GSA awards $31.5M IT services BPA call to Peraton Inc. for SDMS support

Contract Overview

Contract Amount: $31,457,101 ($31.5M)

Contractor: Peraton Inc.

Awarding Agency: General Services Administration

Start Date: 2018-07-15

End Date: 2021-07-14

Contract Duration: 1,095 days

Daily Burn Rate: $28.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DMDC ITPS BPA CALL #11 SDMS

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $31.5 million to PERATON INC. for work described as: DMDC ITPS BPA CALL #11 SDMS Key points: 1. Contract value represents a significant investment in IT support services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of the contract (1095 days) indicates a need for sustained IT support. 5. The specific NAICS code (541519) points to a focus on 'Other Computer Related Services'. 6. The contract was awarded to a single vendor, Peraton Inc.

Value Assessment

Rating: fair

The contract value of $31.5 million for IT services over three years appears within a reasonable range for large-scale federal IT support. However, without specific details on the services rendered and the scope of work, a precise value-for-money assessment is challenging. Benchmarking against similar IT support contracts awarded by GSA or other agencies for comparable services would provide a clearer picture of whether the pricing is competitive. The firm-fixed-price structure suggests an attempt to manage cost overruns, but the overall value is contingent on the effective delivery of services.

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 bidders suggests a moderate level of competition for this specific BPA call. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the number of bidders can influence the intensity of that competition. A higher number of bidders typically leads to more aggressive pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing, potentially leading to cost savings for the government. The fact that three bids were received suggests that taxpayer dollars were likely used efficiently in this procurement.

Public Impact

The primary beneficiaries are likely federal agencies requiring IT support services, specifically for SDMS (System Development and Modernization Services). The contract delivers essential IT services, potentially including system development, integration, maintenance, and support. The geographic impact is likely concentrated within the operational areas of the agencies utilizing these services, with a specific mention of California (SN: CALIFORNIA). The contract supports the IT workforce by providing employment opportunities for individuals with specialized computer-related skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on 'Other Computer Related Services' under NAICS code 541519. The IT services market is vast and highly competitive, with numerous companies offering a wide range of solutions. Federal spending in this area is substantial, driven by the continuous need for modernization, cybersecurity, and operational support across government agencies. Comparable spending benchmarks would involve looking at other large IT support contracts awarded by GSA or other departments for similar services, considering factors like contract duration, scope, and the specific technologies involved.

Small Business Impact

This contract does not appear to have a small business set-aside (SB: false). The award to Peraton Inc., a large defense contractor, suggests that small businesses were not the primary focus for this specific procurement. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This means that the direct impact on the small business ecosystem for this particular contract is likely minimal, unless Peraton voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), which awarded the contract through its Federal Acquisition Service. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Risk Flags

Tags

it-services, general-services-administration, peraton-inc, firm-fixed-price, full-and-open-competition, bpa-call, computer-related-services, california, mid-size-contract, it-support

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $31.5 million to PERATON INC.. DMDC ITPS BPA CALL #11 SDMS

Who is the contractor on this award?

The obligated recipient is PERATON INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.5 million.

What is the period of performance?

Start: 2018-07-15. End: 2021-07-14.

What specific IT services are encompassed by 'Other Computer Related Services' under NAICS 541519 for this contract?

The NAICS code 541519, 'Other Computer Related Services,' is broad and can include a wide array of IT services not classified elsewhere. For this specific contract, 'DMDC ITPS BPA CALL #11 SDMS,' it likely pertains to services related to System Development and Modernization Services (SDMS). This could encompass activities such as software development, system integration, IT consulting, data management, network support, cybersecurity services, and IT infrastructure management. The exact scope would be detailed in the Statement of Work (SOW) associated with the BPA Call, outlining the specific tasks, deliverables, and performance metrics required by the ordering agency.

How does the $31.5 million award compare to other similar IT support contracts awarded by GSA?

Comparing the $31.5 million award to other GSA IT support contracts requires access to a broader dataset of federal procurements. However, for a three-year contract (1095 days), this value suggests a significant engagement, likely supporting a substantial IT program or multiple agency needs. GSA's IT Schedule 70 (now Polaris) hosts numerous contracts for IT services, with values ranging from small task orders to multi-billion dollar indefinite-delivery/indefinite-quantity (IDIQ) vehicles. A $31.5 million BPA call indicates a mid-to-large scale procurement within the IT services category, falling within the typical range for specialized support services awarded through competitive processes.

What is Peraton Inc.'s track record with GSA and similar federal IT contracts?

Peraton Inc. has a significant track record as a government contractor, particularly in the defense and intelligence sectors, often handling complex IT and mission support services. Their history includes numerous prime contracts and subcontracts across various federal agencies. With GSA, Peraton likely holds positions on multiple IT schedules and participates in competitive bidding for task orders. Their experience typically involves large-scale system integration, cybersecurity, cloud services, and enterprise IT management. A review of federal procurement databases (like FPDS or SAM.gov) would reveal the specific types and values of contracts Peraton has held with GSA and other agencies, providing insight into their performance and capabilities in delivering IT services.

What are the potential risks associated with a firm-fixed-price contract for IT services?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty, they carry specific risks, especially in complex IT projects. For the contractor, the primary risk is underestimating the effort or encountering unforeseen technical challenges, which could lead to reduced profit margins or even losses if they cannot manage scope effectively. For the government, the risk lies in the contractor potentially cutting corners on quality or scope to maintain profitability, or conversely, the government potentially overpaying if the initial price was set too high due to contractor risk aversion. Effective performance monitoring and clear SOWs are crucial to mitigate these risks in an FFP IT services contract.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) trended in recent years?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally shown a consistent upward trend over the past decade, reflecting the increasing reliance of government agencies on technology for operations, data management, and service delivery. This category captures a wide range of IT support, consulting, and integration services that don't fit neatly into more specific classifications. Factors driving this growth include digital transformation initiatives, cybersecurity mandates, cloud migration efforts, and the need for specialized IT expertise. While specific year-over-year figures fluctuate based on agency priorities and budget allocations, the overall trajectory indicates sustained and significant federal investment in this service area.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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: $34,018,750

Exercised Options: $31,457,101

Current Obligation: $31,457,101

Actual Outlays: $11,278

Subaward Activity

Number of Subawards: 621

Total Subaward Amount: $145,791,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS03Q17DSA0012

IDV Type: BPA

Timeline

Start Date: 2018-07-15

Current End Date: 2021-07-14

Potential End Date: 2021-07-14 00:00:00

Last Modified: 2022-09-22

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