Peraton Inc. awarded $52.1M for IT support, with a significant portion allocated to research and evolution
Contract Overview
Contract Amount: $52,180,711 ($52.2M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2018-12-19
End Date: 2024-03-22
Contract Duration: 1,920 days
Daily Burn Rate: $27.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: XDOMAIN TECHNOLOGY THROUGH RESEARCH, EVOLUTION, ENHANCEMENT, MAINTENANCE AND SUPPORT (XTREEMS)
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $52.2 million to PERATON INC. for work described as: XDOMAIN TECHNOLOGY THROUGH RESEARCH, EVOLUTION, ENHANCEMENT, MAINTENANCE AND SUPPORT (XTREEMS) Key points: 1. Contract value indicates substantial investment in long-term IT system development and maintenance. 2. The 'Delivery Order' award type suggests this is part of a larger, pre-existing contract vehicle. 3. A Cost Plus Fixed Fee pricing structure can incentivize contractor efficiency but requires careful oversight. 4. The duration of the contract (1920 days) points to a need for sustained, ongoing support. 5. The specific NAICS code (541512) highlights a focus on computer systems design services. 6. The contract's performance period spans over five years, indicating a strategic commitment.
Value Assessment
Rating: good
The total award of $52.1 million over approximately five years suggests a moderate annual spend for IT support services. Benchmarking this against similar large-scale IT support contracts within the Department of Defense is crucial for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) structure, while common, necessitates diligent monitoring to ensure costs remain reasonable and the fixed fee is justified by the scope of work and contractor performance. Without specific comparable contract data, it's difficult to definitively state if this represents excellent value, but it appears within a plausible range for complex IT system support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, potentially leading to better pricing and innovative solutions. The fact that it was competed suggests that the agency sought the best value through a broad solicitation process. The number of bidders is not specified, but the 'full and open' designation implies a robust competition was intended.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages a wider range of contractors to vie for government work.
Public Impact
The Department of Defense benefits from enhanced and maintained IT systems, crucial for operational effectiveness. Services delivered likely include system design, evolution, research, enhancement, maintenance, and support for critical defense IT infrastructure. The geographic impact is likely concentrated within areas where the Department of Defense operates, potentially worldwide. Workforce implications may include the need for specialized IT professionals within Peraton Inc. and potentially within the DoD for oversight and integration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require rigorous oversight to prevent cost overruns and ensure the fixed fee remains appropriate for the effort.
- The long duration of the contract could lead to vendor lock-in if not managed carefully.
- The specific nature of 'research, evolution, enhancement, maintenance and support' can be broad, requiring clear performance metrics to ensure accountability.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
- The contract addresses critical IT systems for the Department of Defense, indicating a strategic need.
- The sustained nature of the contract suggests a stable, long-term relationship focused on essential services.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with significant spending allocated to system design, development, integration, and maintenance. Contracts like this are essential for maintaining the complex technological infrastructure required by agencies like the Department of Defense. Comparable spending benchmarks would involve analyzing other large IT support and development contracts awarded to major defense contractors.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, it is unlikely to have significant direct subcontracting opportunities specifically targeted at small businesses unless mandated by the prime contractor or agency policy. The primary impact on the small business ecosystem would be indirect, through the potential competition faced by smaller IT firms if they were not able to compete at this scale or through the prime contractor's own subcontracting decisions.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense's contract management and oversight bodies, potentially including the Defense Contract Management Agency (DCMA) given the 'sa' field. The Cost Plus Fixed Fee structure necessitates robust financial and performance oversight to ensure costs are reasonable and allocable to the contract, and that the fixed fee is earned. Transparency would depend on the agency's policies regarding the release of contract details and performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Department of Defense IT Modernization Programs
- Defense Information Systems Agency (DISA) Contracts
- IT Services for National Security Systems
- Computer Systems Design and Related Services
Risk Flags
- Cost Plus Fixed Fee contract type requires robust oversight.
- Broad scope of services may lead to challenges in performance measurement.
- Long contract duration could present risks if requirements change significantly.
Tags
it-services, computer-systems-design, department-of-defense, peraton-inc, cost-plus-fixed-fee, full-and-open-competition, delivery-order, defense-contract-management-agency, research-and-development, it-maintenance, long-term-contract, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.2 million to PERATON INC.. XDOMAIN TECHNOLOGY THROUGH RESEARCH, EVOLUTION, ENHANCEMENT, MAINTENANCE AND SUPPORT (XTREEMS)
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $52.2 million.
What is the period of performance?
Start: 2018-12-19. End: 2024-03-22.
What is the historical spending trend for Peraton Inc. with the Department of Defense for similar IT services?
Analyzing Peraton Inc.'s historical spending with the Department of Defense for similar IT services requires access to comprehensive federal procurement databases. Typically, a contractor's past performance is a key evaluation factor in competitive procurements. A review would involve examining the total value and duration of previous contracts, the types of services rendered (e.g., system design, maintenance, R&D), and the contractor's performance ratings on those contracts. Significant prior awards in related IT domains would suggest a strong track record and established relationship, potentially justifying the current award. Conversely, a lack of relevant experience or poor past performance could raise concerns about value and risk.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for IT system evolution and maintenance?
The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves research and development, making it suitable for IT system evolution. In CPFF, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This contrasts with Fixed Price contracts, where the price is set regardless of costs, incentivizing efficiency but potentially increasing risk for the contractor if costs escalate. Cost Plus Incentive Fee (CPIF) contracts share costs and profits based on performance metrics. For IT system maintenance, a firm-fixed-price contract might be more appropriate if the scope is stable. CPFF's advantage lies in flexibility for evolving requirements, but its disadvantage is the potential for cost growth, necessitating stringent oversight to ensure value for money.
What are the key performance indicators (KPIs) used to measure the success of the XTREEMS contract?
Key Performance Indicators (KPIs) for a contract like XTREEMS (XDOMAIN TECHNOLOGY THROUGH RESEARCH, EVOLUTION, ENHANCEMENT, MAINTENANCE AND SUPPORT) would likely focus on the reliability, availability, and performance of the IT systems supported. Specific metrics could include system uptime percentages, response times for issue resolution, successful implementation of system enhancements, completion rates for research tasks, and adherence to security protocols. For the 'evolution' and 'enhancement' aspects, KPIs might measure the successful integration of new features or technologies and their impact on system efficiency or user satisfaction. The 'maintenance and support' components would be measured by metrics like mean time between failures (MTBF) and mean time to repair (MTTR). The fixed fee in the CPFF structure would be tied to achieving these defined performance standards.
What is the potential impact of this contract on the broader IT services market within the defense sector?
This $52.1 million contract awarded to Peraton Inc. for IT services within the Department of Defense (DoD) signifies a substantial investment in maintaining and evolving critical defense technology infrastructure. Such large-scale contracts can influence the broader IT services market by setting benchmarks for pricing, service delivery, and technological innovation. It may also indicate a trend towards consolidating IT support functions under fewer, larger prime contractors capable of managing complex, long-term projects. For smaller IT firms, this could mean fewer direct opportunities with the DoD for large system development, but potentially more subcontracting roles or opportunities in niche technology areas not covered by the prime. The focus on 'research, evolution, and enhancement' suggests the DoD is prioritizing forward-looking technological advancements.
Are there any specific risks associated with the 'research, evolution, enhancement, maintenance and support' scope of this contract?
The broad scope of 'research, evolution, enhancement, maintenance and support' presents several potential risks. For 'research,' the risk lies in uncertain outcomes and the possibility of investing in technologies that do not yield practical benefits or become obsolete quickly. 'Evolution' and 'enhancement' carry risks related to scope creep, integration challenges with existing systems, and the potential for unforeseen technical hurdles. 'Maintenance and support' risks include system vulnerabilities, downtime, and the challenge of keeping pace with evolving threats and technological advancements. The Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility, requires diligent oversight to mitigate risks of cost overruns and ensure that the contractor is adequately incentivized to manage these diverse aspects efficiently and effectively.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12975 WORLDGATE STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $65,561,222
Exercised Options: $65,561,222
Current Obligation: $52,180,711
Actual Outlays: $2,774,288
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $23,423,331
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: GS00Q09BGD0031
IDV Type: GWAC
Timeline
Start Date: 2018-12-19
Current End Date: 2024-03-22
Potential End Date: 2024-03-22 00:00:00
Last Modified: 2025-09-20
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