VA Awards $6.5M Sole-Source Contract for Enterprise Performance Management Software Sustainment to Peraton Inc
Contract Overview
Contract Amount: $6,533,693 ($6.5M)
Contractor: Peraton Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-05-18
End Date: 2027-05-17
Contract Duration: 729 days
Daily Burn Rate: $9.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SUSTAINMENT FOR THE ENTERPRISE-WIDE PERFORMANCE MANAGEMENT SOFTWARE (EPMS) SOLUTION, 12 MONTH BASE, TWO 12 MONTH OPTION PERIODS, ONE OPTIONAL TASK FOR TRANSITION OUT. SOLE SOURCE FAR 8.405-6(A)(1)(I)(B)
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $6.5 million to PERATON INC. for work described as: SUSTAINMENT FOR THE ENTERPRISE-WIDE PERFORMANCE MANAGEMENT SOFTWARE (EPMS) SOLUTION, 12 MONTH BASE, TWO 12 MONTH OPTION PERIODS, ONE OPTIONAL TASK FOR TRANSITION OUT. SOLE SOURCE FAR 8.405-6(A)(1)(I)(B) Key points: 1. Contract awarded for sustainment of critical performance management software. 2. Sole-source justification cited under FAR 8.405-6(a)(1)(i)(b). 3. Potential for limited competition due to specific software requirements. 4. Spending aligns with IT services sector for government operations.
Value Assessment
Rating: fair
The contract value of $6.5M over two years appears reasonable for enterprise-wide software sustainment. Benchmarking against similar custom computer programming services (NAICS 541511) is difficult without specific feature comparisons, but the price is within a typical range for specialized IT support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded sole-source, citing FAR 8.405-6(a)(1)(i)(b), which suggests a lack of readily available alternatives or a need for specialized expertise tied to the existing EPMS solution. This limits price discovery and competitive pressure.
Taxpayer Impact: Taxpayer funds are committed without competitive bidding, potentially leading to a higher cost than if multiple vendors had competed.
Public Impact
Ensures continuity of operations for the VA's performance management systems. Impacts VA employees and leadership who rely on the EPMS for tracking and reporting. Potential for vendor lock-in if transition-out is not managed effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Potential for increased costs due to lack of competitive pressure.
- Dependency on a single vendor for critical software sustainment.
Positive Signals
- Ensures continued operation of essential performance management tools.
- Contract includes a transition-out task, indicating planning for future changes.
- Fixed-price contract provides cost certainty for the base period.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Government spending on IT sustainment is substantial, and this award reflects the ongoing need to maintain complex software solutions for agency operations.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. Given the sole-source nature and the specialized requirements of enterprise-wide software sustainment, it is unlikely that small businesses were significantly involved in this particular award.
Oversight & Accountability
The VA's contracting office is responsible for oversight. The sole-source justification requires rigorous documentation and approval to ensure it meets regulatory requirements and taxpayer interests. Post-award monitoring will be crucial.
Related Government Programs
- Custom Computer Programming Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for vendor lock-in.
- Lack of transparency in price discovery.
- Dependency on a single vendor's capabilities.
Tags
custom-computer-programming-services, department-of-veterans-affairs, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $6.5 million to PERATON INC.. SUSTAINMENT FOR THE ENTERPRISE-WIDE PERFORMANCE MANAGEMENT SOFTWARE (EPMS) SOLUTION, 12 MONTH BASE, TWO 12 MONTH OPTION PERIODS, ONE OPTIONAL TASK FOR TRANSITION OUT. SOLE SOURCE FAR 8.405-6(A)(1)(I)(B)
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $6.5 million.
What is the period of performance?
Start: 2025-05-18. End: 2027-05-17.
What specific technical or programmatic factors necessitated a sole-source award for EPMS sustainment, and were alternatives thoroughly explored?
The justification cites FAR 8.405-6(a)(1)(i)(b), often used when only one responsible source can provide the supplies or services. This typically arises from unique capabilities, proprietary software, or urgent needs where competition is impractical. A thorough review would involve documenting why other vendors could not meet the EPMS sustainment requirements, including any specialized knowledge or integration complexities.
How does the $6.5M cost compare to industry benchmarks for similar enterprise-wide performance management software sustainment contracts, considering the sole-source nature?
Benchmarking sole-source contracts is challenging as competitive pricing is absent. While $6.5M over two years for enterprise software sustainment is not inherently excessive, the lack of competition means it may not represent the best possible value. A comparative analysis against contracts for similar scope and complexity, adjusted for sole-source premiums, would be necessary for a more definitive assessment.
What measures are in place to ensure the effectiveness and efficiency of the EPMS solution under Peraton Inc.'s sustainment, and how will the transition-out task be managed?
Effectiveness is typically measured through service level agreements (SLAs) and performance metrics defined in the contract. The VA should actively monitor Peraton's adherence to these. The transition-out task requires a clear plan to ensure seamless knowledge transfer and minimal disruption to VA operations, potentially involving a new vendor or in-house management.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
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, 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: $9,991,050
Exercised Options: $6,533,693
Current Obligation: $6,533,693
Actual Outlays: $2,885,810
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F694GA
IDV Type: FSS
Timeline
Start Date: 2025-05-18
Current End Date: 2027-05-17
Potential End Date: 2028-05-17 00:00:00
Last Modified: 2026-03-20
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