GSA Awards $61.3M IT Task Order to Peraton Enterprise Solutions for Computing Infrastructure Services
Contract Overview
Contract Amount: $37,047,158 ($37.0M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: General Services Administration
Start Date: 2005-05-23
End Date: 2009-05-30
Contract Duration: 1,468 days
Daily Burn Rate: $25.2K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE)
Sector: IT
Official Description: IN ITSS UNDER PROJECT NUMBER: K04BN001S00 ALL WORK AND SERVICES UNDER THIS TASK ORDER SHALL BE COMPLETED IN ACCORDANCE WITH THE STATEMENT OF WORK DATED 7 JUNE 2004 (PREVIOUSLY FURNISHED), THE VENDOR'S ACCEPTED PROPOSAL DATED JANUARY 6, 2005 (ATTACHED), THE TASK ORDER CLAUSES AND THE TERMS AND CONDITIONS CONTAINED IN THE CONTINUATION OF BLOCK 20 DOCUMENT (ATTACHED). TASK 1 IS TIME & MATERIALS / TASK 2 IS FIRM-FIXED-PRICE / TOTAL ESTIMATED DOLLAR VALUE - NOT TO EXCEED: $61,255,884.00 BASE PERIOD OF PERFORMANCE: 05/31/2005 THROUGH 05/30/2006. PERIOD OF PERFORMANCE IS A BASE PERIOD OF ONE YEAR PLUS FOUR ONE YEAR OPTION PERIODS FOR A TOTAL OF FIVE (5) YEARS.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $37.0 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IN ITSS UNDER PROJECT NUMBER: K04BN001S00 ALL WORK AND SERVICES UNDER THIS TASK ORDER SHALL BE COMPLETED IN ACCORDANCE WITH THE STATEMENT OF WORK DATED 7 JUNE 2004 (PREVIOUSLY FURNISHED), THE VENDOR'S ACCEPTED PROPOSAL DATED JANUARY 6, 2005 (ATTACHED), THE TASK ORDER CLAUSES AND … Key points: 1. The task order, valued at up to $61.3 million, covers computing infrastructure, data processing, and web hosting services. 2. Awarded non-competitively, this suggests a potential lack of market research or a specific need for the incumbent. 3. The contract spans a base year with four one-year options, indicating a potential long-term relationship. 4. The mix of Time & Materials and Firm-Fixed-Price contract types may introduce cost control challenges.
Value Assessment
Rating: fair
The total estimated value of $61.3 million for a 5-year period (including options) suggests an average annual value of approximately $12.26 million. Without specific benchmarks for similar IT infrastructure services, a precise pricing assessment is difficult, but this figure should be compared against industry standards for comparable government or commercial contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was awarded as a non-competitive delivery order. This method limits price discovery and competition, potentially leading to higher costs for taxpayers if not carefully managed and justified.
Taxpayer Impact: The non-competitive nature raises concerns about whether the government secured the best possible price and value for these essential IT services.
Public Impact
Federal agencies rely on IT infrastructure services for critical operations, impacting service delivery to citizens. The use of a non-competitive award may limit opportunities for small businesses and innovative solutions. Long-term contracts can provide stability but also risk vendor lock-in and reduced agility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Mix of contract types (T&M/FFP)
- Potential for vendor lock-in
Positive Signals
- Long-term performance period
- Established vendor relationship
Sector Analysis
This contract falls within the IT sector, specifically focusing on computing infrastructure, data processing, and web hosting. Spending in this area is substantial across government, with benchmarks varying widely based on service scope and complexity.
Small Business Impact
The non-competitive award mechanism raises questions about opportunities for small businesses to compete for this significant IT services contract. Further analysis would be needed to determine if small business set-asides were considered or if subcontracting opportunities exist.
Oversight & Accountability
The use of a non-competitive delivery order requires strong justification and oversight to ensure fair pricing and prevent potential waste. The General Services Administration (GSA) should have robust internal controls to monitor performance and costs.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Non-competitive award limits price competition.
- Time & Materials component poses cost control risks.
- Potential for vendor lock-in over the contract's lifespan.
- Lack of transparency in source selection.
- Limited opportunities for small business participation.
Tags
computing-infrastructure-providers-data-, general-services-administration, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $37.0 million to PERATON ENTERPRISE SOLUTIONS LLC. IN ITSS UNDER PROJECT NUMBER: K04BN001S00 ALL WORK AND SERVICES UNDER THIS TASK ORDER SHALL BE COMPLETED IN ACCORDANCE WITH THE STATEMENT OF WORK DATED 7 JUNE 2004 (PREVIOUSLY FURNISHED), THE VENDOR'S ACCEPTED PROPOSAL DATED JANUARY 6, 2005 (ATTACHED), THE TASK ORDER CLAUSES AND THE TERMS AND CONDITIONS CONTAINED IN THE CONTINUATION OF BLOCK 20 DOCUMENT (ATTACHED). TASK 1 IS TIME & MATERIALS / TASK 2 IS FIRM-FIXED-PRICE / TOTAL ESTIMATED DOLLAR VALUE - NOT TO EXCEED: $61,255,884.00 BASE PERIOD
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 $37.0 million.
What is the period of performance?
Start: 2005-05-23. End: 2009-05-30.
What was the justification for awarding this task order non-competitively, and were alternative solutions or vendors evaluated?
The justification for a non-competitive award is crucial for ensuring taxpayer value. Agencies must demonstrate that only one source can fulfill the requirement due to unique capabilities, urgent needs, or specific program requirements. Without this justification, the government risks paying inflated prices and missing out on potentially better solutions from a competitive marketplace.
How will the Time & Materials portion of the contract be managed to prevent cost overruns and ensure efficient service delivery?
Managing Time & Materials (T&M) contracts requires diligent oversight. Agencies should establish clear labor categories, rates, and ceilings, and closely monitor hours worked and materials used. Implementing performance metrics and regular progress reviews can help control costs and ensure the vendor is delivering value efficiently, mitigating the inherent risks of T&M pricing.
What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effective service delivery?
Effective service delivery hinges on well-defined KPIs. For IT infrastructure services, these might include system uptime, response times, data security compliance, and user satisfaction. Regular performance reviews against these KPIs are essential for holding the vendor accountable and ensuring the services meet the government's operational needs and provide adequate value.
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: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
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: $80,704,018
Exercised Options: $53,459,669
Current Obligation: $37,047,158
Parent Contract
Parent Award PIID: GS35F0323J
IDV Type: FSS
Timeline
Start Date: 2005-05-23
Current End Date: 2009-05-30
Potential End Date: 2009-05-30 00:00:00
Last Modified: 2012-07-24
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