DoD's $159M electronic data system support contract awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $15,907,777 ($15.9M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2009-05-11

End Date: 2011-03-31

Contract Duration: 689 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ELECTRONIC DATA SYSTEM SUPPORT SERVICES

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19111

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: ELECTRONIC DATA SYSTEM SUPPORT SERVICES Key points: 1. Contract value of $159 million for electronic data system support services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 689 days (approx. 23 months) provides a moderate timeframe for service delivery. 4. Firm Fixed Price contract type indicates a defined cost structure, potentially limiting cost overruns. 5. The North American Industry Classification System (NAICS) code 518210 points to services related to computing infrastructure and data processing. 6. The contract was awarded by the Defense Logistics Agency, a key procurement arm of the DoD. 7. The contract was awarded as a Delivery Order (DO), suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a specific task order.

Value Assessment

Rating: fair

The contract value of $159 million for electronic data system support over approximately 23 months appears to be within a reasonable range for large-scale IT infrastructure services. Without specific details on the scope of services, it's difficult to benchmark against similar contracts precisely. However, given the nature of defense IT support, the pricing is likely competitive due to the full and open competition.

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 multiple bidders, though not explicitly stated in the provided data, is implied by this competition type. This process generally leads to better price discovery and value for the government.

Taxpayer Impact: A full and open competition ensures that taxpayers benefit from the most competitive pricing achievable through a broad market solicitation.

Public Impact

The Department of Defense benefits from enhanced electronic data system support, crucial for operational efficiency. Services delivered likely include computing infrastructure maintenance, data processing, and web hosting for defense agencies. The geographic impact is primarily within the Department of Defense's operational footprint. Workforce implications may include the need for skilled IT professionals to manage and support these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the scope of services is highly specialized.
Risk of scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Firm Fixed Price contract type provides cost certainty.
The Defense Logistics Agency's involvement suggests adherence to established procurement processes.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure providers, data processing, and web hosting. The market for such services is vast and highly competitive, with numerous large and small businesses offering specialized solutions. The Department of Defense is a significant consumer of these services, often requiring robust security and reliability.

Small Business Impact

The provided data indicates that 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. However, the prime contractor, Peraton Enterprise Solutions LLC, may engage small businesses as subcontractors depending on their own subcontracting plans and the specific needs of the contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the Defense Logistics Agency. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Defense IT Modernization Programs
Cloud Computing Services for Government
Data Center Operations and Support
Information Technology Infrastructure Services

Risk Flags

Contract awarded under Full and Open Competition
Firm Fixed Price contract type
Awarded by Defense Logistics Agency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to PERATON ENTERPRISE SOLUTIONS LLC. ELECTRONIC DATA SYSTEM SUPPORT SERVICES

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 (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $15.9 million.

What is the period of performance?

Start: 2009-05-11. End: 2011-03-31.

What is the specific scope of 'ELECTRONIC DATA SYSTEM SUPPORT SERVICES' covered under this contract?

The provided data identifies the contract's purpose as 'ELECTRONIC DATA SYSTEM SUPPORT SERVICES' and categorizes it under NAICS code 518210, which includes 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.' While the exact deliverables are not detailed, this suggests services such as maintaining and operating computing infrastructure, managing data processing activities, and providing web hosting capabilities for the Department of Defense. This could encompass a wide range of activities from server maintenance and network management to data storage, backup, and retrieval, and potentially application hosting and support, all critical for the DoD's operational needs.

How does the $159 million contract value compare to similar IT support contracts awarded by the DoD?

Benchmarking the $159 million contract value requires detailed comparison with similar IT support contracts awarded by the DoD, considering factors like contract duration, scope of services, and specific technologies involved. Given the contract's duration of approximately 23 months (689 days), the annual value is roughly $6.9 million. This figure is substantial but not extraordinary for large-scale IT infrastructure and support services within a major federal agency like the Department of Defense. Many DoD IT contracts can range from tens of millions to billions of dollars, depending on the complexity and scale of the requirement. The firm fixed-price nature and full and open competition suggest an effort to achieve value for money.

What are the potential risks associated with a firm fixed-price contract for IT support services?

While firm fixed-price (FFP) contracts offer cost certainty for the government, they can introduce risks for the contractor if the scope of work is not precisely defined or if unforeseen technical challenges arise. For IT support services, risks include the contractor underestimating the effort required, leading to reduced profit margins or potential quality issues if cost-cutting measures are implemented. Conversely, if the scope is too broad or poorly defined, the government might not receive the full benefit of the fixed price if the contractor delivers only the minimum required. Effective contract management and clear performance metrics are crucial to mitigate these risks and ensure both parties achieve their objectives.

What is Peraton Enterprise Solutions LLC's track record with the Department of Defense?

The provided data indicates Peraton Enterprise Solutions LLC was awarded this specific contract. To assess their track record, one would need to examine their broader contract history with the Department of Defense and other federal agencies. This would involve looking at past performance evaluations, any contract disputes or terminations, and the types and values of previous contracts they have held. A comprehensive review would reveal their experience in delivering similar IT support services, their ability to meet performance requirements, and their overall reliability as a government contractor.

How does the 'full and open competition' award mechanism impact the overall value for taxpayers?

Awarding contracts through 'full and open competition' is generally considered the most effective mechanism for ensuring value for taxpayers. This process allows any responsible business to submit a bid, fostering a competitive environment that drives down prices and encourages innovation. By soliciting proposals from the widest possible pool of qualified vendors, the government is more likely to secure services at the best possible price and quality. This contrasts with sole-source or limited competition awards, which may result in higher costs due to reduced market pressure and potentially less innovative solutions.

What is the significance of the Defense Logistics Agency (DLA) awarding this contract?

The Defense Logistics Agency (DLA) is a combat support agency responsible for providing the U.S. military with logistics, acquisition, and technical services. When the DLA awards a contract like this for electronic data system support, it signifies that the services are critical for the broader logistical and operational functions of the Department of Defense. The DLA often acts as a central procurement entity for common goods and services used across multiple military branches, suggesting this contract may support a wide range of DoD components or initiatives requiring robust IT infrastructure and data management.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: HP, Inc. (UEI: 009122532)

Address: 13600 EDS DR, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,907,777

Exercised Options: $15,907,777

Current Obligation: $15,907,777

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0323J

IDV Type: FSS

Timeline