DoD's $39.3M IT services contract awarded to Peraton Enterprise Solutions LLC, a sole-source delivery order

Contract Overview

Contract Amount: $39,315,985 ($39.3M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2011-10-31

End Date: 2012-09-30

Contract Duration: 335 days

Daily Burn Rate: $117.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OTHER ADP AND TELECOMMUNICATIONS SVS

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.3 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: OTHER ADP AND TELECOMMUNICATIONS SVS Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Delivery order under a larger contract structure, suggesting potential for follow-on work. 3. Fixed-price contract type aims to control costs, but scope creep could impact final price. 4. Services fall under 'Other Computer Related Services,' a broad category. 5. Contract duration of 335 days indicates a short-term need for services. 6. Awarded by the Department of the Navy, a major component of the DoD. 7. Virginia is the state of performance, a common hub for federal contracting.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the parent contract's terms and the specific services rendered. However, the total award of $39.3 million for approximately one year of 'Other Computer Related Services' suggests a significant investment. Without comparable sole-source awards for similar services, it's difficult to definitively assess if this represents good value for money. The fixed-price nature provides some cost certainty, but the lack of competition raises concerns about potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed among multiple vendors. This approach is typically used when a specific vendor possesses unique capabilities or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces. This raises questions about whether the most cost-effective solution was secured.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not achieve the best possible pricing without competitive pressure.

Public Impact

The Department of the Navy benefits from the provision of 'Other Computer Related Services'. These services likely support critical IT infrastructure and operations within the Navy. The geographic impact is centered in Virginia, where the services are performed. Workforce implications are tied to the personnel required to deliver these IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-source award.
Broad service category ('Other Computer Related Services') could mask inefficiencies or scope creep.
Short contract duration might indicate a stop-gap measure rather than a strategic long-term solution.

Positive Signals

Fixed-price contract type provides cost certainty for the awarded scope.
Awarded by a major federal agency (Department of Defense), indicating a potentially important service.
Performance in Virginia, a state with a strong federal contracting ecosystem.

Sector Analysis

The 'Other Computer Related Services' category falls under the broader Information Technology (IT) sector. This sector is characterized by rapid innovation and a wide range of service providers, from large system integrators to specialized niche firms. Federal spending in IT is substantial, covering everything from software development and cybersecurity to network management and cloud computing. Comparable spending benchmarks for 'Other Computer Related Services' are difficult to establish due to the category's breadth, but IT services generally represent a significant portion of agency budgets.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Peraton Enterprise Solutions LLC, a large business, suggests that small business participation was not a primary consideration for this specific procurement. This could mean missed opportunities for small businesses to contribute to this federal IT requirement and potentially limit their growth within the federal contracting landscape.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a delivery order under a larger contract, oversight mechanisms would be tied to the parent contract's structure. Transparency regarding the justification for the sole-source award and the specific services rendered is crucial for accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services
Navy IT Modernization Programs
Other Computer Related Services Contracts
Sole Source IT Procurements

Risk Flags

Sole-source award without clear justification.
Broad service category lacks specificity.
Potential for uncompetitive pricing.
Limited transparency on performance details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.3 million to PERATON ENTERPRISE SOLUTIONS LLC. OTHER ADP AND TELECOMMUNICATIONS SVS

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $39.3 million.

What is the period of performance?

Start: 2011-10-31. End: 2012-09-30.

What specific 'Other Computer Related Services' were provided under this contract?

The provided data does not specify the exact nature of the 'Other Computer Related Services' rendered. This category is broad and can encompass a wide range of IT support, including but not limited to network administration, system maintenance, software troubleshooting, IT consulting, and data management. To understand the value and necessity of this contract, a detailed breakdown of the services performed, their objectives, and their alignment with the Department of the Navy's mission would be required. Without this granular detail, it is difficult to assess the effectiveness or necessity of the expenditure beyond the general provision of IT support.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. Federal procurement regulations typically require full and open competition unless specific exceptions apply, such as the existence of only one responsible source, urgent and compelling needs, or specific statutory authority. The justification for this sole-source award is not detailed in the provided data. Understanding the rationale behind bypassing competition is critical for assessing whether the government obtained fair and reasonable pricing and whether taxpayer funds were used efficiently. Further investigation into the contract file or agency justifications would be necessary to ascertain the specific reasons.

How does the $39.3 million award compare to similar IT services contracts awarded by the Department of the Navy?

Comparing this $39.3 million award for 'Other Computer Related Services' requires context regarding the contract's duration and the specific services provided. The contract lasted approximately 335 days (less than a year). Without knowing the precise scope of work, it's challenging to make a direct comparison. However, $39.3 million for less than a year of IT services is a substantial amount. The Department of the Navy procures a vast array of IT services, ranging from large-scale system development to routine maintenance. Benchmarking would ideally involve looking at other sole-source or competed contracts for similar 'Other Computer Related Services' with comparable durations and complexity to assess if the pricing was competitive or reasonable.

What is Peraton Enterprise Solutions LLC's track record with the Department of Defense and specifically the Department of the Navy?

Peraton Enterprise Solutions LLC is a significant federal contractor. While the provided data confirms this specific award from the Department of the Navy, a comprehensive assessment of their track record would involve reviewing their entire contract history with the DoD and its various branches. This includes examining past performance evaluations, the types and values of contracts awarded, and any history of performance issues or disputes. A strong track record with the agency, particularly in delivering similar IT services, could lend some confidence to the award, although it does not negate the concerns associated with a sole-source procurement.

What are the potential risks associated with a sole-source award for IT services?

The primary risk of a sole-source award for IT services is the potential for inflated pricing due to the absence of competitive bidding. Without competing offers, the government may not secure the most cost-effective solution. Other risks include a lack of innovation, as the incumbent provider may have less incentive to offer cutting-edge solutions. There's also a risk of vendor lock-in, where the agency becomes dependent on a single provider, making future transitions difficult and potentially costly. Furthermore, the justification for sole-sourcing must be robust to ensure it aligns with procurement regulations and serves the best interests of the government and taxpayers.

How does this contract fit into the broader IT spending landscape of the Department of the Navy?

This $39.3 million delivery order represents a specific expenditure within the Department of the Navy's substantial IT budget. The Navy, like all branches of the DoD, relies heavily on IT infrastructure for command and control, intelligence, logistics, and personnel management. Contracts for 'Other Computer Related Services' are essential for maintaining and upgrading these systems. The fact that this was a sole-source award suggests it may have addressed a unique requirement or a situation where competition was deemed impractical or too time-consuming. Understanding its place requires analyzing the Navy's overall IT strategy and how this particular service contributes to its operational goals and modernization efforts.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: HP, Inc.

Address: 13600 EDS DR, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $39,315,985

Exercised Options: $39,315,985

Current Obligation: $39,315,985

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0003910D0010

IDV Type: IDC

Timeline