VA awards $20.4M for Real Time Location System to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $20,398,087 ($20.4M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-09-15

End Date: 2016-11-03

Contract Duration: 1,145 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF. TASK ORDER AWARD FOR VISN 17 UNDER THE FOR REAL TIME LOCATION SYSTEM CONTRACT.

Place of Performance

Location: ARLINGTON, TARRANT County, TEXAS, 76006

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.4 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF. TASK ORDER AWARD FOR VISN 17 UNDER THE FOR REAL TIME LOCATION SYSTEM CONTRACT. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract vehicle. 3. The fixed-price nature of the contract shifts some risk to the contractor. 4. The contract duration is over three years, indicating a significant project. 5. The awardee, Peraton Enterprise Solutions LLC, is a known entity in the federal contracting space. 6. The North American Industry Classification System (NAICS) code 334119 suggests a focus on computer peripheral equipment manufacturing, though the description points to a system implementation.

Value Assessment

Rating: good

The award amount of $20.4 million for a Real Time Location System (RTLS) over approximately three years appears reasonable given the scope. Without specific performance metrics or detailed breakdowns of system components, a direct value-for-money assessment is challenging. However, the contract was competed, which typically drives better pricing. Benchmarking against similar RTLS deployments within the VA or other federal agencies would provide further context on cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of six bidders (no) suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down costs.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving a Real Time Location System. This system is expected to improve the tracking and management of assets or personnel within VA facilities. The contract is located in Texas (st: TX, sn: TEXAS), implying a geographic focus for the system's implementation. The implementation of such a system could lead to increased operational efficiency within the targeted VA facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the initial requirements were not fully defined.
Integration challenges with existing VA IT infrastructure could arise.
Dependence on a single contractor for a critical system implementation.
Ensuring adequate training and adoption by VA staff for the new system.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Fixed-price contract structure can provide cost certainty for the government.
The contractor, Peraton Enterprise Solutions LLC, has experience in federal IT solutions.
The contract is a delivery order under a larger contract vehicle, potentially indicating pre-negotiated terms and conditions.

Sector Analysis

The contract falls within the IT services sector, specifically related to system implementation and potentially hardware. The market for Real Time Location Systems (RTLS) is growing, driven by needs for asset tracking, inventory management, and operational efficiency across various industries, including healthcare and logistics. Federal spending in IT services is substantial, with significant investments in modernizing legacy systems and deploying new technologies to improve government operations.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses were involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. As a delivery order under a larger contract, oversight might also be influenced by the terms of the parent contract. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA IT Modernization Programs
Federal Real Time Location System Contracts
Healthcare IT Infrastructure Projects
Asset Tracking and Management Systems

Risk Flags

Potential for integration challenges with legacy systems.
User adoption and training effectiveness.
Long-term system maintainability and scalability.
Data security and privacy compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.4 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF. TASK ORDER AWARD FOR VISN 17 UNDER THE FOR REAL TIME LOCATION SYSTEM CONTRACT.

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2013-09-15. End: 2016-11-03.

What is the track record of Peraton Enterprise Solutions LLC with the Department of Veterans Affairs?

Peraton Enterprise Solutions LLC has a history of receiving contracts from the Department of Veterans Affairs. Examining past awards, particularly those related to IT systems and infrastructure, would provide insight into their performance and reliability with the agency. This specific contract, valued at $20.4 million, represents a significant engagement. A review of past performance evaluations, if publicly available, would offer a more detailed understanding of their track record. It's also important to note if they have successfully completed similar RTLS projects for the VA or other federal agencies, which would indicate relevant experience and a higher likelihood of successful execution.

How does the $20.4 million award compare to similar RTLS contracts within the federal government?

Benchmarking the $20.4 million award for this RTLS contract requires comparing it to similar deployments in terms of scope, duration, and complexity. Federal agencies, including the Department of Defense and other civilian agencies, have invested in RTLS for asset tracking and operational efficiency. The price per facility or per tracked asset would be a key metric for comparison. Given this contract spans over three years, the annual expenditure is approximately $6.8 million. Without detailed specifications of the system's capabilities (e.g., number of tags, area coverage, integration requirements), a precise comparison is difficult. However, the full and open competition suggests the price is likely aligned with market rates for such systems.

What are the primary risks associated with this Real Time Location System contract?

Key risks for this contract include potential technical challenges in integrating the RTLS with existing VA IT infrastructure, which can be complex and prone to issues. There's also a risk of user adoption failure if VA staff are not adequately trained or if the system's interface is not intuitive. Schedule delays could occur due to unforeseen technical hurdles or contractor performance issues. Furthermore, the long-term maintainability and scalability of the system are critical; if the chosen technology becomes obsolete or difficult to support, it could lead to future cost overruns. Finally, data security and privacy concerns related to tracking information must be rigorously managed.

How effective is the VA in managing IT contracts awarded through full and open competition?

The VA's effectiveness in managing IT contracts awarded through full and open competition can vary. While this method generally promotes competitive pricing and access to a wider range of vendors, the VA has faced scrutiny in the past regarding IT project management and execution. The success of such contracts hinges on robust program oversight, clear requirements definition, effective vendor management, and timely issue resolution. The number of bidders (six in this case) suggests a competitive process was indeed established. Ongoing monitoring of performance metrics, adherence to schedules, and budget control are crucial for ensuring effectiveness and realizing the intended benefits of the IT investment.

What has been the historical spending trend for RTLS within the VA?

Analyzing historical spending trends for Real Time Location Systems (RTLS) within the VA is crucial for understanding the agency's investment patterns and the evolution of its needs in this area. Without specific historical data for RTLS, we can infer trends from broader IT infrastructure and asset management spending. The VA has been investing in modernizing its facilities and improving operational efficiency, which often includes technology solutions like RTLS. The $20.4 million award suggests a significant commitment to this technology. Examining prior years' budgets and contract awards for similar systems would reveal whether this represents an increase, a decrease, or a steady investment in RTLS capabilities.

What is the potential impact of this contract on the RTLS market for other federal agencies?

This contract award to Peraton Enterprise Solutions LLC for a significant RTLS deployment within the VA could have several impacts on the broader federal RTLS market. Firstly, it validates the capabilities of the chosen RTLS technology and the performance of the contractor, potentially influencing purchasing decisions by other agencies. Secondly, successful implementation could encourage other federal entities to pursue similar RTLS solutions, driving further market growth. Conversely, if the project encounters significant issues, it might lead to increased caution among other agencies. The competitive nature of the award also signals to the market that the federal government is actively seeking and procuring RTLS solutions.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Other Computer Peripheral Equipment Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DXC Technology Company (UEI: 080521853)

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: $20,398,087

Exercised Options: $20,398,087

Current Obligation: $20,398,087

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $102,092

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA118A12D0025

IDV Type: IDC

Timeline