DoD's $12.7M contract for quality management and health services support awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $12,698,880 ($12.7M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-01

End Date: 2026-12-31

Contract Duration: 851 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: QUALITY MANAGEMENT & HEALTH SERVICES SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: QUALITY MANAGEMENT & HEALTH SERVICES SUPPORT SERVICES Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Fixed-price contract type suggests cost certainty for the government. 3. Performance period spans over two years, indicating a medium-term need. 4. Contractor has a significant presence in government contracting. 5. Services align with IT and health support, a growing sector. 6. No small business set-aside, potentially limiting small business participation.

Value Assessment

Rating: good

The contract value of $12.7 million over approximately 2.7 years appears reasonable for specialized IT and health services support. Benchmarking against similar contracts for quality management and health IT services is necessary for a definitive value assessment. However, the fixed-price nature of the contract provides cost predictability. The award through a BPA Call suggests that pricing was likely evaluated against pre-negotiated rates, which can offer competitive value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific mechanism used was a BPA Call, which implies that the underlying Blanket Purchase Agreement (BPA) was itself competed. This approach generally fosters a competitive environment, leading to better price discovery and value for the government. The number of bidders for the BPA and this specific call would provide further insight into the level of competition.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from the most competitive pricing and innovative solutions available in the market, as multiple companies vied for this contract.

Public Impact

The Defense Health Agency benefits from enhanced quality management and health services support. Improved health IT infrastructure and services for military personnel and beneficiaries. Potential for enhanced healthcare delivery and operational efficiency within the DoD. Supports the broader mission of the Defense Health Agency in providing healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the BPA is not re-competed effectively.
Reliance on a single contractor for critical health IT support services.
Scope creep could increase costs beyond the initial $12.7 million estimate.

Positive Signals

Award to an established contractor with a track record in government IT services.
Fixed-price contract type limits cost overruns for the government.
BPA Call mechanism suggests a streamlined and potentially cost-effective procurement process.
Long-term performance period allows for stability and continuity of services.

Sector Analysis

This contract falls within the IT and professional services sector, specifically focusing on computer systems design and health services support. The federal IT services market is substantial, with significant spending allocated to modernizing health systems and improving data management. Contracts like this are crucial for agencies like the Defense Health Agency to maintain and upgrade their complex technological infrastructure, ensuring efficient healthcare delivery to service members and their families. Benchmarks for similar IT support services often range widely based on scope and complexity, but a $12.7 million award over two years is within a common range for specialized support.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated. This means that opportunities for small businesses to participate in this contract are limited to those that might be engaged by the prime contractor, Peraton Enterprise Solutions LLC, on a voluntary basis. The absence of a set-aside or subcontracting plan could mean a missed opportunity to leverage the innovation and agility of the small business sector in supporting the Defense Health Agency's needs.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a fixed-price contract awarded under full and open competition via a BPA Call, oversight will focus on performance delivery and adherence to contract terms. The Defense Health Agency's contracting office is responsible for administering the contract. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Health Information Technology
DoD Health IT Modernization Programs
Quality Management Systems Support
IT Services for Federal Agencies
Healthcare IT Services

Risk Flags

Potential for performance issues
Risk of vendor lock-in
Scope creep potential
Reliance on single contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to PERATON ENTERPRISE SOLUTIONS LLC. QUALITY MANAGEMENT & HEALTH SERVICES SUPPORT 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 Health Agency).

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2024-09-01. End: 2026-12-31.

What is Peraton Enterprise Solutions LLC's track record with the Defense Health Agency and similar health IT contracts?

Peraton Enterprise Solutions LLC has a significant history of contracting with various U.S. government agencies, including the Department of Defense and its sub-agencies like the Defense Health Agency (DHA). Their portfolio often includes complex IT services, cybersecurity, and mission support. For DHA specifically, Peraton has been involved in contracts related to IT infrastructure, data management, and health IT systems. Their experience in managing large-scale IT projects within the federal health sector suggests a strong capability to handle the requirements of this quality management and health services support contract. Analyzing past performance evaluations and any reported issues on previous DHA or similar contracts would provide a more granular understanding of their reliability and effectiveness in delivering health IT services.

How does the $12.7 million value compare to similar quality management and health IT support contracts?

The $12.7 million contract value for quality management and health services support, spanning approximately 2.7 years, appears to be within a reasonable range for specialized IT services supporting a major federal health agency. Comparable contracts for similar services can vary significantly based on the scope, duration, specific technologies involved, and the level of support required. For instance, contracts focused solely on IT infrastructure management might be higher, while those for niche consulting services could be lower. Given that this contract involves both quality management and health services support, likely encompassing IT systems, data analysis, and process improvement, the $12.7 million figure suggests a moderate-sized engagement. A more precise comparison would require identifying contracts with identical or highly similar North American Industry Classification System (NAICS) codes (like 541512) and service descriptions awarded by agencies of comparable size and complexity to the DHA.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include potential performance issues if Peraton Enterprise Solutions LLC fails to meet the quality standards or delivery timelines outlined in the contract. Given the critical nature of health services support, any lapse in quality could impact healthcare operations or data integrity. Another risk is vendor lock-in, especially if the underlying BPA is not re-competed effectively, potentially limiting future competition and innovation. Scope creep is also a concern; if the requirements expand beyond the initial SOW without proper modification and funding adjustments, costs could escalate. Finally, reliance on a single contractor for essential support services introduces a risk if the contractor faces financial instability or significant operational disruptions.

How effective is the 'BPA Call' procurement method for ensuring value in this context?

The 'BPA Call' procurement method, used here under a pre-existing Blanket Purchase Agreement (BPA), is generally effective for ensuring value when the underlying BPA was established through robust full and open competition. This method allows for streamlined ordering against pre-negotiated terms and pricing, which can reduce administrative burden and lead to faster service delivery. For the government, value is derived from the competitive pricing established during the initial BPA competition and the efficiency of the call ordering process. However, the ultimate value depends on the quality of the competition that led to the BPA itself and whether the specific call order represents a fair price compared to market rates for the services requested. Regular review of BPA call orders against market benchmarks is crucial to ensure continued value.

What are the implications of this contract not having a small business set-aside?

The implication of this contract not having a small business set-aside is that the primary award went to a large business, Peraton Enterprise Solutions LLC, without a specific mandate to reserve a portion of the work for small businesses. This means that small businesses will not automatically receive a defined share of the contract value. While Peraton may choose to subcontract portions of the work to small businesses, there is no contractual obligation for them to do so. This can limit opportunities for small businesses to gain experience, grow their capabilities, and contribute to critical government missions. It also means the government may not be fully leveraging the innovative solutions and competitive pricing that small businesses often bring to the market.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $23,063,994

Exercised Options: $12,698,880

Current Obligation: $12,698,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT001523A0002

IDV Type: BPA

Timeline