DoD's $29M PITSC IT Support Contract Awarded to Peraton Technology Services Inc
Contract Overview
Contract Amount: $29,167,852 ($29.2M)
Contractor: Peraton Technology Services Inc.
Awarding Agency: Department of Defense
Start Date: 2021-05-26
End Date: 2026-09-22
Contract Duration: 1,945 days
Daily Burn Rate: $15.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: LABOR HOURS
Sector: IT
Official Description: PRESIDENTIAL INFORMATION MANAGEMENT EXCHANGE INFORMATION TECHNOLOGY SUPPORT CONTRACT (PITSC)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20503
Plain-Language Summary
Department of Defense obligated $29.2 million to PERATON TECHNOLOGY SERVICES INC. for work described as: PRESIDENTIAL INFORMATION MANAGEMENT EXCHANGE INFORMATION TECHNOLOGY SUPPORT CONTRACT (PITSC) Key points: 1. Contract Value: $29.17 million over its period of performance. 2. Competition: Awarded under full and open competition. 3. Risk: Potential for cost overruns given the labor hours pricing structure. 4. Sector: Information Technology services for the Defense Information Systems Agency.
Value Assessment
Rating: fair
The contract's pricing is based on labor hours, which can lead to variability. Benchmarking against similar custom computer programming services contracts is difficult without detailed labor rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the labor hours pricing model may limit price discovery for specific deliverables.
Taxpayer Impact: The competitive award aims for fair pricing, but the labor hours structure could impact overall taxpayer value if not managed efficiently.
Public Impact
Ensures critical IT support for the Department of Defense. Supports the Defense Information Systems Agency's operational needs. Provides custom computer programming services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Labor hours pricing can lead to cost uncertainty.
- Potential for scope creep without strict oversight.
Positive Signals
- Awarded under full and open competition.
- Supports a critical defense agency.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across government, with benchmarks varying based on complexity and security requirements.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses are participating as subcontractors.
Oversight & Accountability
Oversight will be crucial to manage the labor hours pricing model effectively and ensure the contractor delivers on requirements within budget. The Defense Information Systems Agency is responsible for this oversight.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Labor Hours Pricing
- Potential for Scope Creep
- Limited Price Certainty
- Subcontracting Opportunities for SMBs Unclear
Tags
custom-computer-programming-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.2 million to PERATON TECHNOLOGY SERVICES INC.. PRESIDENTIAL INFORMATION MANAGEMENT EXCHANGE INFORMATION TECHNOLOGY SUPPORT CONTRACT (PITSC)
Who is the contractor on this award?
The obligated recipient is PERATON TECHNOLOGY SERVICES INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $29.2 million.
What is the period of performance?
Start: 2021-05-26. End: 2026-09-22.
What is the expected efficiency of labor hours utilized under this contract?
The efficiency of labor hours is a key concern for contracts priced this way. Without specific performance metrics or benchmarks for the types of programming services rendered, it's difficult to assess. Effective oversight by the Defense Information Systems Agency, including monitoring task completion rates and resource allocation, will be critical to ensuring taxpayer value and preventing inefficiencies.
What are the primary risks associated with the labor hours pricing structure?
The primary risk of a labor hours pricing structure is the potential for cost overruns if hours are not managed efficiently or if the scope of work expands without adequate controls. There's also a risk of reduced incentive for the contractor to optimize processes or complete tasks quickly. Robust contract management and clear performance expectations are essential to mitigate these risks.
How does this contract contribute to the overall IT modernization goals of the DoD?
This contract provides essential IT support and custom programming services, which are foundational for the DoD's operations. While not explicitly detailing modernization efforts, such contracts enable the maintenance and enhancement of existing systems, freeing up resources and personnel to focus on strategic IT modernization initiatives. Its effectiveness hinges on the quality and adaptability of the services provided.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,496,363
Exercised Options: $34,584,461
Current Obligation: $29,167,852
Actual Outlays: $17,858,745
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $9,029,450
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F462DA
IDV Type: FSS
Timeline
Start Date: 2021-05-26
Current End Date: 2026-09-22
Potential End Date: 2026-09-22 00:00:00
Last Modified: 2025-12-02
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