Peraton Enterprise Solutions LLC awarded $24.26M for database support, spanning over 6 years

Contract Overview

Contract Amount: $24,257,214 ($24.3M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Agriculture

Start Date: 2008-06-21

End Date: 2014-10-02

Contract Duration: 2,294 days

Daily Burn Rate: $10.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DBMO-2008-02 DATABASE SUPPORT PERIOD OF PERFORMANCE BASE 6/21/2008-6/20/2009 WITH 4 OPTION YEARS.

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64141

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $24.3 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: DBMO-2008-02 DATABASE SUPPORT PERIOD OF PERFORMANCE BASE 6/21/2008-6/20/2009 WITH 4 OPTION YEARS. Key points: 1. Contract value appears reasonable given the extended performance period and scope of database support. 2. Competition dynamics indicate a competitive delivery order, suggesting potential for price discovery. 3. Risk indicators are moderate, with a firm fixed-price contract type mitigating cost overrun risks. 4. Performance context shows a multi-year contract for essential IT services. 5. Sector positioning is within custom computer programming services, a critical area for government operations.

Value Assessment

Rating: good

The total award of $24.26 million over approximately 6 years suggests a consistent annual spend of around $4 million. This is a moderate figure for comprehensive database support services. Benchmarking against similar contracts for custom computer programming services indicates that this pricing is within expected ranges for the scope and duration. The firm fixed-price contract type further supports value by capping potential cost escalations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader contract vehicle. The presence of 3 bidders suggests a reasonable level of competition for this specific order. While not a direct full and open competition for the delivery order itself, its placement within a competitive framework is positive for price discovery and ensuring a fair market price.

Taxpayer Impact: The competitive nature of this delivery order suggests that taxpayers benefited from a more efficient pricing structure compared to a sole-source award.

Public Impact

Benefits the Department of Agriculture, specifically the Farm Service Agency, by ensuring the continuity of critical database operations. Delivers essential IT support services, likely encompassing maintenance, updates, and potentially development for key agricultural databases. Geographic impact is primarily focused on supporting the Farm Service Agency's national operations, with potential for remote or distributed access. Workforce implications include the need for skilled IT professionals to manage and maintain complex database systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical database infrastructure could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract type helps control costs.
Competitive award process suggests a fair market price was likely achieved.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the Information Technology sector, specifically under Custom Computer Programming Services (NAICS 541511). This is a vital segment of the federal IT market, supporting the development, maintenance, and operation of government software and data systems. The market for such services is large and competitive, with numerous vendors capable of providing specialized database support. This contract represents a typical investment in maintaining essential IT infrastructure for a major federal agency.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a competitive delivery order, it's possible that small businesses could have participated as subcontractors. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem is unclear. Larger prime contractors often utilize small businesses for specialized IT services, but this contract's structure doesn't guarantee it.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Farm Service Agency. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver services as specified. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Agriculture IT Modernization Efforts
Farm Service Agency Data Management Systems
Federal Custom Computer Programming Services
Government Database Support Contracts
IT Services for Agricultural Agencies

Risk Flags

Contract Duration
Firm Fixed Price Contract Type
Competitive Delivery Order Award

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $24.3 million to PERATON ENTERPRISE SOLUTIONS LLC. DBMO-2008-02 DATABASE SUPPORT PERIOD OF PERFORMANCE BASE 6/21/2008-6/20/2009 WITH 4 OPTION YEARS.

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Farm Service Agency).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2008-06-21. End: 2014-10-02.

What was the specific nature of the database support provided under this contract?

The contract, DBMO-2008-02, was for 'DATABASE SUPPORT PERIOD OF PERFORMANCE BASE 6/21/2008-6/20/2009 WITH 4 OPTION YEARS'. While the exact technical specifications are not detailed in the provided data, 'database support' typically encompasses a range of services including database administration, maintenance, performance tuning, security patching, data backup and recovery, and potentially minor enhancements or bug fixes. Given the duration and the agency (Farm Service Agency), it's highly probable that this support was critical for managing agricultural data, program eligibility information, or operational records essential for the FSA's mission.

How does the total award amount of $24.26 million compare to similar database support contracts?

The total award of $24.26 million over approximately 6.2 years (from June 2008 to October 2014) equates to an average annual spend of roughly $3.9 million. This figure is considered moderate for comprehensive database support services for a federal agency of the Department of Agriculture's size and scope. Comparable contracts for similar IT services, particularly custom computer programming and database management, often range from several million to tens of millions of dollars annually, depending on the complexity, criticality, and number of databases supported. This contract appears to be within the expected range for its duration and service type.

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

Key risks for a database support contract include performance failures (downtime, data loss), security breaches, cost overruns (if not fixed-price), and contractor dependency. This contract utilized a 'FIRM FIXED PRICE' (pt: FIRM FIXED PRICE) type, which is a primary mitigation strategy against cost overruns. The competitive award process (ct: COMPETITIVE DELIVERY ORDER) also helps ensure the contractor is capable and incentivized to perform. The multi-year nature (dur: 2294 days) implies a need for robust service level agreements (SLAs) and ongoing performance monitoring by the agency to ensure consistent delivery and mitigate performance risks.

What was the historical spending pattern for database support by the Farm Service Agency prior to this contract?

The provided data does not include historical spending patterns for the Farm Service Agency (FSA) prior to this specific contract (DBMO-2008-02). To assess historical spending, one would need to analyze previous contracts awarded by the FSA for similar database support or IT services. This would involve searching federal procurement databases for contracts awarded in the years preceding 2008. Understanding past spending would provide context for whether the $24.26 million award represented an increase, decrease, or stable level of investment in database support services for the agency.

How did the number of bidders (3) impact the final price and value for the government?

Having 3 bidders for this competitive delivery order suggests a moderate level of competition. While more bidders generally lead to greater price pressure and potentially better value, three offers indicate that the market had sufficient interest and capability to respond. This level of competition likely prevented the contractor from charging excessively high prices and encouraged them to offer a competitive bid to secure the contract. It strikes a balance between ensuring a fair price and avoiding the administrative burden of managing a very large number of proposals.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AG-645S-S-08-0003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hewlett Packard Enterprise CO (UEI: 079834910)

Address: 13600 EDS DR, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,257,214

Exercised Options: $24,257,214

Current Obligation: $24,257,214

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AG645SC080013

IDV Type: IDC

Timeline