Peraton Enterprise Solutions LLC awarded $23M for IT Service Desk support to Federal Service Desk

Contract Overview

Contract Amount: $23,009,044 ($23.0M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2013-09-30

End Date: 2016-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IGF::CT,CL::IGF IT SERVICE DESK TIER 1 AND 2 SERVICES IN SUPPORT OF THE FEDERAL SERVICE DESK (FSD), WHICH SUPPORTS THE INTEGRATED AWARD ENVIRONMENT.

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36117

State: Alabama Government Spending

Plain-Language Summary

General Services Administration obligated $23.0 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::CT,CL::IGF IT SERVICE DESK TIER 1 AND 2 SERVICES IN SUPPORT OF THE FEDERAL SERVICE DESK (FSD), WHICH SUPPORTS THE INTEGRATED AWARD ENVIRONMENT. Key points: 1. Contract provides essential IT support services for the Integrated Award Environment. 2. Services include Tier 1 and Tier 2 support, crucial for user assistance. 3. The contract duration of three years indicates a stable, ongoing need for these services. 4. Awarded by the General Services Administration, a key agency for federal IT procurement. 5. The contract type (Cost Plus Award Fee) suggests performance incentives are tied to successful delivery. 6. This award falls under Computer Systems Design Services, a significant sector in federal IT spending.

Value Assessment

Rating: good

The total award amount of $23,009,044.05 over three years averages to approximately $7.67 million per year. Benchmarking this against similar IT service desk contracts is challenging without more granular data on scope and service levels. However, the GSA's role in managing this contract suggests adherence to established pricing structures. The Cost Plus Award Fee (CPAF) structure allows for flexibility and incentivizes performance, which can lead to better value if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. This competitive process is designed to ensure the government receives the best possible value by fostering a range of proposals. The presence of two bids suggests a moderate level of competition for this specific requirement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices and encouraging innovation from multiple vendors, leading to more cost-effective service delivery.

Public Impact

Federal agencies utilizing the Integrated Award Environment benefit from reliable IT support. Users of the Federal Service Desk receive assistance with technical issues, improving productivity. The contract supports IT infrastructure and service delivery across various federal programs. Workforce implications include the need for skilled IT support personnel to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if award fee criteria are not tightly managed under the CPAF structure.
Dependence on a single contractor for critical IT service desk functions could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The GSA's involvement indicates a structured procurement process and oversight.
The Cost Plus Award Fee structure incentivizes high performance and quality service delivery.

Sector Analysis

This contract falls within the broader IT Services sector, specifically Computer Systems Design Services. The federal government is a major consumer of IT services, with significant spending allocated to areas like help desk support, system integration, and software development. Comparable spending benchmarks for IT service desk contracts vary widely based on scope, number of users supported, and service level agreements. However, contracts of this magnitude are common for supporting large-scale federal IT infrastructure.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), which has established oversight mechanisms for federal procurements. The Cost Plus Award Fee (CPAF) structure includes performance metrics that are evaluated to determine award fees, providing a form of performance-based oversight. Transparency is generally maintained through federal procurement databases, though specific performance reports are not publicly detailed here.

Related Government Programs

Federal Service Desk (FSD)
Integrated Award Environment (IAE)
IT Service Management Contracts
Computer Systems Design Services

Risk Flags

Limited competition (2 bidders)
Cost Plus Award Fee structure requires careful performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.0 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::CT,CL::IGF IT SERVICE DESK TIER 1 AND 2 SERVICES IN SUPPORT OF THE FEDERAL SERVICE DESK (FSD), WHICH SUPPORTS THE INTEGRATED AWARD ENVIRONMENT.

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 $23.0 million.

What is the period of performance?

Start: 2013-09-30. End: 2016-09-29.

What is the historical spending trend for IT Service Desk support by the General Services Administration?

Analyzing historical spending trends for IT Service Desk support by the GSA requires access to detailed procurement data over multiple fiscal years. While this specific contract award is for $23 million over three years, understanding the GSA's overall investment in such services would involve aggregating data from numerous contracts. Factors influencing these trends include evolving technology, agency needs, and shifts in federal IT strategy, such as cloud adoption. Without a broader dataset, it's difficult to ascertain if this award represents an increase, decrease, or stable level of spending for the GSA in this category. However, the consistent need for IT support across federal agencies suggests a sustained demand.

How does the pricing structure (Cost Plus Award Fee) compare to other IT service contracts awarded by GSA?

The Cost Plus Award Fee (CPAF) structure is a common contract type used by the government when the exact cost is difficult to estimate upfront and performance incentives are desired. In a CPAF contract, the contractor is reimbursed for allowable costs plus a fixed fee that is adjusted based on performance against pre-defined criteria. This differs from Cost Plus Fixed Fee (CPFF), where the fee is fixed, or Firm-Fixed-Price (FFP), where the total price is set. For IT service contracts, CPAF can be effective in driving quality and efficiency, but it requires robust performance monitoring by the government to ensure fair pricing and prevent cost overruns. Compared to FFP contracts, CPAF offers more flexibility but potentially higher overall costs if performance incentives are heavily awarded.

What are the key performance indicators (KPIs) typically used for IT Service Desk contracts like this one?

Key Performance Indicators (KPIs) for IT Service Desk contracts typically focus on efficiency, effectiveness, and user satisfaction. Common metrics include First Call Resolution (FCR) rate, Average Handle Time (AHT), ticket response times, ticket resolution times, and customer satisfaction scores (CSAT). For Tier 1 and Tier 2 support, meeting Service Level Agreements (SLAs) for response and resolution within defined timeframes is critical. User satisfaction surveys are also crucial to gauge the perceived quality of support. These KPIs are essential for the government to evaluate contractor performance and determine award fees under a CPAF structure, ensuring the services meet the needs of the Federal Service Desk users.

What is the track record of Peraton Enterprise Solutions LLC in delivering similar IT support services to the federal government?

Peraton Enterprise Solutions LLC, and its predecessor companies, have a significant track record in providing IT services to the federal government. While specific details of their past performance on contracts of this exact scope and value would require deeper database analysis, Peraton is known for its work in areas such as enterprise IT, cybersecurity, and mission support. Their experience often includes managing large-scale IT infrastructure and providing technical support across various civilian and defense agencies. Evaluating their specific performance on this contract would involve reviewing past performance evaluations and any reported issues or commendations from previous government engagements.

How does the competition level (2 bidders) impact the value for money achieved in this contract?

A competition with only two bidders suggests a moderate level of competition, which is generally better than a sole-source award but less ideal than a scenario with numerous proposals. While two bidders still provide a basis for comparison and price negotiation, it may not fully leverage the market's competitive potential. This could mean that the government might not have achieved the absolute lowest price possible compared to a scenario with, for example, five or more bidders actively vying for the contract. However, the quality of the bidders and the specific requirements of the contract also play a role. If both bidders were highly capable and submitted competitive offers, good value could still be achieved.

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: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hewlett Packard Enterprise CO (UEI: 079834910)

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: $154,823,864

Exercised Options: $25,124,044

Current Obligation: $23,009,044

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0027

IDV Type: GWAC

Timeline