DoD awards $20.1M IT services contract to Peraton Inc. for core sustainment, with 117 bids received
Contract Overview
Contract Amount: $20,138,897 ($20.1M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2023-12-15
End Date: 2026-12-14
Contract Duration: 1,095 days
Daily Burn Rate: $18.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 117
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GEX CORE SUSTAINMENT (PRIME)
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $20.1 million to PERATON INC. for work described as: GEX CORE SUSTAINMENT (PRIME) Key points: 1. Contract value appears reasonable given the scope of IT core sustainment services. 2. High number of bids suggests robust competition and potential for competitive pricing. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of three years aligns with typical IT sustainment cycles. 5. Services fall under 'Other Computer Related Services,' a broad IT category. 6. Prime contractor Peraton Inc. has a significant presence in the federal IT sector.
Value Assessment
Rating: good
The contract value of $20.1 million over three years for IT core sustainment services is within a reasonable range for a Department of Defense contract of this nature. Benchmarking against similar IT sustainment contracts, the per-year cost of approximately $6.7 million appears competitive, especially considering the broad scope of services implied by 'core sustainment'. The firm fixed-price structure further enhances value by shifting cost risk to the contractor.
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 high number of 117 bids received is a strong indicator of a healthy and competitive market for these IT sustainment services. This level of competition typically drives down prices and encourages contractors to offer their best value propositions.
Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely resulted in a more favorable price than if the contract had been awarded through a less competitive process. It ensures that taxpayer dollars are being used efficiently.
Public Impact
The Department of Defense benefits from the continued sustainment of critical IT infrastructure. This contract ensures the availability of essential computer-related services for military operations. The primary beneficiaries are the end-users within the DoD who rely on stable IT systems. Geographic impact is likely nationwide, supporting DoD operations across various locations. Workforce implications may include direct employment for Peraton Inc. and potential indirect support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if sustainment services are highly specialized.
- Reliance on a single prime contractor could create dependencies.
- Scope creep could become an issue if not managed tightly, despite fixed-price terms.
Positive Signals
- Firm fixed-price contract reduces financial risk for the government.
- Extensive competition suggests a strong market and potential for innovation.
- Contractor Peraton Inc. is a well-established entity in federal IT services.
- Clear contract duration provides predictability for budgeting and planning.
Sector Analysis
The IT services sector within the federal government is vast, encompassing a wide range of support, development, and maintenance activities. This contract falls under 'Other Computer Related Services,' a broad category that includes IT support, system maintenance, and related consulting. The federal IT market is highly competitive, with numerous large and small businesses vying for contracts. Spending in this area is consistently high due to the critical role technology plays in government operations.
Small Business Impact
While this contract was awarded to Peraton Inc. as the prime contractor and does not appear to have a specific small business set-aside, the extensive competition could indirectly benefit small businesses. Larger prime contractors often subcontract portions of their work to smaller, specialized firms. The Defense Logistics Agency, as the awarding agency, has goals for small business participation, which may be met through Peraton's subcontracting plan, fostering opportunities within the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) through contract officers and technical representatives. Performance will be monitored against the terms and conditions of the firm fixed-price delivery order. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- DoD IT Infrastructure Support
- Defense-wide IT Services
- Computer Systems Design Services
- IT Management Consulting Services
- Federal IT Sustainment Contracts
Risk Flags
- Potential for vendor lock-in
- Reliance on prime contractor
- Cybersecurity vulnerabilities
Tags
it-services, department-of-defense, defense-logistics-agency, firm-fixed-price, delivery-order, full-and-open-competition, computer-related-services, prime-contractor, peraton-inc, virginia, it-sustainment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.1 million to PERATON INC.. GEX CORE SUSTAINMENT (PRIME)
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $20.1 million.
What is the period of performance?
Start: 2023-12-15. End: 2026-12-14.
What is Peraton Inc.'s track record with similar IT sustainment contracts within the Department of Defense?
Peraton Inc. has a substantial track record of performing IT services and sustainment contracts for various federal agencies, including the Department of Defense. They are known for handling complex IT infrastructure, cybersecurity, and mission-critical systems. Analyzing their past performance on similar contracts would involve reviewing contract close-out reports, past performance questionnaires, and any documented performance issues or commendations. Their history suggests they possess the capability to manage large-scale IT sustainment efforts, but a detailed review of specific past projects would be necessary to fully assess their suitability and identify any potential risks associated with their performance history on comparable sustainment tasks.
How does the awarded price compare to market rates for similar IT core sustainment services?
The awarded contract value of $20.1 million over three years, averaging approximately $6.7 million per year, appears competitive when benchmarked against similar IT core sustainment contracts within the federal government. The 'Other Computer Related Services' NAICS code (541519) covers a broad range of IT support. Given the firm fixed-price nature and the high level of competition (117 bids), it is likely that the price reflects a good market value. However, a precise comparison would require access to detailed service level agreements and specific technical requirements of this contract, as well as proprietary market data on IT sustainment costs for comparable agencies and contract scopes.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential scope creep, contractor performance issues, and cybersecurity vulnerabilities within the sustained systems. The firm fixed-price contract mitigates financial risk for the government by capping costs. Mitigation for performance issues relies on robust oversight by the Defense Logistics Agency, including performance monitoring and adherence to service level agreements. Cybersecurity risks are managed through contract clauses requiring compliance with DoD security standards and potentially through specific security requirements outlined in the delivery order. The high competition also acts as a mitigating factor, as underperforming contractors can be replaced in future procurements.
What is the expected effectiveness of these IT core sustainment services for the Department of Defense?
The expected effectiveness hinges on the contractor's ability to maintain the availability, integrity, and performance of critical IT systems supporting DoD operations. Successful sustainment should lead to reduced downtime, improved system reliability, and enhanced operational readiness. The firm fixed-price contract incentivizes the contractor to deliver services efficiently. The effectiveness will be measured against defined performance metrics and service level agreements within the delivery order. A positive track record from Peraton Inc. and the competitive nature of the award suggest a high likelihood of effective service delivery.
How does this contract's value and scope compare to historical IT spending by the Defense Logistics Agency?
This $20.1 million contract represents a moderate investment within the broader context of the Defense Logistics Agency's (DLA) IT spending. DLA manages extensive logistics and supply chain IT systems, often involving significant investments in sustainment and modernization. While this specific contract focuses on 'core sustainment' under a broad IT services category, DLA's overall IT budget encompasses much larger programs. Comparing this to historical spending requires analyzing DLA's IT budget trends and the proportion allocated to sustainment services versus new development or infrastructure upgrades. This contract appears to be a standard component of maintaining existing IT capabilities rather than a major new initiative.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: SP470924Q1001
Offers Received: 117
Pricing Type: FIRM FIXED PRICE (J)
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: $20,420,730
Exercised Options: $20,138,897
Current Obligation: $20,138,897
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP470917D0022
IDV Type: IDC
Timeline
Start Date: 2023-12-15
Current End Date: 2026-12-14
Potential End Date: 2026-12-14 00:00:00
Last Modified: 2025-12-02
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