DoD awards $35.8M for IT services to Peraton Enterprise Solutions, with a 98% prime performance score

Contract Overview

Contract Amount: $35,795,610 ($35.8M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-09

End Date: 2026-02-08

Contract Duration: 364 days

Daily Burn Rate: $98.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GCDS II ORDER TO FUND OY2.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.8 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: GCDS II ORDER TO FUND OY2. Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. Prime performance score of 98% indicates a strong track record for the contractor. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. Contract duration of one year aligns with project-based IT service needs. 5. The award represents a small portion of overall IT spending within the Defense Information Systems Agency. 6. Focus on 'Other Computer Related Services' suggests a broad range of IT support.

Value Assessment

Rating: good

The contract value of $35.8 million for a one-year IT services delivery order appears reasonable given the contractor's high performance score (98%). Benchmarking against similar IT service contracts within the Department of Defense is necessary for a definitive value assessment. However, the fixed-price nature of the contract provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing among vendors.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, potentially resulting in better value for the government.

Public Impact

The Department of Defense benefits from enhanced IT services to support its operations. Services delivered likely include a range of computer-related support, maintenance, and potentially development. The contract is geographically focused on Virginia, where the contractor is located. Workforce implications may include employment opportunities within Peraton Enterprise Solutions in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of 'Other Computer Related Services' could lead to scope creep.
Reliance on a single contractor for a critical year of IT services presents a potential single point of failure risk.
The contract value, while seemingly reasonable, requires further benchmarking against similar DoD IT contracts.

Positive Signals

High prime performance score (98%) indicates a reliable and capable contractor.
Fixed-price contract type offers cost predictability and reduces financial risk for the government.
Awarded under full and open competition, suggesting a robust and fair bidding process.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on IT services. The market for IT services to the federal government is substantial, with agencies like the Defense Information Systems Agency (DISA) being major consumers. Comparable spending benchmarks would involve analyzing other IT service contracts awarded by DISA and the DoD to similar-sized firms for comparable service scopes.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false). There is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless Peraton Enterprise Solutions actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Information Systems Agency's program management office. Accountability measures are inherent in the firm fixed-price contract type and the contractor's performance metrics. Transparency is facilitated by the contract award being publicly available, though detailed performance reports may not be public.

Related Government Programs

Defense Information Systems Agency IT Services Contracts
Department of Defense IT Modernization Programs
Federal IT Services Procurement
Other Computer Related Services Contracts

Risk Flags

Potential for scope creep due to broad service category.
Risk of knowledge transfer challenges with a one-year term.
Dependence on contractor performance metrics for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to PERATON ENTERPRISE SOLUTIONS LLC. GCDS II ORDER TO FUND OY2.

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 $35.8 million.

What is the period of performance?

Start: 2025-02-09. End: 2026-02-08.

What specific IT services are included under the 'Other Computer Related Services' category for this contract?

The specific services encompassed by 'Other Computer Related Services' (NAICS code 541519) for this GCDS II ORDER TO FUND OY2 contract are not detailed in the provided data. This category is broad and can include a wide array of IT support functions such as IT consulting, systems integration design, computer facilities management, and data processing services. To understand the precise scope, one would need to review the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Without this detail, it's difficult to assess if the $35.8 million award is appropriately priced for the specific deliverables.

How does Peraton Enterprise Solutions' 98% prime performance score compare to industry averages for IT service providers to the DoD?

A prime performance score of 98% for Peraton Enterprise Solutions is exceptionally high and suggests a strong history of successful contract execution. While industry averages can fluctuate based on contract type, complexity, and reporting methodology, scores in the high 90s are generally indicative of a contractor consistently meeting or exceeding performance expectations. For context, many government agencies track contractor performance through systems like the Contractor Performance Assessment Reporting System (CPARS). A score of 98% would likely place Peraton among the top-performing IT service providers within the DoD ecosystem, indicating a low risk of performance-related issues for this specific contract.

What is the historical spending pattern for similar IT services by the Defense Information Systems Agency?

Historical spending patterns for IT services by the Defense Information Systems Agency (DISA) are substantial, reflecting the agency's critical role in providing IT infrastructure and services to the DoD. DISA manages a vast portfolio of contracts for network operations, cybersecurity, enterprise IT, and various specialized IT services. Analyzing past awards for contracts with similar NAICS codes (e.g., 541519) and contract values can provide context. For instance, DISA frequently awards multi-year, multi-million dollar contracts for IT support. The $35.8 million for this one-year order is significant but likely falls within the typical range for major IT service procurements by DISA, especially when considering the potential for follow-on orders or broader program support.

What are the potential risks associated with a one-year contract duration for IT services?

A one-year contract duration for IT services, like this $35.8 million award, presents several potential risks. Firstly, it may limit the contractor's incentive to invest in long-term solutions or process improvements if they perceive a low probability of contract renewal. Secondly, it can lead to increased administrative burden and costs associated with frequent re-procurement cycles for the government. Thirdly, if the services are critical and require deep institutional knowledge, a short duration might result in knowledge gaps or transition challenges when a new contract is awarded. However, for specific project-based needs or during periods of IT strategy re-evaluation, a one-year term can offer flexibility and allow the government to reassess requirements before committing to longer terms.

How does the 'FIRM FIXED PRICE' contract type influence the value and risk for this IT services award?

The 'FIRM FIXED PRICE' (FFP) contract type is generally considered advantageous for the government when the scope of work is well-defined and risks are understood. For this $35.8 million IT services contract, FFP means the contractor, Peraton Enterprise Solutions, bears the primary risk of cost overruns. This provides the government with significant cost certainty, as the total price is fixed regardless of the contractor's actual costs. From a value perspective, FFP encourages contractor efficiency and cost control. However, it can also lead to higher initial pricing compared to cost-reimbursement contracts, as the contractor will factor in potential risks. Given the high performance score and full and open competition, the FFP structure here likely enhances value by ensuring predictable spending and incentivizing efficient service delivery.

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: $42,027,717

Exercised Options: $42,027,717

Current Obligation: $35,795,610

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