DoD awards $53.75M for Computer Systems Design Services to Peraton Inc., with 1,734 days duration
Contract Overview
Contract Amount: $53,750,043 ($53.8M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2019-11-26
End Date: 2024-08-25
Contract Duration: 1,734 days
Daily Burn Rate: $31.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CNPS AWARD
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $53.8 million to PERATON INC. for work described as: CNPS AWARD Key points: 1. Value for money appears fair given the long-term nature of the contract and the specialized services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period requiring sustained oversight. 4. Performance context is within IT services, a critical area for defense operations. 5. Sector positioning is within the IT services segment of the defense industry.
Value Assessment
Rating: fair
The contract value of $53.75 million over approximately 4.75 years suggests an average annual value of around $11.3 million. Benchmarking this against similar large-scale IT services contracts for the Department of Defense is challenging without more granular data on the specific services provided. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if managed effectively. The duration of the contract also suggests a need for stable, long-term support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates one award, but the number of bidders is not specified. A full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. However, the ultimate impact on price discovery depends on the number and quality of bids received.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lower prices.
Public Impact
The Department of Defense benefits from enhanced computer systems design and support capabilities. Services delivered likely include system integration, network design, software development, and IT infrastructure management. Geographic impact is likely concentrated around military installations or defense agencies requiring these IT services. Workforce implications may involve specialized IT professionals employed by Peraton Inc. and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (1734 days) increases the risk of scope creep or evolving technological needs not being fully addressed.
- Lack of specific details on the services rendered makes it difficult to assess the true value and performance.
- Potential for vendor lock-in if the systems designed are proprietary or highly integrated.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Firm-fixed-price contract type shifts cost risk to the contractor.
- Long-term nature of the contract can provide stability and continuity of essential IT services.
Sector Analysis
The IT services sector within the defense industry is a significant market, characterized by high demand for specialized expertise in areas like cybersecurity, cloud computing, and systems integration. Spending in this sector is driven by the need to maintain and modernize complex military systems. Comparable spending benchmarks would typically involve other large IT support contracts awarded by DoD agencies, often in the hundreds of millions or billions of dollars, depending on the scope.
Small Business Impact
The 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 requirement. However, the prime contractor, Peraton Inc., may still engage small businesses as subcontractors to fulfill parts of the contract, depending on their own subcontracting strategies and the specific needs of the project.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes cost overruns for the contractor. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Defense Information Systems Agency (DISA) IT Services
- Army Network Enterprise Technology Command (NETCOM) Contracts
- DoD Cloud Computing Services
- IT Modernization Programs
Risk Flags
- Long contract duration may lead to technological obsolescence.
- Potential for scope creep if requirements are not tightly managed.
- Performance metrics and oversight are critical due to the extended period.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-army, firm-fixed-price, delivery-order, full-and-open-competition, peraton-inc, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.8 million to PERATON INC.. CNPS AWARD
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 $53.8 million.
What is the period of performance?
Start: 2019-11-26. End: 2024-08-25.
What is the specific breakdown of services provided under this contract?
The contract is categorized under NAICS code 541512, which denotes 'Computer Systems Design Services'. This typically encompasses a broad range of activities including designing, developing, and integrating hardware and software systems. Specific services could include network architecture, system analysis, software engineering, cybersecurity integration, and IT infrastructure support. Without further details from the contract award documentation or performance statements, a precise breakdown remains elusive. However, given the Department of Defense context, these services are likely critical for maintaining and enhancing operational command and control systems, intelligence processing, or logistical support IT infrastructure.
How does the awarded amount compare to similar IT services contracts for the Department of Defense?
The total award amount of $53.75 million over approximately 4.75 years places this contract in the mid-to-large tier for IT services within the DoD. Larger, more comprehensive IT modernization or enterprise-wide support contracts can easily reach hundreds of millions or even billions of dollars. However, for a specific systems design and integration task order, this value is substantial. Benchmarking requires comparing it to contracts with similar scope, duration, and specific service requirements. For instance, contracts for cybersecurity solutions or large-scale software development for the DoD often exceed this amount significantly, while smaller, more focused design tasks might be valued lower.
What are the key performance indicators (KPIs) expected for this contract?
While specific KPIs are not detailed in the provided data, contracts for Computer Systems Design Services typically focus on metrics related to system performance, reliability, security, and timely delivery of project milestones. For the DoD, these could include uptime percentages for critical systems, successful integration of new technologies, adherence to cybersecurity protocols, completion of design phases within schedule, and user satisfaction. The firm-fixed-price nature of the contract implies that meeting these KPIs is crucial for the contractor to achieve profitability, and failure to do so could result in penalties or non-payment for certain deliverables.
What is Peraton Inc.'s track record with similar DoD contracts?
Peraton Inc. is a significant government contractor with a substantial portfolio of IT and defense-related contracts. They have a history of performing work in areas such as command, control, communications, computers, and intelligence (C4I) systems, space systems, and cybersecurity for various federal agencies, including the DoD. Their track record generally involves managing large, complex programs. Specific performance on contracts similar to this one would require a deeper dive into their contract history, including past performance evaluations and any reported issues or successes on prior DoD IT services awards.
What are the potential risks associated with a contract of this duration and scope?
A contract spanning over 1700 days (approximately 4.75 years) carries inherent risks. Technological obsolescence is a primary concern; IT systems and design principles can evolve rapidly, potentially making initial designs outdated before the contract concludes. Scope creep is another significant risk, where the project's requirements expand beyond the original agreement, leading to cost and schedule overruns, although the firm-fixed-price structure aims to mitigate this for the government. Furthermore, maintaining consistent performance and personnel expertise over such a long period can be challenging for the contractor. The government also faces the risk of becoming dependent on a single vendor for critical systems.
How does the firm-fixed-price (FFP) contract type influence value and risk?
The Firm-Fixed-Price (FFP) contract type is generally considered advantageous for the government when the scope of work is well-defined and risks are understood. It shifts the primary financial risk to the contractor, as they are obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage costs efficiently and perform the work effectively. For the government, it provides cost certainty, making budgeting more predictable. However, if the scope is not well-defined, FFP contracts can lead to contractors cutting corners to maintain profitability, or extensive change order negotiations if requirements evolve significantly.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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)
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: $95,942,572
Exercised Options: $53,750,043
Current Obligation: $53,750,043
Subaward Activity
Number of Subawards: 64
Total Subaward Amount: $18,063,349
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2019-11-26
Current End Date: 2024-08-25
Potential End Date: 2024-08-25 12:08:00
Last Modified: 2025-07-17
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