DOJ's $92.6M IT Support Contract for Delta Program Awarded to Peraton Government Communications Inc

Contract Overview

Contract Amount: $92,609,796 ($92.6M)

Contractor: Peraton Government Communications Inc.

Awarding Agency: Department of Justice

Start Date: 2018-08-17

End Date: 2023-08-15

Contract Duration: 1,824 days

Daily Burn Rate: $50.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT SUPPORT FOR THE DELTA PROGRAM TO INCLUDE DEVELOPERS, HELP DESK TECHNICIANS, INFRASTRUCTURE SUPPORT, DATABASE ADMINISTRATION, AND AGILE OPERATIONS. THIS IS PART OF A REQUIREMENT THAT WILL BE COMPETED ON IT TRIPLE S.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $92.6 million to PERATON GOVERNMENT COMMUNICATIONS INC. for work described as: IT SUPPORT FOR THE DELTA PROGRAM TO INCLUDE DEVELOPERS, HELP DESK TECHNICIANS, INFRASTRUCTURE SUPPORT, DATABASE ADMINISTRATION, AND AGILE OPERATIONS. THIS IS PART OF A REQUIREMENT THAT WILL BE COMPETED ON IT TRIPLE S. Key points: 1. Contract provides comprehensive IT support including development, help desk, infrastructure, and database administration. 2. This is a delivery order under a larger IT Triple S requirement, indicating a strategic sourcing approach. 3. The contract utilizes a Time and Materials pricing structure, which can pose risks if not closely managed. 4. Awarded to Peraton Government Communications Inc., a significant player in government IT services. 5. The contract duration of 1824 days (approx. 5 years) suggests a long-term need for these services. 6. The contract was awarded via full and open competition, theoretically maximizing price discovery.

Value Assessment

Rating: fair

The total award amount of $92.6 million over approximately five years for comprehensive IT support services appears within a reasonable range for large-scale federal IT contracts. However, the Time and Materials (T&M) pricing structure warrants careful monitoring. Without fixed labor rates or clear task order ceilings, T&M can lead to cost overruns if not managed diligently. Benchmarking against similar IT support contracts for large federal programs would provide a more precise value assessment, but the scale and scope suggest a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. This approach is generally favored for maximizing competition and achieving the best value for the government. The presence of multiple bidders (indicated by 'no': 3) suggests a competitive environment, which should theoretically drive down prices and encourage innovation. The specific details of the bidding process and the number of proposals received would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages a wider pool of vendors to participate, potentially leading to better service delivery.

Public Impact

Federal Bureau of Investigation (FBI) personnel benefit from enhanced IT infrastructure and support, enabling more effective law enforcement operations. The Delta Program receives critical IT services, including development, help desk, and database administration, crucial for its mission. The contract supports IT professionals in Virginia, contributing to the local and regional tech workforce. Agile operations support ensures modern and efficient IT service delivery for the FBI.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not managed with strict oversight and defined task order ceilings.
The long duration of the contract (approx. 5 years) requires ongoing performance monitoring to ensure continued value and alignment with evolving IT needs.
Reliance on a single delivery order under a larger IDIQ (IT Triple S) means the overall success is tied to the performance of the parent contract.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process and potential for competitive pricing.
The contract covers a broad range of essential IT support functions, indicating a comprehensive approach to meeting the FBI's needs.
The contract is part of a larger strategic sourcing initiative (IT Triple S), which can lead to efficiencies and standardized IT services across agencies.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT support services. The federal IT services market is substantial, with agencies consistently investing in infrastructure, software development, and operational support to maintain and modernize their systems. Contracts like this are typical for large federal agencies requiring specialized IT expertise for complex programs. Benchmarks for similar IT support contracts often range from tens to hundreds of millions of dollars, depending on the scope, duration, and specific services provided.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as 'sb' is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the prime contractor, Peraton Government Communications Inc., is likely a large business, and opportunities for small businesses would primarily arise through subcontracting if mandated or pursued by the prime. Further investigation into the subcontracting plan would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting agency, the Department of Justice, specifically the Federal Bureau of Investigation. As a delivery order under the IT Triple S IDIQ, oversight mechanisms are likely integrated into the broader contract management framework. Transparency is facilitated by the contract being awarded through full and open competition. Accountability measures would typically involve performance metrics, service level agreements (SLAs), and regular reporting requirements stipulated in the contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Triple S (Information Technology Professional Services and Software)
FBI IT Support Services
Department of Justice IT Modernization Efforts
Federal Civilian IT Procurement
Large-Scale IT Service Delivery Contracts

Risk Flags

Time and Materials Pricing Risk
Long-Term Contract Duration Requires Ongoing Oversight
Potential for Cost Overruns with T&M Model

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $92.6 million to PERATON GOVERNMENT COMMUNICATIONS INC.. IT SUPPORT FOR THE DELTA PROGRAM TO INCLUDE DEVELOPERS, HELP DESK TECHNICIANS, INFRASTRUCTURE SUPPORT, DATABASE ADMINISTRATION, AND AGILE OPERATIONS. THIS IS PART OF A REQUIREMENT THAT WILL BE COMPETED ON IT TRIPLE S.

Who is the contractor on this award?

The obligated recipient is PERATON GOVERNMENT COMMUNICATIONS INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $92.6 million.

What is the period of performance?

Start: 2018-08-17. End: 2023-08-15.

What is the track record of Peraton Government Communications Inc. in delivering similar IT support services to federal agencies?

Peraton Government Communications Inc. has a significant history of providing IT and communications services to various U.S. federal agencies. They have held numerous large-scale contracts, including those involving IT infrastructure, cybersecurity, and mission-critical support. Their experience often spans complex environments requiring high levels of security and reliability. While specific performance metrics for this particular Delta Program contract are not detailed here, Peraton's general profile suggests they are a capable provider for such services. However, a thorough review would involve examining past performance evaluations, any contract disputes, and client feedback from previous, comparable engagements to fully assess their track record.

How does the pricing structure (Time and Materials) compare to other IT support contracts of similar scope and duration?

Time and Materials (T&M) contracts, like the one awarded to Peraton for the Delta Program, are common for IT support services where the scope of work can be variable or difficult to define precisely upfront. Compared to Fixed-Price contracts, T&M offers flexibility but carries a higher risk of cost escalation if not managed rigorously. For contracts of this $92.6 million scale over five years, agencies often aim for Firm-Fixed-Price (FFP) task orders within a T&M IDIQ to gain more cost certainty. The benchmark for value here depends heavily on the established labor rates and the efficiency of the contractor's resource utilization. If labor hours are well-justified and rates are competitive with market averages for similar skill sets and experience levels, the T&M approach can still yield good value. However, without detailed rate information and task order specifics, it's challenging to definitively benchmark its value against other contract types.

What are the key performance indicators (KPIs) used to measure the success of this IT support contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for large IT support contracts like this would include metrics related to system uptime and availability, response times for help desk tickets, resolution rates for technical issues, project completion timelines for development tasks, and adherence to security protocols. For agile operations, metrics might focus on sprint velocity, bug resolution rates, and deployment frequency. The contract likely includes Service Level Agreements (SLAs) that define acceptable performance thresholds for these areas. Regular performance reviews between the FBI and Peraton would assess adherence to these KPIs, with potential consequences for underperformance.

What is the historical spending pattern for IT support services within the FBI or DOJ for similar programs?

Historical spending on IT support services within the FBI and the broader Department of Justice (DOJ) has been substantial and consistently growing, reflecting the increasing reliance on technology for law enforcement and investigative functions. Agencies like the FBI manage vast amounts of data and complex IT systems, necessitating significant investments in maintenance, upgrades, and new development. While the specific historical spending for the 'Delta Program' is not provided, the FBI's overall IT budget typically runs into the hundreds of millions or even billions of dollars annually, encompassing a wide array of services including infrastructure, software development, cybersecurity, and end-user support. This $92.6 million contract represents a significant, but not necessarily anomalous, portion of that spending for a critical program over a five-year period.

What are the potential risks associated with the Time and Materials (T&M) pricing model for this contract?

The primary risk of a Time and Materials (T&M) pricing model is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts do not set a ceiling on the total cost, as payment is based on the actual labor hours expended and the cost of materials used. This can lead to the government paying more than anticipated if the project takes longer than expected, requires more resources, or if contractor efficiency is low. For the FBI, this means diligent oversight is crucial. This includes closely monitoring labor hours, verifying the necessity of all work performed, ensuring that the contractor's staff are efficient, and potentially negotiating labor rate caps or establishing ceiling prices for task orders to mitigate uncontrolled cost growth.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer 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: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 12975 WORLDGATE DR STE 7103, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $99,487,267

Exercised Options: $92,609,796

Current Obligation: $92,609,796

Actual Outlays: $86,878,907

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $16,798,263

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5497H

IDV Type: FSS

Timeline