Army's GCSS-Army program receives $40.6M for IT support, with Peraton Inc. as the prime contractor
Contract Overview
Contract Amount: $40,624,236 ($40.6M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2019-04-01
End Date: 2021-11-30
Contract Duration: 974 days
Daily Burn Rate: $41.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: STAFF AUGMENTATION TO AUGMENT THE ARMY SHARED SERVICES CENTER'S CAPABILITY TO PERFORM/PRODUCT MANAGEMENT AND ADMINISTRATION, FINANCIAL, TECHNICAL, AND BUSINESS TRANSFORMATION SUPPORT SERVICES THAT ARE ESSENTIAL TO THE CONTINUING DEVELOPMENT, DEPLOYMENT, AND SUSTAINMENT ACTIVITIES, OF THE GLOBAL COMBAT SUPPORT SYSTEM (GCSS-ARMY) PROGRAM.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $40.6 million to PERATON INC. for work described as: STAFF AUGMENTATION TO AUGMENT THE ARMY SHARED SERVICES CENTER'S CAPABILITY TO PERFORM/PRODUCT MANAGEMENT AND ADMINISTRATION, FINANCIAL, TECHNICAL, AND BUSINESS TRANSFORMATION SUPPORT SERVICES THAT ARE ESSENTIAL TO THE CONTINUING DEVELOPMENT, DEPLOYMENT, AND SUSTAINMENT ACTIVITIES… Key points: 1. Contract provides essential IT and administrative support for the Global Combat Support System (GCSS-Army). 2. Services include product management, financial, technical, and business transformation support. 3. The contract duration spans over 974 days, indicating a long-term need for these services. 4. This award represents a significant investment in maintaining and developing a critical Army IT system. 5. The firm-fixed-price structure aims to control costs for the government. 6. The contract was awarded through full and open competition, suggesting a competitive bidding process.
Value Assessment
Rating: good
The contract's total value of $40.6 million over approximately 2.6 years suggests a substantial but not excessive investment for comprehensive IT support of a major program like GCSS-Army. Benchmarking against similar large-scale IT support contracts within the Department of Defense would provide further context on value for money. The firm-fixed-price (FFP) contract type is generally favorable for the government in managing cost certainty, assuming the scope was well-defined.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The presence of multiple bidders, though not explicitly detailed, is implied by the nature of full and open competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from contractors.
Public Impact
The primary beneficiaries are the U.S. Army personnel who rely on the GCSS-Army system for critical operations. Services delivered include essential IT product management, administration, financial, technical, and business transformation support. The geographic impact is global, as GCSS-Army supports worldwide Army operations. Workforce implications include the potential for skilled IT professionals to be employed by Peraton Inc. to fulfill this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not tightly managed over the contract's duration.
- Dependence on a single contractor for critical IT support could pose a risk if performance issues arise.
- Ensuring continued alignment with evolving Army IT strategies and cybersecurity requirements.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that likely yielded fair pricing.
- Firm-fixed-price contract type provides cost certainty for the government.
- Long-term nature of the contract indicates a stable need for these critical support services.
- Focus on essential functions for a key Army IT system (GCSS-Army).
Sector Analysis
This contract falls within the Information Technology (IT) services sector, specifically focusing on IT support and management for a large government program. The IT services market for the federal government is substantial, with significant spending allocated to software development, system integration, and technical support. Contracts like this are crucial for maintaining and modernizing complex defense systems, ensuring operational readiness and efficiency. Comparable spending benchmarks would involve looking at other large IT support contracts awarded by the Department of Defense for enterprise resource planning (ERP) systems or similar mission-critical applications.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Peraton Inc., is a large business. While there is no direct set-aside, large prime contractors are often required to meet subcontracting goals with small businesses. The impact on the small business ecosystem would depend on whether Peraton actively seeks small business subcontractors for specialized services within this contract.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers responsible for GCSS-Army. The firm-fixed-price nature of the contract provides a degree of accountability through defined deliverables and payment terms. Transparency is facilitated by the contract's award under full and open competition, with details typically available through federal procurement databases. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Global Combat Support System-Army (GCSS-Army)
- Army Enterprise Systems Integration Program (AESIP)
- Defense Logistics Agency (DLA) IT Support Contracts
- Department of Defense IT Modernization Initiatives
Risk Flags
- Potential for vendor lock-in due to long-term nature of support.
- Dependence on contractor performance for critical system sustainment.
- Need for continuous monitoring of evolving cybersecurity threats.
Tags
it-services, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, staff-augmentation, it-support, enterprise-resource-planning, army-shared-services-center, global-combat-support-system-army, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.6 million to PERATON INC.. STAFF AUGMENTATION TO AUGMENT THE ARMY SHARED SERVICES CENTER'S CAPABILITY TO PERFORM/PRODUCT MANAGEMENT AND ADMINISTRATION, FINANCIAL, TECHNICAL, AND BUSINESS TRANSFORMATION SUPPORT SERVICES THAT ARE ESSENTIAL TO THE CONTINUING DEVELOPMENT, DEPLOYMENT, AND SUSTAINMENT ACTIVITIES, OF THE GLOBAL COMBAT SUPPORT SYSTEM (GCSS-ARMY) PROGRAM.
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 $40.6 million.
What is the period of performance?
Start: 2019-04-01. End: 2021-11-30.
What is the track record of Peraton Inc. in supporting large-scale Department of Defense IT programs?
Peraton Inc. has a significant track record in supporting complex IT programs for the Department of Defense and other federal agencies. They are known for providing a range of services including enterprise IT, cyber security, and mission support. Their experience often involves managing large, mission-critical systems similar to GCSS-Army. Analyzing their past performance on comparable contracts, including any past performance issues or commendations, would provide further insight into their capability to execute this specific award successfully. Their portfolio includes work on other large enterprise resource planning (ERP) systems and defense-wide IT infrastructure, suggesting a strong foundation for this type of work.
How does the awarded amount of $40.6 million compare to the estimated value or budget for GCSS-Army IT support?
The awarded amount of $40.6 million represents the total value for the specific delivery order under the contract, covering the period from April 1, 2019, to November 30, 2021. To assess if this is comparable to the budget, one would need to compare it against the overall GCSS-Army program budget and the specific line items allocated for IT product management, administration, and transformation support during that period. Without access to the detailed program budget, it's challenging to make a direct comparison. However, the duration of the contract (974 days) suggests a sustained level of support, and the amount reflects the complexity and criticality of maintaining such a large enterprise system.
What are the key performance indicators (KPIs) used to measure the success of Peraton's support for GCSS-Army?
Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for IT support contracts of this nature, typical KPIs often include system uptime and availability, response times for technical support tickets, successful deployment of updates and patches, user satisfaction ratings, and adherence to project timelines for transformation initiatives. The contract's firm-fixed-price structure implies that performance against defined requirements and service levels would be critical. The Army contracting officer and program managers would be responsible for monitoring Peraton's performance against these, or similar, metrics throughout the contract duration.
What is the historical spending trend for IT support services related to GCSS-Army or similar Army enterprise systems?
Historical spending on GCSS-Army and similar Army enterprise systems like the Logistics Modernization Program (LMP) or the Integrated Weapons Management System (IWMS) has been substantial over the years. These systems are critical for Army operations, requiring continuous investment in maintenance, upgrades, and support. Spending trends typically reflect the lifecycle of these systems, with significant outlays during initial development and deployment, followed by sustained, albeit potentially fluctuating, spending for sustainment and modernization. Analyzing historical contract awards for GCSS-Army specifically, and for broader Army IT infrastructure support, would reveal trends in annual spending and the types of services procured.
What are the potential risks associated with relying on a single contractor for critical IT product management and administration?
Relying on a single contractor for critical IT product management and administration, as is the case with Peraton for GCSS-Army, presents several potential risks. These include vendor lock-in, where transitioning to another provider becomes difficult and costly. There's also a risk of performance degradation if the contractor faces internal challenges or loses motivation due to lack of competition. Furthermore, a single point of failure could arise if the contractor experiences significant operational disruptions. To mitigate these risks, robust contract management, clear performance expectations, and contingency planning are essential. The government also retains the option to re-compete the contract at its conclusion.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 1
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: $40,624,236
Exercised Options: $40,624,236
Current Obligation: $40,624,236
Actual Outlays: $4,963,071
Subaward Activity
Number of Subawards: 344
Total Subaward Amount: $179,602,352
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J18DA137
IDV Type: IDC
Timeline
Start Date: 2019-04-01
Current End Date: 2021-11-30
Potential End Date: 2021-11-30 12:11:00
Last Modified: 2025-09-23
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