DoD's $1.4B NMCI Services Contract Awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $140,871,779 ($140.9M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2015-10-01

End Date: 2016-09-30

Contract Duration: 365 days

Daily Burn Rate: $385.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF NMCI SERVICES

Place of Performance

Location: NORFOLK, NORFOLK (CITY) County, VIRGINIA, 23511, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $140.9 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF NMCI SERVICES Key points: 1. Contract Value: $140.87 million awarded. 2. Competition: Full and open competition utilized. 3. Risk: Firm Fixed Price contract type mitigates cost overrun risk. 4. Sector: Information Technology services for the Department of the Navy.

Value Assessment

Rating: good

The contract value of $140.87 million for computer systems design services appears reasonable given the scope of NMCI services. Benchmarking against similar large-scale IT service contracts is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it encourages competitive bidding and can lead to cost savings.

Public Impact

Ensures continued IT infrastructure support for the Department of the Navy. Supports critical operational needs through computer systems design services. Potential impact on cybersecurity posture and network reliability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics in provided data.
  • Potential for vendor lock-in with long-term IT service contracts.

Positive Signals

  • Firm Fixed Price contract type.
  • Full and open competition awarded.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government agencies, supporting essential digital infrastructure and operations.

Small Business Impact

The data indicates that small businesses were not awarded this contract (sb: false). Further analysis would be needed to determine if small businesses participated in the bidding process or if subcontracting opportunities exist.

Oversight & Accountability

Oversight would typically involve contract performance reviews, audits, and compliance checks by the Department of the Navy to ensure services meet requirements and are delivered efficiently.

Related Government Programs

  • Computer Systems Design Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for scope creep if not managed tightly.
  • Dependence on a single vendor for critical IT infrastructure.
  • Need for ongoing monitoring of service quality and cost-effectiveness.
  • Cybersecurity risks associated with managing large-scale IT systems.

Tags

computer-systems-design-services, department-of-defense, va, do, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $140.9 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF NMCI SERVICES

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 Navy).

What is the total obligated amount?

The obligated amount is $140.9 million.

What is the period of performance?

Start: 2015-10-01. End: 2016-09-30.

What specific computer systems design services are included under this contract?

The provided data identifies the contract as 'Computer Systems Design Services' (NAICS 541512) for NMCI (Navy Marine Corps Intranet) services. This typically encompasses a broad range of IT support, including network design, implementation, maintenance, and potentially cybersecurity solutions, tailored to the Navy's operational requirements.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

Key performance indicators are not detailed in the provided data. However, for a contract of this nature, KPIs would likely include network uptime, response times for technical support, system security compliance, and successful implementation of system upgrades or design changes, all crucial for maintaining the Navy's operational readiness.

What is the potential long-term impact of this contract on the Navy's IT modernization efforts?

This contract's long-term impact depends on its alignment with the Navy's broader IT modernization strategy. If Peraton's services support the adoption of new technologies, cloud migration, or enhanced cybersecurity, it could significantly contribute to modernization. Conversely, if it maintains legacy systems without a clear upgrade path, it might hinder modernization efforts.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 13600 EDS DR, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $140,871,779

Exercised Options: $140,871,779

Current Obligation: $140,871,779

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0003913D0013

IDV Type: IDC

Timeline

Start Date: 2015-10-01

Current End Date: 2016-09-30

Potential End Date: 2016-09-30 00:00:00

Last Modified: 2017-05-02

More Contracts from Peraton Enterprise Solutions LLC

View all Peraton Enterprise Solutions LLC federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending