Department of the Navy awarded $72.4M for computer systems design services under NGEN contract

Contract Overview

Contract Amount: $72,410,837 ($72.4M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2020-03-01

End Date: 2020-09-30

Contract Duration: 213 days

Daily Burn Rate: $340.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FOR THE PROVISION OF NON-PERSONAL SERVICES IAW NGEN CONTRACT AND THIS ORDER'S REQUIREMENT.NGEN STILL USED 4 DIGIT TO#'S WHICH FPDSNG NO LONGER ALLOWS. THIS IS FOR TO'S AND MODS FROM 03/1/20 TO 03/31/20 FOR A TOTAL OF 82 ACTIONS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $72.4 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: FOR THE PROVISION OF NON-PERSONAL SERVICES IAW NGEN CONTRACT AND THIS ORDER'S REQUIREMENT.NGEN STILL USED 4 DIGIT TO#'S WHICH FPDSNG NO LONGER ALLOWS. THIS IS FOR TO'S AND MODS FROM 03/1/20 TO 03/31/20 FOR A TOTAL OF 82 ACTIONS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under the NGEN contract, indicating a pre-existing framework. 3. Services provided are computer systems design, a critical area for defense IT infrastructure. 4. The contract duration is 213 days, suggesting a short-term need or task order. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The award was made to Peraton Enterprise Solutions LLC, a known government contractor.

Value Assessment

Rating: good

The total award amount of $72.4 million for a 213-day period for computer systems design services appears to be within a reasonable range for large-scale IT support. Benchmarking against similar large IT service contracts for the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government when scope is well-defined, as it caps potential cost overruns.

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 bids. The data does not specify the number of bidders, but the designation implies a robust competitive environment. This level of competition is generally expected to drive down prices and encourage innovation from offerors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, ensuring the government receives the best value for its investment.

Public Impact

The Department of the Navy benefits from enhanced computer systems design services, crucial for its operational capabilities. This contract supports the modernization and maintenance of IT infrastructure within the Navy. The services likely impact Navy personnel requiring reliable and advanced computing systems. The geographic impact is primarily within the Navy's operational areas, potentially global.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

NGEN contract's use of 4-digit TO#'s is noted as outdated, potentially indicating legacy system integration challenges.
The short duration of the delivery order (213 days) might suggest a need for rapid, task-specific support rather than long-term strategic development.

Positive Signals

Awarded under a firm fixed-price contract, which provides cost certainty for the government.
The contract was competed fully and openly, suggesting a competitive process that should yield good value.
The contractor, Peraton Enterprise Solutions LLC, is an established entity in the government contracting space.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market supporting government operations. The NGEN (Next Generation Enterprise Network) contract vehicle itself represents a substantial portion of the Navy's IT infrastructure spending, aiming to consolidate and modernize its network capabilities. Spending in this area is critical for maintaining operational readiness and cybersecurity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a delivery order under a large contract vehicle like NGEN, it is likely that the prime contractor, Peraton Enterprise Solutions LLC, may engage small businesses for subcontracting opportunities. However, without specific subcontracting plans or goals detailed in this award notice, the direct impact on the small business ecosystem is not immediately clear from this data alone.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a delivery order under the NGEN contract, there may be established oversight mechanisms and reporting requirements associated with that larger vehicle. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance metrics are often not publicly disclosed.

Related Government Programs

NGEN Contract
Department of Defense IT Services
Navy Network Modernization Programs
Computer Systems Design Services

Risk Flags

Outdated TO# format noted
Short contract duration may indicate potential for follow-on work or scope management challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.4 million to PERATON ENTERPRISE SOLUTIONS LLC. FOR THE PROVISION OF NON-PERSONAL SERVICES IAW NGEN CONTRACT AND THIS ORDER'S REQUIREMENT.NGEN STILL USED 4 DIGIT TO#'S WHICH FPDSNG NO LONGER ALLOWS. THIS IS FOR TO'S AND MODS FROM 03/1/20 TO 03/31/20 FOR A TOTAL OF 82 ACTIONS

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 $72.4 million.

What is the period of performance?

Start: 2020-03-01. End: 2020-09-30.

What is the historical spending trend for Peraton Enterprise Solutions LLC with the Department of the Navy for similar IT services?

Analyzing Peraton Enterprise Solutions LLC's historical contract awards with the Department of the Navy for computer systems design services (NAICS 541512) and related IT support would provide context for the $72.4 million award. A review of past performance, including contract values, durations, and any reported issues or successes, would help assess the contractor's track record and reliability. For instance, if Peraton has consistently delivered high-quality services on similar-sized contracts within budget and schedule, it strengthens the confidence in this current award. Conversely, a history of cost overruns, missed deadlines, or performance deficiencies would raise concerns. Without access to detailed historical data beyond this single award, a comprehensive assessment of their track record is limited.

How does the $72.4 million award for 213 days compare to industry benchmarks for similar computer systems design services?

The $72.4 million award for 213 days translates to a daily rate of approximately $339,957. This figure needs to be benchmarked against industry standards for complex computer systems design and integration services, especially within the defense sector. Factors influencing this rate include the complexity of the systems, the level of security clearance required, the specific technologies involved, and the urgency of the requirement. If this daily rate is significantly higher than comparable contracts awarded through competitive processes for similar scope and complexity, it could indicate potential issues with value for money. Conversely, if it aligns with or is lower than market rates for specialized defense IT services, it suggests a reasonable price was achieved through the competitive award.

What are the specific risks associated with a short-duration delivery order under the NGEN contract?

Short-duration delivery orders, like this 213-day award, can present specific risks. One primary risk is the potential for scope creep or the need for follow-on work if the initial task order does not fully address the underlying requirement, potentially leading to unplanned future spending. There's also a risk that the contractor may not have sufficient time to fully understand and implement complex solutions, potentially impacting quality or requiring expedited, costly measures. Furthermore, if the task is highly specialized, the limited competition window for such short tasks might lead to less favorable pricing than a longer-term, more strategically planned contract. The government must ensure the scope is tightly defined to mitigate these risks.

What is the significance of the NGEN contract vehicle in the context of this award?

The NGEN (Next Generation Enterprise Network) contract is a significant Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle managed by the Department of the Navy, aimed at providing enterprise IT services and network infrastructure. Awards made under NGEN, such as this $72.4 million delivery order, represent taskings against that larger, pre-competed framework. This means the fundamental terms, conditions, and potentially some pricing structures are already established. The NGEN vehicle itself underwent a rigorous competitive process, and subsequent delivery orders are intended to streamline the procurement of specific IT services needed by the Navy, ensuring a degree of standardization and leveraging existing agreements.

How does the 'Computer Systems Design Services' classification (NAICS 541512) inform the nature of the work performed?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' indicates that the work involves planning and designing computer systems that integrate hardware, software, and communication technologies. This can encompass a wide range of activities, including analyzing user needs, designing system architecture, managing system integration projects, and providing consulting services on IT infrastructure. For the Department of the Navy, this likely involves designing, developing, or upgrading complex IT systems that support command and control, logistics, intelligence, or administrative functions. The focus is on the architectural and design aspects rather than the mere provision of hardware or off-the-shelf software.

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: Peraton Solutions Inc. (UEI: 081218565)

Address: 13600 EDS DR, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $72,410,837

Exercised Options: $72,410,837

Current Obligation: $72,410,837

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0003913D0013

IDV Type: IDC

Timeline