DoD's $31.77M IT contract to Peraton Enterprise Solutions for computer systems design services awarded via full and open competition
Contract Overview
Contract Amount: $31,774,469 ($31.8M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2014-12-01
End Date: 2015-09-30
Contract Duration: 303 days
Daily Burn Rate: $104.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF OTHER ADP AND TELECOMMUNICATIONS SVCS
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $31.8 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF OTHER ADP AND TELECOMMUNICATIONS SVCS Key points: 1. Contract awarded at a significant value, requiring careful benchmarking against similar IT services. 2. Full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 3. The contract's duration and fixed-price nature may indicate a predictable cost structure. 4. Performance period of approximately 10 months requires close monitoring for timely delivery. 5. The award to Peraton Enterprise Solutions warrants examination of their past performance in similar IT engagements. 6. This contract falls within the broader category of IT and telecommunications services, a critical area for defense operations.
Value Assessment
Rating: fair
The contract value of $31.77 million for approximately 10 months of computer systems design services appears substantial. Benchmarking against similar contracts for IT services within the Department of Defense is crucial to assess value for money. Without specific details on the scope of services, it is difficult to definitively assess pricing fairness. However, the fixed-price nature suggests a defined cost ceiling.
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 presence of 7 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive proposals.
Taxpayer Impact: A competitive award process like this typically benefits taxpayers by driving down prices and encouraging innovative solutions from multiple vendors.
Public Impact
The Department of the Navy benefits from enhanced computer systems design services, crucial for its operational effectiveness. This contract supports the delivery of advanced IT solutions essential for modern defense capabilities. The primary geographic impact is likely within the operational areas of the Department of the Navy. The contract may have implications for the IT workforce, potentially creating or sustaining jobs in computer systems design.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if the initial requirements are not clearly defined.
- Risk of cost overruns if the fixed-price contract does not adequately account for all potential complexities.
- Dependence on contractor performance for critical IT infrastructure.
Positive Signals
- Awarded through full and open competition, indicating a competitive market.
- Fixed-price contract type can provide cost certainty.
- Multiple bidders (7) suggest a robust selection process.
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading technological infrastructure. Comparable spending benchmarks would involve analyzing other large-scale IT service contracts awarded by defense agencies for similar design and integration work.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless Peraton Enterprise Solutions voluntarily engages small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available.
Related Government Programs
- IT Services
- Computer Systems Design
- Defense IT Procurement
- Department of the Navy Contracts
- Information Technology Support
Risk Flags
- Potential for cost overruns if scope is not well-defined.
- Risk of performance delays impacting critical IT systems.
- Dependence on contractor's technical expertise.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, large-contract, information-technology, defense-contracting, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.8 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF OTHER ADP AND TELECOMMUNICATIONS SVCS
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 $31.8 million.
What is the period of performance?
Start: 2014-12-01. End: 2015-09-30.
What is Peraton Enterprise Solutions LLC's track record with the Department of Defense for similar IT services?
Assessing Peraton Enterprise Solutions LLC's track record with the Department of Defense for similar IT services is crucial for understanding their capability and reliability. While this specific contract was awarded in late 2014, Peraton has a history of performing IT and telecommunications services for various government agencies. A deeper dive would involve reviewing their past performance evaluations, any contract disputes or terminations, and the scale and complexity of previous IT projects they have managed for DoD. This analysis helps determine if their past performance aligns with the requirements and risks associated with this $31.77 million contract.
How does the $31.77 million contract value compare to industry benchmarks for computer systems design services of similar scope and duration?
The $31.77 million contract value for approximately 10 months of computer systems design services requires comparison against industry benchmarks. This involves researching average costs for similar IT design and integration projects within the defense sector and the broader federal government. Factors such as the complexity of the systems, the level of customization required, and the specific technologies involved significantly influence pricing. Without detailed service descriptions, a precise benchmark is challenging, but the value suggests a significant undertaking. Analyzing data from similar contracts awarded to other large IT service providers can offer insights into whether this price point is competitive and reflects fair market value for the services rendered.
What are the primary risks associated with this firm fixed-price contract for computer systems design services?
The primary risks associated with this firm fixed-price contract for computer systems design services revolve around potential cost overruns for the contractor and scope creep. If the contractor underestimates the complexity or effort required for the design services, they may incur losses. Conversely, if the government's requirements evolve or are not clearly defined upfront, there's a risk of scope creep, which could lead to disputes or the need for contract modifications. Additionally, the government relies heavily on the contractor's technical expertise and timely delivery; any performance issues could impact critical defense IT infrastructure. The relatively short performance period also necessitates efficient project management to avoid delays.
How effective are the oversight mechanisms for ensuring the successful delivery of computer systems design services under this contract?
The effectiveness of oversight mechanisms for this contract depends on the Department of the Navy's program management and contracting personnel. Standard oversight practices would include regular progress reviews, technical inspections, and performance monitoring against defined milestones and deliverables. The firm fixed-price nature incentivizes the contractor to manage costs, but oversight is still critical to ensure the quality and completeness of the design services. The contract's relatively short duration requires diligent oversight to ensure timely completion and adherence to specifications. The presence of an Inspector General's office within DoD also provides an additional layer of oversight for fraud, waste, and abuse.
What has been the historical spending trend for computer systems design services by the Department of the Navy in recent years?
Analyzing the historical spending trend for computer systems design services by the Department of the Navy provides context for this $31.77 million award. The Navy, like other branches of the military, consistently invests heavily in IT modernization and system design to maintain technological superiority. Recent years have likely seen increased spending due to evolving cyber threats, the need for integrated systems, and the adoption of new technologies. Understanding this trend helps assess whether this contract represents a typical investment level or a significant deviation. Data from sources like the Federal Procurement Data System (FPDS) would be necessary to quantify this trend accurately and identify patterns in contract types, awardees, and service categories.
What are the potential implications of this contract award on the broader IT services market, particularly concerning competition?
This contract award, being a full and open competition with 7 bidders, suggests a healthy and competitive IT services market for the Department of the Navy. The award to Peraton Enterprise Solutions LLC indicates their capability to compete effectively against other major players in the sector. The competitive nature of the bidding process likely drove pricing efficiencies. The implications for the broader market include reinforcing the importance of robust IT infrastructure for defense, potentially encouraging other firms to develop similar capabilities to bid on future contracts, and highlighting the ongoing demand for specialized computer systems design services within the federal government.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: HP, Inc. (UEI: 009122532)
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: $31,774,469
Exercised Options: $31,774,469
Current Obligation: $31,774,469
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003913D0013
IDV Type: IDC
Timeline
Start Date: 2014-12-01
Current End Date: 2015-09-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2017-05-02
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