GSA's $19.1M Pharmacy Re-engineering Contract with Peraton Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $19,138,489 ($19.1M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: General Services Administration
Start Date: 2009-10-13
End Date: 2015-02-03
Contract Duration: 1,939 days
Daily Burn Rate: $9.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: PHARMACY RE-ENGINEERING
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420
Plain-Language Summary
General Services Administration obligated $19.1 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: PHARMACY RE-ENGINEERING Key points: 1. The contract awarded to Peraton Enterprise Solutions LLC for Pharmacy Re-engineering totaled $19.1 million. 2. Competition was competitive, but the Time and Materials pricing model raises questions about cost control. 3. Potential risks include cost overruns due to the T&M structure and lack of clear performance metrics. 4. The sector is IT services, specifically Computing Infrastructure Providers, Data Processing, and Web Hosting.
Value Assessment
Rating: questionable
The $19.1 million total award for Pharmacy Re-engineering is difficult to assess without specific performance data. The Time and Materials pricing structure, common in IT services, can lead to higher costs compared to fixed-price contracts if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was a competitive delivery order, indicating multiple bids were considered. However, the Time and Materials (T&M) contract type may limit price discovery and incentivize increased effort rather than efficiency.
Taxpayer Impact: The T&M pricing structure could lead to higher taxpayer costs if not rigorously monitored for necessity and efficiency.
Public Impact
Impacts federal pharmacy operations and potentially patient access to medications. The use of IT infrastructure services for pharmacy re-engineering suggests modernization efforts. Questions about cost-effectiveness may affect future IT service procurements in healthcare-related sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of specific performance metrics
- Potential for cost overruns
Positive Signals
- Competitive award process
- GSA managed contract
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computing infrastructure and data processing. Benchmarks for similar IT service contracts vary widely based on scope and complexity, but $19.1 million over nearly 2 years suggests a significant undertaking.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The General Services Administration (GSA) managed this contract through its Federal Acquisition Service. Oversight would typically involve monitoring contract performance, expenditures, and adherence to terms, especially crucial with T&M contracts.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Time and Materials pricing structure
- Lack of specific performance metrics
- Potential for cost overruns
- Limited insight into small business participation
Tags
computing-infrastructure-providers-data-, general-services-administration, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $19.1 million to PERATON ENTERPRISE SOLUTIONS LLC. PHARMACY RE-ENGINEERING
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 $19.1 million.
What is the period of performance?
Start: 2009-10-13. End: 2015-02-03.
What specific pharmacy re-engineering outcomes were achieved with the $19.1 million investment, and how do they compare to pre-contract performance metrics?
The provided data lacks specific performance metrics or outcome details for the Pharmacy Re-engineering project. A thorough review would require access to contract performance reports, deliverables, and any post-award assessments to determine if the $19.1 million investment yielded measurable improvements in efficiency, cost savings, or service quality compared to the baseline.
How effectively did the Time and Materials pricing model control costs and incentivize efficient service delivery for this IT infrastructure contract?
The Time and Materials (T&M) pricing model inherently carries a risk of cost escalation if not managed with stringent oversight. While it allows flexibility, it can incentivize longer task durations rather than efficient completion. Without detailed performance and cost-tracking data, it's difficult to definitively assess the cost control effectiveness and incentive alignment for this specific contract.
What was the competitive landscape for this delivery order, and did the chosen procurement method ensure the best value for taxpayers?
The contract was awarded via a 'Competitive Delivery Order,' suggesting multiple vendors were considered. However, the effectiveness of this competition in securing the 'best value' is contingent on the specific evaluation criteria used and the rigor of the price analysis. The T&M structure itself can sometimes complicate direct value comparisons between bids.
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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: R3094039A
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
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: $22,783,024
Exercised Options: $19,138,489
Current Obligation: $19,138,489
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F0323J
IDV Type: FSS
Timeline
Start Date: 2009-10-13
Current End Date: 2015-02-03
Potential End Date: 2015-02-03 00:00:00
Last Modified: 2016-04-29
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