DoD's $12.1M Payment Server Contract with Peraton Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $12,105,865 ($12.1M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2007-07-01
End Date: 2010-09-30
Contract Duration: 1,187 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CONTRACTOR PAYMENT SERVERS
Place of Performance
Location: COLUMBUS, FRANKLIN County, OHIO, 43213
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $12.1 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: CONTRACTOR PAYMENT SERVERS Key points: 1. The contract awarded to Peraton Enterprise Solutions LLC for payment server services is substantial at $12.1 million. 2. Competition details are limited, raising questions about price discovery and potential taxpayer impact. 3. The 'Computing Infrastructure Providers' sector is critical for government operations, making efficient spending vital. 4. The contract's duration and fixed-price nature suggest a need for ongoing performance monitoring.
Value Assessment
Rating: fair
The contract value of $12.1 million for payment servers needs comparison against similar government or commercial contracts. Without specific benchmarks for computing infrastructure and data processing services, assessing optimal pricing is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the best price discovery. However, the lack of detailed award information makes it difficult to confirm if the competitive process yielded optimal pricing.
Taxpayer Impact: The impact on taxpayers hinges on whether the competitive process truly drove down costs to the lowest feasible level for the services provided.
Public Impact
Ensures the functioning of critical payment systems for the Department of Defense. Supports the broader IT infrastructure necessary for defense operations. Potential for cost savings if competition was robust and pricing was optimized.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed pricing justification
- Limited insight into competitive outcomes
- Potential for vendor lock-in over time
Positive Signals
- Awarded under full and open competition
- Firm fixed-price contract type can control costs
- Long-term contract may indicate stable service provision
Sector Analysis
This contract falls within the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' sector, a critical area for government IT. Spending benchmarks in this sector vary widely based on service scope and scale, making direct comparisons difficult without more detail.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would focus on ensuring Peraton Enterprise Solutions LLC meets all performance requirements and service level agreements. The contracting agency, Defense Finance and Accounting Service, is responsible for monitoring contract execution and financial compliance.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Defense Contracting
- Defense Finance and Accounting Service Programs
Risk Flags
- Lack of detailed performance metrics
- Limited transparency on competitive bidding outcomes
- Potential for unoptimized pricing without further benchmarks
- No indication of small business participation
Tags
computing-infrastructure-providers-data-, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to PERATON ENTERPRISE SOLUTIONS LLC. CONTRACTOR PAYMENT SERVERS
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 Finance and Accounting Service).
What is the total obligated amount?
The obligated amount is $12.1 million.
What is the period of performance?
Start: 2007-07-01. End: 2010-09-30.
What was the specific scope of services provided under this $12.1 million contract for payment servers, and how does it compare to industry standards for similar IT infrastructure?
The provided data identifies the service category as 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.' However, the specific scope of 'payment servers' is not detailed. To assess value, a comparison would require understanding the exact functionalities, capacity, uptime guarantees, and security measures provided, benchmarked against comparable offerings from other IT service providers in the public and private sectors.
Given the full and open competition, what evidence exists to demonstrate that the pricing achieved was truly competitive and represented the best value for taxpayer dollars?
While the award states 'full and open competition,' the data lacks details on the number of bids received, the range of proposed prices, and the evaluation criteria used. Without this information, it's difficult to ascertain if the competitive process effectively drove down costs. Further investigation into the award decision and any pre- or post-award pricing analyses would be necessary to confirm optimal value.
How effectively did this contract support the Department of Defense's critical payment processing functions, and were there any performance issues or risks identified during its 3-year duration?
The contract's duration of approximately three years (July 2007 to September 2010) suggests it supported ongoing payment operations. However, the provided data does not include performance metrics, user feedback, or any documented issues. Assessing effectiveness would require reviewing performance reports, incident logs, and any post-contract reviews to understand its reliability and impact on DoD's financial operations.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: HP, Inc. (UEI: 009122532)
Address: 13600 EDS DR, HERNDON, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,909,228
Exercised Options: $12,105,865
Current Obligation: $12,105,865
Parent Contract
Parent Award PIID: GS35F0323J
IDV Type: FSS
Timeline
Start Date: 2007-07-01
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2012-07-24
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