DoD's $230M NMCI Services Contract Awarded to Peraton Enterprise Solutions LLC
Contract Overview
Contract Amount: $230,866,832 ($230.9M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2018-09-01
End Date: 2018-09-30
Contract Duration: 29 days
Daily Burn Rate: $8.0M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF NMCI SERVICES
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $230.9 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF NMCI SERVICES Key points: 1. Significant contract value of $230.8M for IT services. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate due to the large contract value and IT focus. 4. Sector is Information Technology, a critical area for government operations.
Value Assessment
Rating: good
The contract value of $230.8M is substantial. Benchmarking against similar large-scale IT service contracts would be necessary to fully assess pricing, but the firm-fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can drive competitive pricing. The award method was a delivery order.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better prices and services.
Public Impact
Ensures continued IT infrastructure support for the Department of the Navy. Supports critical operational needs through computer systems design services. Impacts numerous Navy personnel relying on these IT systems daily.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Large contract value may present integration challenges.
- Dependence on a single vendor for critical IT services.
Positive Signals
- Full and open competition utilized.
- Firm-fixed-price contract type.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this sector is consistently high across federal agencies due to the increasing reliance on digital infrastructure and cybersecurity.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not the primary focus of this specific award, though they may participate as subcontractors.
Oversight & Accountability
Oversight would typically involve contract performance monitoring by the Department of the Navy to ensure Peraton Enterprise Solutions LLC meets the terms and conditions of the delivery order and the overarching NMCI Services contract.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High contract value.
- Dependence on IT infrastructure.
- Potential for vendor lock-in.
- Cybersecurity risks inherent in IT services.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $230.9 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF NMCI SERVICES
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 $230.9 million.
What is the period of performance?
Start: 2018-09-01. End: 2018-09-30.
What is the specific scope of 'NMCI Services' and how does it align with the Navy's IT modernization goals?
NMCI (Navy Marine Corps Intranet) Services encompass a broad range of IT support, including network infrastructure, cybersecurity, end-user devices, and application hosting. This contract likely supports the ongoing operation and maintenance of these essential services, contributing to the Navy's ability to maintain and modernize its digital capabilities and ensure operational readiness in a complex threat environment.
Given the firm-fixed-price structure, what are the potential risks associated with scope creep or unforeseen technical challenges?
While firm-fixed-price contracts offer cost certainty, risks remain. Scope creep can occur if requirements are not clearly defined or if new needs arise during the contract period. Unforeseen technical challenges could lead to delays or necessitate contract modifications, potentially impacting the overall value proposition for the government if not managed proactively through strong contract oversight and change control processes.
How does the performance of Peraton Enterprise Solutions LLC on this contract compare to industry benchmarks for IT service delivery?
Assessing Peraton's performance against industry benchmarks requires access to specific performance metrics and quality data for this contract, which is not provided. Generally, IT service delivery benchmarks focus on uptime, response times, security incident resolution, and user satisfaction. A comprehensive review would involve analyzing contractor performance reports and comparing them to established industry standards for similar large-scale government IT contracts.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Peraton Solutions Inc. (UEI: 081218565)
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: $230,866,832
Exercised Options: $230,866,832
Current Obligation: $230,866,832
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003913D0013
IDV Type: IDC
Timeline
Start Date: 2018-09-01
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2018-10-10
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