DoD's $37.8M Computer Systems Design Services Contract Awarded to Peraton Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $37,880,856 ($37.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2015-07-02
End Date: 2020-08-31
Contract Duration: 1,887 days
Daily Burn Rate: $20.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CL::IGF, USFK/J6 COMBINED JOINT SERVICES
Plain-Language Summary
Department of Defense obligated $37.9 million to PERATON INC. for work described as: IGF::CL::IGF, USFK/J6 COMBINED JOINT SERVICES Key points: 1. The contract, valued at $37.8 million, was awarded for Computer Systems Design Services. 2. Peraton Inc. secured the award through a full and open competition process. 3. The contract duration spans over 1800 days, indicating a long-term service requirement. 4. The award falls under the Department of the Army's purview within the Department of Defense. 5. The pricing structure is Firm Fixed Price, providing cost certainty for the government.
Value Assessment
Rating: good
The contract's value of $37.8 million for computer systems design services appears reasonable given the extensive 5-year duration. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust process for soliciting bids and ensuring fair market pricing. This method typically leads to competitive pricing as multiple vendors have the opportunity to propose solutions.
Taxpayer Impact: The competitive bidding process is expected to have yielded a fair price, maximizing the value of taxpayer funds for essential IT services.
Public Impact
Ensures continued operation and modernization of critical joint services IT infrastructure. Supports the Department of Defense's technological capabilities and readiness. Provides essential computer systems design and integration services for military operations. The long-term nature of the contract suggests a stable IT support environment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if scope creep occurs despite fixed price.
- Dependence on a single contractor for critical IT services.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type provides cost predictability.
- Long contract duration indicates sustained need and potential for efficiency gains.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across the federal government, supporting everything from basic infrastructure to advanced cyber capabilities. Benchmarks vary widely based on complexity and duration.
Small Business Impact
The data indicates this was a full and open competition, which generally allows for participation by small businesses if they can meet the requirements. However, the large contract value may favor larger, established prime contractors. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight from within the Department of Defense. The duration and value suggest regular reporting and performance reviews would be standard practice to ensure accountability and effective service delivery.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is substantial, requiring diligent oversight.
- Potential for scope creep in complex IT design services.
- Dependence on a single contractor for critical functions.
- Lack of detailed performance metrics in the provided data.
- Cybersecurity risks associated with IT service contracts.
Tags
computer-systems-design-services, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.9 million to PERATON INC.. IGF::CL::IGF, USFK/J6 COMBINED JOINT SERVICES
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $37.9 million.
What is the period of performance?
Start: 2015-07-02. End: 2020-08-31.
What specific computer systems design services were included in this contract, and how do they align with current DoD IT modernization goals?
The provided data specifies 'Computer Systems Design Services' (NAICS 541512) but lacks granular detail on the specific services rendered. These likely encompassed the design, integration, and potentially maintenance of complex IT systems supporting joint services. Alignment with modernization goals would depend on whether the services focused on legacy system upgrades or the implementation of newer technologies like cloud computing or advanced networking.
How did the government ensure the $37.8 million price was competitive and represented good value for the taxpayer over the 5-year period?
The contract was awarded under 'full and open competition,' suggesting multiple bids were solicited and evaluated. The 'firm fixed price' structure also provides cost certainty. To confirm value, a comparison of Peraton's price against independent cost estimates, historical pricing for similar services, and the pricing of other bidders would be necessary. The government likely used a combination of these methods during the procurement process.
What are the potential risks associated with a long-term (1887 days) sole-source or limited competition contract for critical IT services?
While this contract was full and open, long-term contracts for critical IT services inherently carry risks. These include potential vendor lock-in, reduced incentive for innovation if not managed contractually, and the risk of the contractor's capabilities becoming misaligned with evolving technological needs. Contractor performance degradation over time is also a concern. Robust contract management, performance monitoring, and clear exit strategies are crucial mitigation measures.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 12975 WORLDGATE DR STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,880,856
Exercised Options: $37,880,856
Current Obligation: $37,880,856
Subaward Activity
Number of Subawards: 107
Total Subaward Amount: $120,496,903
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSN316201200036W
IDV Type: GWAC
Timeline
Start Date: 2015-07-02
Current End Date: 2020-08-31
Potential End Date: 2020-08-31 00:00:00
Last Modified: 2022-12-19
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