DoD's $31.6M Army TAMIS Support Services contract awarded to Peraton Enterprise Solutions LLC shows fair value

Contract Overview

Contract Amount: $31,556,533 ($31.6M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2014-06-19

End Date: 2019-07-06

Contract Duration: 1,843 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF TAMIS SUPPORT SERVICES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF TAMIS SUPPORT SERVICES Key points: 1. Contract value of $31.6M over 5 years suggests a moderate annual spend. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract type (Time and Materials) can pose cost control risks if not managed closely. 4. Performance period of approximately 5 years allows for sustained support. 5. The contractor, Peraton Enterprise Solutions LLC, has a track record with government contracts. 6. The services provided fall under Computer Systems Design, a common IT support category.

Value Assessment

Rating: fair

The total award of $31.6 million over nearly five years averages to approximately $6.3 million annually. This appears to be within a reasonable range for comprehensive IT support services for a major defense system like TAMIS. Benchmarking against similar large-scale IT support contracts within the Department of Defense suggests that the overall value is fair, though the Time and Materials pricing structure warrants careful monitoring to ensure cost efficiency and prevent scope creep.

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 two bidders suggests a degree of competition, though a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government. The fact that it was competed broadly is a positive indicator for achieving a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple vendors.

Public Impact

The Department of the Army benefits from sustained IT support for its Tactical Automated Mission Management Information System (TAMIS). This contract ensures the continued operation, maintenance, and potential enhancement of critical defense systems. The services delivered support military readiness and operational effectiveness. The primary beneficiaries are the military personnel and units relying on the TAMIS system for mission planning and execution. Geographic impact is likely concentrated within Army installations where TAMIS is deployed and supported.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for labor hours and material costs.
The duration of the contract (nearly 5 years) requires ongoing vigilance to ensure performance remains aligned with evolving needs and budget constraints.
Reliance on a single contractor for critical IT support could create vendor lock-in risks.
The specific details of the 'Computer Systems Design Services' are broad and could encompass a wide range of activities, necessitating clear performance metrics.

Positive Signals

Awarded through full and open competition, indicating a fair process and potential for competitive pricing.
The contractor, Peraton Enterprise Solutions LLC, has experience in government contracting, suggesting familiarity with compliance and performance expectations.
The contract duration allows for stability and continuity of essential IT support services.
The services are critical for the operational effectiveness of the Army's TAMIS.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and support services. The IT services market for the federal government is substantial, with significant spending allocated to maintaining and upgrading complex systems. Contracts like this are crucial for ensuring the operational readiness of defense agencies. Comparable spending benchmarks for similar IT support contracts within the DoD often range from millions to tens of millions annually, depending on the scope and criticality of the system being supported.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The award to Peraton Enterprise Solutions LLC, a large business, suggests that subcontracting opportunities for small businesses may exist, but this would depend on Peraton's subcontracting plan. Without specific details on subcontracting goals or performance, the direct impact on the small business ecosystem is unclear, though large prime contracts often create downstream opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Army IT Support Services
Defense Information Technology Contracting
Computer Systems Design Services
Tactical Automated Mission Management Information System (TAMIS)
Peraton Enterprise Solutions LLC Contracts

Risk Flags

Time and Materials contract type carries inherent cost overrun risk.
Lack of specific performance metrics in provided data hinders detailed evaluation.
Limited competition (2 bidders) may impact price discovery.
Potential for vendor lock-in with long-term IT support contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF TAMIS 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 $31.6 million.

What is the period of performance?

Start: 2014-06-19. End: 2019-07-06.

What is the historical spending trend for TAMIS support services with Peraton Enterprise Solutions LLC?

The provided data reflects a single award of $31,556,532.56 for TAMIS Support Services to Peraton Enterprise Solutions LLC, spanning from June 19, 2014, to July 6, 2019. This represents a total contract value over approximately five years. Without access to prior or subsequent contracts for the same services, it is difficult to establish a historical spending trend. However, this award indicates a significant investment in supporting the TAMIS system during that period. Further analysis would require examining contract awards for TAMIS support services across different timeframes and potentially different contractors to understand the evolution of spending.

How does the awarded amount compare to the estimated value or ceiling of the contract?

The provided data lists the 'Award Amount' (a) as $31,556,532.56. There is no explicit field for 'Estimated Value' or 'Contract Ceiling' in the given data snippet. However, the 'Delivery Order' (aw) designation suggests this might be one order under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a task order under a broader contract vehicle. If this is the total value of a specific delivery order, it represents the committed funds. If it's a ceiling for a period, then actual spending could be lower. Without more context on the contract structure (e.g., IDIQ base contract details), a direct comparison to a ceiling is not possible from this data alone.

What specific IT systems or components does TAMIS encompass, and what is the criticality of these systems to Army operations?

The Tactical Automated Mission Management Information System (TAMIS) is a critical component of the U.S. Army's operational infrastructure, designed to manage and support tactical aviation missions. It integrates various functions related to mission planning, execution, and post-mission analysis, providing commanders with essential situational awareness and decision-making support. The criticality of TAMIS lies in its role in enabling efficient and effective deployment and management of Army aviation assets, directly impacting combat readiness and operational success. Failures or performance degradation in TAMIS could significantly hinder aviation mission planning, coordination, and execution, potentially leading to mission delays or failures.

What are the key performance indicators (KPIs) used to evaluate Peraton Enterprise Solutions LLC's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate Peraton Enterprise Solutions LLC's performance. Typically, for IT support services contracts, KPIs would focus on areas such as system uptime and availability, response times for issue resolution, successful implementation of system updates or patches, user satisfaction, and adherence to security protocols. The contract's performance work statement (PWS) would detail these metrics and the government's methods for assessing contractor performance. Without the PWS or performance reports, a detailed assessment of KPIs is not possible.

What is the potential impact of the Time and Materials (T&M) contract type on cost control and budget predictability?

The Time and Materials (T&M) contract type, used for this award, allows the government to pay the contractor for direct labor hours at specified fixed hourly rates and for the actual cost of materials. While T&M can be flexible and useful when the scope of work is not clearly defined or is expected to change, it presents significant cost control challenges. Unlike fixed-price contracts, the total cost is not predetermined, making budget predictability difficult. The government bears the risk of cost overruns if labor hours or material costs escalate beyond initial expectations. Effective oversight, including detailed monitoring of labor hours, material receipts, and requiring justification for all expenditures, is crucial to mitigate these risks and ensure value for money.

Are there any known issues or past performance concerns related to Peraton Enterprise Solutions LLC regarding similar government IT contracts?

The provided data snippet does not contain information on past performance issues or concerns related to Peraton Enterprise Solutions LLC. To assess this, one would typically need to consult sources like the Contractor Performance Assessment Reporting System (CPARS) or other government performance databases. CPARS provides detailed assessments of contractor performance on completed federal contracts. Without access to these specific performance records for Peraton on similar IT contracts, it is not possible to definitively state whether there are known issues. However, the award itself suggests that, at the time of the award, the contractor met the government's responsibility criteria.

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: 2

Pricing Type: TIME AND MATERIALS (Y)

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

Financial Breakdown

Contract Ceiling: $31,904,792

Exercised Options: $31,904,792

Current Obligation: $31,556,533

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0027

IDV Type: GWAC

Timeline