DoD's $20M contract for telecom network management services awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $20,123,326 ($20.1M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2003-12-03

End Date: 2007-12-31

Contract Duration: 1,489 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 200404!000006!5700!GV63 !ESC/DIGK !DCA20002D5007 !C!N! !N!FA872604F0006! !20031203!20041213!077817617!077817617!046667523!N!ELECTRONIC DATA SYSTEMS CORPOR!13600 EDS DRIVE !HERNDON !VA!20171!36648!059!51!HERNDON !FAIRFAX !VIRGINIA !+000006559104!N!N!000000000000!D316!TELECOMMUNICATION NETWORK MANAGEMENT SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541513!E! !5!A!S! ! ! !99990909!B!A!N!A! !A! !Y! !001!F! !Z! ! ! ! ! !C!N! ! ! !Z!Z!A!A!000! !B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: 200404!000006!5700!GV63 !ESC/DIGK !DCA20002D5007 !C!N! !N!FA872604F0006! !20031203!20041213!077817617!077817617!046667523!N!ELECTRONIC DATA SYSTEMS CORPOR!13600 EDS DRIVE !HERNDON !VA!20171!36648!059!51!HERNDON !FAIR… Key points: 1. Value for money assessed as fair given the contract's duration and scope. 2. Competition dynamics indicate a full and open process, potentially leading to better pricing. 3. Risk indicators are moderate, with performance context suggesting a need for close monitoring. 4. Sector positioning places this contract within the broader IT and telecommunications services market. 5. The contract's focus on essential network management services highlights its critical operational role.

Value Assessment

Rating: fair

The contract value of approximately $20 million over its period of performance appears reasonable for comprehensive telecommunication network management services. Benchmarking against similar contracts is challenging without more specific service details, but the pricing seems aligned with industry standards for IT infrastructure support. The Time and Materials (T&M) pricing structure, while offering flexibility, necessitates careful oversight to ensure cost control and prevent scope creep. The total value suggests a significant undertaking, requiring efficient resource allocation and management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not detailed, but this procurement method generally fosters a competitive environment. A robust competition is expected to drive down prices and encourage innovation as contractors vie for the award. The outcome of such a competition can be a strong indicator of the market's responsiveness to the government's needs.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of solutions, maximizing the value of federal dollars spent.

Public Impact

The Department of Defense benefits from reliable and managed telecommunication networks, crucial for operational readiness. Services delivered include the management and maintenance of critical communication infrastructure. The geographic impact is likely nationwide, supporting DoD operations across various installations. Workforce implications may involve specialized IT and telecommunications personnel, both within the contractor and potentially requiring government oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Time and Materials (T&M) contract type if not closely managed.
Ensuring consistent service quality and performance across a potentially wide range of network components.
Dependency on the contractor for critical communication infrastructure could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Contractor has a track record, suggesting experience in delivering similar services.
The contract addresses essential operational needs for telecommunication network management.

Sector Analysis

This contract falls within the Information Technology and Telecommunications sector, a critical area for government operations. The market for network management services is substantial, with numerous providers offering specialized solutions. This contract represents a significant investment in maintaining robust communication capabilities, aligning with broader government efforts to modernize and secure IT infrastructure. Comparable spending benchmarks in this sector often involve multi-year agreements for large-scale network operations and maintenance.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large contract likely awarded through full and open competition, the primary contractor, Peraton Enterprise Solutions LLC, would be responsible for any subcontracting. The extent to which small businesses are involved would depend on Peraton's subcontracting plan and adherence to federal small business utilization goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and performance standards. Accountability measures would be tied to the contract's performance metrics and deliverables. Transparency is facilitated through contract awards databases, though detailed operational performance data may be less publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) contracts
General Services Administration (GSA) IT Schedule contracts
Other DoD telecommunications and network support contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Need for stringent oversight to manage contractor performance and resource utilization.
Ensuring consistent service quality and security for critical communication infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to PERATON ENTERPRISE SOLUTIONS LLC. 200404!000006!5700!GV63 !ESC/DIGK !DCA20002D5007 !C!N! !N!FA872604F0006! !20031203!20041213!077817617!077817617!046667523!N!ELECTRONIC DATA SYSTEMS CORPOR!13600 EDS DRIVE !HERNDON !VA!20171!36648!059!51!HERNDON !FAIRFAX !VIRGINIA !+000006559104!N!N!000000000000!D316!TELECOMMUNICATION NETWORK MANAGEMENT SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541513!E! !5!A!S! ! ! !999

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2003-12-03. End: 2007-12-31.

What is the historical spending pattern for telecommunication network management services by the Department of Defense?

Historical spending on telecommunication network management services by the Department of Defense (DoD) has been substantial and consistent, reflecting the critical nature of these services for military operations. While specific figures fluctuate annually based on evolving technological needs and strategic priorities, the DoD consistently allocates significant portions of its IT budget to ensure secure, reliable, and efficient communication networks. This includes investments in infrastructure, maintenance, and advanced network solutions. Analyzing past contract awards, such as the one to Peraton Enterprise Solutions LLC, reveals a trend of long-term engagements with major IT service providers to manage complex networks. Spending is often driven by the need to upgrade aging systems, integrate new technologies (like cloud computing and cybersecurity enhancements), and maintain global connectivity across diverse operational environments. The overall trend indicates a sustained demand for these services, with spending levels influenced by geopolitical factors, technological advancements, and budget appropriations.

How does the awarded amount compare to similar contracts for network management services?

The awarded amount of approximately $20 million for Peraton Enterprise Solutions LLC's telecommunication network management services appears to be within a moderate range when compared to similar large-scale contracts. Contracts for comprehensive network management, especially those supporting major government agencies like the DoD, can range from tens of millions to hundreds of millions of dollars, depending on the scope, duration, and complexity of the network infrastructure involved. Factors such as the number of users supported, geographic coverage, specific technologies managed (e.g., satellite, fiber optics, wireless), and the level of security required significantly influence contract value. Given that this contract spans several years and covers essential network functions, the $20 million figure suggests a focused scope or a specific segment of the DoD's overall network management needs. Without detailed comparisons of service level agreements and technical requirements, a precise value-for-money assessment is difficult, but the amount is not an outlier for significant IT service contracts.

What are the key performance indicators (KPIs) typically used to evaluate the success of such a contract?

Key Performance Indicators (KPIs) for a telecommunication network management services contract like this one are crucial for ensuring service quality and accountability. Common KPIs include network uptime and availability, often measured as a percentage (e.g., 99.9% availability). Mean Time To Repair (MTTR) is another critical metric, measuring how quickly network issues are resolved. Performance metrics also often cover response times for service requests, the success rate of network upgrades or maintenance activities, and adherence to security protocols. Customer satisfaction surveys, particularly from the end-users within the DoD, can also be incorporated. For a Time and Materials contract, tracking labor hours and material costs against budgeted amounts and ensuring efficient resource utilization are also vital performance indicators. The contract likely specifies a set of these KPIs, with penalties or incentives tied to meeting or exceeding targets.

What is the track record of Peraton Enterprise Solutions LLC in delivering similar IT and telecommunications services?

Peraton Enterprise Solutions LLC, and its parent company Peraton, have a significant track record in delivering a wide array of IT, telecommunications, and mission-critical services to government agencies, including the Department of Defense. They are known for handling complex, large-scale programs involving secure communications, network modernization, and advanced technology solutions. Their experience often spans areas such as command and control systems, cyber operations, and enterprise IT infrastructure management. Peraton has grown through strategic acquisitions, integrating capabilities that enhance their service offerings. While specific performance details for every contract are not always public, their consistent awards and continued engagement with major government clients suggest a generally positive performance history. However, as with any large government contractor, specific contract performance can vary, and ongoing monitoring is essential.

What are the potential risks associated with a Time and Materials (T&M) contract for network management?

Time and Materials (T&M) contracts, like the one awarded to Peraton Enterprise Solutions LLC, carry inherent risks, primarily related to cost control. The primary risk is that the total cost can exceed initial estimates if the scope of work expands or if labor hours and material usage are not meticulously managed. This can lead to budget overruns for the government. Another risk is the potential for inefficiency; without a fixed price, there might be less incentive for the contractor to optimize resource utilization. For the government, effective oversight is paramount to ensure that all billed hours and materials are necessary, reasonable, and directly related to the contract's objectives. Scope creep is also a concern, as T&M contracts can sometimes make it easier for requirements to expand without formal change orders, driving up costs. Robust monitoring and clear definition of tasks are essential to mitigate these risks.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

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

Address: 13600 EDS DR, HERNDON, VA, 11

Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations

Parent Contract

Parent Award PIID: DCA20002D5007

IDV Type: IDC

Timeline