DoD's $96.4M Other ADP & Telecom Services Contract Awarded to Peraton Enterprise Solutions LLC
Contract Overview
Contract Amount: $96,438,833 ($96.4M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2012-09-29
End Date: 2013-09-28
Contract Duration: 364 days
Daily Burn Rate: $264.9K/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 $96.4 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: OTHER ADP AND TELECOMMUNICATION SVS Key points: 1. Significant contract value of $96.4 million for ADP and telecommunication services. 2. Awarded to Peraton Enterprise Solutions LLC, indicating a specific vendor relationship. 3. Contract duration of 364 days suggests a short-term or task-specific need. 4. The 'Other Computer Related Services' NAICS code points to a broad range of IT support.
Value Assessment
Rating: fair
The contract value of $96.4 million for a single year of service appears high for 'Other Computer Related Services'. Benchmarking against similar contracts for broad IT support is necessary to determine if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition for a nearly $100 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The Department of the Navy relies on Peraton for critical ADP and telecommunication services. Lack of transparency in the procurement process could mask inefficiencies. Future contracts of this nature may continue without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value for the service category
- Lack of competition
Positive Signals
- Services delivered to the Department of the Navy
- Contract completed within the specified timeframe
Sector Analysis
The IT services sector is vast, and 'Other Computer Related Services' can encompass a wide array of support functions. Spending benchmarks for this specific NAICS code are difficult to establish without more detail, but large sole-source awards warrant scrutiny.
Small Business Impact
The data does not indicate whether small businesses were involved in subcontracting opportunities for this contract. Sole-source awards often bypass opportunities for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lack of robust oversight in the initial procurement phase. Further review of the justification for the sole-source award is needed to assess accountability.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for overpricing due to sole-source award
- Lack of transparency in procurement
- Limited opportunity for small business participation
- Questionable value for money without competitive bidding
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 $96.4 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 $96.4 million.
What is the period of performance?
Start: 2012-09-29. End: 2013-09-28.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically require detailed documentation, such as a Justification and Approval (J&A), outlining the necessity for a single source. Without this information, it's impossible to assess if taxpayer funds were managed responsibly or if alternative, more competitive procurement methods were explored and deemed unsuitable.
How does the $96.4 million cost compare to industry benchmarks for similar 'Other Computer Related Services' provided to defense agencies?
Benchmarking this contract's cost against similar services is essential for value assessment. Without specific details on the services rendered, a direct comparison is challenging. However, a $96.4 million expenditure for a one-year contract in this category, especially when awarded non-competitively, raises a red flag. Further analysis would require detailed service scope and market research data to determine if the price was fair and reasonable.
What was the impact of this sole-source award on the Department of the Navy's ability to secure competitive pricing for future IT services?
Sole-source awards, by their nature, do not foster price competition. This specific contract, awarded without competition, may signal a reliance on Peraton Enterprise Solutions LLC, potentially limiting the Navy's leverage in future negotiations. It could also discourage other vendors from investing in capabilities relevant to the Navy if they perceive limited opportunities for competitive contracts.
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: $96,438,833
Exercised Options: $96,438,833
Current Obligation: $96,438,833
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: 2012-09-29
Current End Date: 2013-09-28
Potential End Date: 2013-09-28 00:00:00
Last Modified: 2024-03-29
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