DoD's $254M PEO EIS COSC Services Contract Awarded to Peraton Enterprise Solutions LLC
Contract Overview
Contract Amount: $253,927,215 ($253.9M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2012-10-01
End Date: 2013-09-30
Contract Duration: 364 days
Daily Burn Rate: $697.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PEO EIS COSC SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $253.9 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: PEO EIS COSC SERVICES Key points: 1. Significant contract value of $253.9M for IT services. 2. Sole-source award to Peraton Enterprise Solutions LLC raises competition concerns. 3. Contract duration of 364 days with a firm fixed price. 4. NAICS code 541519 indicates 'Other Computer Related Services'.
Value Assessment
Rating: questionable
The contract's value of $253.9M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar IT services contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a contract of this magnitude may result in suboptimal pricing and reduced value for taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential for reduced innovation and service quality without market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Firm fixed price contract type
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. The Department of Defense is a major spender in this area, with significant investments in IT infrastructure and services.
Small Business Impact
The data indicates that small business participation was not a factor in this award, as the 'ss' and 'sb' fields are false. This sole-source contract did not appear to involve small business set-asides.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the justification was sound and that taxpayer funds were used efficiently. Accountability for the procurement process is crucial.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in procurement.
- No small business participation.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $253.9 million to PERATON ENTERPRISE SOLUTIONS LLC. PEO EIS COSC 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 Navy).
What is the total obligated amount?
The obligated amount is $253.9 million.
What is the period of performance?
Start: 2012-10-01. End: 2013-09-30.
What was the specific justification for awarding this significant IT services contract on a sole-source basis?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific government requirements that only one vendor can meet. A thorough review of the contract file and associated documentation would be necessary to ascertain the precise rationale.
How does the awarded price compare to industry benchmarks for similar 'Other Computer Related Services' procured competitively?
Without competitive bids, a direct comparison to industry benchmarks is challenging. However, the benchmark of $697,602 for a portion of the contract (likely a delivery order or task order) suggests a significant variance from the total contract value. A detailed analysis of the scope of work and service levels would be needed to assess the overall value proposition.
What mechanisms are in place to ensure the effectiveness and quality of services provided under this sole-source contract?
Effectiveness and quality are typically ensured through robust contract management, performance metrics, and regular oversight by the contracting officer and technical representatives. For sole-source contracts, it is even more critical to have clear performance standards and mechanisms for addressing any deficiencies to ensure the government receives the intended value and service quality.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: HP, Inc.
Address: 13600 EDS DR, HERNDON, VA, 20171
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $253,927,215
Exercised Options: $253,927,215
Current Obligation: $253,927,215
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003910D0010
IDV Type: IDC
Timeline
Start Date: 2012-10-01
Current End Date: 2013-09-30
Potential End Date: 2014-04-30 00:00:00
Last Modified: 2024-03-29
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