DoD's $34.7M NIPRNET/SIPRNET GCDS Services contract awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $34,678,601 ($34.7M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2020-07-01

End Date: 2021-06-30

Contract Duration: 364 days

Daily Burn Rate: $95.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NIPRNET&SIPRNET GCDS SERVICES HTTP(S)

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $34.7 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: NIPRNET&SIPRNET GCDS SERVICES HTTP(S) Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Performance period is one year, indicating a need for agile and responsive services. 4. The NAICS code 541519 suggests a broad range of computer-related services were procured. 5. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract's value of $34.7 million for a one-year period for GCDS services appears within a reasonable range for large-scale defense IT infrastructure. Benchmarking against similar NIPRNET/SIPRNET support contracts is challenging without more specific service details. However, the firm fixed-price nature suggests the government secured predictable costs, though the ultimate value depends on service delivery quality and efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The Defense Information Systems Agency (DISA) likely sought the best value through a structured evaluation process.

Taxpayer Impact: Taxpayers benefit from the competitive nature of the award, which is intended to drive down costs and ensure the government receives high-quality services at a fair market price.

Public Impact

Provides critical network services (NIPRNET/SIPRNET) essential for Department of Defense (DoD) communications. Supports secure and unclassified military network operations, enabling command and control. Services are delivered to the Department of Defense, impacting military personnel and operations nationwide. Ensures the continuity of essential IT services for national security operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
Limited transparency on the number of bidders and the evaluation criteria used in the full and open competition.
The broad NAICS code could encompass a wide range of services, making it hard to pinpoint the exact value delivered.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Firm Fixed Price contract type shifts cost risk to the contractor.
One-year performance period allows for regular re-evaluation of needs and contractor performance.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on network infrastructure and support for government systems. The market for defense IT services is substantial, with agencies like DISA being major consumers. Contracts for NIPRNET and SIPRNET support are crucial for maintaining the backbone of military communications, often involving large, complex service agreements.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses may be limited unless they are part of Peraton's supply chain or subcontracting network.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the contracting officer at DISA. The firm fixed-price nature provides some cost control, but performance monitoring is crucial. Transparency is moderate, with the award details available, but internal evaluation criteria and performance reports are generally not public.

Related Government Programs

NIPRNET Services
SIPRNET Services
Defense Information Systems Agency Contracts
DoD Network Operations
Computer Network Support Services

Risk Flags

Potential for scope creep under FFP contract.
Risk of service degradation if contractor cost-cutting occurs.
Dependence on a single contractor for critical network services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.7 million to PERATON ENTERPRISE SOLUTIONS LLC. NIPRNET&SIPRNET GCDS SERVICES HTTP(S)

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 $34.7 million.

What is the period of performance?

Start: 2020-07-01. End: 2021-06-30.

What is the historical spending pattern for NIPRNET and SIPRNET GCDS services by the Department of Defense?

Historical spending on NIPRNET and SIPRNET GCDS services by the DoD has been substantial and consistent, reflecting the critical nature of these networks for military operations. While specific figures for 'GCDS Services' are not readily available across all historical contracts, DISA alone manages billions of dollars annually in IT and telecommunications contracts. Spending in this category has likely seen fluctuations based on technological upgrades, evolving security requirements, and the consolidation of various network services under larger IDIQ vehicles. The trend generally points towards increasing complexity and integration, with a continuous need for robust network support to maintain secure and reliable communication channels for a global military presence.

How does the awarded amount of $34.7 million compare to similar contracts for network services within the DoD?

The $34.7 million award for one year of NIPRNET/SIPRNET GCDS services is a significant but not extraordinary amount for a large-scale defense IT contract. DISA, as the procuring agency, frequently awards contracts in the tens to hundreds of millions of dollars for comprehensive network support, infrastructure, and cybersecurity. For instance, similar contracts for enterprise IT services, network operations, and telecommunications support often range from $50 million to over $1 billion over their full performance periods. This specific contract's value appears aligned with the scope of providing essential GCDS services for a one-year term, especially considering the firm-fixed-price structure which caps the government's expenditure.

What are the key performance indicators (KPIs) typically used to evaluate contractors for NIPRNET/SIPRNET services?

Key performance indicators (KPIs) for NIPRNET/SIPRNET services typically focus on network availability, latency, throughput, security compliance, and incident response times. For example, uptime guarantees for critical network segments might be set at 99.9% or higher. Latency targets ensure efficient data transfer, crucial for real-time operations. Throughput metrics ensure sufficient bandwidth is available to meet user demands. Security compliance KPIs would involve adherence to DoD security protocols and successful completion of security audits. Incident response KPIs would measure the time taken to detect, diagnose, and resolve network issues. While specific KPIs for this contract are not public, these are standard metrics used by DISA to ensure service quality and mission effectiveness.

What is the track record of Peraton Enterprise Solutions LLC in delivering similar large-scale IT services to the federal government?

Peraton Enterprise Solutions LLC, and its parent company Peraton, have a significant track record of delivering complex IT and mission support services to various U.S. federal agencies, including the Department of Defense. They have been involved in numerous large-scale contracts related to network modernization, cybersecurity, enterprise IT, and mission-critical systems. Peraton has a history of acquiring other companies with specialized capabilities, which has expanded its portfolio and reach within the federal contracting space. Their experience often includes managing secure communication networks and providing advanced technological solutions. While specific performance details on every contract are not publicly available, their consistent awards and presence in major federal IT procurements indicate a substantial capacity and established reputation for handling large, complex government IT programs.

What are the potential risks associated with a firm-fixed-price contract for complex IT services like GCDS?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty for the government, they carry inherent risks, particularly for complex IT services. One primary risk is that the contractor may cut corners on quality or service levels to maintain profitability if their initial cost estimates were too low or if unforeseen technical challenges arise. This could lead to degraded performance or reliability. Another risk is scope creep; if the government requires additional services or changes beyond the original scope, managing those changes under an FFP contract can be difficult and may lead to disputes or costly change orders. Furthermore, if the contractor lacks the necessary technical expertise or resources, they may struggle to deliver the required services effectively, potentially impacting mission-critical operations. Robust oversight and clear contract terms are essential to mitigate these risks.

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: Veritas Capital Fund Management, L.L.C.

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: $34,678,601

Exercised Options: $34,678,601

Current Obligation: $34,678,601

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