DoD's $13.3M Telecommunication Network Management Services contract awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $13,351,257 ($13.4M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2005-10-25

End Date: 2006-09-30

Contract Duration: 340 days

Daily Burn Rate: $39.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COMBINATION (TWO OR MORE)

Sector: IT

Official Description: 200603!000077!5700!FA8773!38EIG/PK !GS00T03AHD0008 !C!N! !Y!FA877305F0281!P00001!20051025!20060930!077817617!077817617!046667523!N!ELECTRONIC DATA SYSTEMS CORPOR!13600 EDS DR !HERNDON !VA!20171!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000014000962!N!N!000000000000!D316!TELECOMMUNICATION NETWORK MANAGEMENT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !517910!E! !5!B!M! !A! !99990909!B!E!Y!A! !A! !J! !001!B! !Z! ! ! ! ! !C!N! ! ! !Z!Z!A!A!000! !D!N! ! ! ! ! ! !0001! !

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20522

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: 200603!000077!5700!FA8773!38EIG/PK !GS00T03AHD0008 !C!N! !Y!FA877305F0281!P00001!20051025!20060930!077817617!077817617!046667523!N!ELECTRONIC DATA SYSTEMS CORPOR!13600 EDS DR !HERNDON !VA!20171!50000!001!11!WASHINGTON !DIST… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 340 days indicates a short-term or project-specific need. 3. The award value of $13.3M falls within a moderate spending range for IT services. 4. The primary NAICS code (517110) points to a focus on wired telecommunications infrastructure. 5. The contract was awarded to a single entity, Peraton Enterprise Solutions LLC. 6. The contract was awarded by the Department of the Air Force, a major DoD component.

Value Assessment

Rating: fair

The contract value of $13.3M for telecommunication network management services over approximately one year appears to be within a reasonable range for such specialized IT support. Benchmarking against similar contracts is challenging without more specific service details and performance metrics. However, the award to a single contractor suggests that pricing was deemed acceptable by the awarding agency, though further analysis of the bidding process could reveal more about value for money.

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 data shows 2 bids were received. A competitive process like this generally allows the government to solicit the best possible pricing and technical solutions from multiple vendors. The fact that only two bids were submitted might suggest a niche market or specific requirements that limited the pool of potential offerors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value. While two bids are better than one, a higher number of bidders could potentially drive prices down further, leading to greater savings.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Air Force, which receives essential telecommunication network management services. The services delivered likely ensure the reliable operation and maintenance of wired telecommunication networks critical for military communications. The geographic impact is centered around Washington D.C., where the contractor's address is listed, suggesting potential local workforce implications. The contract supports the operational readiness and communication infrastructure of the U.S. Air Force.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bids submitted could indicate potential for higher pricing than a more robustly competed contract.
The short contract duration (340 days) might suggest a stop-gap measure or a project with an uncertain long-term future, requiring potential re-competition soon.
Lack of detailed service descriptions makes it difficult to fully assess the scope and potential risks associated with the network management.

Positive Signals

Awarded under full and open competition, which is a positive indicator for achieving fair market value.
The contractor, Peraton Enterprise Solutions LLC, is a known entity in the government contracting space, suggesting some level of established capability.
The contract is for essential IT services supporting military communications infrastructure.

Sector Analysis

The telecommunications industry, particularly wired telecommunications carriers (NAICS 517110), is a critical sector supporting both government and commercial operations. This contract falls within the IT services segment of the federal market. Federal spending in this area is substantial, covering network infrastructure, maintenance, and management. Comparable spending benchmarks would typically involve analyzing other contracts for similar network management services across various government agencies, considering factors like contract duration, scope of work, and security requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SB is 'N'). There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Air Force's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by contract award databases, but detailed performance data and specific oversight activities are often not publicly disclosed.

Related Government Programs

Defense Information Technology Contracting
Telecommunications Services Contracts
Network Infrastructure Support
IT Managed Services
Air Force IT Procurement

Risk Flags

Limited Competition
Short Contract Duration
Potential for Performance Issues
Security Risks in Network Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to PERATON ENTERPRISE SOLUTIONS LLC. 200603!000077!5700!FA8773!38EIG/PK !GS00T03AHD0008 !C!N! !Y!FA877305F0281!P00001!20051025!20060930!077817617!077817617!046667523!N!ELECTRONIC DATA SYSTEMS CORPOR!13600 EDS DR !HERNDON !VA!20171!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000014000962!N!N!000000000000!D316!TELECOMMUNICATION NETWORK MANAGEMENT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !517910!E! !5!B!M! !A! !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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $13.4 million.

What is the period of performance?

Start: 2005-10-25. End: 2006-09-30.

What is the track record of Peraton Enterprise Solutions LLC with similar telecommunication network management contracts within the DoD?

Peraton Enterprise Solutions LLC, and its predecessor entities, have a history of performing telecommunication and IT services for the U.S. government. While this specific contract is for network management, Peraton's broader portfolio often includes complex IT solutions, cybersecurity, and enterprise network support for various federal agencies. Analyzing their past performance on similar-sized or scoped contracts, particularly within the Department of Defense, would involve reviewing contract databases for awards, performance ratings (if available), and any reported issues or successes. A deeper dive would assess their experience with wired telecommunications infrastructure, service level agreements, and operational uptime requirements pertinent to military communications.

How does the $13.3M award value compare to market rates for similar telecommunication network management services?

Benchmarking the $13.3M award value requires a detailed understanding of the specific services rendered, the duration (340 days), and the geographic scope. Telecommunication network management can encompass a wide range of activities, from basic maintenance to complex infrastructure upgrades and 24/7 monitoring. Given the 'full and open competition' and two bids, the price was likely deemed competitive by the Air Force. However, without granular data on the number of users supported, network complexity, and specific service level agreements (SLAs), a precise market comparison is difficult. Generally, for a contract of this approximate value and duration, it suggests a significant but not massive undertaking, potentially covering a specific regional network or a critical set of communication lines.

What are the primary risks associated with this contract, considering its scope and duration?

Key risks for this contract include potential performance issues if the contractor fails to meet stringent uptime and reliability requirements crucial for military communications. Given the short duration (340 days), there's a risk of disruption if the transition to or from the contractor is not managed effectively. Another risk is vendor lock-in or dependency, although the limited competition (2 bids) might mitigate this somewhat by signaling a potentially competitive market. Security risks are also inherent in managing telecommunication networks; any breach could have significant operational and national security implications. Finally, the risk of cost overruns, while seemingly contained within the award amount, could arise if unforeseen technical challenges emerge.

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

Historical spending by the Department of the Air Force (DAF) on telecommunication network management services is substantial and varies year to year based on modernization efforts, infrastructure needs, and operational tempo. The DAF relies heavily on robust communication networks for its global operations. Spending patterns often reflect investments in upgrading legacy systems, expanding bandwidth, enhancing cybersecurity, and ensuring reliable connectivity for command and control. Contracts in this domain can range from small, specialized support tasks to large, multi-year enterprise-wide agreements. Analyzing past DAF spending would reveal trends in technology adoption (e.g., shift towards cloud-based solutions, software-defined networking) and the types of contractors frequently engaged for these critical services.

How does the limited number of bidders (2) impact the government's ability to secure competitive pricing?

A limited number of bidders, such as the two received for this contract, can potentially reduce the intensity of competition compared to scenarios with numerous offers. When fewer companies vie for a contract, the pressure to offer the lowest possible price may be diminished. This could lead to prices that are higher than what might be achieved in a more crowded marketplace. However, the government still benefits from competition, and the evaluation process is designed to select the best value offer. The contracting officer must ensure that the price is fair and reasonable based on the bids received and available market information. If only two bids are received in a full and open competition, it may also signal specific technical requirements or a niche market that naturally limits the number of capable vendors.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

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

Address: 13600 EDS DR, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: GS00T03AHD0008

IDV Type: IDC

Timeline