DoD's $12.9M Other ADP Services Contract Awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $12,906,397 ($12.9M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2009-03-31

End Date: 2009-09-30

Contract Duration: 183 days

Daily Burn Rate: $70.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE

Sector: IT

Official Description: OTHER ADP & TELECOMMUNICATIONS SERVICES

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70146

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: OTHER ADP & TELECOMMUNICATIONS SERVICES Key points: 1. Contract awarded for Other Computer Related Services (NAICS 541519). 2. Significant award value of $12.9 million. 3. Competition was full and open, suggesting potential for competitive pricing. 4. Contract duration was 183 days, indicating a short-term need. 5. Awarded by the Department of the Navy, part of the DoD.

Value Assessment

Rating: fair

The contract value of $12.9 million for 183 days suggests a daily rate of approximately $70,527. This rate needs to be benchmarked against similar short-term IT service contracts to assess value.

Cost Per Unit: $70,527 per day

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The impact on price discovery is generally positive in such scenarios.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible pricing through market forces.

Public Impact

This contract supports critical Department of Defense operations. The services provided are essential for maintaining ADP and telecommunications infrastructure. The short duration suggests a specific, time-bound project or surge requirement. Awarding to Peraton Enterprise Solutions LLC indicates their capability in this specialized IT service area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT services sector is highly competitive. Benchmarking this contract's daily rate against other government IT service contracts, especially those for similar specialized services and durations, is crucial for assessing value.

Small Business Impact

While this contract was awarded to Peraton Enterprise Solutions LLC, there is no specific indication of small business participation or subcontracting in the provided data. Further analysis would be needed to determine if small businesses were involved.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms. However, the short duration might limit the scope for extensive long-term oversight.

Related Government Programs

Risk Flags

Tags

other-computer-related-services, department-of-defense, la, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to PERATON ENTERPRISE SOLUTIONS LLC. OTHER ADP & TELECOMMUNICATIONS 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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2009-03-31. End: 2009-09-30.

What specific ADP and telecommunications services were rendered under this contract, and how did they align with the Department of the Navy's strategic IT goals?

The provided data categorizes the services under 'Other ADP & Telecommunications Services' and NAICS code 541519 ('Other Computer Related Services'). Without further details on the Statement of Work, it's difficult to ascertain the precise services. However, such contracts typically cover a range of IT support, network management, or system integration tasks crucial for operational readiness and communication within the Navy.

Given the $70,527 daily rate, what risks are associated with potential cost overruns or scope creep, even under a fixed-price contract?

Even with a fixed-price contract, risks of cost overruns or scope creep can arise from poorly defined requirements, unforeseen technical challenges, or inadequate project management. If the initial scope was underestimated or if the contractor encounters unexpected complexities, they might seek change orders or extensions, potentially increasing the overall cost to the government beyond the initial estimate.

How effective was the full and open competition in ensuring the best value for taxpayers on this $12.9 million contract?

Full and open competition is designed to maximize value by encouraging multiple bids. Its effectiveness in this case depends on the number and quality of bids received, the negotiation process, and the final price relative to market rates. While the mechanism itself promotes value, the ultimate effectiveness hinges on the execution and market conditions specific to these 'Other Computer Related Services'.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 4

Pricing Type: FIXED PRICE (J)

Contractor Details

Parent Company: HP, Inc.

Address: 13600 EDS DRIVE, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,906,397

Exercised Options: $12,906,397

Current Obligation: $12,906,397

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002400D6000

IDV Type: IDC

Timeline

Start Date: 2009-03-31

Current End Date: 2009-09-30

Potential End Date: 2009-09-30 00:00:00

Last Modified: 2023-08-08

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