DoD's $17.9M IT support contract to Peraton Inc. awarded via full and open competition
Contract Overview
Contract Amount: $17,893,873 ($17.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2019-06-02
End Date: 2025-06-01
Contract Duration: 2,191 days
Daily Burn Rate: $8.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF 8A C4I DEPLOYABLE IT SUPPORT SERVICES
Plain-Language Summary
Department of Defense obligated $17.9 million to PERATON INC. for work described as: IGF::OT::IGF 8A C4I DEPLOYABLE IT SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract value of $17.9M over approximately 6 years indicates a moderate annual spend. 3. Focus on 'Computer Systems Design Services' highlights a critical IT infrastructure support function. 4. The firm fixed-price contract type shifts performance risk to the contractor. 5. Delivery order under a larger contract structure implies a phased or modular approach to IT support. 6. Contractor Peraton Inc. has a significant presence in the federal IT services market.
Value Assessment
Rating: good
The contract's value of approximately $17.9 million over six years suggests a reasonable annual spend for deployable IT support services. Benchmarking against similar large-scale IT support contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract generally indicates that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively.
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 offers. The presence of 3 bidders (as indicated by 'no': 3) suggests a healthy level of competition for this requirement. A competitive bidding process typically leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces. Multiple bidders increase the likelihood of securing the best value and innovative solutions.
Public Impact
Provides essential IT support services for deployable systems, likely impacting military readiness and operational effectiveness. Benefits Department of the Army personnel by ensuring the functionality of critical computer systems. Geographic impact is likely global, supporting deployed forces wherever they operate. Supports a workforce of IT professionals, both within the contractor organization and potentially government personnel who rely on the services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial requirements are not clearly defined.
- Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
- Ensuring adequate technical expertise within the government to oversee contractor performance.
Positive Signals
- Firm fixed-price contract aligns incentives for cost control with the contractor.
- Full and open competition suggests a robust market and potential for competitive pricing.
- Longer contract duration allows for stability and continuity of essential IT services.
Sector Analysis
The federal IT services market is a vast and competitive sector, with the Department of Defense being one of the largest clients. This contract falls under computer systems design services, a segment focused on integrating computer hardware and software into functional systems. Spending in this area is critical for maintaining modern military capabilities, from tactical communication to strategic command and control. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded by the DoD or other federal agencies for similar scope and duration.
Small Business Impact
This contract was not set aside for small businesses and the data indicates no specific subcontracting requirements were mandated ('sb': false). Therefore, the direct impact on the small business ecosystem is likely minimal, though the prime contractor, Peraton Inc., may engage small businesses as subcontractors if it aligns with their project needs and overall subcontracting strategy.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army, responsible for monitoring performance and ensuring compliance with contract terms. The firm fixed-price nature shifts some risk to the contractor, but government oversight is still crucial for technical acceptance and quality assurance. Transparency is facilitated through contract databases like FPDS, and any significant issues could be subject to review by the DoD Inspector General.
Related Government Programs
- DoD IT Modernization Programs
- Army Network Modernization
- Deployable Command and Control Systems
- Federal Civilian IT Services Contracts
- Defense Information Systems Agency (DISA) Contracts
Risk Flags
- Potential for performance issues impacting critical military operations.
- Risk of cost overruns if contractor's initial estimates are inaccurate.
- Dependence on contractor's technical expertise for specialized IT support.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, delivery-order, peraton-inc, moderate-value, deployable-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.9 million to PERATON INC.. IGF::OT::IGF 8A C4I DEPLOYABLE IT SUPPORT 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 $17.9 million.
What is the period of performance?
Start: 2019-06-02. End: 2025-06-01.
What is Peraton Inc.'s track record with similar large-scale IT support contracts for the Department of Defense?
Peraton Inc. has a substantial history of performing IT and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) services for the Department of Defense and other federal agencies. They have been awarded numerous large prime contracts, including significant work in areas like space, cyber, intelligence, and defense mission solutions. Their experience often involves complex system integration, sustainment, and modernization efforts. Analyzing their past performance on contracts with similar scope, duration, and technical requirements, particularly those involving deployable systems, would provide insight into their capability to successfully execute this specific contract. Performance metrics and any past issues or commendations on previous DoD contracts would be key indicators.
How does the $17.9M contract value compare to other DoD contracts for deployable IT support services?
The $17.9 million contract value over approximately six years translates to an average annual spend of roughly $3 million. This figure is moderate within the context of large federal IT procurements, especially for the Department of Defense. Many DoD IT support contracts, particularly those involving enterprise-wide solutions or extensive hardware/software deployment, can range from tens to hundreds of millions of dollars annually. Contracts for specialized or niche deployable IT support, like this one, might fall within this moderate range. A direct comparison would require identifying contracts with very similar service descriptions, operational environments (e.g., tactical vs. strategic), and contract types. However, it suggests a focused scope rather than a broad, agency-wide IT infrastructure overhaul.
What are the primary risks associated with a firm fixed-price contract for deployable IT support?
While firm fixed-price (FFP) contracts are generally favored for shifting cost risk to the contractor, they carry specific risks. For deployable IT support, a primary risk is that the contractor may cut corners on quality or service to maintain profitability if unforeseen technical challenges arise or if their cost estimations were inaccurate. This could lead to performance degradation, impacting operational readiness. Another risk is the potential for scope creep, where the government's needs evolve beyond the initial contract scope. If not managed carefully through contract modifications, this can lead to disputes or the contractor demanding higher prices for additional work. Ensuring clear performance standards and robust government oversight is crucial to mitigate these risks.
What is the expected program effectiveness and impact on military operations?
The expected program effectiveness hinges on the reliable functioning and maintenance of the 'deployable IT support services.' These services are critical for enabling military personnel to communicate, access information, and operate command and control systems in various environments, potentially including austere or tactical settings. Effective execution means ensuring high system availability, rapid response to technical issues, and seamless integration of IT components. The impact on military operations is direct: reliable IT support enhances situational awareness, improves decision-making speed, and ensures the continuity of essential functions, thereby directly contributing to mission success and operational readiness. Conversely, failures in IT support could severely disrupt operations.
How has federal spending on computer systems design services evolved over the past five years?
Federal spending on computer systems design services has generally seen a consistent upward trend over the past five years, driven by the increasing digitization of government operations and the need for advanced IT infrastructure. Agencies across the board, including the Department of Defense, are investing heavily in modernizing legacy systems, enhancing cybersecurity, and adopting cloud-based solutions. This specific contract, valued at $17.9M over six years, represents a portion of this broader spending category. While overall federal IT spending is substantial, the allocation to specific service areas like 'computer systems design' fluctuates based on agency priorities, technological advancements, and specific program requirements. Data from sources like the Federal Procurement Data System (FPDS) would show aggregate spending trends in NAICS code 541512.
What are the implications of this contract being a 'delivery order' under a larger contract?
This contract being a 'delivery order' (aw: DELIVERY ORDER) indicates it is a task order issued under a previously awarded indefinite-delivery, indefinite-quantity (IDIQ) or similar type of contract vehicle. This structure allows the government to procure services incrementally as needed, providing flexibility. For this specific $17.9M award, it means the total value and duration are defined for this particular order, but it likely exists within a broader contract framework that may cover similar services across different locations or timeframes. The implications include potentially streamlined procurement processes for subsequent orders, but also require careful management of the parent contract's ceiling and scope to ensure it remains aligned with evolving requirements and budget constraints.
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
Solicitation ID: W91QVN19R0032
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $22,099,249
Exercised Options: $21,512,454
Current Obligation: $17,893,873
Subaward Activity
Number of Subawards: 67
Total Subaward Amount: $23,298,114
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2019-06-02
Current End Date: 2025-06-01
Potential End Date: 2025-06-01 00:00:00
Last Modified: 2025-05-08
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