DoD's $136M Other Computer Related Services Contract Awarded to Peraton Enterprise Solutions LLC
Contract Overview
Contract Amount: $136,224,946 ($136.2M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2013-12-31
End Date: 2014-09-30
Contract Duration: 273 days
Daily Burn Rate: $499.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF OTHER ADP AND TELECOMMUNICATIONS SVS
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $136.2 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF OTHER ADP AND TELECOMMUNICATIONS SVS Key points: 1. Significant contract value of $136.2 million for IT services. 2. Awarded to a single vendor, Peraton Enterprise Solutions LLC. 3. Contract type is Firm Fixed Price, indicating clear cost expectations. 4. The service falls under 'Other Computer Related Services', a broad category.
Value Assessment
Rating: questionable
The contract's value is substantial, but without a per-unit cost benchmark, assessing its value for money is difficult. The fixed-price nature provides some cost certainty, but the lack of competitive bidding raises concerns about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition likely resulted in a higher price than if the contract had been competitively bid, impacting taxpayer funds negatively.
Public Impact
Taxpayers may have paid more due to the absence of competitive bidding. The Department of Defense relies on this vendor for critical IT services. Lack of transparency in the procurement process raises accountability questions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No clear per-unit cost benchmark
Positive Signals
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. The federal government spends billions annually on IT services, making this a critical area for efficient procurement.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, either as prime contractors or subcontractors. This award does not appear to support small business utilization goals.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price paid was fair and reasonable. Accountability is reduced when competition is absent.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Limited transparency in the procurement process.
- No clear justification for sole-source award provided.
- Absence of small business participation.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $136.2 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF OTHER ADP AND TELECOMMUNICATIONS SVS
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 $136.2 million.
What is the period of performance?
Start: 2013-12-31. End: 2014-09-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Without this information, it's difficult to assess if there were legitimate reasons, such as unique capabilities or urgent needs, or if it was simply a less efficient procurement method that could have been avoided with better planning.
How does the final price compare to similar sole-source contracts for comparable services?
Comparing the final price to similar sole-source contracts, if available, could provide some insight into its reasonableness. However, the lack of competition makes direct comparison challenging. A thorough review would ideally involve benchmarking against market rates for similar services, even if direct contract comparisons are limited.
What performance metrics were established to ensure the effectiveness of these services?
While the contract is firm fixed price, understanding the performance metrics is key to assessing effectiveness. Were there clear deliverables and quality standards? Without defined performance outcomes, it's hard to determine if the $136 million investment yielded the intended results for the Department of Defense.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: HP, Inc.
Address: 13600 EDS DR, HERNDON, VA, 20171
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $136,224,946
Exercised Options: $136,224,946
Current Obligation: $136,224,946
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003910D0010
IDV Type: IDC
Timeline
Start Date: 2013-12-31
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2024-03-29
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