Defense Manpower Data Center Bridge Acquisition Costs $43.2M for IT Infrastructure Services

Contract Overview

Contract Amount: $43,189,703 ($43.2M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2006-09-01

End Date: 2008-02-29

Contract Duration: 546 days

Daily Burn Rate: $79.1K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IN ITSS UNDER PROJECT #K02BN041B00 THIS IS A BRIDGE ACQUISITION DEFENSE MANPOWER DATA CENTER REPLACING PROJECT K02BN041S00 WHICH EXPIRES 8/31/06

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $43.2 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IN ITSS UNDER PROJECT #K02BN041B00 THIS IS A BRIDGE ACQUISITION DEFENSE MANPOWER DATA CENTER REPLACING PROJECT K02BN041S00 WHICH EXPIRES 8/31/06 Key points: 1. Spending of $43.2M on IT infrastructure services for the Defense Manpower Data Center. 2. Sole-source contract awarded to Peraton Enterprise Solutions LLC. 3. High risk due to non-competitive award and time-and-materials pricing. 4. Sector is IT, specifically Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.

Value Assessment

Rating: questionable

The $43.2M cost for a 546-day bridge contract is substantial. Without competitive bidding or a clear benchmark for similar IT infrastructure services, assessing value is difficult. The time-and-materials pricing structure further increases risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a non-competitive delivery order, indicating a sole-source award. This method limits price discovery and potentially leads to higher costs for taxpayers as competition is bypassed.

Taxpayer Impact: The lack of competition and use of time-and-materials pricing likely resulted in a higher cost to taxpayers than a competitively awarded fixed-price contract.

Public Impact

Essential IT infrastructure services for the Defense Manpower Data Center are being provided. Potential for cost overruns due to time-and-materials contract type. Taxpayers may be overpaying due to the absence of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award
Time and Materials pricing
Bridge contract duration

Positive Signals

Maintains critical IT services continuity

Sector Analysis

This contract falls within the IT sector, specifically Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. Spending in this area is critical for government operations, but competitive procurement is essential to ensure value.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award. The contract was awarded to a single large provider, limiting opportunities for small business participation.

Oversight & Accountability

The non-competitive nature of this award raises oversight concerns. A review should ensure the necessity of a sole-source approach and the reasonableness of costs incurred under the time-and-materials contract.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Sole-source award bypasses competition
Time and Materials pricing increases cost risk
Lack of transparency in cost justification
Potential for contractor inefficiency
Bridge contract may indicate poor planning

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $43.2 million to PERATON ENTERPRISE SOLUTIONS LLC. IN ITSS UNDER PROJECT #K02BN041B00 THIS IS A BRIDGE ACQUISITION DEFENSE MANPOWER DATA CENTER REPLACING PROJECT K02BN041S00 WHICH EXPIRES 8/31/06

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 $43.2 million.

What is the period of performance?

Start: 2006-09-01. End: 2008-02-29.

What was the justification for awarding this contract on a sole-source, non-competitive basis?

The justification for a sole-source, non-competitive award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to urgent and compelling needs, unique capabilities, or specific government property requirements. Without further documentation, the exact reason remains unclear, but it bypassed the standard competitive process.

How were costs controlled under the Time and Materials (T&M) pricing structure for this contract?

Controlling costs under a T&M contract is challenging as it lacks a ceiling on labor hours. Oversight typically involves rigorous monitoring of hours worked, verification of labor categories and rates, and ensuring efficient performance. The agency should have implemented strict controls and regular reporting to prevent cost overruns and ensure the contractor's performance was efficient.

What steps were taken to ensure the replacement contract (after the bridge) would be competitively procured?

Following a bridge contract, especially one awarded non-competitively, it is crucial that the subsequent contract be competitively procured to ensure fair pricing and value. The agency should have initiated a robust acquisition planning process immediately to define requirements, market research, and solicit proposals from multiple qualified vendors to replace this temporary arrangement.

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: TIME AND MATERIALS (Y)

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: $62,335,974

Exercised Options: $47,458,038

Current Obligation: $43,189,703

Parent Contract

Parent Award PIID: GS35F0323J

IDV Type: FSS

Timeline