DOT awards $6.19M for Enterprise Common Consoles (ECC) Needs Package to Peraton Inc
Contract Overview
Contract Amount: $6,185,190 ($6.2M)
Contractor: Peraton Inc.
Awarding Agency: Department of Transportation
Start Date: 2026-03-30
End Date: 2035-12-31
Contract Duration: 3,563 days
Daily Burn Rate: $1.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: ENTERPRISE COMMON CONSOLES (ECC) NEEDS PACKAGE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $6.2 million to PERATON INC. for work described as: ENTERPRISE COMMON CONSOLES (ECC) NEEDS PACKAGE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee (CPAF), which incentivizes contractor performance. 3. A long performance period (over 9 years) indicates a significant, ongoing need for these services. 4. The primary NAICS code (541512) points to computer systems design services. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The contractor, Peraton Inc., is a significant player in the government contracting space. 7. The contract is not set aside for small businesses, suggesting it was awarded based on best value to the government. 8. The contract is located in Washington D.C.
Value Assessment
Rating: fair
The contract value of $6.19 million over a potential 9.5-year period averages to approximately $650,000 annually. Without specific details on the scope of 'Enterprise Common Consoles (ECC) Needs Package' or comparable contracts, a precise value-for-money assessment is challenging. However, the Cost Plus Award Fee (CPAF) structure suggests the government aims to control costs while incentivizing performance, which can be a good approach if managed effectively. Benchmarking against similar IT system design contracts would be necessary for a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically suggests a robust bidding process where multiple companies had the opportunity to compete for the contract. The specific number of bidders is not provided, but the designation implies a healthy level of competition, which is generally favorable for price discovery and obtaining competitive pricing.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service offerings compared to sole-source or limited competition scenarios.
Public Impact
The Department of Transportation (DOT) is the primary beneficiary, receiving services crucial for its enterprise IT infrastructure. The contract supports computer systems design services, likely involving the development, integration, or maintenance of IT systems. The geographic impact is centered in Washington D.C., where the contract is managed and likely where services are primarily delivered or overseen. The contract could have implications for the IT workforce, potentially creating or sustaining jobs in computer systems design and related fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Award Fee (CPAF) contract type can lead to cost overruns if not closely monitored and managed, as the contractor is reimbursed for costs plus an award fee based on performance.
- The long performance period (over 9 years) increases the risk of scope creep or the need for contract modifications if requirements evolve significantly.
- Lack of specific details on the 'ECC Needs Package' makes it difficult to fully assess the scope and potential risks associated with the services being procured.
- The contractor, Peraton Inc., has a large contract portfolio, which could potentially strain resources or attention on this specific contract if not managed effectively internally.
Positive Signals
- Awarded through full and open competition, which generally leads to better pricing and service options.
- The CPAF structure incentivizes contractor performance, potentially leading to higher quality outcomes.
- The long duration suggests a stable, ongoing requirement, providing continuity for critical IT services.
- The contract is for computer systems design services, indicating a focus on modernizing or maintaining essential government IT infrastructure.
- The contractor, Peraton Inc., is an established government contractor with experience in IT services.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. The U.S. government is a massive consumer of IT services, with spending in this area consistently in the tens of billions of dollars annually. Contracts like this, focused on enterprise systems, are crucial for maintaining the operational capabilities of federal agencies. Comparable spending benchmarks would typically involve looking at other large-scale IT system design and integration contracts awarded by agencies like DOT, DHS, or DoD.
Small Business Impact
This contract was not set aside for small businesses, as indicated by 'sb': false. This suggests that the competition was open to all responsible sources, and the award was likely made based on the best value to the government, rather than a specific small business set-aside goal. There is no explicit information on subcontracting plans for small businesses, which would typically be detailed in the contract's statement of work or award documentation. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this contract are limited unless they are part of a larger prime contractor's team.
Oversight & Accountability
The oversight mechanisms for this contract would typically involve the contracting officer and their representatives (CORs) within the Federal Aviation Administration (FAA) or the Department of Transportation (DOT). As a Cost Plus Award Fee (CPAF) contract, performance monitoring and evaluation are critical to determining the award fee. Transparency would be enhanced through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- Enterprise IT Modernization Programs
- IT Systems Integration Services
- Computer Systems Design Services
- Federal Aviation Administration IT Support Contracts
- Department of Transportation IT Services
Risk Flags
- Long contract duration may lead to technological obsolescence.
- CPAF contract type requires diligent oversight to control costs.
- Scope creep risk due to extended performance period.
- Potential for contractor performance degradation over time.
Tags
it-services, computer-systems-design, department-of-transportation, federal-aviation-administration, cost-plus-award-fee, full-and-open-competition, delivery-order, washington-dc, enterprise-it, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $6.2 million to PERATON INC.. ENTERPRISE COMMON CONSOLES (ECC) NEEDS PACKAGE
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $6.2 million.
What is the period of performance?
Start: 2026-03-30. End: 2035-12-31.
What specific services are included under the 'Enterprise Common Consoles (ECC) Needs Package'?
The provided data does not detail the specific services encompassed by the 'Enterprise Common Consoles (ECC) Needs Package.' However, given the NAICS code 541512 (Computer Systems Design Services) and the contract type (Cost Plus Award Fee), it likely involves the design, development, integration, testing, and potentially maintenance of IT systems that provide common functionalities or interfaces across various enterprise applications within the Department of Transportation. This could include dashboard development, user interface design, system integration platforms, or centralized management tools to improve operational efficiency and data accessibility for agency personnel. Further details would typically be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).
How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for IT services?
Cost Plus Award Fee (CPAF) contracts reimburse the contractor for allowable costs incurred and provide a base fee, plus an additional award fee determined by the government based on the contractor's performance against defined criteria. This differs from Fixed-Price contracts, where the price is set regardless of costs, and Cost-Plus-Fixed-Fee (CPFF) contracts, where the fee is fixed. CPAF is often used when the scope of work is not precisely defined or when performance incentives are crucial. It offers flexibility and encourages high performance but requires robust government oversight to manage costs and ensure the award fee criteria are objective and aligned with mission goals. Compared to Cost-Plus-Incentive-Fee (CPIF), CPAF places more subjective judgment in the government's hands for the award fee determination.
What is the historical spending pattern for similar IT system design services at the Department of Transportation?
Analyzing historical spending patterns for similar IT system design services at the Department of Transportation (DOT) requires access to detailed contract databases. However, federal agencies like DOT consistently spend billions annually on IT services, including system design, development, and integration. The trend over the past decade has been towards modernization, cloud migration, and cybersecurity enhancements. Contracts for enterprise-level systems, like the ECC Needs Package, are common and can range from a few million to hundreds of millions of dollars depending on the scope and duration. Without specific historical data for DOT's IT system design procurements, it's difficult to provide precise benchmarks, but the $6.19 million award over 9.5 years suggests a moderate-sized, long-term engagement for a specific IT capability.
What are the potential risks associated with a contract spanning over 9 years?
A contract duration of over 9 years, as seen with this DOT award, presents several potential risks. Firstly, technological obsolescence is a significant concern; IT systems and solutions can become outdated rapidly, potentially rendering the procured services less effective or requiring costly upgrades. Secondly, scope creep is a common risk, where the requirements may evolve beyond the original intent, leading to increased costs and potential disputes if not managed through formal contract modifications. Thirdly, contractor performance can degrade over long periods, or key personnel may leave, impacting service quality. Finally, the government's needs or budget priorities might shift, making the long-term commitment less desirable or feasible. Effective contract management, regular reviews, and clear modification processes are crucial to mitigate these risks.
How does Peraton Inc.'s track record in government contracting influence the assessment of this award?
Peraton Inc. is a well-established government contractor with a significant presence across various federal agencies, including defense, intelligence, and civilian sectors. Their track record includes managing large, complex IT and mission support contracts. While specific performance details for Peraton on individual contracts are not publicly detailed in this summary, their extensive experience suggests they possess the organizational capacity and technical expertise to handle a contract like the ECC Needs Package. However, like any large contractor, they have also faced scrutiny and contract challenges on specific programs. Assessing Peraton's track record would involve reviewing past performance evaluations, any significant contract disputes, and their history with similar types of IT services procurements to gauge their reliability and value proposition.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
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: $18,616,667
Exercised Options: $6,185,190
Current Obligation: $6,185,190
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 693KA726D00003
IDV Type: IDC
Timeline
Start Date: 2026-03-30
Current End Date: 2035-12-31
Potential End Date: 2035-12-31 00:00:00
Last Modified: 2026-04-09
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