DoD's $38M JMLFDC Operations Support Services contract awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $38,017,200 ($38.0M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2015-06-12

End Date: 2019-08-27

Contract Duration: 1,537 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF JMLFDC OPERATIONS SUPPORT SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.0 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::CT::IGF JMLFDC OPERATIONS SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Duration of 1537 days indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 5. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The small business set-aside flag is false, indicating no specific preference for small businesses in this award.

Value Assessment

Rating: fair

Benchmarking the value of this $38 million contract for computer systems design services is challenging without specific performance metrics or comparable contract data. The firm-fixed-price structure is standard for this type of service, aiming to control costs. However, the absence of detailed cost breakdowns or comparisons to similar government contracts makes a definitive value-for-money assessment difficult. The contract's duration suggests a significant investment, and its success hinges on the contractor's ability to deliver within the agreed-upon price.

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 bids. The presence of 4 bidders indicates a moderate level of competition for this requirement. While multiple bidders suggest some price discovery, the specific number does not necessarily guarantee the lowest possible price without further analysis of the bids received and the overall market landscape for these specialized services.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better service offerings from contractors vying for the award.

Public Impact

The primary beneficiaries are likely the Department of the Army and its personnel who rely on the JMLFDC operations. Services delivered include computer systems design, crucial for maintaining and enhancing operational capabilities. The geographic impact is centered around the JMLFDC's operational area, likely within Virginia where the contract is registered. Workforce implications may include the employment of skilled IT professionals by the contractor to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen technical challenges.
Risk of vendor lock-in if the systems designed are highly proprietary or difficult to transition.
Dependence on a single contractor for critical IT infrastructure could pose operational risks.
Ensuring adequate performance monitoring and quality control for complex IT services.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor, potentially leading to cost savings for the government.
Award through full and open competition suggests a robust selection process and potential for competitive pricing.
The long contract duration indicates a stable, ongoing need, allowing for focused service delivery and potential for contractor expertise development.
Computer systems design services are essential for modernizing and maintaining defense capabilities.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with significant spending allocated to system design, integration, and maintenance. This contract represents a portion of that broader spending, supporting critical defense operations. Comparable spending benchmarks would typically involve analyzing other contracts for similar IT support services awarded to various defense agencies.

Small Business Impact

The contract was not set aside for small businesses, as indicated by the 'sb' flag being false. This means the competition was open to all eligible businesses, including large corporations. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that large businesses were expected to be the primary competitors and potential awardees for this requirement, potentially limiting direct opportunities for small businesses in this specific contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Defense Information Technology Contracting Office (DITCO) contracts
Army IT Support Services
Computer Systems Design Services Federal Contracts
Operations Support Services Contracts
JMLFDC IT Modernization Programs

Risk Flags

Long contract duration may lead to technology obsolescence.
Firm Fixed Price requires careful scope management to avoid change orders.
Dependence on a single vendor for critical IT systems.
Need for robust performance monitoring to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.0 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::CT::IGF JMLFDC OPERATIONS SUPPORT SERVICES

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 $38.0 million.

What is the period of performance?

Start: 2015-06-12. End: 2019-08-27.

What is the specific nature of the JMLFDC operations supported by these services?

The Joint Mission Logistics Force Development Center (JMLFDC) is a critical entity within the Department of Defense focused on enhancing logistics capabilities and readiness. The 'Operations Support Services' contract likely entails a broad range of IT functions necessary for the JMLFDC's daily operations. This could include maintaining and upgrading computer systems, network infrastructure, software applications, cybersecurity measures, and providing technical support to JMLFDC personnel. The goal is to ensure the seamless functioning of the IT environment that underpins the JMLFDC's mission-critical logistics planning and execution.

How does the firm-fixed-price (FFP) contract type impact cost control and risk for the government?

A Firm Fixed Price (FFP) contract is designed to provide the government with cost certainty. Under this structure, the contractor, Peraton Enterprise Solutions LLC, assumes the primary responsibility for all costs incurred to complete the work, including labor, materials, and overhead. This shifts the financial risk from the government to the contractor. If the contractor's costs exceed the agreed-upon price, the government is not obligated to pay more. Conversely, if the contractor manages costs effectively and completes the work for less than the fixed price, they retain the profit. This contract type is generally favored for well-defined requirements where cost estimation is relatively straightforward, encouraging contractor efficiency.

What are the potential risks associated with a long-duration contract (1537 days) for IT services?

Long-duration contracts, such as this 1537-day (approximately 4.2 years) award, present several potential risks for IT services. Technology evolves rapidly, and a system designed or supported at the beginning of the contract may become outdated or less efficient by its end. There's a risk of the contractor becoming complacent or less innovative over time, especially if performance monitoring is not rigorous. Furthermore, the government might face challenges in adapting to new technologies or changing requirements if the contract is too rigid. Dependence on a single vendor for an extended period can also limit flexibility and potentially lead to higher costs if market rates decrease significantly during the contract term.

What does the NAICS code 541512 (Computer Systems Design Services) entail in the context of this contract?

The North American Industry Classification System (NAICS) code 541512 signifies that the primary business activity covered by this contract is Computer Systems Design Services. This typically involves planning and designing computer systems that integrate hardware, software, and communication technologies. Services can include consulting on IT needs, designing custom software solutions, integrating different computer systems, and providing project management for IT infrastructure development. For the JMLFDC, this likely means designing, implementing, or maintaining the complex IT architectures required for advanced logistics planning and operations support.

Given the 'full and open competition' award, what can be inferred about the contractor's selection and potential value?

Awarding the contract through 'full and open competition' implies that the Department of the Army solicited bids from all interested and qualified sources, adhering to federal acquisition regulations designed to maximize competition. The fact that Peraton Enterprise Solutions LLC was selected suggests their proposal met or exceeded the stated requirements and offered the best value to the government among the four bidders. While 'best value' can encompass factors beyond just price, such as technical approach and past performance, this competitive process generally leads to more favorable pricing and service quality for the government compared to sole-source or limited competition awards.

Are there any indications of performance issues or concerns based on the provided data?

The provided data does not contain specific indicators of performance issues or concerns. The contract was awarded, and the data reflects the basic award details. To assess performance, one would need access to contract performance reports, quality assurance reviews, user feedback, or any modifications or disputes related to the contract. Without such information, it is assumed that the contractor is meeting the contractual obligations as specified. Any concerns would typically be documented through official channels within the contracting agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)

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

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

Financial Breakdown

Contract Ceiling: $43,751,984

Exercised Options: $38,017,200

Current Obligation: $38,017,200

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSN316201200026W

IDV Type: GWAC

Timeline