B (National Aeronautics and Space Administration)
- Nasa Goddard Space Flight Center's (gsfc) Goal for the Space Communications Networks Services Contract (scns) IS to Enable Mission Success for Every Customer Using Scns Services. KEY Objectives of the Scns Contract ARE to Decrease Cost and Maintain or Improve Operational Efficiency and Reliability, While Maintaining an Acceptable Level of Risk and Providing for Safe Operation of the Missions. the Contractor Shall Implement a Safety, Health, and Mission Assurance Program That Provides a Safe and Healthy Work Environment, Minimizes Program Risk, and Maximizes Nasa Mission Success. the Contractor Shall BE Responsible and Accountable for Achieving the Required Results. Core Requirement Functions, Such AS Configuration Management, Quality Assurance, ETC. ARE Required to Support Idiq Task Orders. the Space Network (SN) IS Comprised of a Fleet of On-Orbit Tracking and Data Relay Satellites (tdrs) and Associated Ground Systems That Provide Telecommunications Services. the Nature of the SN Architecture, I.E., Extremely Large Capital Investment, Contractor Operated Facilities, Continuous 24X7 Requirements, ETC., Lends Itself to a Core Requirements Approach. the Ground Network (GN) Consists of an Orbital Tracking Network and the Satellite Laser Ranging Network. the Nature of the Ground Network Architecture, I.E., Diverse MIX of Commercial and Government Assets, Evolving Geographic and Technical Customer Requirements, and Legacy Systems, ETC. Lends Itself to an Idiq Approach. Other Activities, I.E., Very Long Baseline Interferometry Network Operations and Maintenance (O&M), Electronic System Test Laboratory, Requirements Development, Hardware and Software Development, ETC. ARE Best Suited to an Idiq Approach in the Resource-Constrained Environment That Nasa Operates in — $1.2B (National Aeronautics and Space Administration)
- Operational Planning Implementation and Assessment Services (opias) Base Award — $800.8M (General Services Administration)
- IS to Provide Support for the Continued Operations, Maintenance and Evolution of Department of Homeland Security (DHS) Classified Networks. DHS Classified Networks ARE a Federal Enterprise Infrastructure for Classified Information Sharing Which Extend Existing US Government Capabilities NOT Only to the Department of Homeland Security and ITS Components, BUT to Other Federal Government Agencies, and to First Responders AT the State, Local, and Tribal Levels — $609.1M (General Services Administration)
Other General Services Administration Contracts
- Software Life Cycle Development — $1.4B (Science Applications International Corporation)
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (Booz Allen Hamilton Inc)
- Federal Contract — $1.2B (Booz Allen Hamilton Inc)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (Science Applications International Corporation)
- Task Order Award — $1.1B (Booz Allen Hamilton Inc)