DoD's ITCC II contract awarded $30.6M for computer systems design, with Peraton Enterprise Solutions LLC as the primary contractor

Contract Overview

Contract Amount: $30,622,183 ($30.6M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2020-12-03

End Date: 2021-07-01

Contract Duration: 210 days

Daily Burn Rate: $145.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: IT

Official Description: INFORMATION TECHNOLOGY CAPABILITIES CONTRACT (ITCC) II PROCUREMENT TASK ORDER

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $30.6 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: INFORMATION TECHNOLOGY CAPABILITIES CONTRACT (ITCC) II PROCUREMENT TASK ORDER Key points: 1. The contract's value of $30.6 million represents a significant investment in IT capabilities for the Air Force. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and potential for taxpayer savings. 3. Risk indicators are evaluated based on contract type, performance period, and contractor history. 4. Performance context is established by comparing this award to similar IT services contracts. 5. The contract's positioning within the broader IT services sector highlights the demand for specialized computer systems design. 6. The relatively short performance period of 210 days suggests a focused, project-specific need rather than long-term support.

Value Assessment

Rating: good

The award of $30.6 million for computer systems design services appears reasonable given the scope of IT capabilities required by the Department of Defense. Benchmarking against similar large-scale IT services contracts suggests that Peraton Enterprise Solutions LLC's pricing is competitive. The contract type, Cost No Fee, indicates that the government is primarily concerned with the delivery of services rather than strict cost control, which can sometimes lead to higher overall expenditures but ensures access to necessary expertise. Further analysis of the specific deliverables and the contractor's historical performance on similar contracts would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The specific number of bidders is not provided in the data, but a full and open competition generally fosters a competitive environment, driving down prices and encouraging innovation. This approach allows the government to select the best value solution from a wide pool of potential contractors, ensuring that taxpayer funds are used efficiently.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is not limited to a single provider, which could lead to inflated costs.

Public Impact

The primary beneficiaries of this contract are the Department of the Air Force, which will receive enhanced IT capabilities. The services delivered are focused on computer systems design, likely supporting critical Air Force operations and infrastructure. The geographic impact is primarily within the Department of the Air Force's operational areas, potentially nationwide or global. Workforce implications may include the utilization of specialized IT professionals by Peraton Enterprise Solutions LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the delivered IT capabilities.
The 'Cost No Fee' contract type could potentially lead to cost overruns if not closely monitored.
Limited data on the number of bidders in the full and open competition makes it hard to definitively gauge the extent of price discovery.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contractor, Peraton Enterprise Solutions LLC, is likely experienced in providing IT services to government entities.
The contract addresses a clear need for computer systems design within the Department of the Air Force.

Sector Analysis

The Information Technology (IT) services sector is a vast and critical component of government operations, encompassing a wide range of services from software development to cybersecurity and systems integration. The market size for federal IT services is substantial, with agencies consistently investing in modernizing their technological infrastructure. This contract for computer systems design services fits within the broader IT consulting and integration sub-sector, which is characterized by a mix of large prime contractors and specialized small businesses. Comparable spending benchmarks in this area often involve multi-year, multi-billion dollar Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, making this specific task order a component of a larger IT procurement strategy.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Peraton Enterprise Solutions LLC, may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their own subcontracting plans and the nature of the IT services required. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were not prioritized.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and reporting requirements. Transparency is facilitated through contract award databases and public reporting mechanisms. While specific Inspector General (IG) jurisdiction is not detailed, the DoD IG generally has oversight over all DoD contracts to investigate fraud, waste, and abuse.

Related Government Programs

Information Technology Capabilities Contract (ITCC) II
Department of Defense IT Services Procurement
Air Force Computer Systems Design Contracts
Federal IT Consulting Services
Cost-Reimbursement Contracts

Risk Flags

Cost No Fee contract type may lack strong cost control incentives.
Limited performance period could restrict the scope of achievable outcomes.
Lack of specific bidder count for full and open competition limits detailed competition analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.6 million to PERATON ENTERPRISE SOLUTIONS LLC. INFORMATION TECHNOLOGY CAPABILITIES CONTRACT (ITCC) II PROCUREMENT TASK ORDER

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $30.6 million.

What is the period of performance?

Start: 2020-12-03. End: 2021-07-01.

What is the track record of Peraton Enterprise Solutions LLC in delivering similar IT services to the Department of Defense?

Peraton Enterprise Solutions LLC has a significant history of contracting with the U.S. government, including the Department of Defense, across various IT and mission support services. While specific details for this particular ITCC II task order are limited, Peraton has been involved in large-scale contracts related to enterprise IT, cybersecurity, and command and control systems. Their performance on previous contracts would be a key indicator of their capability to successfully execute this computer systems design task. A deeper dive into their past performance ratings, any past performance issues, and the types of systems they have designed or managed would provide a more comprehensive understanding of their suitability for this role. Government contract databases and past performance reviews are essential resources for this assessment.

How does the $30.6 million award compare to other IT systems design contracts awarded by the Air Force in recent years?

The $30.6 million award for computer systems design services under the ITCC II contract is a substantial but not extraordinary figure within the context of large federal IT procurements. The Air Force, like other branches of the DoD, frequently awards contracts in the tens to hundreds of millions of dollars for complex IT solutions. To benchmark effectively, one would compare this award to other task orders issued under the ITCC II vehicle, as well as similar contracts for systems design and integration services awarded by the Air Force or other DoD agencies. Factors such as the duration of the contract (210 days in this case), the specific technical requirements, and the competitive landscape at the time of award would influence the comparison. Generally, contracts with shorter durations and specific scopes tend to be smaller than broad, long-term IT support or development contracts.

What are the primary risks associated with a 'Cost No Fee' (Cost) contract type for computer systems design services?

The 'Cost No Fee' (Cost) contract type, while less common than Cost Plus Fixed Fee (CPFF) or other incentive types, presents specific risks. The primary risk for the government is the potential for cost overruns, as the contractor is reimbursed for all allowable costs incurred. Since there is no fee or profit tied to performance or cost efficiency, the contractor may have less incentive to control costs rigorously. For computer systems design, where requirements can evolve and technical challenges may arise, this lack of inherent cost control incentive can be a concern. Effective oversight, detailed cost tracking, and robust auditing by the government are crucial to mitigate these risks and ensure that costs remain reasonable and allocable to the contract's objectives.

What is the expected effectiveness of the computer systems design services delivered under this contract, given its short duration?

The effectiveness of the computer systems design services under this contract will largely depend on the specific objectives defined for the 210-day performance period. A short duration suggests that the contract is likely focused on a well-defined project, such as the design of a specific system component, a feasibility study, or the development of a prototype, rather than a comprehensive, long-term system development lifecycle. If the scope is appropriately tailored to the timeframe, the services can be highly effective in achieving targeted design outcomes. However, if the project scope is too ambitious for the duration, or if unforeseen technical complexities arise, effectiveness could be limited. Clear deliverables, measurable success criteria, and proactive project management by both the contractor and the Air Force will be critical to ensuring effectiveness.

How has federal spending on computer systems design services evolved over the past five years, and where does this contract fit in?

Federal spending on computer systems design services has generally seen a consistent upward trend over the past five years, driven by the ongoing need for agencies to modernize legacy systems, enhance cybersecurity, and adopt new technologies like cloud computing and artificial intelligence. This specific $30.6 million award fits within this broader trend as a component of the Department of the Air Force's investment in its IT infrastructure. While this single task order represents a modest portion of the total federal IT budget, it reflects the continued demand for specialized design expertise. Analyzing historical spending patterns for the ITCC II contract vehicle itself, or for similar computer systems design procurements by the Air Force, would provide further context on how this award aligns with established spending trajectories and priorities.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST NO FEE (S)

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

Financial Breakdown

Contract Ceiling: $30,622,183

Exercised Options: $30,622,183

Current Obligation: $30,622,183

Actual Outlays: $24,183,618

Subaward Activity

Number of Subawards: 255

Total Subaward Amount: $265,045,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA460021D0001

IDV Type: IDC

Timeline