DoD's $13.5M IT contract for customer satisfaction and small business incentives awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $13,506,117 ($13.5M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2008-12-19

End Date: 2009-09-30

Contract Duration: 285 days

Daily Burn Rate: $47.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NOC, ECHELON II CUSTOMER SATISFACTION AND SMALL BUSINESS INCENTIVE.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: NOC, ECHELON II CUSTOMER SATISFACTION AND SMALL BUSINESS INCENTIVE. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's focus on customer satisfaction and small business incentives indicates a strategic approach to service delivery and supplier diversity. 3. Fixed-price contract type may offer cost certainty for the government, but could limit flexibility. 4. The relatively short duration of 285 days suggests a specific, time-bound project or service requirement. 5. The contract value of $13.5 million falls within a moderate spending range for IT services. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad category of 'Other Computer Related Services'.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without more specific details on the services rendered. However, a $13.5 million contract for IT services over approximately 9 months is a significant investment. The fixed-price nature suggests an attempt to control costs, but the ultimate value for money depends heavily on the quality and effectiveness of the 'customer satisfaction and small business incentive' program implemented by Peraton Enterprise Solutions LLC. Without comparable contract data for similar incentive programs, a precise value assessment is difficult.

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 a bid. The presence of 4 bidders suggests a reasonable level of competition for this particular IT service requirement. A competitive process generally helps in achieving better pricing and service terms for the government by allowing multiple vendors to vie for the contract.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider pool of potential service providers, leading to potentially better value.

Public Impact

The Department of the Navy benefits from improved customer satisfaction and potentially enhanced engagement with small businesses. The contract aims to deliver services related to customer satisfaction metrics and incentives for small businesses within the Department of Defense. The geographic impact is primarily within the Department of the Navy's operational areas, likely supporting its personnel and operations. Workforce implications may include the need for specialized personnel within Peraton Enterprise Solutions LLC to manage customer satisfaction programs and small business liaison activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the 'customer satisfaction and small business incentive' program.
The fixed-price contract type might disincentivize Peraton from exceeding basic service requirements if not carefully monitored.
The broad NAICS code 'Other Computer Related Services' lacks specificity, making it hard to gauge the exact nature of the IT services provided.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract explicitly includes incentives for small businesses, aligning with federal goals for supplier diversity.
The focus on customer satisfaction suggests a commitment to improving service delivery within the Department of the Navy.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The IT services market is vast and highly competitive, with government spending on IT solutions consistently being a significant portion of the federal budget. Contracts like this, focusing on service improvement and supplier engagement, are common as agencies seek to optimize their operations and leverage diverse vendor capabilities. Comparable spending benchmarks would vary widely based on the specific IT services, but $13.5 million for a project of this nature is a moderate investment.

Small Business Impact

While this contract does not appear to be a small business set-aside (indicated by 'ss': false and 'sb': false), it explicitly includes 'small business incentives' in its description. This suggests that the prime contractor, Peraton Enterprise Solutions LLC, is expected to engage with or provide benefits to small businesses as part of the contract's objectives. The impact on the small business ecosystem would depend on the specific nature of these incentives and subcontracting opportunities that may arise from this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services
Navy Customer Support Contracts
Small Business Subcontracting Programs
IT Consulting Services
Federal IT Procurement

Risk Flags

Lack of specific performance metrics
Broad NAICS code
Potential for scope creep in fixed-price contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to PERATON ENTERPRISE SOLUTIONS LLC. NOC, ECHELON II CUSTOMER SATISFACTION AND SMALL BUSINESS INCENTIVE.

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 $13.5 million.

What is the period of performance?

Start: 2008-12-19. End: 2009-09-30.

What specific IT services are encompassed by the NAICS code 541519 for this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that includes services such as computer facilities management, computer disaster recovery services, and computer systems integration design services. For this specific contract, the description 'Echelon II Customer Satisfaction and Small Business Incentive' suggests that the IT services likely involve the implementation or management of systems and processes designed to measure and improve customer satisfaction, potentially including IT help desks, user support platforms, or feedback collection systems. It may also involve IT infrastructure or software that facilitates small business engagement or tracks incentive programs. However, without a more detailed statement of work, the precise nature of the IT services remains general.

How does the $13.5 million contract value compare to similar IT service contracts for customer satisfaction and small business incentives?

Directly comparing this $13.5 million contract value to similar 'customer satisfaction and small business incentive' IT contracts is challenging due to the specificity of the service description and the broad NAICS code. However, for IT services contracts awarded by the Department of Defense or Navy, $13.5 million over a period of less than a year (285 days) represents a significant investment. Larger, multi-year IT modernization or system development contracts can run into hundreds of millions or billions of dollars. Smaller, more focused service contracts, such as help desk support or specific software implementation, might fall in the lower millions. This contract appears to be in the mid-range for a specialized IT service initiative focused on specific program goals like customer satisfaction and small business engagement.

What are the potential risks associated with a fixed-price contract for customer satisfaction and small business incentives?

A fixed-price contract, while offering cost certainty to the government, carries risks for both parties. For the government, the primary risk is that the contractor may cut corners on quality or scope to maximize profit, potentially leading to suboptimal customer satisfaction or less effective small business incentives if not rigorously monitored. There's also a risk that the fixed price may not adequately cover unforeseen complexities or scope creep, leading to change order requests. For the contractor (Peraton Enterprise Solutions LLC), the risk is that actual costs exceed the fixed price, eroding profit margins, especially if the 'customer satisfaction' metrics are difficult to achieve or the 'small business incentive' program proves more complex than anticipated. Effective performance management and clear deliverables are crucial to mitigate these risks.

What does the inclusion of 'small business incentives' imply for Peraton Enterprise Solutions LLC and small businesses?

The inclusion of 'small business incentives' in the contract description implies that Peraton Enterprise Solutions LLC is contractually obligated to incorporate elements that benefit or encourage small business participation. This could manifest in several ways: Peraton might be required to meet specific small business subcontracting goals, offer preferential treatment or support to small business partners, or develop and implement programs that foster small business growth within the context of the services provided. For small businesses, this could translate into opportunities for subcontracting, mentorship, or participation in pilot programs facilitated by Peraton. It signals a deliberate effort by the Department of the Navy to leverage its procurement power to support the small business ecosystem.

How might the 'customer satisfaction' aspect of this contract be measured and evaluated?

Measuring and evaluating 'customer satisfaction' within this contract would likely involve a combination of methods, depending on the specific objectives outlined in the statement of work. Common approaches include regular surveys administered to end-users or stakeholders, analysis of help desk ticket resolution times and user feedback, monitoring of service level agreement (SLA) compliance, and potentially qualitative feedback mechanisms like focus groups or interviews. The 'incentive' aspect suggests that Peraton's performance in achieving certain satisfaction benchmarks could be tied to financial rewards or penalties, making objective and consistent measurement critical for both contractor performance and government oversight.

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: FULL AND OPEN COMPETITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: HP, Inc.

Address: 13600 EDS DRIVE, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,506,117

Exercised Options: $13,506,117

Current Obligation: $13,506,117

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002400D6000

IDV Type: IDC

Timeline