DoD's $31.5M IT Integration Support Services contract awarded to Perrygo Consulting Group, LLC

Contract Overview

Contract Amount: $31,514,409 ($31.5M)

Contractor: Perrygo Consulting Group, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-01

End Date: 2026-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $21.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IT INTEGRATION SUPPORT SERVICES

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to PERRYGO CONSULTING GROUP, LLC for work described as: IT INTEGRATION SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1460 days (4 years) indicates a long-term need for these services. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 4. The base award amount is $21.5M, with potential for growth over the contract's life. 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services, suggesting a technical focus. 6. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

The contract's value of $31.5M over four years for IT integration support services appears within a reasonable range for complex government IT projects. However, without specific benchmarks for 'IT Integration Support Services' under NAICS 541330, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type necessitates close monitoring of costs to ensure efficiency and prevent overruns, as it allows for reimbursement of costs plus a fixed fee. Benchmarking against similar large-scale IT integration contracts within the Department of Defense would provide a clearer picture of its cost-effectiveness.

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 presence of 11 bidders suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award by offering competitive pricing and technical solutions.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down costs and ensured the government received a competitive offer for essential IT integration services.

Public Impact

The Department of the Navy benefits from enhanced IT integration capabilities, crucial for modern defense operations. The contract supports the delivery of complex IT integration services, likely improving system interoperability and efficiency. The primary geographic impact is within Maryland, where the contractor is based. The contract may have implications for the IT and engineering services workforce, potentially creating or sustaining jobs in these sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs effectively.
The broad scope of 'IT Integration Support Services' could lead to scope creep if not clearly defined and managed.
Reliance on a single contractor for a significant duration may pose risks if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Multiple bidders (11) suggest a robust market response and potential for strong performance.
The contract duration of four years allows for sustained support and potential for long-term strategic IT improvements.

Sector Analysis

The IT services sector within the federal government is vast and critical for agency operations. This contract falls under engineering services (NAICS 541330), often encompassing complex system integration, design, and technical support. The federal IT market is highly competitive, with numerous large and small businesses vying for contracts. Spending in this area is driven by the need for modernization, cybersecurity, and enhanced operational capabilities across all government branches. This specific contract likely supports the Navy's efforts to integrate disparate IT systems, improve data flow, and enhance overall technological readiness.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, PERRYGO CONSULTING GROUP, LLC, is not explicitly identified as a small business in the provided data. Therefore, there are no direct small business set-aside implications. However, the prime contractor may engage small businesses for subcontracting opportunities to fulfill parts of the contract, which could provide work for the small business ecosystem. Further analysis of subcontracting plans would be needed to assess the full impact on small businesses.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve rigorous monitoring of incurred costs, contractor performance against milestones, and adherence to the fixed fee. The Department of the Navy, as the contracting agency, is responsible for this oversight. Transparency will depend on the agency's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense IT Modernization Programs
Navy Enterprise IT Services Contracts
Federal Engineering Services Contracts
Cost Plus Fixed Fee Contracts
IT Integration and Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Potential for scope creep in complex IT integration projects.
Long-term reliance on a single vendor can pose risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to PERRYGO CONSULTING GROUP, LLC. IT INTEGRATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PERRYGO CONSULTING GROUP, 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 $31.5 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-08-31.

What is Perrygo Consulting Group, LLC's track record with the Department of Defense and similar IT integration contracts?

Perrygo Consulting Group, LLC has a history of performing contracts with the Department of Defense. While specific details on their track record for IT integration support services are not fully detailed in this summary, their ability to win a competitive bid for a significant contract like this suggests a level of capability and past performance deemed acceptable by the Navy. Further investigation into their contract history, including past performance evaluations and any reported issues on previous DoD contracts, would provide a more comprehensive understanding of their reliability and expertise in delivering complex IT solutions.

How does the $31.5M value compare to similar IT integration contracts awarded by the DoD?

The $31.5M value for a four-year IT integration support services contract is substantial but falls within the typical range for large-scale federal IT projects. The Department of Defense often awards multi-million dollar contracts for system integration, modernization, and support. Benchmarking this contract against similar awards for IT integration within the Navy or other DoD branches, considering factors like contract duration, scope of work, and specific technical requirements, would be necessary for a precise comparison. Without access to a broader dataset of comparable contracts, it's difficult to definitively state if this represents exceptional value or is on the higher end.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT integration?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT integration revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a predictable profit margin, the 'cost plus' element means the government reimburses the contractor's allowable costs. This structure can incentivize contractors to incur higher costs if oversight is not rigorous, potentially leading to budget overruns. For IT integration, which can involve complex and evolving technical challenges, accurately estimating costs upfront is difficult, increasing the risk of cost growth. Effective risk mitigation requires robust government oversight, clear definition of allowable costs, and strong performance metrics to ensure the contractor remains efficient.

How effective is the competition level (11 bidders) in ensuring optimal pricing and service quality for this contract?

A competition level of 11 bidders for this IT integration support services contract is generally considered robust and is highly effective in promoting optimal pricing and service quality. A larger pool of bidders intensifies competition, pressuring each company to offer its most competitive price and strongest technical proposal to win the award. This scenario increases the likelihood that the government secures a fair market price and selects a contractor with superior capabilities. The high number of bids suggests that the market has sufficient capacity and interest in this type of work, further validating the competitive process as a driver for value.

What is the historical spending trend for IT integration support services within the Department of the Navy?

Historical spending trends for IT integration support services within the Department of the Navy have generally shown a consistent and significant investment. As a major branch of the DoD, the Navy relies heavily on advanced IT systems for operations, logistics, and communication. Spending in this area typically increases with the push for digital transformation, modernization of legacy systems, and the adoption of new technologies like cloud computing and AI. While specific year-over-year figures for 'IT Integration Support Services' are not provided here, the overall trend indicates a sustained demand and substantial budget allocation towards ensuring the Navy's technological infrastructure remains current and effective.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042121R3001

Offers Received: 11

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 22738 MAPLE RD STE 105, LEXINGTON PARK, MD, 20653

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

Financial Breakdown

Contract Ceiling: $48,412,329

Exercised Options: $35,674,293

Current Obligation: $31,514,409

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8287

IDV Type: IDC

Timeline