State Dept. Awards $178M for Computing Infrastructure to Peraton Inc. Under Sole-Source Contract
Contract Overview
Contract Amount: $177,926,886 ($177.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of State
Start Date: 2015-02-27
End Date: 2021-03-31
Contract Duration: 2,224 days
Daily Burn Rate: $80.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20052
Plain-Language Summary
Department of State obligated $177.9 million to PERATON INC. for work described as: IGF::OT::IGF Key points: 1. Significant spending on computing infrastructure services. 2. Sole-source award raises questions about competition and price discovery. 3. Contract duration of over 6 years suggests long-term reliance. 4. Focus on IT services aligns with sector trends.
Value Assessment
Rating: questionable
The contract value of $177.9M over 6 years is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value compared to similar computing infrastructure contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This 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 in this large contract may result in taxpayers paying more than necessary for essential IT services.
Public Impact
Essential IT services for the Department of State. Potential for increased costs due to sole-source award. Long-term contract impacts government's IT infrastructure strategy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Time and Materials pricing
Positive Signals
- Essential service provision
- Long-term contract stability
Sector Analysis
This contract falls within the IT sector, specifically computing infrastructure and hosting services. Spending in this area is consistently high across government agencies, driven by digital transformation initiatives.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. The prime contractor, Peraton Inc., is a large business, suggesting limited direct opportunities for small businesses on this specific award.
Oversight & Accountability
The sole-source nature of this contract warrants scrutiny from oversight bodies to ensure the government received fair value and that the justification for not competing was sound. Tracking performance and costs will be crucial.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing due to no competitive pressure.
- Time and Materials pricing can lead to cost overruns.
- Limited transparency on justification for sole-source.
- No indication of small business participation.
Tags
computing-infrastructure-providers-data-, department-of-state, dc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $177.9 million to PERATON INC.. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $177.9 million.
What is the period of performance?
Start: 2015-02-27. End: 2021-03-31.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without further documentation, it's impossible to determine the specific rationale. Agencies must provide detailed justification to ensure taxpayer funds are used responsibly when competition is bypassed.
How does the pricing structure (Time and Materials) impact cost control for this sole-source contract?
Time and Materials (T&M) contracts can be risky when not properly managed, especially sole-source ones. They allow contractors to bill for actual labor hours and material costs, plus a fee. Without strong oversight and defined ceilings, T&M can lead to cost overruns as there's less incentive for efficiency compared to fixed-price contracts.
What is the potential long-term impact of this sole-source award on the government's ability to leverage competitive IT solutions?
A long-term sole-source contract can reduce the government's agility in adopting newer, potentially more cost-effective technologies from a competitive market. It may also signal to the market that significant portions of IT infrastructure are locked in, potentially discouraging future competitive bids for related services.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and 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: TIME AND MATERIALS (Y)
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: $180,267,650
Exercised Options: $180,267,650
Current Obligation: $177,926,886
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-02-27
Current End Date: 2021-03-31
Potential End Date: 2021-03-31 00:00:00
Last Modified: 2024-12-13
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