DoD's $48.7M IT contract for bridge operations awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $48,678,700 ($48.7M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2021-01-27

End Date: 2023-03-26

Contract Duration: 788 days

Daily Burn Rate: $61.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 0001AB ITIS BRIDGE OPERATIONS

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $48.7 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: 0001AB ITIS BRIDGE OPERATIONS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Contract duration of 788 days indicates a medium-term service requirement. 4. The contract is for IT services, specifically 'Other Computer Related Services'. 5. Awarded by the Department of the Army, a major component of the DoD. 6. The contract value is substantial, requiring careful oversight for value. 7. No small business set-aside was applied to this procurement.

Value Assessment

Rating: fair

The contract value of $48.7 million for IT services over approximately two years appears to be within a reasonable range for enterprise-level solutions. However, without specific details on the services rendered and comparable market rates for 'Other Computer Related Services' in the defense sector, a definitive value-for-money assessment is challenging. The firm fixed-price nature provides cost predictability, but the lack of competition could lead to a less competitive price than if it were openly competed. Benchmarking against similar IT support contracts within the DoD or other federal agencies would be necessary for a more precise evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Peraton Enterprise Solutions LLC, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they typically result in less price discovery and potentially higher costs for the government compared to full and open competition. The absence of multiple bidders means there was no direct price comparison or incentive for vendors to offer their most competitive rates.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through market competition, potentially leading to taxpayer funds being used less efficiently. This lack of competition means taxpayers may not benefit from the cost savings that could arise from a competitive bidding process.

Public Impact

The Department of Defense benefits from the IT services provided, ensuring the continuity of bridge operations. This contract supports critical infrastructure management within the Army's operational domain. The services delivered are essential for maintaining the functionality and security of IT systems related to bridge operations. The geographic impact is likely concentrated within the operational areas managed by the Department of the Army, primarily in Virginia. Workforce implications may include specialized IT personnel employed by Peraton Enterprise Solutions LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source award requires further scrutiny.
Performance metrics and service level agreements are not detailed, making it difficult to assess service quality.
Potential for vendor lock-in due to the sole-source nature of the contract.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to an established vendor (Peraton) may indicate a known capability.
Contract duration suggests a stable, ongoing need for these IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services'. The IT services market for the federal government is vast, with significant spending allocated to software, hardware, and support services. Contracts like this, supporting critical operational functions such as bridge management for the Department of Defense, are common. Comparable spending benchmarks for similar IT support contracts within the defense sector would typically range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific procurement were limited. The absence of a small business set-aside or subcontracting plan may reduce the direct economic benefit to the small business ecosystem associated with this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award; however, contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Modernization Programs
Army Logistics and Infrastructure Support Contracts
Federal Enterprise IT Services Procurements
Critical Infrastructure IT Management

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns due to lack of competition.
Limited transparency regarding service details and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.7 million to PERATON ENTERPRISE SOLUTIONS LLC. 0001AB ITIS BRIDGE OPERATIONS

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $48.7 million.

What is the period of performance?

Start: 2021-01-27. End: 2023-03-26.

What specific IT services are included under 'Other Computer Related Services' for bridge operations?

The specific IT services encompassed by 'Other Computer Related Services' for bridge operations are not detailed in the provided data. Generally, this NAICS code (541519) covers services such as IT consulting, systems integration design, IT support, and network management that do not fit into more specific IT service categories. For this contract, it could involve software development, database management, network infrastructure support, cybersecurity services, or IT helpdesk functions directly related to the systems that monitor, control, or manage bridge operations. A deeper dive into the contract's Statement of Work (SOW) would be required to ascertain the precise nature of these services.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not provided in the abbreviated data. Federal regulations permit sole-source procurements under specific conditions, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need. For IT services, this might occur if the incumbent contractor possesses unique knowledge of highly specialized systems, or if a rapid deployment is required and only one vendor can meet the timeline. Without the official Justification and Approval (J&A) document, the specific rationale remains unknown, but it would typically need to demonstrate why competition is not feasible or advantageous.

How does the $48.7 million contract value compare to similar IT services contracts for infrastructure management within the DoD?

The $48.7 million contract value for IT services over approximately two years is a significant but not extraordinary amount for enterprise-level support within the Department of Defense. The DoD procures a wide array of IT services, with contract values often ranging from millions to billions of dollars. For infrastructure management IT support, this value appears moderate. However, a precise comparison requires benchmarking against contracts with similar scopes of work, service levels, and contract durations. Given the sole-source nature, it's difficult to definitively state if this represents optimal value without competitive bids. Similar contracts for IT support of critical systems within other military branches or agencies could offer a comparative baseline.

What are the potential risks associated with a sole-source IT contract of this magnitude?

The primary risk associated with a sole-source IT contract of this magnitude is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not achieve the most cost-effective solution. Other risks include reduced innovation, as the sole provider may have less incentive to introduce new technologies or efficiencies. There's also a risk of vendor lock-in, making it difficult and costly to switch providers in the future. Furthermore, if the sole-source justification is weak or if performance issues arise, the agency may have limited recourse without incurring significant disruption or cost.

What is Peraton Enterprise Solutions LLC's track record with the Department of Defense for IT services?

Peraton Enterprise Solutions LLC has a significant track record of performing IT services for the Department of Defense and other federal agencies. They are known for providing a range of solutions including enterprise IT, cyber security, and mission support. While this specific contract is sole-source, Peraton has likely been awarded other contracts, potentially including competitive ones, for similar services. A comprehensive review of their contract history with the DoD would reveal their performance ratings, past contract values, and the types of IT services they have successfully delivered, providing context for their capability to fulfill this current requirement.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, for any federal contract, especially one of this value and duration, performance standards are typically defined within the contract's Statement of Work (SOW) or a separate Performance Work Statement (PWS). These metrics would outline the expected quality, timeliness, and effectiveness of the IT services. The government would monitor these KPIs to ensure the contractor is meeting its obligations. The absence of this information in the summary data means a detailed assessment of performance expectations and accountability is not possible from this snapshot.

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 - END USER

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,678,700

Exercised Options: $48,678,700

Current Obligation: $48,678,700

Subaward Activity

Number of Subawards: 34

Total Subaward Amount: $14,630,363

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline