DoD awards $19.3M for custom computer programming, with Peraton Inc. as prime contractor
Contract Overview
Contract Amount: $19,297,008 ($19.3M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2025-06-27
End Date: 2026-03-20
Contract Duration: 266 days
Daily Burn Rate: $72.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TECHNICAL SERVICES
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.3 million to PERATON INC. for work described as: TECHNICAL SERVICES Key points: 1. Contract value appears reasonable given the scope of custom programming services. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include performance deviations and scope creep. 4. This contract supports IT infrastructure and software development for the Army. 5. The IT services sector is characterized by rapid technological advancement and high demand. 6. Contract duration of 266 days is relatively short for complex IT projects.
Value Assessment
Rating: good
The contract value of $19.3 million for custom computer programming services is within a typical range for this type of work. Benchmarking against similar contracts for IT development and integration services indicates that the pricing is likely competitive, especially given the full and open competition. The Time and Materials (T&M) pricing model, while offering flexibility, requires careful monitoring to ensure cost efficiency and prevent overruns. The award amount suggests a moderate-sized project, and without specific deliverables or labor categories, a precise value-for-money assessment is challenging but appears fair.
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 a bid. The presence of 5 bidders suggests a healthy level of competition for this requirement. A competitive environment generally leads to better price discovery and can drive innovation as contractors vie for the award. The number of bidders is a positive sign for ensuring taxpayer value.
Taxpayer Impact: The full and open competition ensures that the government receives the best possible pricing and technical solutions by allowing a wide range of qualified contractors to participate, ultimately benefiting taxpayers through cost savings and superior service.
Public Impact
The Department of the Army benefits from enhanced custom computer programming services. Services delivered include custom software development and potentially system integration. The geographic impact is likely centered around the Department of the Army's operational locations, primarily Virginia. Workforce implications may involve skilled IT professionals, including software developers, engineers, and project managers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the Time and Materials (T&M) pricing structure.
- Risk of schedule delays if technical challenges arise or resource allocation is insufficient.
- Ensuring the delivered custom software meets all specified requirements and integrates seamlessly with existing systems.
- Dependency on Peraton Inc. for successful project completion and ongoing support.
Positive Signals
- Awarded through full and open competition, indicating a competitive selection process.
- Peraton Inc. is an established government contractor with a track record in IT services.
- The contract has a clear end date, providing a defined period for service delivery.
- The Base Period (BP) award value is specified, offering transparency on initial funding.
Sector Analysis
The Information Technology (IT) services sector is a significant area of federal spending, encompassing a wide range of services from custom software development to cybersecurity and cloud computing. This contract falls under custom computer programming services, a sub-sector that is crucial for agencies needing tailored solutions to meet unique operational requirements. The market is highly competitive, with numerous large and small businesses vying for contracts. Federal spending in this area is driven by the need to modernize legacy systems, enhance digital capabilities, and support national security objectives. Comparable spending benchmarks for custom programming services vary widely based on complexity, duration, and labor categories, but this $19.3 million award represents a substantial investment.
Small Business Impact
This contract does not appear to have a small business set-aside (ss=false) and the prime contractor, Peraton Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal unless Peraton Inc. voluntarily includes small businesses in its subcontracting efforts. Further analysis of the contract's subcontracting clauses would be needed to fully assess its implications for small businesses.
Oversight & Accountability
Oversight for this contract will primarily reside with the contracting officer and the relevant program managers within the Department of the Army. The Time and Materials (T&M) pricing model necessitates robust oversight to monitor labor hours, costs, and adherence to the scope of work to prevent potential cost overruns. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse, but day-to-day oversight is typically managed by the agency.
Related Government Programs
- Department of Defense IT Services
- Army Software Development Contracts
- Custom Computer Programming Services
- IT Professional Services
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Risk of schedule slippage.
- Ensuring full requirement satisfaction.
- Contract duration may limit scope.
Tags
it-services, department-of-defense, department-of-the-army, full-and-open-competition, large-contract, time-and-materials, custom-computer-programming, virginia, peraton-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.3 million to PERATON INC.. TECHNICAL SERVICES
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $19.3 million.
What is the period of performance?
Start: 2025-06-27. End: 2026-03-20.
What is Peraton Inc.'s track record with the Department of Defense, particularly in custom computer programming?
Peraton Inc. has a significant track record with the Department of Defense (DoD) and other federal agencies, often securing large contracts related to IT services, mission systems, and cyber operations. Their experience spans various areas, including software development, systems integration, and managed services. While specific details on their performance for custom computer programming within the DoD are not fully detailed in this summary, their established presence suggests a capacity to handle complex IT requirements. Historical data from contract databases would provide a more granular view of their past performance metrics, on-time delivery rates, and client satisfaction scores for similar projects within the DoD.
How does the $19.3 million contract value compare to similar custom computer programming contracts awarded by the DoD?
The $19.3 million contract value for custom computer programming services is a moderate figure within the broader landscape of federal IT procurements. The DoD awards a wide spectrum of IT contracts, ranging from smaller, specialized projects to multi-billion dollar enterprise-wide solutions. For custom programming, contracts can vary significantly based on complexity, duration, and the specific technologies involved. This award appears to be for a defined scope and duration (266 days), suggesting it's not an indefinite delivery/indefinite quantity (IDIQ) contract for a massive, long-term overhaul. Benchmarking against contracts with similar scope, duration, and labor categories would be necessary for a precise comparison, but the amount is not exceptionally high or low for a project of this nature.
What are the primary risks associated with a Time and Materials (T&M) contract for custom computer programming?
The primary risks associated with a Time and Materials (T&M) contract for custom computer programming revolve around cost control and scope management. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. This can lead to cost overruns if the project scope expands (scope creep), if the contractor's efficiency is low, or if the estimated labor rates are higher than anticipated. For the government, it requires diligent oversight to ensure that the hours billed are reasonable and necessary, and that the work performed aligns with the project's objectives. Without strong management and clear task definitions, T&M contracts can become more expensive than initially projected.
How effective is 'full and open competition' in ensuring value for money in IT services contracts?
Full and open competition is generally considered the most effective method for ensuring value for money in IT services contracts. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This broad competition drives down costs as contractors vie for the award. Furthermore, it provides a wider selection of technical approaches and capabilities, allowing the agency to choose the best fit for its needs. While it requires more effort in solicitation and evaluation, the potential for cost savings and superior performance typically outweighs these initial investments.
What is the historical spending trend for custom computer programming services within the Department of the Army?
Historical spending trends for custom computer programming services within the Department of the Army (and the DoD broadly) have generally shown a consistent and often increasing demand. As military operations become more reliant on sophisticated software, data analytics, and integrated systems, the need for tailored programming solutions grows. Agencies frequently face challenges with legacy systems that require custom development for modernization or integration. While specific annual figures fluctuate based on budgetary priorities and specific program needs, the overall trajectory indicates a sustained investment in this area to maintain technological superiority and operational efficiency. Analyzing past budgets and contract awards would reveal specific growth patterns and key areas of investment.
What are the implications of the contract duration (266 days) for the successful delivery of custom programming services?
A contract duration of 266 days (approximately 9 months) for custom computer programming services suggests a project with a defined, relatively short-term scope. This duration is suitable for specific development tasks, enhancements, or the creation of a particular module or application. However, it may be insufficient for large-scale system overhauls or complex, multi-faceted software development projects that require extensive testing, integration, and iterative refinement. The success of delivery within this timeframe will heavily depend on the clarity of requirements, the efficiency of the development team, and the effectiveness of project management in mitigating risks and ensuring timely progress.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 12975 WORLDGATE DR, 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: $164,185,897
Exercised Options: $39,886,302
Current Obligation: $19,297,008
Parent Contract
Parent Award PIID: W31P4Q24A0021
IDV Type: BPA
Timeline
Start Date: 2025-06-27
Current End Date: 2026-03-20
Potential End Date: 2026-03-20 12:03:00
Last Modified: 2025-12-23
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