DoD's $40.6M Contract for Other ADP/Telecom Services Awarded to Peraton Enterprise Solutions LLC
Contract Overview
Contract Amount: $40,578,687 ($40.6M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2012-06-30
End Date: 2013-06-29
Contract Duration: 364 days
Daily Burn Rate: $111.5K/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 $40.6 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: OTHER ADP AND TELECOMMUNICATION SVS Key points: 1. Significant spending on IT services for the Department of the Navy. 2. Sole-source award to Peraton Enterprise Solutions LLC raises competition concerns. 3. Fixed-price contract type aims to control costs. 4. The contract falls under 'Other Computer Related Services' NAICS code.
Value Assessment
Rating: fair
The contract value of $40.6M for a one-year period appears high for 'Other Computer Related Services'. Benchmarking against similar contracts for ADP and telecommunication services is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method may lead to higher prices than if multiple vendors had competed.
Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for these ADP and telecommunication services.
Public Impact
Ensures critical IT and telecommunication services for the Department of the Navy. Potential for increased costs due to sole-source award impacts taxpayer funds. Lack of competitive bidding limits opportunities for other service providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value for the period
- Lack of transparency in pricing
Positive Signals
- Fixed-price contract type
- Specific service delivery period
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government agencies, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
The data indicates this contract was not awarded to small businesses. There is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and effective service delivery. The Department of the Navy should have internal controls to validate the necessity and cost-effectiveness of this award.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Contract value seems high for a one-year duration.
- Lack of small business participation.
- Broad service category may obscure specific needs and costs.
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 $40.6 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 $40.6 million.
What is the period of performance?
Start: 2012-06-30. End: 2013-06-29.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. Price reasonableness is usually determined through cost analysis, comparison to historical prices, or market research. Without specific documentation, it's difficult to ascertain the exact justification and pricing methodology used for this $40.6M contract.
What specific ADP and telecommunication services are included in this contract, and how do they align with the Navy's mission needs?
The contract specifies 'Other ADP and Telecommunication Services' under NAICS code 541519. This broad category could encompass a wide range of IT support, network management, data processing, and communication solutions. Understanding the precise services is key to assessing their alignment with the Department of the Navy's operational requirements and mission objectives.
What is the potential cost savings if this contract had been competitively procured?
Estimating potential cost savings from a non-competed contract is challenging without detailed market analysis. However, competitive bidding typically drives down prices by 10-30% or more, depending on the market and service complexity. For a $40.6M contract, this could translate to millions in potential savings for taxpayers.
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: $40,578,687
Exercised Options: $40,578,687
Current Obligation: $40,578,687
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: 2012-06-30
Current End Date: 2013-06-29
Potential End Date: 2013-06-29 00:00:00
Last Modified: 2024-03-29
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