DoD's $149M NMCI Services contract awarded to Peraton Enterprise Solutions LLC for IT support

Contract Overview

Contract Amount: $148,844,389 ($148.8M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2017-09-01

End Date: 2017-09-30

Contract Duration: 29 days

Daily Burn Rate: $5.1M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF NMCI SERVICES

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $148.8 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF NMCI SERVICES Key points: 1. Value for money appears fair given the scope of IT services provided. 2. Full and open competition suggests a competitive pricing environment. 3. Risk indicators are moderate, typical for large-scale IT service contracts. 4. Performance context is within the standard for IT system design and support. 5. Sector positioning is within the IT services domain for defense agencies.

Value Assessment

Rating: fair

The contract value of approximately $149 million for a 29-day period (delivery order) suggests a significant investment in IT services. Benchmarking against similar large-scale IT support contracts is challenging without more granular data on the specific services rendered. However, the fixed-price nature of the contract implies that the government has a defined cost ceiling, which can be a positive indicator for value if the scope is well-managed. The per-unit cost is not readily calculable due to the broad nature of 'Computer Systems Design Services'.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which should theoretically lead to more favorable pricing and better service offerings for the government. The absence of restrictions allows for a wider pool of potential contractors to vie for the work.

Taxpayer Impact: Taxpayers benefit from the potential for cost savings and improved service quality due to the competitive nature of the award process.

Public Impact

The Department of the Navy benefits from enhanced IT infrastructure and support services. Services delivered likely include computer systems design, integration, and potentially ongoing support for critical defense networks. Geographic impact is likely concentrated within Department of Defense facilities, particularly those managed by the Navy. Workforce implications may involve IT professionals employed by Peraton Enterprise Solutions LLC and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not tightly managed given the broad service category.
Dependence on a single contractor for critical IT systems could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm Fixed Price contract type provides cost certainty for the government.
Contractor has experience in enterprise IT solutions, as indicated by their name.

Sector Analysis

The IT services sector is a vast and critical component of government operations, encompassing everything from network management to software development and cybersecurity. This contract falls under computer systems design services, a sub-sector focused on the planning, integration, and implementation of IT systems. The market for these services is highly competitive, with numerous large and small businesses vying for government contracts. The total addressable market for IT services within the federal government is in the tens of billions of dollars annually.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Peraton Enterprise Solutions LLC, may still engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their own business strategy and the requirements of the work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Accountability measures are built into the contract through its firm fixed-price nature and performance expectations. Transparency is generally facilitated through contract award databases like FPDS-NG, where basic contract information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NMCI (Navy Marine Corps Intranet)
IT Services Contracts
Computer Systems Design Services
Department of Defense IT Spending
Navy IT Modernization

Risk Flags

Short performance period for a large contract value
Broad service category may obscure specific deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $148.8 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF NMCI 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 $148.8 million.

What is the period of performance?

Start: 2017-09-01. End: 2017-09-30.

What specific IT services were included under this $149M delivery order?

The provided data classifies this contract under NAICS code 541512, 'Computer Systems Design Services'. This broad category can encompass a wide range of activities, including designing and integrating computer systems, IT consulting, network architecture, and potentially project management for IT implementations. However, without a detailed statement of work (SOW) or task order details, the precise services rendered under this specific $149 million delivery order remain unspecified. It's possible it covered a significant upgrade, a new system deployment, or a comprehensive support package for a particular set of Navy IT assets during the 29-day performance period.

How does the value of this contract compare to other NMCI services contracts?

Comparing this specific $149 million delivery order to other NMCI services contracts requires access to historical NMCI contract data, which is not fully provided here. The Navy Marine Corps Intranet (NMCI) program is a massive, long-term initiative involving billions of dollars in IT services over many years. Individual delivery orders can vary significantly in value depending on the scope of work, duration, and specific technologies or services required. A $149 million order, even for a short period, suggests a substantial undertaking, potentially related to a major system deployment, upgrade, or critical support function within the NMCI environment. Without a broader dataset of NMCI orders, a precise comparison is difficult, but it represents a significant financial commitment for the period it covers.

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

Peraton Enterprise Solutions LLC, and its parent company Peraton, have a substantial track record of performing work for the Department of Defense and other federal agencies. They are known for providing a wide range of IT, mission support, and technology services. Their portfolio often includes complex systems integration, cybersecurity, cloud services, and enterprise IT management. Awards to Peraton from the DoD are frequent and often involve large dollar values, reflecting their established presence and capabilities in supporting defense missions. A review of federal procurement databases would reveal numerous contracts awarded to Peraton across various DoD components, indicating a consistent engagement and perceived capability by defense agencies.

What are the potential risks associated with a $149M IT services contract awarded for a short duration?

A significant risk associated with a large dollar value contract ($149M) awarded for a very short duration (29 days) is the potential for inadequate planning and execution. Such a short timeframe might indicate an urgent need or a bridge contract. Risks include rushed implementation, insufficient testing, potential for scope creep if the requirements are not perfectly defined upfront, and challenges in ensuring seamless integration with existing systems. There's also a risk that the contractor may not have adequate time to fully mobilize resources or that the government may not have sufficient time for thorough oversight and acceptance. The firm fixed-price nature could lead to cost overruns for the contractor if scope is underestimated, or conversely, reduced quality if corners are cut to meet the deadline.

How does the 'Computer Systems Design Services' category typically translate into taxpayer value?

Taxpayer value in the 'Computer Systems Design Services' category is realized through the creation and maintenance of efficient, secure, and reliable IT infrastructure that supports government functions. When executed effectively, these services lead to improved operational capabilities, better data management, enhanced cybersecurity, and potentially cost savings through system modernization and automation. For example, well-designed systems can streamline bureaucratic processes, reduce manual labor, and enable faster decision-making. Conversely, poorly designed or implemented systems can lead to inefficiencies, security vulnerabilities, and increased long-term maintenance costs, diminishing taxpayer value. The competitive award process for this contract aims to maximize this value by ensuring fair pricing and quality service delivery.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DXC Technology Company (UEI: 080521853)

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: $148,844,389

Exercised Options: $148,844,389

Current Obligation: $148,844,389

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0003913D0013

IDV Type: IDC

Timeline