GSA's $3.7M IT contract for SGLI online enrollment system sustainment awarded to Peraton Enterprise Solutions

Contract Overview

Contract Amount: $3,707,641 ($3.7M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2020-09-21

End Date: 2026-03-20

Contract Duration: 2,006 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DMDC ITPS BPA CALL #13 SERVICEMEMBERS GROUP LIFE INSURANCE (SGLI) ON-LINE ENROLLMENT SYSTEM (SOES) SUSTAINMENT

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $3.7 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: DMDC ITPS BPA CALL #13 SERVICEMEMBERS GROUP LIFE INSURANCE (SGLI) ON-LINE ENROLLMENT SYSTEM (SOES) SUSTAINMENT Key points: 1. Contract supports critical Servicemembers' Group Life Insurance (SGLI) online enrollment system. 2. Awarded through a full and open competition, indicating broad market engagement. 3. Fixed-price contract type suggests defined scope and cost control. 4. Long-term sustainment (over 6 years) implies a need for stable, ongoing support. 5. Contractor has a history of performing IT services for the federal government. 6. Geographic location of performance is California.

Value Assessment

Rating: good

The contract value of approximately $3.7 million over its duration appears reasonable for sustaining a critical IT system like the SGLI online enrollment platform. Benchmarking against similar IT sustainment contracts for government-wide systems suggests this is within a typical range, especially considering the fixed-price nature which often implies a degree of cost certainty. The General Services Administration (GSA) is experienced in procuring such services, lending confidence to the value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 3 bidders indicates a competitive environment, which generally leads to better price discovery and potentially more innovative solutions. The level of competition suggests that the government was able to solicit proposals from multiple capable vendors, fostering a healthy market dynamic.

Taxpayer Impact: A full and open competition allows taxpayers to benefit from potentially lower prices and higher quality services due to vendor rivalry. It ensures that government funds are used efficiently by selecting the best value offer.

Public Impact

Servicemembers and their families benefit from a reliable and accessible online system for managing life insurance. The contract ensures the continuous operation and maintenance of the SGLI Online Enrollment System (SOES). Performance is located in California, potentially impacting the local IT workforce. The sustainment of this system is crucial for the Department of Defense's personnel support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if sustainment requirements are not carefully managed over the long term.
Reliance on a single contractor for a critical system could pose risks if performance degrades.
Ensuring adequate technical expertise transfer and knowledge management within the contractor team is important.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Fixed-price contract type provides cost predictability for the government.
Contractor has experience in IT services, indicating a baseline level of capability.
Long-term nature of the contract allows for stable system support and development.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. The market for IT sustainment services is substantial, with numerous vendors capable of providing these solutions. This particular contract addresses a niche but critical need within the defense and veterans affairs space, ensuring the operational readiness of a vital benefits system. Comparable spending benchmarks for similar government IT sustainment contracts vary widely based on system complexity and scope, but this award appears to be within a reasonable range for its stated purpose.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no small business subcontracting requirements were mandated. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through direct subcontracting by the prime contractor, Peraton Enterprise Solutions LLC. The absence of a specific set-aside or subcontracting plan means the direct impact on the small business ecosystem for this specific award is likely minimal, though Peraton may engage small businesses independently.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within agreed-upon costs. Transparency is generally maintained through contract award databases and reporting requirements. The specific Inspector General jurisdiction would typically align with the contracting agency, in this case, GSA's Office of Inspector General.

Related Government Programs

Servicemembers' Group Life Insurance (SGLI)
Veterans Affairs IT Services
Defense Personnel Support Systems
GSA IT Schedule Contracts
Online Government Portals

Risk Flags

Long-term contract duration may increase risk of vendor lock-in.
Reliance on a single contractor for a critical system requires diligent oversight.
Cybersecurity risks inherent in any online system require continuous monitoring and mitigation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.7 million to PERATON ENTERPRISE SOLUTIONS LLC. DMDC ITPS BPA CALL #13 SERVICEMEMBERS GROUP LIFE INSURANCE (SGLI) ON-LINE ENROLLMENT SYSTEM (SOES) SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2020-09-21. End: 2026-03-20.

What is the track record of Peraton Enterprise Solutions LLC in performing similar IT sustainment contracts for the federal government?

Peraton Enterprise Solutions LLC, and its parent company Peraton, have a significant track record in providing IT services to the federal government, including sustainment, modernization, and cybersecurity solutions across various agencies like the Department of Defense, NASA, and the Department of Homeland Security. They have experience managing complex IT infrastructures and critical systems. While specific performance metrics for this particular SGLI contract are not detailed here, Peraton's broader portfolio suggests they possess the necessary capabilities. Past performance evaluations, often part of the federal procurement process, would provide more granular insights into their reliability and quality of service on previous, comparable contracts.

How does the pricing of this contract compare to similar IT sustainment contracts for government-wide systems?

The total contract value of approximately $3.7 million over roughly six years (September 2020 to March 2026) translates to an average annual cost of about $618,000. This figure appears competitive when benchmarked against similar IT sustainment contracts for essential government systems. Factors influencing price include the complexity of the system, the criticality of its function, the required service levels (SLAs), and the specific IT infrastructure involved. Given that this contract is firm-fixed-price and was awarded under full and open competition, the pricing is likely a result of competitive market forces and represents a reasonable value for ensuring the continuous operation of the SGLI Online Enrollment System.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance degradation by the contractor, cybersecurity vulnerabilities within the system, and the possibility of cost overruns if the fixed-price scope is not well-defined or managed. Mitigation strategies likely involve robust performance monitoring by GSA, adherence to strict cybersecurity protocols mandated by federal regulations, and clear contract terms defining deliverables and acceptance criteria. The long-term nature of the contract also necessitates proactive risk management, including contingency planning for potential contractor issues and ensuring knowledge transfer to prevent vendor lock-in. Regular reviews and audits would further help identify and address risks.

How effective is the SGLI Online Enrollment System (SOES) sustainment likely to be under this contract?

The effectiveness is expected to be high, given the contract's focus on sustainment, which implies maintaining and improving the existing system's functionality, reliability, and security. The award to Peraton, a company with significant IT experience, and the use of a firm-fixed-price contract suggest a commitment to delivering consistent service. The system's criticality for servicemembers' life insurance management underscores the importance placed on its effective operation. Continuous monitoring and potential for system enhancements under the contract should ensure its ongoing effectiveness in serving its user base.

What are the historical spending patterns for the SGLI Online Enrollment System sustainment?

The provided data indicates this is a BPA Call awarded in September 2020 with an end date in March 2026. The total value is $3,707,640.70. Without historical data prior to this BPA Call, it's difficult to establish long-term spending patterns. However, the duration and value suggest a consistent need for sustainment services. To understand historical patterns, one would need to examine previous contracts or task orders related to the SGLI Online Enrollment System's maintenance and support before this BPA Call was established. This contract represents the current spending trajectory for this specific sustainment effort.

What is the significance of the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' NAICS code for this contract?

The NAICS code 518210, 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services,' is highly relevant as it defines the core services being procured. This code encompasses the provision of infrastructure for hosting, data processing, and related services, which are essential for maintaining an online enrollment system like SOES. It signifies that the contract covers the underlying technological backbone, including servers, storage, networking, and potentially cloud services, necessary for the system's operation, availability, and performance. This classification helps categorize the contract within the broader IT services market and guides the type of vendors that would be qualified to bid.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID03200013

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 13600 EDS DR A3S, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $8,438,699

Exercised Options: $3,805,519

Current Obligation: $3,707,641

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS03Q17DSA0008

IDV Type: BPA

Timeline