DoD's $31M Electronic Data Systems Contract for Systems Engineering Services: Fair Competition, Questionable Value

Contract Overview

Contract Amount: $31,166,877 ($31.2M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2006-03-10

End Date: 2011-12-31

Contract Duration: 2,122 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TAS::57 3400::TAS 200606!000625!5700!FA5613!700 CONS/LGC !GS35F0323J !C!N! !Y!FA561306FA001! !20060310!20110314!077817617!077817617!046667523!N!ELECTRONIC DATA SYSTEMS CORPOR!13600 EDS DR !HERNDON !VA!20171!00000! !GM!* !* !GERMANY !+000002329943!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561210!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! !FA5613!0001! !

Plain-Language Summary

Department of Defense obligated $31.2 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: TAS::57 3400::TAS 200606!000625!5700!FA5613!700 CONS/LGC !GS35F0323J !C!N! !Y!FA561306FA001! !20060310!20110314!077817617!077817617!046667523!N!ELECTRONIC DATA SYSTEMS CORPOR!13600 EDS DR !HERNDON !VA!20171!00000! !GM!* … Key points: 1. The contract awarded to Electronic Data Systems Corporation (EDS) for Systems Engineering Services was valued at $31,166,876.74. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The pricing assessment is questionable due to the lack of detailed cost breakdowns and the long duration of the contract. 4. The sector is IT, specifically Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.

Value Assessment

Rating: questionable

The total value of $31.17 million over approximately 5 years suggests a significant investment. However, without detailed cost breakdowns or performance metrics, it's difficult to definitively assess value for money compared to similar contracts. The lack of specific deliverables makes benchmarking challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting a robust process to solicit bids. This method generally promotes price discovery and competitive pricing, though the final price is still subject to negotiation and the specific terms of the SOW.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, but the overall value for money remains uncertain without further performance data.

Public Impact

This contract supported critical systems engineering functions for the Department of Defense, impacting operational capabilities. The use of a large, established contractor like EDS indicates a reliance on experienced providers for complex IT services. The duration of the contract (over 5 years) suggests a long-term need for these services, potentially indicating a stable but significant expenditure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown
Long contract duration without clear performance metrics
Ambiguity in specific services provided

Positive Signals

Awarded under full and open competition
Significant investment in critical IT infrastructure

Sector Analysis

This contract falls within the IT sector, specifically 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.' Spending in this area is substantial across the government, with benchmarks varying widely based on service type and complexity.

Small Business Impact

There is no indication in the provided data whether small businesses were involved as subcontractors or prime contractors. The award to a large entity like EDS suggests a focus on established prime contractors for this type of service.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, part of the Department of Defense. Standard DoD oversight mechanisms would apply, but specific details on monitoring performance and ensuring accountability are not provided.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for technological obsolescence
Lack of specific performance metrics
Ambiguity in service scope
Significant contract value over a long period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.2 million to PERATON ENTERPRISE SOLUTIONS LLC. TAS::57 3400::TAS 200606!000625!5700!FA5613!700 CONS/LGC !GS35F0323J !C!N! !Y!FA561306FA001! !20060310!20110314!077817617!077817617!046667523!N!ELECTRONIC DATA SYSTEMS CORPOR!13600 EDS DR !HERNDON !VA!20171!00000! !GM!* !* !GERMANY !+000002329943!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561210!E

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 $31.2 million.

What is the period of performance?

Start: 2006-03-10. End: 2011-12-31.

What were the specific systems engineering tasks performed under this contract, and how did they contribute to the Air Force's mission?

The contract broadly covers 'SYSTEMS ENGINEERING SERVICES.' Without a detailed Statement of Work (SOW) or task orders, it's impossible to specify the exact services. These could range from system design, integration, testing, and lifecycle support for various Air Force platforms or IT infrastructure. The contribution would depend entirely on the nature of these services and their alignment with operational requirements.

How was the 'value for money' assessed given the $31M price tag and the lack of detailed performance metrics?

Assessing 'value for money' for $31M without detailed performance metrics is challenging. While 'Full and Open Competition' suggests a competitive price discovery, the ultimate value depends on the effectiveness and efficiency of the services rendered. The government likely relied on the contractor's reputation and the competitive bid process, but post-award performance monitoring is crucial for true value assessment.

What is the risk associated with a long-term (5+ year) contract for IT systems engineering services, especially concerning technological obsolescence?

Long-term IT contracts carry risks of technological obsolescence, vendor lock-in, and potential cost overruns if requirements change or technology evolves rapidly. For systems engineering, this could mean the designed or supported systems become outdated before the contract ends. Mitigation often involves flexible contract structures, regular reviews, and incorporating technology refresh clauses.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: HP, Inc. (UEI: 009122532)

Address: 13600 EDS DR, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: GS35F0323J

IDV Type: FSS

Timeline