DoD's $24.3M IT Services Contract Awarded to Peraton Enterprise Solutions LLC for Arizona Operations

Contract Overview

Contract Amount: $24,354,112 ($24.4M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2024-05-01

End Date: 2025-04-30

Contract Duration: 364 days

Daily Burn Rate: $66.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: IT

Official Description: CIO-G6 LABOR

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: CIO-G6 LABOR Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for 'Other Computer Related Services,' a broad category within IT. 3. The duration of 364 days indicates a short-term or task-order-based need. 4. The contract type is a 'Delivery Order,' implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The award amount of $24.3 million represents a significant investment in IT support. 6. The contract is designated for Arizona, indicating a specific geographic focus for service delivery.

Value Assessment

Rating: fair

The contract value of $24.3 million for approximately one year of IT services appears within a reasonable range for large-scale government IT support. However, without specific details on the services rendered or comparable contracts for 'Other Computer Related Services' of similar scope and duration, a precise value-for-money assessment is challenging. The 'COST NO FEE' contract type suggests the government is reimbursing the contractor for allowable costs, which can sometimes lead to less cost control compared to fixed-price contracts. Benchmarking against similar IT service contracts awarded by the Department of the Army or other agencies would provide better context.

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 number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best value available in the market for these IT services.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider selection of qualified vendors, which can drive down costs and improve service quality.

Public Impact

The Department of the Army benefits from essential IT services to support its operations. The contract likely supports various computer-related functions, potentially including network management, software support, or hardware maintenance. Services are geographically focused within Arizona. The contract may indirectly impact the local IT workforce in Arizona through employment opportunities with the contractor or subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details makes it difficult to assess the true value and necessity of the expenditure.
The 'COST NO FEE' contract type can present risks related to cost overruns if not managed diligently.
Limited information on the number of bidders in the full and open competition makes it hard to gauge the intensity of price discovery.
The broad 'Other Computer Related Services' category could encompass a wide range of activities, making performance monitoring complex.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract is with Peraton Enterprise Solutions LLC, a known entity in the government contracting space.
The contract is for a defined period, allowing for reassessment of needs upon expiration.
The specific geographic designation (Arizona) suggests targeted and potentially more efficient service delivery.

Sector Analysis

The IT services sector is a critical component of government operations, encompassing a vast array of support functions from cybersecurity to infrastructure management. The market for government IT services is highly competitive, with numerous large and small businesses vying for contracts. This contract, falling under 'Other Computer Related Services,' represents a segment of the broader IT services market. Comparable spending benchmarks for similar IT support contracts within the Department of Defense or other federal agencies would provide a clearer picture of the market rates and typical contract values for such services.

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 small business set-aside. However, the prime contractor, Peraton Enterprise Solutions LLC, may still engage small businesses as subcontractors to fulfill parts of the contract requirements, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means that larger, more established companies were likely the primary focus of the competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer (ACO) within the Department of the Army. Performance monitoring, invoicing, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

IT Professional Services
Information Technology Support Services
Computer Systems Design Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Cost Reimbursement Contract Type Risk
Broad Service Category Definition
Limited Publicly Available Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to PERATON ENTERPRISE SOLUTIONS LLC. CIO-G6 LABOR

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 $24.4 million.

What is the period of performance?

Start: 2024-05-01. End: 2025-04-30.

What is the specific nature of the 'Other Computer Related Services' being provided under this contract?

The provided data classifies the contract under NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide range of IT support activities not specifically defined under other computer-related NAICS codes. Examples could include IT support and help desk services, network administration, software installation and maintenance, data recovery services, and IT consulting. Without further details from the contract's statement of work (SOW), it is difficult to pinpoint the exact services. However, given the awarding agency (Department of the Army) and the contract value, it likely involves significant IT infrastructure or operational support critical to military functions within Arizona.

How does the $24.3 million award compare to similar IT services contracts awarded by the Department of Defense?

Comparing the $24.3 million award for approximately one year of IT services requires access to a broader dataset of similar contracts. However, for large federal agencies like the Department of Defense, IT service contracts can range from a few million to hundreds of millions of dollars annually, depending on the scope, duration, and complexity. A contract of $24.3 million for a single year is a substantial award, indicating a significant need for IT support. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes (e.g., 541512, 541513, 541519), contract types (e.g., Cost Plus, Fixed Price), and durations awarded to similar entities within the DoD. The fact that this is a delivery order suggests it might be a task within a larger IDIQ vehicle, making direct comparison to standalone contracts less straightforward.

What are the potential risks associated with a 'COST NO FEE' contract type for IT services?

A 'COST NO FEE' (Cost Reimbursement) contract type, while allowing flexibility, carries inherent risks for the government. The primary risk is that the contractor is reimbursed for all allowable costs incurred, plus a fixed fee (in this case, zero fee). This can lead to less incentive for the contractor to control costs aggressively, potentially resulting in higher overall expenditures than anticipated if not managed meticulously. The government bears the financial risk of cost overruns. Effective oversight, detailed cost tracking, and robust auditing are crucial to mitigate these risks and ensure that the costs incurred are reasonable, allocable, and necessary for the contract's performance. Without a fee, the contractor's primary motivation is cost recovery and performance, rather than profit maximization through cost efficiency.

What is Peraton Enterprise Solutions LLC's track record with federal IT services contracts?

Peraton Enterprise Solutions LLC is a known entity in the federal IT services landscape. While specific details on their track record for this exact type of 'Other Computer Related Services' are not provided in the summary data, Peraton has a history of securing and performing on large government contracts, particularly within the defense and intelligence sectors. They are often involved in complex IT modernization, cybersecurity, and mission-critical systems support. A deeper dive into their contract history, past performance evaluations, and any reported issues or successes would be necessary to fully assess their track record for this specific award. Their presence in the market suggests they have the capacity and experience to handle significant government IT requirements.

How does the geographic focus on Arizona impact the contract's execution and oversight?

The designation of Arizona as the service location (ST: AZ, SN: ARIZONA) implies that the IT services will be delivered to facilities or personnel within that state. This geographic focus can streamline execution by concentrating resources and potentially reducing travel costs. Oversight might involve on-site inspections or regular communication with personnel located in Arizona. It also suggests that the need for these IT services is specific to Army operations or infrastructure within that region. The contractor, Peraton Enterprise Solutions LLC, will need to establish a presence or utilize existing resources in Arizona to fulfill the contract requirements effectively. This localization can also facilitate easier communication and coordination between the government's technical representatives and the contractor's on-site team.

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 - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

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: $29,955,698

Exercised Options: $29,955,698

Current Obligation: $24,354,112

Subaward Activity

Number of Subawards: 39

Total Subaward Amount: $12,882,298

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA082

IDV Type: IDC

Timeline