DoD's $37.4M IT Services Contract Awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $37,434,915 ($37.4M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2018-06-27

End Date: 2019-06-30

Contract Duration: 368 days

Daily Burn Rate: $101.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $37.4 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF Key points: 1. Contract awarded for IT services, indicating a need for specialized computer-related support. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. The contract duration of 368 days suggests a medium-term project or service requirement. 5. The award was made by the Defense Information Systems Agency (DISA), a key IT provider for the DoD. 6. The contract falls under 'Other Computer Related Services', a broad category within IT. 7. The small business set-aside flag is false, meaning it was not specifically reserved for small businesses.

Value Assessment

Rating: fair

The contract value of $37.4 million for 'Other Computer Related Services' over approximately one year requires benchmarking against similar IT support contracts within the Department of Defense. Without specific deliverables or performance metrics, a precise value-for-money assessment is challenging. However, the firm fixed-price structure suggests an attempt to manage cost overruns. Further analysis would involve comparing the per-unit cost of services or the overall contract value to the scope of work and the number of personnel or hours allocated.

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. This process generally fosters a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the open competition suggests multiple entities likely vied for the award, providing the agency with a range of options.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overpricing that might occur with less competitive solicitations.

Public Impact

The Department of Defense benefits from enhanced IT services, crucial for its operational effectiveness. Personnel within the DoD will likely receive improved IT support, potentially boosting productivity. The contract supports the Defense Information Systems Agency's mission to provide IT capabilities. The geographic impact is primarily within the operational areas served by DISA, which can be global. The contract supports the IT services sector, potentially involving skilled technical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness.
The broad 'Other Computer Related Services' category could mask inefficiencies if not tightly managed.
Limited transparency on the specific services rendered hinders a full value assessment.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type provides cost certainty for the government.
Contract awarded to a known entity (Peraton Enterprise Solutions LLC) which may have a track record with the DoD.

Sector Analysis

The IT services sector is a vast and critical component of government operations, with the Department of Defense being a significant consumer. Contracts for 'Other Computer Related Services' can encompass a wide range of support, from network management to cybersecurity and system integration. The market for these services is highly competitive, with numerous large and small businesses vying for government contracts. Benchmarking this $37.4 million award would involve comparing it to similar IT support contracts awarded by agencies like DISA or other branches of the DoD, considering the duration and the specific nature of the services provided.

Small Business Impact

The contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses. This means the primary award went to Peraton Enterprise Solutions LLC without a mandate to involve small businesses in a significant capacity. While this may not directly benefit the small business ecosystem through this specific contract, it allows the prime contractor flexibility in choosing its subcontractors based on capability and cost, which could indirectly involve small businesses if they are the most competitive providers.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting mechanisms, though specific performance details may be less public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Information Technology Services
IT Support Services
Computer Systems Design Services
Information Technology Professional Services
DoD IT Modernization Programs

Risk Flags

Potential for scope creep due to broad service category.
Risk of contractor performance not meeting expectations.
Technological obsolescence in a rapidly changing IT environment.
Dependence on a single contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.4 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $37.4 million.

What is the period of performance?

Start: 2018-06-27. End: 2019-06-30.

What is Peraton Enterprise Solutions LLC's track record with the Department of Defense, particularly for similar IT services contracts?

Peraton Enterprise Solutions LLC has a significant history of contracting with the Department of Defense across various IT and technology services. As a large government contractor, they have been awarded numerous contracts for areas including enterprise IT, cybersecurity, cloud services, and mission support. Analyzing their past performance on similar 'Other Computer Related Services' contracts, especially those awarded by DISA, would provide insight into their reliability, quality of service, and ability to manage complex IT requirements within budget and schedule. Specific contract performance evaluations (C-SPEs) and past performance questionnaires (PPQs) from previous DoD awards would be crucial for a comprehensive assessment of their track record.

How does the $37.4 million contract value compare to similar IT services contracts awarded by DISA or other DoD agencies for comparable services?

Benchmarking the $37.4 million contract value requires a detailed understanding of the specific 'Other Computer Related Services' being procured. If this contract covers broad IT support, network management, or system integration for a large user base, the value might be considered within a typical range for a one-year contract of this nature. However, if the services are highly specialized or involve a smaller scope, the value could be higher or lower than comparable contracts. Analyzing contract databases for awards with similar North American Industry Classification System (NAICS) codes (like 541519) and contract types (firm fixed-price) from DISA or other DoD entities over the past few years would provide a more accurate comparison. Factors such as contract duration, number of personnel, and specific deliverables are essential for a meaningful comparison.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract could include scope creep, where the requirements expand beyond the initial agreement, potentially leading to cost overruns despite the fixed-price nature. Another risk is contractor performance failure, where Peraton Enterprise Solutions LLC may not deliver the expected quality or timeliness of services, impacting DoD operations. Technical obsolescence is also a risk in the rapidly evolving IT landscape, where the contracted services might become outdated. Mitigation strategies typically involve robust contract management, clear definition of deliverables and performance standards, regular progress reviews, and contingency planning. The firm fixed-price structure itself acts as a cost-control mitigation, shifting some financial risk to the contractor.

What is the expected program effectiveness or impact of these IT services on the Department of Defense's mission readiness?

The effectiveness of these IT services is directly tied to their impact on the Department of Defense's mission readiness. Reliable and efficient IT infrastructure and support are foundational for modern military operations, enabling communication, data analysis, command and control, and logistical support. If Peraton Enterprise Solutions LLC successfully delivers high-quality 'Other Computer Related Services,' it should enhance the operational capabilities of DISA and the broader DoD by ensuring systems are available, secure, and performing optimally. Conversely, any deficiencies in service delivery could lead to disruptions, reduced efficiency, and potentially compromise mission effectiveness. The specific impact depends heavily on the precise nature of the services rendered and how well they align with DoD's strategic IT objectives.

How has the Department of Defense's spending on 'Other Computer Related Services' (NAICS 541519) evolved over the past five years?

Spending by the Department of Defense on 'Other Computer Related Services' (NAICS 541519) has likely seen a consistent and significant trend upwards over the past five years, reflecting the increasing reliance on advanced IT solutions across all military branches. This category encompasses a wide array of services, including IT consulting, system integration, network management, and cybersecurity support, all of which are critical for maintaining operational superiority. Factors driving this growth include the need to modernize legacy systems, adopt cloud computing, enhance cybersecurity defenses against sophisticated threats, and integrate new technologies like artificial intelligence and data analytics. Analyzing historical spending data would reveal specific growth rates and identify key areas within this NAICS code that have seen the most investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC102814R0005

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Solutions Inc. (UEI: 081218565)

Address: 13600 EDS DR A3S-B53, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,434,915

Exercised Options: $37,434,915

Current Obligation: $37,434,915

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102815D0006

IDV Type: IDC

Timeline