GSA awards $80.8M for Cyberspace Operations Support Services, with a significant portion allocated to Maryland

Contract Overview

Contract Amount: $80,798,868 ($80.8M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: General Services Administration

Start Date: 2023-08-01

End Date: 2026-07-31

Contract Duration: 1,095 days

Daily Burn Rate: $73.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CYBERSPACE OPERATIONS SUPPORT SERVICES COSS

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $80.8 million to PERATON TECHNOLOGY SERVICES INC. for work described as: CYBERSPACE OPERATIONS SUPPORT SERVICES COSS Key points: 1. Contract value represents a substantial investment in critical IT support services. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The fixed-fee pricing structure aims to control costs while ensuring service delivery. 4. Performance is concentrated in Maryland, indicating a focus on a specific geographic region. 5. The duration of the contract suggests a long-term need for these specialized services. 6. The absence of small business set-asides may limit opportunities for smaller firms in this specific award.

Value Assessment

Rating: good

The contract's value of approximately $80.8 million over three years appears reasonable for specialized IT support services. Benchmarking against similar contracts for cyberspace operations support is challenging without more granular data on service scope and complexity. However, the fixed-fee structure provides a degree of cost certainty for the government. The awarded amount is within the expected range for large-scale IT service contracts of this nature.

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 bids. The presence of multiple bidders, though the exact number is not specified, generally leads to more competitive pricing and a wider range of technical solutions. This approach is designed to ensure the government receives the best value by leveraging the marketplace.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages innovation, ultimately leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are federal agencies requiring advanced cyberspace operations support. Services delivered will likely include network security, threat analysis, and IT infrastructure management. The geographic impact is concentrated in Maryland, supporting federal operations in that region. The contract will likely support a workforce of skilled IT professionals and cybersecurity experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-fee structure does not adequately account for unforeseen technical challenges.
Dependence on a single contractor for critical cyberspace operations could pose a risk if performance falters.
Limited visibility into the specific metrics used to evaluate contractor performance beyond the fixed-fee agreement.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The fixed-fee pricing model provides cost predictability for the government.
The contract duration indicates a stable, long-term requirement for these essential services.
The contractor, Peraton Technology Services Inc., has a track record in government IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on custom computer programming and IT support services. The market for cyberspace operations support is highly specialized and competitive, driven by increasing cybersecurity threats and the need for advanced technological solutions. Spending in this area is significant across various federal agencies, with comparable contracts often ranging in the tens to hundreds of millions of dollars for similar scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no subcontracting requirements were specified. This means that opportunities for small businesses to participate in this specific award are limited. While Peraton may engage small businesses as part of their broader supply chain, this contract does not directly mandate their inclusion, potentially impacting the small business IT ecosystem's access to this particular federal spending.

Oversight & Accountability

Oversight for this contract will be managed by the General Services Administration (GSA), likely through its Federal Acquisition Service. The contract's fixed-fee structure provides a baseline for financial oversight. Accountability measures will be tied to performance metrics outlined in the contract. Transparency is generally maintained through federal procurement databases, though specific performance details may be sensitive.

Related Government Programs

Cybersecurity Services
IT Professional Services
Custom Computer Programming
Network Support Services
Information Assurance

Risk Flags

Potential for cost overruns under CPFF structure.
Contractor performance risk for critical cyberspace operations.
Limited small business participation.
Dependence on a single contractor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $80.8 million to PERATON TECHNOLOGY SERVICES INC.. CYBERSPACE OPERATIONS SUPPORT SERVICES COSS

Who is the contractor on this award?

The obligated recipient is PERATON TECHNOLOGY SERVICES INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $80.8 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-07-31.

What is Peraton Technology Services Inc.'s track record with similar government contracts?

Peraton Technology Services Inc. has a significant history of performing IT and cybersecurity-related contracts for various U.S. government agencies. They have been awarded numerous prime contracts and task orders across different federal departments, including defense and civilian agencies. Their experience often encompasses areas such as network operations, cybersecurity solutions, enterprise IT services, and mission support. While specific performance metrics for past contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive track record in delivering services that meet government requirements. It is advisable to review specific past performance evaluations and contract histories for a more in-depth understanding of their capabilities and reliability.

How does the awarded amount compare to similar cyberspace operations support contracts?

The awarded amount of approximately $80.8 million over three years for Cyberspace Operations Support Services (COSS) is substantial but falls within the typical range for large-scale, specialized IT support contracts. Benchmarking requires comparing the scope of services, duration, and complexity. Contracts for similar services, such as network security, threat intelligence, and IT infrastructure management for federal agencies, often range from tens to hundreds of millions of dollars. The fixed-fee structure provides a degree of cost control. Without specific details on the service level agreements and technical requirements of this particular contract, a precise comparison is difficult, but the value appears commensurate with the expected demands of supporting cyberspace operations.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential performance issues if the contractor, Peraton Technology Services Inc., fails to meet the stringent requirements of cyberspace operations support. Given the critical nature of these services, any lapse in performance could have significant national security implications. Another risk is the potential for cost overruns, although the Cost Plus Fixed Fee (CPFF) structure aims to mitigate this by capping the government's liability for profit. However, the 'cost' portion can still fluctuate. Dependence on a single contractor for such vital functions also presents a risk; disruptions to the contractor's operations could impact government capabilities. Finally, ensuring continuous alignment with evolving cybersecurity threats and technologies requires proactive management from both the contractor and the contracting agency.

How effective is the Cost Plus Fixed Fee (CPFF) pricing model for this type of contract?

The Cost Plus Fixed Fee (CPFF) pricing model is often used for research and development or complex services where the scope of work is not precisely defined at the outset, or where innovation is a key component. For cyberspace operations support, CPFF can be effective because the threat landscape and technological requirements are constantly evolving, making it difficult to establish a fixed price upfront. This model incentivizes the contractor to control costs, as their fee is fixed, while allowing for flexibility in the actual expenses incurred. However, it requires robust government oversight to ensure that costs are reasonable and allocable to the contract. The government bears the risk of cost overruns, but the fixed fee provides predictability for the contractor's profit.

What is the historical spending trend for Cyberspace Operations Support Services by the GSA?

Analyzing historical spending trends for 'Cyberspace Operations Support Services' specifically by the General Services Administration (GSA) requires access to detailed federal procurement data over multiple fiscal years. GSA, through its various acquisition vehicles like MAS schedules, procures a wide array of IT services. While GSA's overall IT spending is substantial, pinpointing the exact historical expenditure solely on 'Cyberspace Operations Support Services' as a distinct category can be challenging due to the varied nature of IT service classifications. However, it is reasonable to infer that spending in this domain has likely increased over time, mirroring the growing importance of cybersecurity and digital defense across all federal agencies. This specific contract award of $80.8 million suggests a continued significant investment in this area.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFMA23R0008

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $133,283,525

Exercised Options: $90,823,165

Current Obligation: $80,798,868

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $230,516

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q16AJD0002

IDV Type: IDC

Timeline