DoD's $54.8M IT Support Contract to Peraton Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $54,860,086 ($54.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2008-12-30
End Date: 2015-09-01
Contract Duration: 2,436 days
Daily Burn Rate: $22.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: 55-9008-08 - SCIENTIFIC, ENGINEERING, TECHNICAL AND ANALYTICAL SUPPORT
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $54.9 million to PERATON INC. for work described as: 55-9008-08 - SCIENTIFIC, ENGINEERING, TECHNICAL AND ANALYTICAL SUPPORT Key points: 1. Contract awarded through a competitive process, suggesting potential for price discovery. 2. The contract duration of over 6 years indicates a long-term need for these services. 3. IT support services are critical for maintaining operational readiness within the Department of Defense. 4. The Cost Plus Fixed Fee (CPFF) contract type may incentivize cost control by the contractor. 5. The specific IT services provided are essential for complex defense operations. 6. The contract was managed by the Defense Contract Management Agency, indicating robust oversight. 7. Virginia is a key hub for defense contracting and IT services.
Value Assessment
Rating: good
The total award of $54.8 million over approximately 6.75 years for IT support services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT support contracts within the Department of Defense is necessary for a definitive value assessment. The CPFF structure, while offering flexibility, requires careful monitoring to ensure costs remain aligned with the fixed fee objectives and market rates for comparable services.
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 presence of multiple bidders in such a competitive environment typically leads to more favorable pricing for the government. The specific number of bidders is not provided, but the designation suggests a robust competition.
Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best value available.
Public Impact
The Department of Defense benefits from enhanced IT infrastructure and technical support, crucial for national security operations. This contract ensures the delivery of essential scientific, engineering, technical, and analytical support services. The geographic impact is primarily within Virginia, a significant center for defense activities. The contract supports a workforce skilled in IT systems design and management, contributing to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
- Long contract duration could lead to vendor lock-in if not periodically re-evaluated.
- Reliance on a single contractor for critical IT support could pose a risk if performance degrades.
Positive Signals
- Awarded through full and open competition, indicating a competitive pricing environment.
- The contractor, Peraton Inc., likely has a track record in providing similar services to government agencies.
- The contract's duration suggests a stable and predictable IT support environment for the DoD.
Sector Analysis
This contract falls within the broader IT services sector, specifically Computer Systems Design Services. The federal IT services market is substantial, with agencies like the Department of Defense being major consumers. This contract represents a significant portion of spending for specialized technical and analytical support, fitting within the trend of outsourcing complex IT functions to specialized contractors to leverage expertise and manage costs.
Small Business Impact
The data indicates 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 provision. However, the prime contractor, Peraton Inc., may still engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet their contractual obligations and quality standards. Oversight mechanisms would typically include regular performance reviews, financial audits, and adherence to reporting requirements. The CPFF structure necessitates close financial oversight to manage costs effectively. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Modernization Programs
- Defense Information Systems Agency (DISA) Contracts
- Federal Civilian IT Services Contracts
- IT Professional Services (GSA Schedule)
- Scientific and Technical Support Services Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
- Long contract duration may necessitate periodic reviews to ensure continued best value.
- Dependence on a single contractor for critical IT functions could pose a risk.
- Specific performance metrics and deliverables need to be clearly defined and monitored.
Tags
it-services, department-of-defense, cost-plus-fixed-fee, definitive-contract, full-and-open-competition, computer-systems-design-services, defense-contract-management-agency, virginia, scientific-engineering-technical-analytical-support, peraton-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.9 million to PERATON INC.. 55-9008-08 - SCIENTIFIC, ENGINEERING, TECHNICAL AND ANALYTICAL SUPPORT
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $54.9 million.
What is the period of performance?
Start: 2008-12-30. End: 2015-09-01.
What is Peraton Inc.'s track record with similar large-scale IT support contracts for the Department of Defense?
Peraton Inc. has a significant history of performing IT and technical support services for various U.S. government agencies, including the Department of Defense. Their portfolio often includes complex systems integration, cybersecurity, and mission support. Analyzing their past performance on contracts of similar size and scope, particularly those involving Cost Plus Fixed Fee (CPFF) structures, would provide insight into their ability to manage costs and deliver effectively. Reviewing contract performance reports, past performance questionnaires, and any documented issues or successes from previous engagements would be crucial for a comprehensive assessment of their track record in this specific domain.
How does the $54.8 million award compare to similar IT support contracts within the DoD over the past five years?
To benchmark the $54.8 million award, a comparative analysis of similar IT support contracts awarded by the Department of Defense over the last five years is necessary. This would involve identifying contracts with comparable service descriptions (e.g., scientific, engineering, technical, analytical support), contract types (e.g., CPFF), and durations. Factors such as the number of bidders, the final negotiated price versus the initial estimate, and the specific agencies or commands receiving the support should be considered. If this contract's value per year or per service unit falls within the typical range of these comparable contracts, it suggests reasonable value. Deviations could indicate unique requirements, market fluctuations, or potential pricing anomalies that warrant further investigation.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT support services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for IT support services lies in the potential for cost overruns. While the fixed fee provides the contractor with a profit incentive, the 'cost plus' component means the government bears the risk of actual costs exceeding estimates. If the contractor's cost accounting or management is inefficient, or if unforeseen technical challenges arise, the total expenditure could be significantly higher than anticipated. This necessitates robust government oversight to scrutinize incurred costs, ensure compliance with the contract's scope, and verify that expenses are reasonable and allocable. Without diligent monitoring, CPFF contracts can become more expensive than fixed-price alternatives.
How effective has Peraton Inc. been in managing IT support contracts to ensure program effectiveness for the DoD?
Assessing the effectiveness of Peraton Inc. in managing IT support contracts for the DoD requires a review of their performance metrics and outcomes on past and current engagements. This would involve examining data related to system uptime, response times for technical issues, successful implementation of new technologies or upgrades, and overall user satisfaction within the supported DoD components. Key performance indicators (KPIs) defined in their contracts, along with any performance evaluations or award fees received, would provide concrete evidence. A track record of consistently meeting or exceeding these KPIs suggests effective contract management and successful program support. Conversely, documented performance deficiencies or failures to meet critical objectives would indicate potential issues with program effectiveness.
What are the historical spending patterns for scientific, engineering, technical, and analytical support within the Department of Defense?
Historical spending patterns for scientific, engineering, technical, and analytical support within the Department of Defense reveal a consistent and substantial investment in these areas due to the complexity of modern warfare and defense operations. Agencies within the DoD, such as the Army, Navy, Air Force, and various research and development commands, regularly procure these services to maintain technological superiority, conduct research, develop new systems, and provide operational support. Spending in this category often fluctuates based on geopolitical events, technological advancements, and specific program requirements. Analyzing aggregated spending data over several fiscal years can highlight trends, identify major spending components, and reveal which specific DoD entities are the largest consumers of these types of services, providing context for individual contract awards like the one to Peraton Inc.
What is the typical duration and value range for definitive IT support contracts awarded by the DoD?
Definitive IT support contracts awarded by the Department of Defense typically vary widely in duration and value, depending on the scope and criticality of the services. Contracts can range from short-term, project-specific engagements lasting a few months to long-term, comprehensive support agreements spanning several years, often with option periods. Values can range from hundreds of thousands to hundreds of millions, or even billions, of dollars. The $54.8 million award to Peraton Inc. over approximately 6.75 years falls within a common range for significant, multi-year IT support efforts. Factors influencing these parameters include the complexity of the systems supported, the level of security clearance required, the number of users or systems impacted, and the strategic importance of the IT functions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12975 WORLDGATE DR STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,716,981
Exercised Options: $58,716,981
Current Obligation: $54,860,086
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-12-30
Current End Date: 2015-09-01
Potential End Date: 2015-09-01 00:00:00
Last Modified: 2024-04-16
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