GSA awards $11.1M IT support contract to Peraton Enterprise Solutions LLC for HRC Enterprise IT Architecture

Contract Overview

Contract Amount: $11,123,407 ($11.1M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2006-04-27

End Date: 2007-08-27

Contract Duration: 487 days

Daily Burn Rate: $22.8K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO PROVIDE ONGOING SUPPORT TO PES-A FOR EXISTING HRC ENTERPRISE IT ARCHITECTURE AND INFRASTRUCTURE.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $11.1 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: TO PROVIDE ONGOING SUPPORT TO PES-A FOR EXISTING HRC ENTERPRISE IT ARCHITECTURE AND INFRASTRUCTURE. Key points: 1. Contract provides ongoing support for existing IT architecture and infrastructure. 2. Firm Fixed Price contract type suggests defined scope and predictable costs. 3. Contract duration of 487 days indicates a medium-term engagement. 4. Awarded by the General Services Administration (GSA), a key federal IT procurer. 5. Virginia-based contractor Peraton Enterprise Solutions LLC is the sole awardee. 6. This contract is part of broader IT services spending within the federal government.

Value Assessment

Rating: fair

The total award amount of $11.1 million for a 487-day period suggests a daily rate of approximately $22,841. This rate appears high when benchmarked against typical IT support contracts of similar scope and duration. Without detailed breakdowns of services provided, it's difficult to definitively assess value for money, but the per-diem cost warrants further scrutiny. Comparison to other GSA IT support contracts would be necessary for a more precise valuation.

Cost Per Unit: $22,841 per day

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. While the data does not specify the justification for this approach, sole-source awards can sometimes lead to higher prices due to the lack of competitive pressure. The absence of multiple bidders means that the government did not benefit from a range of proposals and pricing strategies that typically emerge from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium for this contract due to the lack of competition. Without a competitive process, there is less assurance that the government secured the best possible price for the services rendered.

Public Impact

Federal civilian agencies, specifically those utilizing the HRC Enterprise IT Architecture, benefit from continued IT support. Services delivered include ongoing support for existing IT architecture and infrastructure. The geographic impact is primarily within the operational sphere of the General Services Administration and its supported entities. Workforce implications include the employment of IT professionals by Peraton Enterprise Solutions LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
High daily rate of $22,841 warrants further investigation into cost-effectiveness.
Lack of transparency regarding the justification for sole-source award.

Positive Signals

Contract provides essential IT support, ensuring continuity of operations for critical systems.
Firm Fixed Price contract type offers cost predictability for the government.
Awarded by GSA, an experienced agency in federal IT procurement.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on enterprise IT architecture and infrastructure support. The federal IT services market is substantial, with agencies like GSA consistently procuring a wide range of IT solutions. This contract represents a segment of spending dedicated to maintaining and supporting existing government IT systems, rather than acquiring new technologies. Comparable spending benchmarks would involve analyzing other GSA contracts for IT support services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal based on this award alone. Further investigation into Peraton Enterprise Solutions LLC's subcontracting plans would be needed to determine any indirect effects on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the General Services Administration. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specific services within a set budget. Transparency is generally facilitated through contract award databases, though the specific justifications for sole-source awards may not always be publicly detailed.

Related Government Programs

GSA IT Schedule Programs
Federal Civilian Agency IT Support Contracts
Enterprise Architecture Management Services

Risk Flags

High per-unit cost
Sole-source award

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $11.1 million to PERATON ENTERPRISE SOLUTIONS LLC. TO PROVIDE ONGOING SUPPORT TO PES-A FOR EXISTING HRC ENTERPRISE IT ARCHITECTURE AND INFRASTRUCTURE.

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2006-04-27. End: 2007-08-27.

What specific IT architecture and infrastructure services are included under this contract?

The contract description states 'TO PROVIDE ONGOING SUPPORT TO PES-A FOR EXISTING HRC ENTERPRISE IT ARCHITECTURE AND INFRASTRUCTURE.' While specific service details are not enumerated in the provided data, this typically encompasses a range of activities such as system maintenance, performance monitoring, troubleshooting, security patching, configuration management, and potentially minor upgrades or enhancements to the existing IT environment. The 'PES-A' likely refers to a specific program or entity within the General Services Administration (GSA) that manages the HRC (Human Resources Center or similar) enterprise IT architecture. Detailed service level agreements (SLAs) and statements of work (SOW) would normally define the precise scope and deliverables.

What is the justification for this contract being awarded on a sole-source basis?

The provided data indicates a 'sole-source' award, meaning competition was not solicited. Common justifications for sole-source contracts include situations where only one responsible source can provide the required supply or service, or when there is a compelling urgency. For IT services, this could be due to specialized knowledge of a unique existing system, proprietary technology, or a critical need to maintain continuity of operations with a proven provider. Without the specific justification document (e.g., a Justification and Approval for Other Than Full and Open Competition - J&A), it is impossible to determine the precise reason. However, the lack of competition means the government did not explore potentially lower-cost alternatives from other vendors.

How does the daily rate of $22,841 compare to industry benchmarks for similar IT support services?

A daily rate of $22,841 for IT support services, as implied by this contract's total value and duration, appears to be on the higher end of the spectrum when compared to general industry benchmarks for IT support. This rate translates to an annual cost of approximately $5.7 million for a full year of service. While specialized expertise, high-level security clearances, or unique system knowledge can command premium rates, this figure warrants scrutiny. Benchmarking would ideally involve comparing it against GSA's IT Schedule pricing, rates for similar managed services contracts, or average salaries for senior IT architects and engineers, factoring in overhead and profit. Without a detailed breakdown of labor categories and hours, a precise comparison is challenging, but the rate suggests a need to validate the cost-effectiveness.

What is the historical spending pattern for IT support services by the General Services Administration?

The General Services Administration (GSA) is a major federal agency that consistently spends significant amounts on IT services to support its own operations and those of other federal agencies through its acquisition vehicles. Historical spending patterns reveal a strong and continuous demand for IT support, encompassing areas like infrastructure management, cloud services, cybersecurity, software development, and enterprise architecture. GSA often utilizes its IT Schedule contracts (like MAS IT) to procure these services, facilitating competition among numerous vendors. Analyzing GSA's overall IT budget and specific contract awards over the past several years would show a trend of substantial investment in maintaining and modernizing federal IT systems, with support services forming a critical component of this spending.

What are the potential risks associated with a sole-source IT support contract of this magnitude?

The primary risk associated with a sole-source IT support contract of this magnitude ($11.1 million) is the potential for inflated costs due to the absence of competitive bidding. Without market pressure, the contractor may not be incentivized to offer the most competitive pricing. Another risk is vendor lock-in, where the government becomes overly reliant on a single provider, making it difficult and costly to switch vendors in the future, especially if the contractor possesses unique knowledge of the system. Furthermore, a sole-source award might indicate a lack of available qualified vendors or a failure in the procurement process to identify and engage a broader pool of potential bidders, potentially leading to suboptimal solutions or missed opportunities for innovation.

Contractor Details

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

Address: 13600 EDS DR, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,232,262

Exercised Options: $12,232,262

Current Obligation: $11,123,407

Parent Contract

Parent Award PIID: GS35F0323J

IDV Type: FSS

Timeline