DoD's $43M Other ADP & Telecom Services Contract Awarded to Peraton Enterprise Solutions LLC
Contract Overview
Contract Amount: $42,967,469 ($43.0M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2013-06-30
End Date: 2013-09-30
Contract Duration: 92 days
Daily Burn Rate: $467.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
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 $43.0 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: OTHER ADP AND TELECOMMUNICATIONS SVS Key points: 1. Significant contract value of $42.97M for ADP and telecommunications services. 2. Awarded to Peraton Enterprise Solutions LLC, a single vendor. 3. The contract falls under 'Other Computer Related Services' (NAICS 541519). 4. Services were procured by the Department of the Navy, part of DoD. 5. This represents a substantial investment in IT and communication infrastructure.
Value Assessment
Rating: fair
The contract value of $42.97M is substantial. Without specific benchmarks for 'Other Computer Related Services' for the Navy, it's difficult to definitively assess pricing. However, the lack of competition suggests potential for higher costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This method can lead to less price discovery and potentially higher costs for the government compared to a fully competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these ADP and telecommunications services.
Public Impact
Ensures critical ADP and telecommunications services for the Department of the Navy. Supports military operations and administrative functions through essential IT infrastructure. Potential for increased costs due to non-competitive award impacts taxpayer funds. Highlights reliance on specific vendors for specialized IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited vendor options
Positive Signals
- Essential service provision
- Supports DoD mission
Sector Analysis
This contract falls under the broad 'Other Computer Related Services' category, which can encompass a wide range of IT support. Benchmarking is challenging without more specific service details, but large-scale IT service contracts for defense agencies often run into tens of millions.
Small Business Impact
The data indicates this contract was awarded to Peraton Enterprise Solutions LLC and does not specify any small business participation. Given the sole-source nature, it's unlikely small businesses were directly involved as prime contractors.
Oversight & Accountability
The non-competitive award raises questions about oversight and whether alternative solutions were adequately explored. Further review of the justification for sole-source procurement would be necessary to assess accountability.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in vendor selection
- No clear small business participation
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.0 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 $43.0 million.
What is the period of performance?
Start: 2013-06-30. End: 2013-09-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award is critical for understanding the necessity of bypassing competitive processes. Without this information, it's difficult to ascertain if the government received the best possible value. Exploring alternatives ensures taxpayer funds are used efficiently and that the chosen vendor is truly the only viable option for the required services.
How does the pricing of this contract compare to similar, competitively awarded contracts for comparable ADP and telecommunications services within the DoD?
Comparing the pricing to competitively awarded contracts is essential for assessing value for money. A sole-source award, by its nature, lacks the price pressure of competition. If this contract's rates are significantly higher than market benchmarks derived from competitive procurements, it suggests potential overspending and a suboptimal use of taxpayer funds.
What is the long-term strategy for ensuring competitive sourcing for these essential ADP and telecommunications services to avoid future sole-source awards?
A long-term strategy focused on fostering competition is crucial for sustained cost-effectiveness and innovation. Agencies should actively plan for future procurements to encourage market participation and prevent over-reliance on single vendors. This includes market research, breaking down large requirements, and developing clear acquisition pathways that invite a wider range of qualified bidders.
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: $42,967,469
Exercised Options: $42,967,469
Current Obligation: $42,967,469
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003910D0010
IDV Type: IDC
Timeline
Start Date: 2013-06-30
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2024-03-29
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