GSA awards $49.8M contract for Army recruiting IT systems support to Peraton Enterprise Solutions

Contract Overview

Contract Amount: $49,793,548 ($49.8M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2012-09-27

End Date: 2014-03-26

Contract Duration: 545 days

Daily Burn Rate: $91.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THE PURPOSE OF THIS PROCUREMENT IS TO PROVIDE CONTRACTUAL SUPPORT TO THE HRC ACCESSIONING MISSION FOR THE SUSTAINMENT, DEVELOPMENT, ENHANCEMENTS, CUSTOMIZATION, INTEGRATION, SYSTEM MIGRATION, AND REPLATFORMING OF IT SYSTEMS USED FOR THE COMMAND AND CONTROL OF THE RECRUITING OF THE ARMY'S OFFICER, WARRANT OFFICER, AND ENLISTED FORCES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $49.8 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF THE PURPOSE OF THIS PROCUREMENT IS TO PROVIDE CONTRACTUAL SUPPORT TO THE HRC ACCESSIONING MISSION FOR THE SUSTAINMENT, DEVELOPMENT, ENHANCEMENTS, CUSTOMIZATION, INTEGRATION, SYSTEM MIGRATION, AND REPLATFORMING OF IT SYSTEMS USED FOR THE COMMAND AND CONTROL OF THE REC… Key points: 1. Contract provides critical IT support for Army officer, warrant officer, and enlisted force recruitment systems. 2. The contract value of $49.8M over its period of performance suggests a significant investment in maintaining recruitment capabilities. 3. Competition was full and open, indicating a broad market search for qualified vendors. 4. The fixed-price contract type aims to control costs and provide predictability for the government. 5. The services encompass sustainment, development, enhancements, customization, integration, and migration of IT systems. 6. This contract supports the Human Resources Command (HRC) accessioning mission, vital for military personnel acquisition.

Value Assessment

Rating: good

The contract value of approximately $49.8 million over its duration appears reasonable for comprehensive IT system support for a critical function like Army recruiting. Benchmarking against similar large-scale IT sustainment and development contracts for federal agencies would provide a more precise value-for-money assessment. The fixed-price nature of the contract suggests an effort to manage costs effectively, though the specific pricing structure and rates would need further analysis to confirm competitive value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The number of bidders is not specified, but the full and open nature suggests a robust competition was intended, which can lead to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it increases the likelihood of obtaining the best value by leveraging a wider pool of potential contractors and driving down prices through market forces.

Public Impact

The primary beneficiaries are the U.S. Army's Human Resources Command (HRC) and its recruiting operations. Services delivered include sustainment, development, enhancements, customization, integration, system migration, and re-platforming of IT systems. The geographic impact is national, supporting the Army's nationwide recruiting efforts. Workforce implications include the potential for IT professionals to support these critical systems, both within the contractor and potentially within the government for oversight and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if enhancements and development are not tightly managed.
Dependence on a single contractor for critical recruitment IT infrastructure.
Risk of outdated technology if system migration and re-platforming are not executed efficiently.

Positive Signals

Full and open competition suggests a competitive process that could yield better value.
Fixed-price contract type helps control costs and provides budget certainty.
Contract supports a mission-critical function (Army accessioning), indicating strategic importance.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and related services. The market for such services is large and highly competitive, with numerous providers offering solutions for system sustainment, development, and migration. The Army's need for robust IT systems to manage its accessioning mission is a common requirement across large government organizations, making this contract representative of broader IT spending trends in defense and federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Peraton Enterprise Solutions LLC, is likely a large business. While there is no direct small business set-aside, large prime contractors are often required to subcontract a portion of the work to small businesses. The extent to which this contract will involve small business participation through subcontracting is not detailed here but is a common practice in federal contracting to meet small business utilization goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) and the relevant Army contracting and program management offices. Accountability measures are inherent in the fixed-price contract type, which incentivizes the contractor to deliver within budget. Transparency is facilitated through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Recruiting Command IT Modernization Efforts
Human Resources Command (HRC) IT Support Contracts
Federal Civilian IT Infrastructure Services
Defense Department IT Modernization Programs

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of contractor performance issues impacting critical recruiting functions.
Cybersecurity vulnerabilities in IT systems supporting sensitive personnel data.
Challenges in migrating or integrating legacy systems.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $49.8 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF THE PURPOSE OF THIS PROCUREMENT IS TO PROVIDE CONTRACTUAL SUPPORT TO THE HRC ACCESSIONING MISSION FOR THE SUSTAINMENT, DEVELOPMENT, ENHANCEMENTS, CUSTOMIZATION, INTEGRATION, SYSTEM MIGRATION, AND REPLATFORMING OF IT SYSTEMS USED FOR THE COMMAND AND CONTROL OF THE RECRUITING OF THE ARMY'S OFFICER, WARRANT OFFICER, AND ENLISTED FORCES

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 $49.8 million.

What is the period of performance?

Start: 2012-09-27. End: 2014-03-26.

What is the track record of Peraton Enterprise Solutions LLC with similar IT support contracts for federal agencies, particularly within the Department of Defense?

Peraton Enterprise Solutions LLC has a significant history of performing IT services for various federal agencies, including the Department of Defense. Their experience often spans complex system integration, sustainment, and modernization projects. Analyzing their past performance on contracts with similar scope, such as those involving large-scale data management, system migration, and mission-critical application support, would provide insight into their capabilities and reliability. Specific metrics like past performance ratings, on-time delivery, and adherence to budget on previous DoD contracts would be key indicators of their suitability for this Army recruiting IT support role. A review of their contract history would reveal if they have successfully managed large, fixed-price IT contracts and demonstrated proficiency in the specific technologies and processes required for the HRC accessioning mission.

How does the awarded value of $49.8 million compare to the estimated cost or market rates for similar IT system sustainment and development services?

The awarded value of $49.8 million for this contract needs to be benchmarked against market rates for comparable IT services. This includes assessing the cost of sustainment, development, enhancement, customization, integration, and migration for complex IT systems. Factors such as the number of users supported, the criticality of the systems, and the specific technologies involved influence pricing. Comparing this contract's total value and its implied annual cost to industry benchmarks for similar government IT support contracts, or even commercial equivalents if applicable, would help determine if it represents good value for money. Without specific details on the labor categories, hours, and overhead rates, a precise comparison is difficult, but the overall value suggests a substantial, multi-year effort.

What are the primary risks associated with the sustainment, development, and migration of IT systems for Army recruiting, and how are they mitigated by this contract?

Key risks in sustaining and developing IT systems for Army recruiting include potential system failures impacting accessioning, cybersecurity vulnerabilities, integration challenges with other military systems, and the complexities of migrating legacy systems to modern platforms. The contract aims to mitigate these risks through the specified services: sustainment ensures ongoing operational integrity, development and enhancements improve functionality and security, and migration/re-platforming addresses obsolescence. The fixed-price nature incentivizes efficient execution. However, risks remain, such as the potential for unforeseen technical challenges during migration, cybersecurity threats, and the contractor's ability to keep pace with evolving technological requirements and Army needs. Robust government oversight, clear performance metrics, and strong cybersecurity protocols are crucial for managing these risks.

What is the historical spending pattern for IT support related to Army accessioning missions, and how does this contract fit within that trend?

Historical spending on IT support for Army accessioning missions likely reflects a continuous need for robust systems to manage personnel intake. Over time, spending patterns would typically show an evolution from older, perhaps less integrated systems, towards more modern, networked, and data-driven platforms. This $49.8 million contract, awarded in 2012 for a period extending into 2014, represents a specific investment during that timeframe for sustainment and modernization. Understanding prior contracts for similar services, their values, durations, and the technologies supported, would reveal whether this award was consistent with historical spending, represented an increase due to new requirements or technological shifts, or was part of a larger modernization initiative. Analyzing trends in IT spending for military personnel management provides context for the scale and importance of this particular contract.

How will the success of this contract be measured, and what are the key performance indicators (KPIs) for the contractor?

The success of this contract would be measured against specific performance standards and Key Performance Indicators (KPIs) defined in the contract's Performance Work Statement (PWS). While not detailed in the provided data, typical KPIs for such IT support contracts include system uptime and availability, response times for issue resolution, successful completion of development and enhancement tasks within agreed timelines, successful data migration with minimal errors, and adherence to cybersecurity requirements. The fixed-price nature of the contract implies that meeting these performance standards is crucial for the contractor to achieve profitability. Government oversight would involve monitoring these KPIs, conducting regular performance reviews, and ensuring that the delivered IT services effectively support the HRC's accessioning mission.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

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

Address: 136000 EDS DR MAIL STOP A3S B53, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $61,043,328

Exercised Options: $49,793,548

Current Obligation: $49,793,548

Parent Contract

Parent Award PIID: GS35F0323J

IDV Type: FSS

Timeline