GSA awards $48.7M for IT systems design, with 2 bidders competing for this task order

Contract Overview

Contract Amount: $48,668,522 ($48.7M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2020-09-16

End Date: 2023-03-15

Contract Duration: 910 days

Daily Burn Rate: $53.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PSA SUSTAINMENT II

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $48.7 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: PSA SUSTAINMENT II Key points: 1. Value for money appears reasonable given the fixed-price nature of the contract. 2. Competition was robust with two bidders, suggesting fair market price discovery. 3. Risk indicators are low due to the fixed-price contract type and established services. 4. Performance context is within standard IT systems design and support. 5. Sector positioning is within the IT services market, supporting federal agencies. 6. The contract duration of 910 days is typical for sustainment services.

Value Assessment

Rating: good

The contract's firm fixed-price structure provides cost certainty. While direct comparison data for this specific task order is limited, the total award amount of $48.7 million over approximately 2.5 years suggests a moderate investment for IT systems design services. Benchmarking against similar GSA IT contracts indicates that pricing is likely competitive, especially given the competitive award process.

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 offers. Two bids were received, suggesting a healthy level of competition for this specific task order. The presence of multiple bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs and ensured the government received a fair market price for the services rendered.

Public Impact

Federal agencies utilizing the General Services Administration's Federal Acquisition Service benefit from improved IT systems. The contract supports the delivery of computer systems design services, crucial for modern government operations. The primary geographic impact is within the District of Columbia, where the contract is managed. Workforce implications include employment opportunities for IT professionals in systems design and support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT sustainment could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract type limits cost overrun risks for the government.
Awarded under full and open competition, indicating a competitive pricing environment.
Contractor has a track record of performance with government contracts.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The federal IT market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of that ongoing investment, supporting the operational needs of the General Services Administration and its clients. Comparable spending benchmarks for IT systems design and sustainment services vary widely based on complexity and duration, but this award appears to be within a typical range for a task order of this nature.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, PERATON ENTERPRISE SOLUTIONS LLC, is not a small business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor's own subcontracting practices would determine broader effects.

Oversight & Accountability

Oversight for this contract is primarily managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. As a delivery order under a larger contract vehicle, it is subject to GSA's procurement regulations and oversight. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated through federal procurement databases where contract awards are reported.

Related Government Programs

GSA IT Schedule 70
Federal Civilian IT Modernization Programs
Computer Systems Design Services Contracts

Risk Flags

Contract performance risk
Scope management risk

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $48.7 million to PERATON ENTERPRISE SOLUTIONS LLC. PSA SUSTAINMENT II

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 $48.7 million.

What is the period of performance?

Start: 2020-09-16. End: 2023-03-15.

What is the track record of PERATON ENTERPRISE SOLUTIONS LLC with federal contracts, particularly in IT systems design?

PERATON ENTERPRISE SOLUTIONS LLC has a history of performing federal contracts, including those related to IT services. While specific details on past performance for this exact type of task order are not provided in the summary data, their ability to win this competitive award suggests they meet the government's requirements and possess relevant experience. A deeper dive into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their track record. However, winning a full and open competition award indicates a baseline level of capability and reliability.

How does the $48.7 million award compare to similar IT systems design contracts awarded by GSA?

The $48.7 million award for PSA SUSTAINMENT II is a significant but not extraordinary amount for a multi-year IT systems design and sustainment contract. GSA awards numerous IT contracts annually, with values ranging from small task orders to multi-billion dollar vehicles. For a task order of this duration (approximately 2.5 years) and scope (computer systems design services), this value appears to be within a reasonable range. Benchmarking against other GSA Federal Acquisition Service contracts for similar IT services, particularly those awarded under competitive procedures, would be necessary for a precise comparison. However, the firm fixed-price nature and competitive award suggest an effort to secure value for money.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential performance issues by the contractor, such as delays or failure to meet service level agreements, and the risk of scope creep if requirements are not tightly managed. Mitigation strategies are primarily driven by the contract type and oversight. The firm fixed-price (FFP) structure inherently mitigates cost overrun risks for the government, as the contractor is obligated to complete the work for the agreed-upon price. GSA's oversight, including performance monitoring and adherence to contract terms, further mitigates performance risks. Clear definition and management of the Statement of Work (SOW) are crucial for preventing scope creep.

How effective is the competition level (2 bidders) in ensuring optimal pricing and service quality?

Having two bidders in a full and open competition generally indicates a healthy level of market interest and provides a basis for price discovery. While more bidders could potentially lead to even more competitive pricing, two bidders are often sufficient to prevent a sole-source situation and encourage competitive offers. This level of competition suggests that the government likely received a fair market price. The effectiveness in ensuring service quality is also influenced by the evaluation criteria used during the award process and the contractor's subsequent performance, which is monitored by the agency.

What is the historical spending trend for similar IT systems design services under GSA?

Historical spending trends for IT systems design services under GSA, particularly through vehicles like the IT Schedule 70 (now IT Professional Services), show consistent and significant investment by federal agencies. Agencies rely heavily on GSA for procuring these services due to the streamlined acquisition process and pre-vetted contractors. Spending in this category has generally increased over the years, reflecting the growing complexity of government IT needs and the ongoing push for modernization and cybersecurity. The $48.7 million for this specific task order aligns with the broader trend of substantial federal outlays for IT support and development.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $56,111,068

Exercised Options: $55,611,068

Current Obligation: $48,668,522

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $115,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0027

IDV Type: GWAC

Timeline