Peraton Enterprise Solutions LLC awarded $30.35M for IT support services by GSA

Contract Overview

Contract Amount: $30,350,461 ($30.4M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2012-09-17

End Date: 2015-06-16

Contract Duration: 1,002 days

Daily Burn Rate: $30.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF OTHER FUNCTION - SPOT ENTERPRISE SUITE OPERATIONAL SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $30.4 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF OTHER FUNCTION - SPOT ENTERPRISE SUITE OPERATIONAL SUPPORT Key points: 1. Contract value represents a significant investment in IT operational support. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of the contract (over 3 years) indicates a need for sustained IT services. 5. The specific services fall under computer systems design, a critical area for federal IT infrastructure. 6. The award to Peraton Enterprise Solutions LLC highlights a key contractor in the federal IT services market.

Value Assessment

Rating: good

The contract value of $30.35 million over approximately three years for computer systems design services appears reasonable given the scope of enterprise operational support. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that this award falls within expected ranges for comprehensive service delivery. The firm fixed-price structure provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this requirement. While more bidders could potentially drive prices lower, two bids are sufficient to establish a competitive baseline and ensure the government receives a fair market price.

Taxpayer Impact: The full and open competition process ensures that taxpayer dollars are used efficiently by fostering a competitive environment that encourages competitive pricing.

Public Impact

Federal agencies utilizing GSA's IT support services benefit from enhanced operational efficiency and system reliability. The contract supports the delivery of essential computer systems design and operational support, crucial for government functions. The primary geographic impact is within Virginia, where the contractor is located, but the services likely support federal operations nationwide. The contract supports a workforce skilled in IT systems design and enterprise support, contributing to the federal IT labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Reliance on a single contractor for critical IT operational support could pose risks if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract type helps manage cost overruns.
Contract duration suggests a stable, long-term need for these services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and operational support. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a typical investment in ensuring the smooth operation of enterprise-level IT systems, aligning with broader government efforts to modernize and secure its digital backbone. Comparable spending benchmarks for similar IT support contracts often range in the tens of millions of dollars annually.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Peraton Enterprise Solutions LLC actively engages small businesses for subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for its contracts, including performance monitoring and contract management. As a delivery order under a larger GSA schedule, this contract would be subject to GSA's established oversight procedures. Transparency is generally maintained through contract award databases like FPDS. Inspector General oversight would apply if any issues of fraud, waste, or abuse were identified.

Related Government Programs

GSA IT Schedule Contracts
Federal Civilian IT Modernization Programs
Computer Systems Design Services Contracts
Enterprise IT Operations Support

Risk Flags

Contract performance risk
Vendor stability risk
Potential for cost overruns (mitigated by FFP)

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $30.4 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF OTHER FUNCTION - SPOT ENTERPRISE SUITE OPERATIONAL SUPPORT

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 $30.4 million.

What is the period of performance?

Start: 2012-09-17. End: 2015-06-16.

What is the track record of Peraton Enterprise Solutions LLC with GSA contracts?

Peraton Enterprise Solutions LLC has a history of receiving federal contracts, including those managed by the General Services Administration. Analyzing their past performance on similar IT support and computer systems design contracts is crucial. This includes examining on-time delivery rates, adherence to budget, and any documented performance issues or commendations. A review of their contract history would reveal their experience level and reliability in fulfilling complex IT requirements for government agencies. Their ability to consistently meet or exceed performance expectations on previous GSA awards would be a strong indicator of their capability for this current contract.

How does the awarded price compare to market rates for similar IT operational support services?

The awarded value of $30.35 million over approximately 1002 days (roughly 3 years) for computer systems design services needs to be benchmarked against prevailing market rates. This involves comparing the estimated annual cost (approximately $10.1 million) to what similar private sector or government entities pay for comparable IT operational support. Factors such as the specific technologies supported, the level of expertise required, and the geographic location of service delivery influence market rates. Without detailed service level agreements and specific deliverables, a precise comparison is difficult, but the firm fixed-price nature suggests GSA aimed for cost predictability.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include potential performance deficiencies by the contractor, leading to disruptions in critical IT operations. Another risk is cost escalation if the firm fixed-price contract does not adequately account for unforeseen technical challenges or scope creep, although this is mitigated by the contract type. Over-reliance on a single vendor for essential services could also pose a risk if the contractor faces financial instability or decides to exit the market. Ensuring robust contract management and performance monitoring by GSA is key to mitigating these risks.

How effective has GSA been in managing IT support contracts of this magnitude?

GSA has extensive experience managing IT support contracts, including those valued in the tens of millions of dollars. Their effectiveness is generally measured by the successful delivery of services, adherence to schedules and budgets, and the overall satisfaction of the end-user agencies. GSA utilizes various contract vehicles, such as IT Schedule 70 (now IT Professional Services), to procure these services, which are designed to streamline acquisition and ensure fair pricing through competition. While specific performance metrics for this individual contract are not detailed here, GSA's overall track record in IT procurement is a positive indicator.

What are the historical spending patterns for computer systems design services by GSA?

GSA's historical spending on computer systems design services, categorized under NAICS code 541512, has been substantial and generally increasing as federal agencies modernize their IT infrastructure. GSA utilizes its Multiple Award Schedules (MAS) to facilitate these procurements, allowing agencies to quickly access pre-competed services. Spending in this category reflects the ongoing demand for IT modernization, cybersecurity enhancements, and cloud migration efforts across the federal government. Analyzing past spending trends can provide context for the current contract's value and duration, indicating a consistent need for such services.

What is the potential impact of this contract on IT service delivery for federal agencies?

This contract is likely to enhance IT service delivery for federal agencies by ensuring the reliable operation and maintenance of their enterprise systems. By outsourcing these critical functions to a specialized contractor like Peraton Enterprise Solutions LLC, agencies can focus on their core missions. The contract's focus on computer systems design and operational support suggests improvements in system performance, security, and user experience. The successful execution of this contract can lead to greater efficiency, reduced downtime, and better support for federal employees relying on these IT systems.

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

Solicitation ID: ID03120056

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $36,761,652

Exercised Options: $30,350,461

Current Obligation: $30,350,461

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0027

IDV Type: GWAC

Timeline