Interior's $27.5M EDS Contract for System Development Services Awarded to Peraton

Contract Overview

Contract Amount: $27,545,679 ($27.5M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of the Interior

Start Date: 2004-03-31

End Date: 2006-09-24

Contract Duration: 907 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ELECTRONIC DATA SYSTEMS-SYSTEM DEVELOPMENT AND INTEGRATION SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $27.5 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: ELECTRONIC DATA SYSTEMS-SYSTEM DEVELOPMENT AND INTEGRATION SERVICES Key points: 1. Contract awarded to Peraton Enterprise Solutions LLC for $27.5 million. 2. Services include system development and integration. 3. Contract duration was 907 days. 4. Awarded under a full and open competition. 5. The contract type was Cost Plus Fixed Fee.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar system development and integration contracts is difficult without more detailed service descriptions and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure may still allow for costs to exceed initial expectations.

Taxpayer Impact: Taxpayer funds were used for system development and integration services. The effectiveness of the spending depends on the successful delivery and utility of the developed systems.

Public Impact

Ensures the Department of the Interior has necessary IT infrastructure and capabilities. Supports critical government functions through system development. Potential for improved efficiency and effectiveness of Interior's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Lack of specific performance metrics makes it hard to assess value.
Contract duration is relatively long, increasing risk of scope creep or obsolescence.

Positive Signals

Awarded under full and open competition.
Services are essential for departmental operations.

Sector Analysis

This contract falls within the IT services sector, specifically system development and integration. Spending benchmarks for such contracts vary widely based on complexity, scope, and duration.

Small Business Impact

The data does not indicate any specific involvement or benefit for small businesses in this contract.

Oversight & Accountability

Oversight would focus on ensuring Peraton met the contract's technical requirements and managed costs effectively within the Cost Plus Fixed Fee structure.

Related Government Programs

Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Cost Plus Fixed Fee contract type
Lack of detailed performance metrics
Potential for cost overruns
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $27.5 million to PERATON ENTERPRISE SOLUTIONS LLC. ELECTRONIC DATA SYSTEMS-SYSTEM DEVELOPMENT AND INTEGRATION 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 the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $27.5 million.

What is the period of performance?

Start: 2004-03-31. End: 2006-09-24.

What was the final cost compared to the initial estimate, and were there significant cost overruns?

The provided data shows the award amount as $27,545,679.32. Without initial estimates or detailed financial breakdowns, it's impossible to determine if there were cost overruns. Cost Plus Fixed Fee contracts inherently carry a risk of exceeding initial projections if not rigorously managed.

How effectively were the system development and integration services delivered, and did they meet the Department of the Interior's needs?

The data does not include performance metrics or user feedback. Assessing effectiveness would require reviewing project deliverables, system performance post-implementation, and user satisfaction surveys to determine if the services met the intended operational requirements.

What was the competitive landscape for this contract, and did the full and open competition result in optimal pricing?

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure can sometimes obscure the true value achieved, as the contractor is reimbursed for costs plus a fixed fee, potentially reducing the incentive for aggressive cost control.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hewlett Packard Enterprise CO (UEI: 079834910)

Address: 13600 EDS DR, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $27,545,679

Exercised Options: $27,545,679

Current Obligation: $27,545,679

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NBCHA010033

IDV Type: BPA

Timeline