GSA awards $346.8M contract for computer systems design services to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $346,769,435 ($346.8M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2022-04-26

End Date: 2026-04-25

Contract Duration: 1,460 days

Daily Burn Rate: $237.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: DC3 TABO AWARD

Place of Performance

Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $346.8 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: DC3 TABO AWARD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. Duration of 1460 days indicates a long-term need for these services. 4. The award is a Delivery Order, likely part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. 5. Services are for Computer Systems Design, a critical IT function for government agencies. 6. The contract is not set aside for small businesses, indicating a focus on larger prime contractors.

Value Assessment

Rating: fair

The award amount of $346.8 million over approximately four years for computer systems design services requires further benchmarking against similar GSA contracts. Without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. The Cost Plus Award Fee (CPAF) structure allows for performance-based incentives, which can be beneficial if managed effectively, but also carries the risk of cost overruns if not closely monitored. Comparing this to other large-scale IT service contracts within the federal government would provide better context for its pricing and overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 offers suggests a moderate level of competition for this requirement. While three bidders participated, the specific details of the bidding process, including the number of proposals received and the evaluation criteria, are not provided. A higher number of bidders typically leads to more robust price discovery and potentially better pricing for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality. The participation of multiple bidders suggests that taxpayer funds are being utilized in a manner that seeks the best value available in the market.

Public Impact

Federal agencies requiring computer systems design and integration services will benefit from this contract. The contract supports the modernization and maintenance of critical IT infrastructure. Services are likely to be delivered within Maryland, as indicated by the 'ST' and 'SN' fields. This contract will likely involve a workforce of IT professionals, including system designers, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) contract type can lead to higher costs if performance metrics are not rigorously defined and monitored, potentially exceeding initial budget expectations.
Without detailed service scope, it's difficult to ascertain if the $346.8M represents optimal value for the services rendered compared to market alternatives.
The limited number of bidders (3) might indicate potential barriers to entry for smaller or specialized firms, or a concentrated market for these specific services.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
The Cost Plus Award Fee structure incentivizes contractor performance and efficiency, potentially leading to higher quality outcomes.
The contract duration of 1460 days (approx. 4 years) suggests a stable, long-term partnership for essential IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. This is a significant and growing market within the federal government, encompassing a wide range of services from system design and integration to IT consulting and support. Federal spending in IT services is substantial, often driven by the need to modernize legacy systems, enhance cybersecurity, and implement new technologies. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded by GSA and other agencies for similar scope and duration.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. This suggests that the requirement was likely too large or complex for a small business set-aside, or that the government sought solutions from large, established prime contractors. Consequently, there may be opportunities for small businesses to participate as subcontractors to Peraton Enterprise Solutions LLC, depending on the subcontracting plan negotiated as part of this award. The absence of a small business set-aside means direct prime contract opportunities for small businesses were not prioritized for this specific award.

Oversight & Accountability

Oversight for this contract will primarily be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. As a Delivery Order under a larger IDIQ, oversight mechanisms would typically include contract performance reviews, financial audits, and adherence to the terms and conditions of the contract. The Cost Plus Award Fee structure necessitates close monitoring of performance metrics to ensure award fees are justified and that costs remain within reasonable bounds. Transparency would be facilitated through contract award databases and reporting requirements.

Related Government Programs

GSA IT Schedule 70 (now IT Professional Services)
Other GSA Multiple Award Schedules (MAS)
Department of Defense IT Services Contracts
NASA SEWP (Solutions for Enterprise-Wide Procurement)

Risk Flags

Potential for cost overruns due to CPAF structure if not managed tightly.
Risk of performance shortfalls if contractor fails to meet award fee criteria.
Dependency on a single contractor for critical IT services.
Limited visibility into specific service deliverables and performance metrics without SOW.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $346.8 million to PERATON ENTERPRISE SOLUTIONS LLC. DC3 TABO AWARD

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $346.8 million.

What is the period of performance?

Start: 2022-04-26. End: 2026-04-25.

What is the specific scope of 'Computer Systems Design Services' covered under this contract, and how does it align with current federal IT modernization goals?

The specific scope of 'Computer Systems Design Services' under this contract is not detailed in the provided data. However, generally, these services encompass the design, development, integration, and implementation of computer systems to meet specific organizational needs. This can include hardware and software architecture, network design, database development, and system integration. Given the federal government's ongoing focus on IT modernization, cybersecurity enhancements, cloud migration, and data analytics, it is highly probable that this contract supports one or more of these strategic objectives. The exact alignment would require reviewing the Statement of Work (SOW) associated with the Delivery Order.

How does the Cost Plus Award Fee (CPAF) structure for this contract compare to other common federal IT contract types like Firm-Fixed-Price (FFP) or Time and Materials (T&M)?

The Cost Plus Award Fee (CPAF) structure is distinct from Firm-Fixed-Price (FFP) and Time and Materials (T&M) contracts. Under CPAF, the contractor is reimbursed for allowable costs plus a fee that consists of a fixed base amount and an award amount, which is determined by the government based on the contractor's performance against pre-defined criteria. This contrasts with FFP, where the price is fixed regardless of the contractor's actual costs, placing cost risk on the contractor. T&M contracts reimburse the contractor for direct labor hours and materials at specified rates, offering flexibility but with less cost certainty for the government. CPAF aims to incentivize high performance and quality by linking a portion of the fee to measurable outcomes, potentially leading to better results than FFP or T&M for complex service requirements, but requires robust performance metrics and oversight.

What is Peraton Enterprise Solutions LLC's track record with the General Services Administration (GSA) and other federal agencies for similar IT service contracts?

Peraton Enterprise Solutions LLC has a significant presence in the federal contracting space, particularly in IT and defense-related services. While specific details of their track record with GSA for this exact type of contract are not in the provided data, Peraton (and its predecessor entities) has historically held numerous large federal contracts across various agencies, including the Department of Defense, intelligence community, and civilian agencies. Their portfolio often includes complex IT modernization, cybersecurity, enterprise IT services, and mission support. A deeper dive into federal procurement databases like FPDS-NG or USAspending would reveal the full extent of their contract history, past performance ratings, and any significant awards or issues.

Given the $346.8 million award value, what are the potential risks associated with contractor performance and cost management over the contract's duration?

The $346.8 million award value over approximately four years presents several potential risks. For contractor performance, the primary risk lies in the ability of Peraton Enterprise Solutions LLC to meet or exceed the performance standards set forth in the contract, especially under the CPAF structure. Failure to meet these standards could result in reduced award fees, impacting the contractor's profitability and potentially leading to dissatisfaction. Cost management risks are inherent in CPAF contracts; if the government's oversight is insufficient or performance metrics are poorly defined, costs could escalate beyond initial projections. Additionally, reliance on a single prime contractor for such a substantial amount of work introduces program continuity risks if the contractor faces financial instability, legal challenges, or significant operational disruptions.

How does this contract's award mechanism (Delivery Order) and competition level (3 offers) compare to typical trends for large IT service contracts within the federal government?

Awarding a Delivery Order (DO) is a common mechanism for tasking under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract, allowing agencies to procure services as needed. This provides flexibility. The competition level of 3 offers for a $346.8 million contract is moderate. For large IT service contracts, competition can vary significantly. Some highly specialized or broadly scoped IDIQs might see dozens of offers, while others, particularly those with very specific requirements or limited pools of qualified large contractors, might see fewer. Three offers suggest a reasonable level of competition, likely indicating that the requirement was well-defined and accessible to qualified bidders, but perhaps not so broad as to attract a vast number of proposals. This is not unusually low, but higher competition often correlates with better pricing.

Industry Classification

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

Solicitation ID: 47QFCA21R0088

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

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

Address: 13600 EDS DR A3S, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $562,995,039

Exercised Options: $440,130,689

Current Obligation: $346,769,435

Subaward Activity

Number of Subawards: 371

Total Subaward Amount: $357,902,114

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0030

IDV Type: GWAC

Timeline