GSA awards $59.8M for Defense Travel System sustainment, extending services through April 2026
Contract Overview
Contract Amount: $59,805,641 ($59.8M)
Contractor: Peraton Inc.
Awarding Agency: General Services Administration
Start Date: 2024-05-01
End Date: 2026-04-30
Contract Duration: 729 days
Daily Burn Rate: $82.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: DEFENSE TRAVEL SYSTEM SUSTAINMENT BRIDGE
Place of Performance
Location: MONTEREY, MONTEREY County, CALIFORNIA, 93940
Plain-Language Summary
General Services Administration obligated $59.8 million to PERATON INC. for work described as: DEFENSE TRAVEL SYSTEM SUSTAINMENT BRIDGE Key points: 1. Contract provides essential sustainment for a critical defense travel platform. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract type is Time and Materials, which can pose cost control risks. 4. Performance duration is two years, indicating a need for ongoing support. 5. The vendor, Peraton Inc., has a significant presence in government IT services. 6. This award represents a bridge contract, implying a potential for a larger future procurement.
Value Assessment
Rating: fair
The contract value of $59.8 million over two years for sustainment services appears reasonable given the critical nature of the Defense Travel System. However, the Time and Materials pricing structure warrants close monitoring to ensure cost efficiency. Benchmarking against similar sustainment contracts for large-scale IT systems would provide a clearer picture of value for money, but such data is not readily available in this context. The absence of a fixed price or capped ceiling could lead to cost overruns if not managed diligently.
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 had the opportunity to bid. The fact that it is a single award delivery order suggests that Peraton Inc. was selected as the most advantageous offer. The level of competition, while broad in initial opportunity, resulted in a single award, which is typical for complex IT sustainment services where specific expertise is paramount.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. For this specific award, it suggests that the government sought the best value, potentially leading to more cost-effective sustainment of the Defense Travel System.
Public Impact
Military personnel and civilian employees across the Department of Defense benefit from a functional and reliable travel system. Services delivered include sustainment, maintenance, and potential enhancements to the Defense Travel System. The geographic impact is nationwide and potentially global, supporting DoD travel requirements wherever personnel are stationed. Workforce implications include the potential for Peraton Inc. to utilize its existing IT support staff, and indirectly supports DoD travel management personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type increases risk of cost overruns if not closely managed.
- Bridge contract nature suggests potential for future, possibly larger, contract awards that require scrutiny.
- Sustainment of a critical system requires continuous vigilance against performance degradation or security vulnerabilities.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- Vendor has a track record in government IT services, suggesting familiarity with federal requirements.
- Contract ensures continuity of service for a vital defense travel platform.
Sector Analysis
The Defense Travel System (DTS) is a critical component of the Department of Defense's IT infrastructure, facilitating official travel for millions of service members and civilian employees. The market for sustainment and modernization of such large-scale government IT platforms is dominated by a few large federal contractors. This contract fits within the broader IT services sector, specifically focusing on enterprise software sustainment and support. Comparable spending benchmarks for similar large-scale IT sustainment contracts can vary widely based on system complexity and user base, but typically represent significant annual investments.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The primary awardee, Peraton Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific award notice. Therefore, the direct impact on the small business ecosystem from this particular contract is likely minimal, though Peraton may engage small businesses in its broader supply chain.
Oversight & Accountability
Oversight for this contract will likely be managed by the General Services Administration (GSA) and the relevant Department of Defense contracting and program management offices. Accountability measures would typically involve performance metrics, service level agreements, and regular reporting requirements outlined in the contract. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Defense Travel System (DTS)
- GSA IT Schedule 70 (now CIO-SP4)
- DoD Travel Management Systems
- Federal IT Sustainment Contracts
- Enterprise Software Support Services
Risk Flags
- Time and Materials contract type carries inherent cost overrun risk.
- Bridge contract nature may indicate underlying issues with previous procurement or planning.
- Sustainment of critical infrastructure requires constant vigilance against evolving threats and technological obsolescence.
Tags
it-services, defense, travel-management, sustainment, time-and-materials, full-and-open-competition, general-services-administration, department-of-defense, bridge-contract, computer-systems-design-services, peraton-inc
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $59.8 million to PERATON INC.. DEFENSE TRAVEL SYSTEM SUSTAINMENT 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 $59.8 million.
What is the period of performance?
Start: 2024-05-01. End: 2026-04-30.
What is the historical spending on the Defense Travel System sustainment?
Detailed historical spending data specifically for the sustainment of the Defense Travel System prior to this $59.8 million award is not provided in the given data. However, the fact that this is a two-year bridge contract suggests that previous sustainment efforts were in place and likely involved significant investment. To understand historical spending patterns, one would need to access historical contract awards for DTS sustainment, potentially through sources like the Federal Procurement Data System (FPDS) or agency budget documents. This would reveal the scale and duration of prior contracts, helping to contextualize the current award and identify any trends in spending or vendor selection over time.
How does Peraton Inc.'s pricing compare to market rates for similar IT sustainment services?
Direct comparison of Peraton Inc.'s pricing for this specific Defense Travel System sustainment contract to external market rates is challenging without detailed cost breakdowns and specific service level agreements. The contract is awarded on a Time and Materials (T&M) basis, which inherently makes direct price benchmarking difficult as costs are driven by actual labor hours and material costs incurred, plus a fixed fee or fixed hourly rate. To assess value, one would need to compare the loaded hourly rates for different labor categories against industry benchmarks for similar IT sustainment roles within the federal sector or large enterprise environments. Additionally, comparing the total contract value against the scope of services and the criticality of the DTS platform is essential for a comprehensive value assessment.
What are the key performance indicators (KPIs) for this contract, and how will they be measured?
The provided data does not specify the key performance indicators (KPIs) for this Defense Travel System sustainment bridge contract. Typically, sustainment contracts for critical IT systems include KPIs related to system uptime, response times for issue resolution, patch deployment success rates, security compliance adherence, and user satisfaction. These KPIs are usually defined in the Performance Work Statement (PWS) or Statement of Work (SOW) and are monitored through regular performance reports submitted by the contractor and reviewed by the government contracting officer's representative (COR). Failure to meet these KPIs can result in contract remedies, including potential financial penalties or termination.
What is the risk associated with the Time and Materials (T&M) contract type for this sustainment effort?
The primary risk associated with a Time and Materials (T&M) contract type for IT sustainment is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, as payment is based on the actual labor hours expended and the cost of materials used, plus a predetermined fixed fee or rate. This can lead to increased costs if the scope of work expands, if inefficiencies arise in task execution, or if contractor labor hours are not diligently managed and monitored by the government. For a critical system like the Defense Travel System, effective government oversight and robust task order management are crucial to mitigate the risk of uncontrolled cost growth.
What is the strategic importance of the Defense Travel System, and how does this contract support it?
The Defense Travel System (DTS) is strategically vital for the Department of Defense (DoD) as it is the primary platform for managing official travel for all military branches and civilian personnel. It streamlines the booking, authorization, and reimbursement processes, ensuring compliance with travel regulations and facilitating efficient deployment and personnel movement. This $59.8 million sustainment bridge contract is crucial because it ensures the continued operational availability, security, and functionality of the DTS during the period leading up to a potential new, long-term contract. Without this sustainment, the DoD would face significant disruptions in travel operations, impacting readiness and personnel support.
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 - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 47QFMA24R0006
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
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: $68,875,327
Exercised Options: $68,823,413
Current Obligation: $59,805,641
Subaward Activity
Number of Subawards: 54
Total Subaward Amount: $20,066,671
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2024-05-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-20
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