DoD's $26.5M IT contract for computing infrastructure awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $26,478,426 ($26.5M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2006-09-25

End Date: 2008-12-24

Contract Duration: 821 days

Daily Burn Rate: $32.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: IT

Official Description: INFORMATION SPECIALIST

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: INFORMATION SPECIALIST Key points: 1. Contract value represents a significant investment in essential IT services for the Department of the Army. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 821 days indicates a medium-term need for these services. 4. The North American Industry Classification System (NAICS) code 518210 points to a focus on data processing and hosting. 5. The contract was awarded to a single vendor, Peraton Enterprise Solutions LLC. 6. The contract was awarded in 2006, with performance concluding in 2008.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its age and the specific nature of IT services in 2006. However, the total award amount of $26.5 million over approximately two years suggests a substantial investment. Without comparable contract data from the same period for similar computing infrastructure services, a precise value-for-money assessment is difficult. The absence of detailed performance metrics or cost breakdowns further limits a thorough evaluation of pricing efficiency.

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 bids. The fact that it was a competitive process is positive for price discovery. However, the data does not specify the number of bids received, which would provide a clearer picture of the level of competition and its potential impact on pricing.

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

Public Impact

The Department of the Army benefits from enhanced computing infrastructure and data processing capabilities. This contract supports the delivery of critical IT services necessary for military operations and administrative functions. The geographic impact is primarily within the Department of the Army's operational footprint. The contract likely supported IT professionals and data center personnel, impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the services provided.
Limited information on the number of bidders hinders a full understanding of the competitive landscape.
The age of the contract (awarded in 2006) means current market rates and technologies may differ significantly.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract addressed a clear need for computing infrastructure, a fundamental IT requirement.
The vendor, Peraton Enterprise Solutions LLC, was selected to provide these essential services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computing infrastructure, data processing, and web hosting. The market for these services is highly dynamic, with significant investments made by both government and private entities. In the mid-2000s, the demand for robust data centers and scalable computing power was rapidly increasing. This contract represents a typical government procurement for essential IT backbone services during that period.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is unlikely. However, the prime contractor, Peraton Enterprise Solutions LLC, may have utilized small businesses for subcontracting, though this information is not detailed in the provided data.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers and program managers. Accountability would be ensured through contract terms, performance reviews, and payment schedules. Transparency is generally facilitated through contract award databases, though detailed operational oversight information is often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services Contracts
Army Computing Infrastructure Procurements
Data Processing and Hosting Services
Information Technology Infrastructure Modernization

Risk Flags

Contract awarded in 2006, potentially outdated technology and market comparisons.
Limited performance data available for assessment.
Number of bidders not specified, impacting competition analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to PERATON ENTERPRISE SOLUTIONS LLC. INFORMATION SPECIALIST

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 $26.5 million.

What is the period of performance?

Start: 2006-09-25. End: 2008-12-24.

What was the specific nature of the computing infrastructure provided under this contract?

The contract, NAICS code 518210, focused on Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. This typically includes services such as server hosting, data storage, network infrastructure management, and potentially cloud-based solutions available at the time. The specific details would have been outlined in the contract's Statement of Work (SOW), detailing the exact hardware, software, and service level agreements required by the Department of the Army to support its operations.

How does the $26.5 million award compare to similar IT infrastructure contracts from the same period?

Comparing this $26.5 million contract from 2006-2008 to similar IT infrastructure contracts of that era requires access to historical government procurement databases and market analysis reports. However, for a two-year period, this amount suggests a significant investment in core IT services. Contracts of this size were common for agencies needing to maintain or upgrade their data centers and computing capabilities. Without specific comparable contract values for similar scope and duration, a precise benchmark is difficult, but it indicates a substantial commitment to IT infrastructure.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for computing infrastructure and hosting services, SLAs would focus on uptime percentages (e.g., 99.9% availability), response times for technical support, data backup and recovery capabilities, and security compliance standards. The absence of this information in the summary data limits the ability to assess the contractor's performance and the overall effectiveness of the service delivery.

Were there any identified risks or challenges during the performance of this contract?

The provided summary data does not explicitly detail any risks or challenges encountered during the performance of this contract. Common risks in IT infrastructure contracts include technology obsolescence, security vulnerabilities, integration issues with existing systems, vendor performance issues, and budget overruns. Given the contract's age, it's possible that unforeseen technological shifts or operational challenges may have arisen, but specific details are not available in this dataset.

What was the historical spending trend for similar IT services by the Department of the Army prior to this contract?

The provided data focuses solely on this specific contract and does not offer historical spending trends for the Department of the Army's IT services prior to its award in 2006. To analyze historical spending, one would need to examine procurement data for preceding years, looking at contracts with similar NAICS codes (like 518210) or service descriptions related to computing infrastructure, data processing, and hosting. This would reveal patterns in investment, vendor choices, and overall budget allocation for these critical IT functions.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

Contractor Details

Parent Company: HP, Inc. (UEI: 009122532)

Address: 13600 EDS DR, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $33,385,434

Exercised Options: $26,478,427

Current Obligation: $26,478,426

Parent Contract

Parent Award PIID: GS35F0323J

IDV Type: FSS

Timeline