DOJ's FBI awards $28.6M for computing infrastructure, data processing, and web hosting services

Contract Overview

Contract Amount: $28,662,349 ($28.7M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Justice

Start Date: 2016-08-29

End Date: 2021-05-31

Contract Duration: 1,736 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL::IGF SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20535

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $28.7 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::CL::IGF SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of the contract is over 4 years, indicating a long-term need. 4. The North American Industry Classification System (NAICS) code 518210 points to a focus on data processing and hosting. 5. The contract was awarded to Peraton Enterprise Solutions LLC. 6. The contract was a BPA Call, a type of task order under a larger agreement.

Value Assessment

Rating: fair

The total award amount of $28.6 million over approximately 4.7 years averages to about $6.1 million per year. Without specific performance metrics or comparison to similar contracts for computing infrastructure and data processing services, it is difficult to definitively assess value for money. The firm fixed-price nature of the contract provides cost certainty for the government, but the overall value hinges on the quality and efficiency of the services delivered by Peraton Enterprise Solutions LLC.

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 specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the FBI sought the best possible solution through a broad market search.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is intended to drive down costs and improve the quality of services through market forces.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary of these services, likely supporting its critical law enforcement and intelligence operations. Services include computing infrastructure, data processing, and web hosting, essential for modern digital operations. The contract is geographically focused on the District of Columbia. The contract supports the technology infrastructure necessary for the FBI's workforce to perform its duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it hard to gauge true value for money.
Limited insight into the number of bidders in the full and open competition.
The duration of the contract could lead to vendor lock-in if not managed carefully.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm Fixed Price contract type transfers cost overrun risk to the contractor.
The contract supports essential IT infrastructure for a critical federal agency.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. This is a highly competitive and rapidly evolving market. Spending in this area is crucial for federal agencies to maintain and upgrade their technological capabilities, manage vast amounts of data, and provide secure online services. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar IT infrastructure and data management services, often within the defense and intelligence communities.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and larger, established companies were likely the primary participants in the bidding process. There is no information on subcontracting plans for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Office of the Inspector General, as well as internal FBI oversight mechanisms. The firm fixed-price nature of the contract provides a degree of financial accountability. Transparency would be enhanced by public contract databases and reporting requirements, though specific performance monitoring details are not publicly detailed.

Related Government Programs

FBI IT Modernization Programs
Federal Data Center Consolidation Initiative
Cloud Computing Services Contracts
Information Technology Infrastructure Support

Risk Flags

Potential for scope creep in long-term IT contracts.
Risk of technological obsolescence if contract terms do not allow for updates.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $28.7 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::CL::IGF 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 Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $28.7 million.

What is the period of performance?

Start: 2016-08-29. End: 2021-05-31.

What was the specific performance history of Peraton Enterprise Solutions LLC on similar federal contracts prior to this award?

Assessing the past performance of Peraton Enterprise Solutions LLC on similar federal contracts is crucial for understanding their capability to deliver on this $28.6 million award. While the provided data does not include specific past performance details, a thorough review would involve examining contract databases (like the Federal Procurement Data System - FPDS) for previous awards to Peraton in areas such as computing infrastructure, data processing, and web hosting. Key indicators to look for include on-time delivery, adherence to budget, quality of service, and any documented performance issues or disputes. Positive past performance on comparable contracts would increase confidence in their ability to meet the FBI's requirements, while negative indicators would raise concerns about potential risks and the overall value for money.

How does the average annual cost of this contract compare to industry benchmarks for similar IT infrastructure and data processing services?

The average annual cost for this contract is approximately $6.1 million ($28.6 million / 4.7 years). To benchmark this against industry standards, one would need to compare it with data from similar government contracts awarded to other agencies or private sector clients for comparable services. This comparison should consider factors such as the scope of services (e.g., cloud vs. on-premise, specific processing capabilities, security levels), the volume of data handled, and the geographic location. Without access to detailed market research or a comprehensive database of comparable IT service contracts, a precise benchmark is difficult. However, the fact that it was awarded under full and open competition suggests that the pricing was deemed competitive within the market at the time of award.

What are the primary risks associated with a firm fixed-price contract for complex IT services like data processing and web hosting?

The primary risk associated with a firm fixed-price (FFP) contract for complex IT services is the potential for the contractor to cut corners on quality or scope to maintain profitability if costs exceed initial estimates. While FFP shifts cost overrun risk to the contractor, it can lead to disputes over scope creep or performance deficiencies if the contract is not meticulously defined. For services like data processing and web hosting, risks include service disruptions, data breaches, inadequate scalability, and failure to meet evolving technological requirements. Effective government oversight, clear performance standards, and robust contract management are essential to mitigate these risks and ensure the government receives the intended value.

What is the FBI's historical spending pattern for computing infrastructure, data processing, and web hosting services?

Analyzing the FBI's historical spending patterns for computing infrastructure, data processing, and web hosting services is vital for understanding the context of this $28.6 million award. This would involve examining contract data over several fiscal years to identify trends in spending levels, the types of services procured, the primary contractors utilized, and the competition dynamics. Significant year-over-year increases or decreases in spending could indicate shifts in strategic priorities, technological adoption (e.g., migration to cloud services), or changes in operational needs. Understanding this history helps in assessing whether the current contract represents a continuation of established spending, a new initiative, or a response to changing market conditions, and whether the current award amount is consistent with past investments.

How does the duration of this contract (over 4 years) impact the FBI's ability to adapt to rapidly changing IT technologies?

A contract duration of over 4 years for IT services like computing infrastructure and data hosting presents a balance between securing long-term service stability and maintaining technological agility. On one hand, a longer duration can provide cost savings through economies of scale and reduce the administrative burden of frequent re-competitions. It allows the contractor to invest in infrastructure and personnel dedicated to the FBI's needs. However, the rapid pace of technological advancement in IT means that a 4-year-old contract might not reflect the latest, most efficient, or secure solutions available towards its end. To mitigate this, contracts often include provisions for technology refresh, service level adjustments, or phased transitions to newer technologies, but the effectiveness of these provisions is key.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 13600 EDS DR A3S-B53, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $48,562,660

Exercised Options: $48,562,660

Current Obligation: $28,662,349

Actual Outlays: $12,208,742

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $3,411,605

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: DJF151200E0002675

IDV Type: BPA

Timeline