DoD's $28.3M Defense Contract Pay System Support contract awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $28,299,471 ($28.3M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2016-04-01

End Date: 2021-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CT::IGF DEFENSE CONTRACT PAY SYSTEM SUPPORT

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46249

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::CT::IGF DEFENSE CONTRACT PAY SYSTEM SUPPORT Key points: 1. Contract value represents a significant investment in critical defense financial infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of over 5 years indicates a long-term need for these services. 4. The award falls within the IT services sector, crucial for modern defense operations. 5. Performance context is vital to ensure the system's reliability and security. 6. Value for money will be assessed against system performance and operational efficiency gains.

Value Assessment

Rating: good

The contract value of $28.3 million over approximately five years for Defense Contract Pay System Support appears reasonable given the critical nature of the service. Benchmarking against similar large-scale IT support contracts within the Department of Defense suggests that Peraton's pricing is likely competitive. The specific details of the delivery order, including labor hours and the base contract's value, would provide further insight into the cost-effectiveness. However, without direct comparable data on the specific system's complexity and the scope of services, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a moderate level of competition for this specific delivery order. While more than one bidder is positive, a higher number of competitors could potentially drive prices down further and foster greater innovation. The full and open nature is a positive indicator for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a process designed to solicit the best possible offers, potentially leading to cost savings compared to less competitive methods.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, ensuring the smooth functioning of financial operations. Services delivered include computer systems design and support, crucial for the integrity and efficiency of defense payment systems. The geographic impact is likely nationwide, supporting defense personnel and operations across various locations. Workforce implications include the potential for skilled IT professionals to be engaged in supporting critical national security infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hour estimates are not carefully managed.
Risk of vendor lock-in if transition to a new system or vendor is complex.
Dependence on a single vendor for critical financial system support could pose a risk if performance degrades.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Contract duration indicates a stable, long-term need, allowing for focused service delivery.
The IT services sector is generally mature, with established best practices for system support.

Sector Analysis

The IT services sector is a vast and critical component of government operations, encompassing everything from software development to system maintenance and cybersecurity. Within this sector, defense spending on IT support is substantial, driven by the need for secure, reliable, and advanced systems to manage complex operations. This contract for Defense Contract Pay System Support fits within the broader category of IT infrastructure and financial management systems, which are essential for the efficient allocation of resources within the Department of Defense. Comparable spending benchmarks in this area often involve multi-million dollar contracts for system design, integration, and ongoing support.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The primary contractor, Peraton Enterprise Solutions LLC, is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Peraton voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Finance and Accounting Service (DFAS) and potentially the Department of Defense's Inspector General. DFAS is responsible for the day-to-day management and performance monitoring of the contract. The Inspector General's office would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to the contract. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and detailed financial breakdowns may not always be publicly accessible.

Related Government Programs

Defense Finance and Accounting Service (DFAS) IT Support Contracts
Department of Defense Financial Management Systems
IT Services for Federal Agencies
Contract Payment and Administration Systems

Risk Flags

Potential for cost overruns
Cybersecurity vulnerabilities
System downtime risk
Data integrity concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::CT::IGF DEFENSE CONTRACT PAY SYSTEM SUPPORT

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 $28.3 million.

What is the period of performance?

Start: 2016-04-01. End: 2021-09-30.

What is the historical spending trend for Defense Contract Pay System Support or similar systems within the Department of Defense?

Analyzing historical spending for the Defense Contract Pay System Support requires access to detailed budget and contract databases beyond the scope of this single award. However, generally, the Department of Defense consistently allocates significant portions of its budget to IT infrastructure and financial management systems. Spending in this area tends to be stable or increasing, reflecting the growing complexity of defense operations and the need for robust, secure digital platforms. Trends often show a shift towards cloud-based solutions and enhanced cybersecurity measures. Without specific historical data for this particular system or its predecessors, it's difficult to pinpoint exact trends, but the overall DoD IT spending landscape suggests a sustained investment in such critical systems.

How does the awarded amount compare to the estimated value or ceiling of the base contract?

The provided data indicates an 'aw' (award amount) of $28,299,471.27 and a 'br' (base contract value) of $14,093. This suggests that the $28.3 million is the value of a specific delivery order placed against a larger indefinite-delivery/indefinite-quantity (IDIQ) or similar type of base contract. The base contract value of $14,093 appears to be a nominal amount, possibly for initial setup or administrative purposes, with the bulk of the spending occurring through subsequent delivery orders like this one. The actual ceiling or total potential value of the base contract would need to be consulted to fully understand the scope and potential for future orders.

What specific services are included under 'Computer Systems Design Services' for this contract?

Under the NAICS code 541512 for Computer Systems Design Services, the scope typically includes analyzing client's business or scientific needs and then designing, developing, and implementing customized information technology solutions. For the Defense Contract Pay System Support, this would likely encompass a range of activities such as system architecture design, software development and integration, database management, network design, and potentially cybersecurity enhancements. It could also involve requirements analysis, system testing, implementation support, and ongoing maintenance and upgrades to ensure the system effectively supports the DoD's complex payment and financial operations.

What is Peraton Enterprise Solutions LLC's track record with similar large-scale government IT contracts?

Peraton Enterprise Solutions LLC has a significant track record of performing large-scale IT and mission support services for various U.S. government agencies, including defense and intelligence sectors. They have been awarded numerous contracts for complex systems integration, cybersecurity, enterprise IT, and data analytics. Their experience often involves managing critical infrastructure and sensitive data, aligning with the requirements of a defense contract pay system. While specific performance details for every contract are not always public, Peraton's consistent awards in this domain suggest a demonstrated capability to meet government requirements and manage substantial budgets. Reviewing their contract history with agencies like the DoD, Air Force, and intelligence community would provide further context.

Are there any known performance issues or risks associated with the Defense Contract Pay System?

Information regarding specific performance issues or risks associated with the Defense Contract Pay System itself, independent of the contractor's performance, is not readily available in the provided data. However, any system responsible for processing defense payments is inherently critical and carries significant risks related to data integrity, cybersecurity, and operational continuity. Potential risks could include vulnerabilities to cyber threats, system downtime impacting payment processing, or inaccuracies in financial data. The effectiveness of the contractor, Peraton Enterprise Solutions LLC, in mitigating these risks and ensuring the system's reliable operation is a key factor in the contract's success.

Industry Classification

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

Solicitation ID: HQ042316Q0002

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

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

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

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

Financial Breakdown

Contract Ceiling: $28,299,471

Exercised Options: $28,299,471

Current Obligation: $28,299,471

Subaward Activity

Number of Subawards: 48

Total Subaward Amount: $4,660,102

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0027

IDV Type: GWAC

Timeline