DoD's $128.6M Wired Telecommunications Contract Awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $128,557,834 ($128.6M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2016-09-27

End Date: 2021-01-26

Contract Duration: 1,582 days

Daily Burn Rate: $81.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ITIS IGF::OT::IGF

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $128.6 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: ITIS IGF::OT::IGF Key points: 1. Contract value represents significant investment in telecommunications infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of over 4 years indicates a long-term need for services. 4. Fixed-price contract type shifts risk to the contractor. 5. Awarded by the Department of the Army, highlighting a key defense sector need. 6. The North American Industry Classification System (NAICS) code 517110 points to a specialized service area.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging without specific service details and comparable contract data. However, the $128.6 million total value over approximately four years suggests a substantial investment in wired telecommunications infrastructure. The firm fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the contractor can deliver within the agreed-upon price. Further analysis would require comparing per-unit costs for specific services against industry benchmarks.

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 bids. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The presence of two bidders, as indicated by the 'no' field, suggests some level of competition, though the exact number of proposals received and the nature of the competition would provide a clearer picture of price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers, driving down costs and improving service quality.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential wired telecommunications services. This contract supports critical communication infrastructure necessary for military operations and administrative functions. The services are likely to have a broad geographic impact within the areas served by the Department of the Army. The contract may have implications for the telecommunications workforce, potentially creating or sustaining jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service descriptions makes it difficult to assess if the $128.6M represents optimal value for the specific telecommunications capabilities procured.
The number of bidders (2) might indicate limited competition, potentially impacting price negotiation, although 'full and open' suggests broad access.
The contract's duration (1582 days) could lead to vendor lock-in if not managed carefully, potentially limiting future flexibility or cost savings.

Positive Signals

Awarded under 'full and open competition,' which typically promotes competitive pricing and wider vendor participation.
The 'firm fixed price' contract type shifts cost overrun risks to the contractor, potentially protecting the government from unexpected expenses.
The contract duration, while long, suggests a stable and predictable need for these essential telecommunications services.

Sector Analysis

The telecommunications industry is a vast and critical sector supporting all aspects of modern commerce and government operations. Wired telecommunications carriers, as defined by NAICS code 517110, provide essential infrastructure for data transmission, voice communication, and internet access. Government spending in this area is substantial, reflecting the reliance on robust and secure communication networks. This contract fits within the broader IT and defense spending categories, underscoring the importance of reliable connectivity for national security and operational effectiveness. Comparable spending benchmarks would typically involve analyzing other large-scale telecommunications service contracts awarded to government agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The primary contractor, Peraton Enterprise Solutions LLC, is likely a large business, and any subcontracting opportunities would be at their discretion, not mandated by a set-aside provision.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally facilitated through contract award databases like FPDS-NG, which provide public access to contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Defense Information Systems Agency (DISA) Telecommunications Contracts
General Services Administration (GSA) IT Schedule Contracts
Other Department of Defense (DoD) IT and Network Infrastructure Contracts
Federal Communications Commission (FCC) Regulatory Filings

Risk Flags

Potential for limited competition despite 'full and open' award.
Lack of detailed service scope hinders precise value-for-money assessment.
Long contract duration requires careful management to avoid obsolescence or missed savings.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $128.6 million to PERATON ENTERPRISE SOLUTIONS LLC. ITIS IGF::OT::IGF

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 Army).

What is the total obligated amount?

The obligated amount is $128.6 million.

What is the period of performance?

Start: 2016-09-27. End: 2021-01-26.

What is the specific nature of the wired telecommunications services procured under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 517110, which corresponds to 'Wired Telecommunications Carriers.' This category typically includes establishments that operate systems of wires, optical fiber, or similar technologies to transmit voice, data, or video signals. Services could encompass a wide range, such as dedicated internet access, private line services, voice over IP (VoIP) infrastructure, and other managed network services. Without more specific contract line item details or a Statement of Work (SOW), the exact services procured remain general. However, given the awarding agency is the Department of the Army, these services are likely critical for supporting military command, control, communications, computers, and intelligence (C4I) systems, as well as general administrative and operational network needs.

How does the $128.6 million contract value compare to similar telecommunications contracts awarded by the Department of Defense?

Comparing the $128.6 million contract value requires access to a broader dataset of similar Department of Defense (DoD) telecommunications contracts, ideally with similar service scopes and durations. However, as a general benchmark, $128.6 million over approximately four years (from September 2016 to January 2021) represents a significant investment. Large-scale telecommunications procurements for defense agencies often run into hundreds of millions or even billions of dollars, especially when they involve nationwide or global network infrastructure, cybersecurity services, or advanced communication technologies. This specific contract's value appears substantial for a focused set of wired telecommunications services, but its relative expensiveness or cost-effectiveness can only be truly assessed against peer contracts with comparable technical requirements and service level agreements.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for wired telecommunications services, KPIs and SLAs would focus on metrics such as network uptime/availability (e.g., 99.99% availability), latency (maximum acceptable delay for data transmission), jitter (variation in delay), packet loss rates, bandwidth provisioning times, and incident response times for outages or performance degradation. These metrics are crucial for ensuring the reliability and performance of the communication services, especially for a critical agency like the Department of the Army. The absence of this information in the summary data limits a detailed assessment of performance expectations and contractor accountability.

What is the track record of Peraton Enterprise Solutions LLC in delivering similar telecommunications services to the federal government?

Peraton Enterprise Solutions LLC has a significant track record in providing IT and telecommunications services to the federal government, including various defense agencies. While this specific contract award is for $128.6 million, Peraton (and its predecessor entities or related companies) has been involved in numerous large-scale federal contracts. Their portfolio often includes complex network modernization, cybersecurity, cloud services, and mission-critical communications. Assessing their track record would involve reviewing past performance evaluations, contract modifications, and any reported issues or successes on similar government contracts. Generally, companies awarded contracts of this magnitude are expected to have demonstrated capabilities and a history of successful delivery, though specific performance on this particular contract would require deeper investigation into its execution history.

How has federal spending on wired telecommunications carriers (NAICS 517110) evolved over the past decade, and where does this contract fit in?

Federal spending on wired telecommunications carriers (NAICS 517110) has been a consistent and substantial component of government IT and infrastructure budgets over the past decade. Agencies across the DoD, civilian departments, and intelligence communities rely heavily on these services for secure and reliable communications. Spending trends are influenced by factors such as network modernization initiatives, the adoption of new technologies (like fiber optics and advanced networking), cybersecurity requirements, and the consolidation of telecommunications contracts. This $128.6 million contract awarded in 2016 falls within a period where the government was actively managing and upgrading its vast communication networks. It represents a significant, but not necessarily outlier, investment for a specific agency's needs within the broader landscape of federal telecommunications spending.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $128,620,878

Exercised Options: $128,620,878

Current Obligation: $128,557,834

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $655,949

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0013

IDV Type: IDC

Timeline