GSA awards $100M+ IT services contract to Peraton Inc. for WWHWSW TRANSITIONOUT BRIDGE
Contract Overview
Contract Amount: $100,246,342 ($100.2M)
Contractor: Peraton Inc.
Awarding Agency: General Services Administration
Start Date: 2024-02-17
End Date: 2025-01-06
Contract Duration: 324 days
Daily Burn Rate: $309.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: WWHWSW TRANSITIONOUT BRIDGE
Place of Performance
Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955
Plain-Language Summary
General Services Administration obligated $100.2 million to PERATON INC. for work described as: WWHWSW TRANSITIONOUT BRIDGE Key points: 1. Contract value exceeds $100 million, indicating a significant investment in IT services. 2. The contract is for Computer Systems Design Services, a critical area for federal IT infrastructure. 3. Awarded via full and open competition, suggesting a robust market for these services. 4. The contract duration is 324 days, implying a focused, short-term project. 5. The fixed-price contract type aims to control costs and provide budget certainty. 6. The award to Peraton Inc. represents a substantial single award, highlighting contractor capacity.
Value Assessment
Rating: good
The contract value of over $100 million for Computer Systems Design Services is substantial. Benchmarking against similar large-scale IT service contracts is difficult without more specific service details. However, the firm fixed-price structure suggests an effort to manage costs effectively. The relatively short duration of 324 days may indicate a specific project phase or transition, which could influence the perceived value compared to longer-term sustainment contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors were likely able to bid. The presence of a single award suggests that Peraton Inc. was selected as the most advantageous offer. The level of competition is generally positive for price discovery, as it encourages competitive bidding to secure the contract.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring the government receives competitive rates for the services rendered.
Public Impact
Federal agencies requiring IT modernization and transition support will benefit from these services. The contract delivers essential computer systems design and integration services. The primary geographic impact is within California, where the contract is managed. The contract supports the IT workforce through the provision of specialized design and development expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if services are highly specialized and transition out is complex.
- Reliance on a single contractor for a significant IT project carries inherent performance risks.
- Scope creep could increase costs beyond the initial award if not managed tightly.
Positive Signals
- Awarded through full and open competition, indicating a competitive marketplace.
- Firm fixed-price contract type helps control costs and provides budget predictability.
- The contract addresses a critical need for IT transition and modernization services.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer systems design services. This is a broad and dynamic market driven by federal needs for modernization, cybersecurity, and cloud migration. The IT services market for the federal government is substantial, with agencies consistently investing in upgrading their infrastructure and capabilities. This contract's value and scope align with typical large-scale IT projects undertaken by federal entities.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors to Peraton Inc. However, the primary award does not directly benefit small businesses through set-asides.
Oversight & Accountability
Oversight for this contract is likely managed by the General Services Administration (GSA) through its Federal Acquisition Service. The firm fixed-price nature provides a degree of cost oversight. Transparency is generally maintained through federal contract databases. Specific accountability measures would be detailed in the contract's statement of work and performance metrics.
Related Government Programs
- IT Modernization Programs
- Cloud Computing Services
- Systems Integration Contracts
- Federal IT Support Services
Risk Flags
- Potential for scope creep given the project's IT focus and transition nature.
- Reliance on a single contractor for a large-value, time-bound project.
- Need for clear performance metrics to ensure value for money within the fixed price.
Tags
it-services, computer-systems-design, general-services-administration, peraton-inc, firm-fixed-price, full-and-open-competition, delivery-order, california, large-contract, it-modernization, transition-project
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $100.2 million to PERATON INC.. WWHWSW TRANSITIONOUT BRIDGE
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 $100.2 million.
What is the period of performance?
Start: 2024-02-17. End: 2025-01-06.
What is the specific nature of the 'WWHWSW TRANSITIONOUT BRIDGE' project?
The provided data does not detail the specific nature of the 'WWHWSW TRANSITIONOUT BRIDGE' project. However, the contract's classification as 'Computer Systems Design Services' (NAICS 541512) suggests it involves the design, development, integration, and potentially the transition of computer systems. The 'TRANSITIONOUT BRIDGE' nomenclature implies a project focused on migrating from one system or service to another, possibly involving decommissioning legacy systems and establishing new ones. Further details would be found in the contract's statement of work.
How does the $100M+ award compare to typical IT services contracts awarded by GSA?
Awards exceeding $100 million are considered large within the federal IT services landscape. The General Services Administration (GSA) awards numerous IT contracts, ranging from small task orders to multi-billion dollar indefinite-delivery/indefinite-quantity (IDIQ) vehicles. A single delivery order of this magnitude suggests a significant, well-defined project or a substantial portion of a larger program. While GSA manages a vast portfolio, contracts in the nine-figure range are not uncommon for critical IT infrastructure, modernization, or large-scale service delivery efforts.
What are the potential risks associated with a firm fixed-price contract of this size and duration?
For a firm fixed-price contract of this magnitude ($100M+) and duration (324 days), the primary risk lies with the contractor (Peraton Inc.) to deliver the specified services within the agreed-upon price. If the scope is not perfectly defined or if unforeseen technical challenges arise, the contractor may incur losses. Conversely, the government's risk is that the fixed price might not represent the absolute lowest cost achievable if market conditions were to change or if the contractor's initial bid was overly conservative. Scope creep is a significant risk that must be rigorously managed by the government to prevent cost overruns, even within a fixed-price structure.
What does the 'FULL AND OPEN COMPETITION' designation imply for the government and taxpayers?
The 'FULL AND OPEN COMPETITION' designation signifies that the General Services Administration (GSA) solicited offers from all responsible sources and that no restrictions were placed on the types of businesses that could compete. This is generally the preferred method of procurement as it maximizes the pool of potential bidders, fostering robust competition. For taxpayers, this typically translates to better value, as competitive pressures encourage lower pricing and higher quality services. It also ensures that the government is not limited to a select few vendors, promoting a more dynamic and responsive marketplace.
What is the significance of the 'Computer Systems Design Services' NAICS code (541512)?
The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' indicates that the contract's primary purpose is to provide expertise in planning and designing computer systems that integrate hardware, software, and communication technologies. This can include a wide range of activities such as systems analysis, systems integration, software engineering, and IT consulting. Federal agencies often procure services under this code for complex IT projects, including system upgrades, new software development, network infrastructure design, and the implementation of enterprise-wide IT solutions.
How does the short contract duration (324 days) impact the assessment of this award?
A contract duration of 324 days (approximately 10.5 months) suggests a project with a defined, relatively short-term objective. This could be a specific phase of a larger initiative, a transition project, or a specialized service delivery. For assessment, it implies that the $100M+ value is concentrated over a shorter period, potentially indicating a high intensity of work or a focus on rapid deployment. It also means that long-term performance metrics or ongoing sustainment value are less relevant for this specific award; the focus would be on successful completion within the defined timeframe and budget.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 47QFMA24R0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $108,436,616
Exercised Options: $104,720,498
Current Obligation: $100,246,342
Subaward Activity
Number of Subawards: 135
Total Subaward Amount: $51,051,380
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2024-02-17
Current End Date: 2025-01-06
Potential End Date: 2025-01-06 00:00:00
Last Modified: 2025-03-04
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