DoD's $40.6M Managed Services Contract Awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $40,605,008 ($40.6M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2024-02-09

End Date: 2025-02-08

Contract Duration: 365 days

Daily Burn Rate: $111.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GCDS SERVICES HTTP(S) - MANAGED SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $40.6 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: GCDS SERVICES HTTP(S) - MANAGED SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. Managed services for GCDS HTTP(S) indicate a focus on critical IT infrastructure support. 4. The contract duration is one year, suggesting a need for ongoing, but potentially short-term, operational support. 5. The award value of $40.6 million falls within a moderate spending range for IT services. 6. The primary contractor, Peraton Enterprise Solutions LLC, has a significant presence in the federal IT sector.

Value Assessment

Rating: good

The contract's firm-fixed-price structure is generally favorable for cost control. Benchmarking against similar managed IT services contracts for the Department of Defense is necessary for a precise value assessment. However, the award amount appears reasonable for comprehensive managed services supporting critical infrastructure over a one-year period. Further analysis would involve comparing the specific service deliverables and performance metrics against industry standards and other government contracts.

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 bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency likely sought to maximize value by allowing a broad range of qualified contractors to participate.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and quality for the services rendered, preventing potential overpayment associated with less competitive methods.

Public Impact

The Department of Defense benefits from enhanced and reliable managed IT services for its GCDS HTTP(S) infrastructure. This contract ensures the continuous operation and security of critical communication and data transfer services. The services delivered are essential for supporting military operations and administrative functions. The primary impact is on the IT infrastructure supporting defense operations, with potential ripple effects on workforce productivity and operational readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the quality of service.
The one-year duration might necessitate a future competitive process, incurring additional administrative costs.
Dependence on a single contractor for critical managed services could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type provides budget certainty for the government.
Contractor has experience in the federal IT services market.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending allocated to managed services, cloud computing, and cybersecurity. This contract for managed services supporting GCDS HTTP(S) falls within the broader category of IT infrastructure and operations support. Comparable spending benchmarks for similar managed IT services contracts within the Department of Defense often range from tens to hundreds of millions of dollars annually, depending on the scope and complexity of the services.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there was no small business set-aside (ss) for this contract. This suggests that the procurement was not specifically targeted towards small businesses. While Peraton Enterprise Solutions LLC may have its own subcontracting plans, the absence of a set-aside means that opportunities for small businesses to directly bid on this prime contract were limited. Further investigation into Peraton's subcontracting goals would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) through contract officers and technical points of contact. Performance monitoring, adherence to service level agreements, and invoice verification are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Managed Services Contracts
Federal IT Infrastructure Support
GCDS (Global Command and Control System) Support

Risk Flags

Potential for vendor lock-in
Reliance on contractor for critical infrastructure
Cybersecurity risks inherent in managed services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.6 million to PERATON ENTERPRISE SOLUTIONS LLC. GCDS SERVICES HTTP(S) - MANAGED SERVICES

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 $40.6 million.

What is the period of performance?

Start: 2024-02-09. End: 2025-02-08.

What is the track record of Peraton Enterprise Solutions LLC with the Department of Defense for similar managed services contracts?

Peraton Enterprise Solutions LLC has a substantial history of contracting with the Department of Defense, particularly in areas related to IT services, communications, and mission support. They have been awarded numerous contracts, including significant ones for enterprise IT services, network operations, and cybersecurity. Their experience often involves managing complex systems and providing mission-critical support. While specific details on past performance for GCDS HTTP(S) managed services are not provided here, their overall portfolio suggests a capacity to handle such requirements. A deeper dive into their past performance reviews and contract history with DISA and other DoD components would offer a more granular understanding of their reliability and effectiveness in delivering comparable services.

How does the awarded amount of $40.6 million compare to similar managed IT services contracts within the DoD?

The $40.6 million award for one year of managed services for GCDS HTTP(S) appears to be within a moderate range for large-scale IT support within the Department of Defense. Contracts for enterprise-wide managed IT services, network operations, or cybersecurity can often range from tens of millions to hundreds of millions of dollars annually, depending on the scope, number of users, and criticality of the systems supported. For instance, contracts supporting global networks or major command and control systems can exceed this amount significantly. Conversely, smaller, more specialized IT support contracts might be in the single-digit millions. Without knowing the exact service level agreements and the specific components of GCDS HTTP(S) being managed, a precise comparison is challenging, but the award seems aligned with the typical investment in maintaining critical defense IT infrastructure.

What are the primary risks associated with this managed services contract, and how are they mitigated?

Key risks for this managed services contract include potential performance shortfalls by the contractor, cybersecurity vulnerabilities within the managed systems, and vendor lock-in. Performance risks are typically mitigated through robust Service Level Agreements (SLAs) with defined metrics, penalties for non-compliance, and regular performance reviews. Cybersecurity risks are addressed through stringent security requirements, compliance with DoD security standards (e.g., RMF), and regular audits. Vendor lock-in can be a concern, but the firm-fixed-price nature of this delivery order and the requirement for full and open competition in future procurements can help mitigate this by ensuring competitive re-competition and the potential for transitioning to other providers. The government's oversight team plays a crucial role in monitoring and managing these risks throughout the contract lifecycle.

What is the expected effectiveness of these managed services in supporting the Department of Defense's mission objectives?

The effectiveness of these managed services is expected to be high, given that they support GCDS HTTP(S), which are critical components of the Department of Defense's communication and information infrastructure. Reliable and secure management of these services is essential for enabling command and control, intelligence sharing, and operational coordination across various military branches and theaters. By outsourcing the management of these complex IT systems to a specialized provider like Peraton, the DoD can ensure continuous availability, optimal performance, and enhanced security, thereby freeing up internal resources to focus on core military missions rather than day-to-day IT operations. The firm-fixed-price contract type incentivizes the contractor to deliver services efficiently and effectively to meet the defined objectives.

How has the spending on managed IT services for the Defense Information Systems Agency (DISA) evolved over the past five years?

Spending on managed IT services by the Defense Information Systems Agency (DISA) has generally seen a consistent and significant increase over the past five years, driven by the increasing complexity of military operations, the need for robust cybersecurity, and the ongoing digital transformation within the DoD. DISA manages a vast array of IT infrastructure and services critical to national defense, leading to substantial investments in areas like network operations, cloud services, enterprise IT, and cybersecurity managed services. While specific figures for 'managed services' can vary based on categorization, overall DISA IT spending has been in the billions annually. Trends indicate a move towards more integrated, cloud-based, and secure managed solutions to support evolving threats and operational requirements, often involving large, multi-year contracts awarded through competitive processes.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC108420R0005

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

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: $40,605,008

Exercised Options: $40,605,008

Current Obligation: $40,605,008

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC108421D0002

IDV Type: IDC

Timeline