GSA's $75.7M Peraton Contract for Legacy Credentialing Operations Maintenance & Services Faces Scrutiny

Contract Overview

Contract Amount: $75,683,324 ($75.7M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2021-09-27

End Date: 2026-09-26

Contract Duration: 1,825 days

Daily Burn Rate: $41.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CALL 27 LEGACY CREDENTIALING OPERATIONS MAINTENANCE AND SERVICES

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $75.7 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: CALL 27 LEGACY CREDENTIALING OPERATIONS MAINTENANCE AND SERVICES Key points: 1. The contract's value of $75.7M over five years is substantial for IT infrastructure services. 2. Peraton Enterprise Solutions LLC is the sole awardee, raising questions about competition. 3. Potential risks include vendor lock-in and the long-term cost-effectiveness of maintaining legacy systems. 4. The sector is IT infrastructure, specifically data processing and web hosting.

Value Assessment

Rating: questionable

The contract's total value of $75.7M over five years averages $15.1M annually. Benchmarking this against similar IT infrastructure contracts is difficult without more specific service details, but the duration and scale suggest a need for careful cost analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although listed as 'FULL AND OPEN COMPETITION', the award is a BPA Call to a single vendor, Peraton Enterprise Solutions LLC. This structure may limit direct price discovery and competition among multiple vendors for the specific task order.

Taxpayer Impact: Taxpayer funds are committed to a significant IT services contract. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.

Public Impact

Citizens rely on secure and efficient credentialing systems, which this contract supports. The use of legacy systems may indicate potential vulnerabilities or inefficiencies impacting service delivery. Long-term IT spending on maintenance can divert funds from modernization efforts. The contract's success impacts the operational capacity of the General Services Administration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole awardee despite 'full and open' competition designation.
Long contract duration (5 years) for IT services.
Focus on legacy systems may hinder modernization.
Lack of detailed performance metrics in provided data.

Positive Signals

Contract supports essential credentialing operations.
Established vendor with existing GSA contract vehicles.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls within the IT sector, specifically focusing on computing infrastructure, data processing, and web hosting. Spending benchmarks for similar large-scale IT maintenance and operations contracts vary widely based on scope and technology, but $15M annually is a significant investment.

Small Business Impact

The data indicates the awardee is Peraton Enterprise Solutions LLC, a large business. There is no explicit mention of small business participation or subcontracting goals within the provided information, suggesting limited direct impact on small businesses for this specific award.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. The use of BPA Calls requires adherence to specific procurement regulations to ensure fair and competitive practices, though the structure warrants scrutiny regarding true competition.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for higher long-term costs due to legacy system maintenance.
Risk of vendor lock-in with a single awardee.
Lack of transparency in the competition process for the specific task order.
Security vulnerabilities associated with outdated technology.
Limited opportunity for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $75.7 million to PERATON ENTERPRISE SOLUTIONS LLC. CALL 27 LEGACY CREDENTIALING OPERATIONS MAINTENANCE AND SERVICES

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 $75.7 million.

What is the period of performance?

Start: 2021-09-27. End: 2026-09-26.

What is the specific definition of 'legacy credentialing operations' and what are the associated risks of maintaining these systems versus modernization?

Legacy credentialing operations likely refer to outdated IT systems and processes used for verifying identities or qualifications. Maintaining these systems can be risky due to potential security vulnerabilities, lack of vendor support, difficulty finding skilled personnel, and incompatibility with modern technologies. This often leads to higher operational costs and hinders agility compared to modern, cloud-based solutions.

How does the 'BPA Call' mechanism ensure fair pricing and competition when awarded to a single vendor under a 'full and open' umbrella agreement?

A BPA Call is a task order issued against a previously established Blanket Purchase Agreement (BPA). While the initial BPA might have been competed full and open, individual calls can be issued to a single BPA holder if the scope aligns. True competition is ensured if the BPA itself allows for multiple awardees and calls are competed among them, or if the agency can justify a sole-source call based on specific needs and fair opportunity principles.

What is the projected cost savings or efficiency gain from maintaining these legacy systems compared to a potential modernization effort?

The provided data does not contain information on projected cost savings or efficiency gains from maintaining legacy systems, nor does it detail the costs associated with modernization. A comprehensive analysis would require comparing the total cost of ownership for the legacy systems (including maintenance, support, and potential risks) against the investment and long-term operational benefits of a modernized solution.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFMA21Q0027

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

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

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $92,182,522

Exercised Options: $81,751,082

Current Obligation: $75,683,324

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $23,846,596

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS03Q17DSA0008

IDV Type: BPA

Timeline