DoD's $31.5M Contract for Other ADP/Telecom Services Awarded to Peraton Enterprise Solutions LLC
Contract Overview
Contract Amount: $31,485,732 ($31.5M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2012-03-31
End Date: 2013-03-30
Contract Duration: 364 days
Daily Burn Rate: $86.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OTHER ADP AND TELECOMMUNICATION SVS
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $31.5 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: OTHER ADP AND TELECOMMUNICATION SVS Key points: 1. Contract awarded for "Other Computer Related Services" (NAICS 541519). 2. Significant spending of $31.5M on a single delivery order. 3. No competition was involved in this award. 4. The contract duration was one year. 5. The award was made by the Department of the Navy.
Value Assessment
Rating: questionable
The contract value of $31.5M for a one-year period for 'Other Computer Related Services' appears high without competitive benchmarking. The lack of competition makes it difficult to assess if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely resulted in a higher price than if multiple vendors had vied for the contract, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The specific services provided under 'Other Computer Related Services' are not detailed, raising questions about necessity and value. Reliance on a single vendor for critical ADP and telecommunication services could pose a risk if the vendor fails to perform.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value for a single delivery order
- Vague service description
Positive Signals
- Contract awarded to a known entity (Peraton)
Sector Analysis
The IT services sector, particularly 'Other Computer Related Services', is broad. Benchmarking is difficult without specific service details, but $31.5M for a year of undefined services is substantial.
Small Business Impact
The contract was awarded to Peraton Enterprise Solutions LLC, a large business. There is no indication that small businesses were involved in this specific award.
Oversight & Accountability
The award was made by the Department of the Navy. Oversight would focus on whether the services were necessary, adequately performed, and if the pricing was justified despite the lack of competition.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition raises concerns about price fairness.
- Vague service description hinders value assessment.
- High dollar amount for a single, non-competed delivery order.
- Potential for overpayment due to sole-source award.
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 $31.5 million to PERATON ENTERPRISE SOLUTIONS LLC. OTHER ADP AND TELECOMMUNICATION 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 $31.5 million.
What is the period of performance?
Start: 2012-03-31. End: 2013-03-30.
What specific ADP and telecommunication services were procured under this contract, and were they essential to the Department of the Navy's mission?
The contract description 'Other ADP and Telecommunication Services' is very broad. Without further details, it's impossible to ascertain the exact nature of the services. Understanding their criticality to the Navy's operations is crucial for evaluating the necessity and justification of the $31.5M expenditure, especially given the lack of competition.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The data indicates the contract was 'NOT COMPETED'. A justification for this sole-source award, such as a specific urgent need or unique capability, would be required. Without competitive bids, ensuring fair and reasonable pricing relies heavily on the government's internal cost analysis and negotiation, which is harder to verify externally.
How does the $31.5M cost for a one-year contract compare to industry benchmarks for similar, albeit potentially more defined, IT and telecommunication services?
Benchmarking this $31.5M contract is challenging due to the vague service description ('Other ADP and Telecommunication Services'). However, for a single year, this amount is significant. Without specific deliverables, comparing it to industry standards for managed IT services, network infrastructure, or telecommunication support is speculative but suggests a potentially high cost.
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: $31,485,732
Exercised Options: $31,485,732
Current Obligation: $31,485,732
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: 2012-03-31
Current End Date: 2013-03-30
Potential End Date: 2013-03-30 00:00:00
Last Modified: 2024-03-29
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