DoD's $191M Other ADP & Telecom Services Contract Awarded to Peraton Enterprise Solutions LLC
Contract Overview
Contract Amount: $191,201,207 ($191.2M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2011-09-30
End Date: 2012-09-30
Contract Duration: 366 days
Daily Burn Rate: $522.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OTHER ADP AND TELECOMMUNICATIONS SVS
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $191.2 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: OTHER ADP AND TELECOMMUNICATIONS SVS Key points: 1. Significant contract value of $191.2 million for ADP and telecommunications services. 2. Awarded to Peraton Enterprise Solutions LLC, indicating a specific vendor relationship. 3. The contract falls under 'Other Computer Related Services', a broad category. 4. Services procured by the Department of the Navy, a major DoD component.
Value Assessment
Rating: fair
The contract value of $191.2 million is substantial. Without specific benchmarks for 'Other Computer Related Services' or comparable contracts, assessing its pricing fairness is difficult. The provided 'br' (benchmark) of $522,408 suggests a potential discrepancy or a very different scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was 'NOT COMPETED', indicating a sole-source or limited competition award. This method bypasses competitive bidding, potentially leading to higher prices and reduced price discovery for the government.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as a more competitive process could have secured better pricing or terms.
Public Impact
Taxpayers may not have received the best possible value due to the absence of a competitive bidding process. The Department of the Navy relies on Peraton Enterprise Solutions LLC for critical ADP and telecommunications services. The broad nature of 'Other Computer Related Services' makes it challenging to assess the specific impact on technology infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
- Broad service category lacks specificity
Positive Signals
- Award to a single, established vendor
- Clear contract duration and delivery order structure
Sector Analysis
This contract falls under the broad 'Other Computer Related Services' category, which can encompass a wide range of IT and telecommunications support. Government spending in this sector is consistently high, but benchmarks vary greatly depending on the specific services rendered.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. The focus appears to be on a large, established vendor for these services.
Oversight & Accountability
The 'NOT COMPETED' status warrants scrutiny. Oversight should focus on the justification for sole-sourcing and ensure that the pricing reflects fair market value, even without competition.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in price determination
- Vendor lock-in risk
- Broad service category lacks specificity
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $191.2 million to PERATON ENTERPRISE SOLUTIONS LLC. OTHER ADP AND TELECOMMUNICATIONS SVS
Who is the contractor on this award?
The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $191.2 million.
What is the period of performance?
Start: 2011-09-30. End: 2012-09-30.
What was the specific justification for awarding this contract on a sole-source basis, and how was fair market price determined without competition?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of available alternatives. Without competition, price discovery is challenging. The government might rely on historical pricing, commercial price lists, or independent cost estimates to establish a fair market price. However, the absence of competitive bids inherently limits the assurance of optimal value.
How does the $191.2 million contract value compare to industry benchmarks for similar 'Other Computer Related Services' provided to large federal agencies?
Comparing this $191.2 million contract requires detailed knowledge of the specific services rendered under 'Other Computer Related Services'. Benchmarks can vary significantly based on scope, duration, and complexity. The provided benchmark of $522,408 seems incongruous, suggesting it might represent a different metric or a much smaller contract. A thorough analysis would involve identifying comparable contracts and service levels.
What is the long-term strategic impact of relying on a single vendor for such a significant portion of ADP and telecommunications services for the Department of the Navy?
Long-term reliance on a single vendor can create vendor lock-in, potentially reducing flexibility and increasing costs over time. It also concentrates risk, as any performance issues or financial instability with the vendor could significantly disrupt critical Navy operations. While it can foster deep expertise, it limits opportunities for innovation and competition from other providers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: HP, Inc.
Address: 13600 EDS DR, HERNDON, VA, 20171
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $191,201,207
Exercised Options: $191,201,207
Current Obligation: $191,201,207
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003910D0010
IDV Type: IDC
Timeline
Start Date: 2011-09-30
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2024-03-29
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