DoD's Navy awards $32.2M for IT services, with Peraton Enterprise Solutions LLC securing a delivery order

Contract Overview

Contract Amount: $32,224,940 ($32.2M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-01

End Date: 2020-09-30

Contract Duration: 121 days

Daily Burn Rate: $266.3K/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 06/1/20 TO 06/30/20 FOR A TOTAL OF 36 ACTIONS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.2 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 06/1/20 TO 06/30/20 FOR A TOTAL OF 36 ACTIONS Key points: 1. The contract focuses on non-personal IT services, aligning with the NGEN contract framework. 2. A significant portion of the award value is attributed to modifications and task orders issued within a specific month. 3. The use of 4-digit TO#s by NGEN is noted as an outdated practice. 4. The contract type is Firm Fixed Price, indicating a defined cost for services. 5. The services are categorized under Computer Systems Design Services. 6. The award was made under full and open competition. 7. The contract duration is 121 days, suggesting a short-term or specific project focus.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without more granular data on the services provided and their market rates. The total award of $32.2 million for a 121-day period suggests a substantial daily expenditure. However, without comparable task orders or a breakdown of labor categories and hours, a precise value-for-money assessment is difficult. The firm fixed-price nature provides cost certainty for this period.

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 data does not specify the number of bidders, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. This approach is intended to maximize taxpayer value by leveraging the broadest possible market.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it typically drives down costs through market forces and encourages a wider range of innovative solutions.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel, who will receive essential IT support services. The services delivered are crucial for maintaining the operational readiness and efficiency of Navy IT systems. The geographic impact is likely concentrated within the Navy's operational areas, though specific locations are not detailed. Workforce implications may include the utilization of skilled IT professionals by the contractor to fulfill the service requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The reliance on an older NGEN contract framework with outdated numbering conventions could indicate potential administrative inefficiencies.
The high value attributed to task orders and modifications within a single month warrants scrutiny to ensure proper oversight and justification.
Lack of detailed service breakdown makes it difficult to assess the true value and necessity of the expenditure.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Firm Fixed Price contract type provides cost predictability for the government.
The contract supports critical IT services for the Department of Defense.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading complex systems. This award represents a portion of the Department of the Navy's broader IT procurement strategy, likely supporting its network infrastructure and operational capabilities. Comparable spending benchmarks would typically involve analyzing other IT service contracts awarded to similar firms or for similar service categories within the federal government.

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 stemming from a set-aside requirement. The prime contractor, Peraton Enterprise Solutions LLC, is a large business, and any subcontracting opportunities would be at their discretion, not mandated by a small business set-aside provision in this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. As a delivery order under an existing NGEN contract, it likely adheres to established oversight mechanisms for that framework. Transparency is facilitated by federal procurement databases like FPDS, which record contract actions. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

NGEN Contract
Department of Defense IT Services
Computer Systems Design Services
Navy IT Procurement

Risk Flags

Outdated numbering convention (4-digit TO#s) may indicate process inefficiencies.
High value of modifications/TOs within a short period warrants further investigation.
Lack of detailed service breakdown hinders granular value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.2 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 06/1/20 TO 06/30/20 FOR A TOTAL OF 36 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 $32.2 million.

What is the period of performance?

Start: 2020-06-01. End: 2020-09-30.

What is the specific nature of the 'non-personal services' being provided under this delivery order?

The provided data indicates the contract is for 'non-personal services' related to the NGEN contract. Non-personal services typically refer to services that do not require the government to supervise the contractor's employees or direct their performance in a manner that would create an employer-employee relationship. This usually means the contractor is responsible for managing its own personnel and delivering a defined outcome or service. Examples could include IT support, system maintenance, or specialized technical assistance. However, without more specific details within the contract documentation, the exact scope of these non-personal services remains general, encompassing tasks necessary for the functioning of IT systems under the NGEN umbrella.

How does the $32.2 million award for a 121-day period compare to typical IT service contract spending for the Navy?

An award of $32.2 million over approximately four months (121 days) translates to a daily expenditure of roughly $266,000. This is a substantial daily rate for IT services. To provide a comprehensive comparison, one would need to analyze historical spending patterns for similar IT service contracts awarded by the Department of the Navy, particularly those under the NGEN program or for Computer Systems Design Services (NAICS 541512). Benchmarking against contracts of similar duration and scope, and considering factors like service complexity, security requirements, and geographic location, would be necessary. Without such comparative data, it's difficult to definitively state whether this represents high, low, or average spending.

What are the potential risks associated with the NGEN contract's continued use of 4-digit TO#s?

The primary risk associated with the NGEN contract's continued use of 4-digit Task Order (TO) numbers, when FPDSNG no longer allows them, is potential data integrity and reporting issues. This discrepancy can lead to difficulties in accurately tracking, managing, and reporting contract actions within official federal procurement systems. It may cause delays in data synchronization, create inconsistencies in contract databases, and potentially hinder auditability and compliance efforts. Furthermore, it could complicate the process of linking task orders to their parent contracts and analyzing spending trends, impacting the government's ability to gain a clear and unified view of its contractual obligations and expenditures.

What does the 'Firm Fixed Price' (FFP) contract type imply for cost control and risk allocation in this award?

A Firm Fixed Price (FFP) contract type implies that the contractor, Peraton Enterprise Solutions LLC, bears the primary responsibility for cost overruns. The government agrees to pay a set price regardless of the contractor's actual costs incurred in performing the work. This allocation of risk incentivizes the contractor to manage its costs efficiently and effectively to maximize profit. For the government, FFP provides significant cost certainty and predictability, making budgeting easier. However, it also means that if the contractor performs exceptionally well and incurs lower costs than anticipated, the government does not benefit from those savings. The risk for the government lies in potentially overpaying if the initial price was set too high or if unforeseen circumstances significantly increase the contractor's costs beyond what was reasonably anticipated.

Can the performance history of Peraton Enterprise Solutions LLC on similar federal contracts be assessed from this data?

The provided data identifies Peraton Enterprise Solutions LLC as the contractor but does not include specific details about their past performance on this or other federal contracts. To assess their track record, one would need to consult other sources such as the Contractor Performance Assessment Reporting System (CPARS), past performance questionnaires, or conduct a broader search of federal procurement databases (like FPDS-NG) for their previous awards and performance history. Without this additional information, it is impossible to evaluate their reliability, quality of service, or adherence to schedule and budget on prior engagements based solely on this single contract award notice.

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: $32,224,940

Exercised Options: $32,224,940

Current Obligation: $32,224,940

Subaward Activity

Number of Subawards: 1956

Total Subaward Amount: $317,435,283

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0003913D0013

IDV Type: IDC

Timeline