DoD's $25.5M IT Support Contract for Dental Command Awarded to Peraton Inc
Contract Overview
Contract Amount: $25,508,785 ($25.5M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2012-05-21
End Date: 2016-06-08
Contract Duration: 1,479 days
Daily Burn Rate: $17.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IT SUPPORT SERVICES FOR U.S. DENTAL COMMAND (DENCOM)
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $25.5 million to PERATON INC. for work described as: IT SUPPORT SERVICES FOR U.S. DENTAL COMMAND (DENCOM) Key points: 1. Contract value represents a significant investment in IT infrastructure for a specialized military health command. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of nearly 5 years indicates a need for sustained IT support. 4. The fixed-price contract type aims to control costs for the government. 5. The specific NAICS code (517110) points to services related to wired telecommunications infrastructure. 6. The contract was awarded as a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.
Value Assessment
Rating: fair
Benchmarking the value of this IT support contract is challenging without more specific details on the scope of services and the technology involved. However, a nearly five-year contract valued at over $25 million for IT support within a specific command suggests a substantial investment. The fixed-price nature of the contract is a positive indicator for cost control, but the actual value-for-money depends heavily on the quality and efficiency of the services delivered. Comparing this to similar IT support contracts for specialized government entities would provide a clearer picture of its relative cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific award. While two bidders are better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to vie for the contract, which can drive down costs and improve service quality through competitive pressures.
Public Impact
Personnel within the U.S. Dental Command (DENCOM) benefit from reliable IT infrastructure and support services. The contract ensures the continuity and efficiency of critical IT operations supporting DENCOM's mission. Services likely include network management, hardware/software support, and telecommunications for DENCOM facilities. The geographic impact is primarily focused on DENCOM's operational locations, which may be dispersed. Workforce implications include the potential for Peraton Inc. to utilize its own IT professionals or engage subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if services are highly specialized and difficult to transition.
- Risk of cost overruns if the fixed-price contract does not adequately account for unforeseen technical challenges.
- Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a fair process.
- Fixed-price contract type helps to manage government expenditure.
- Long-term contract duration suggests a stable and reliable IT support solution.
- Peraton Inc. is an established government contractor with experience in IT services.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on telecommunications and wired network infrastructure. The IT services market for the federal government is substantial, with significant spending allocated annually to maintain and upgrade complex systems. Contracts like this are crucial for enabling the operational effectiveness of specialized government agencies, such as military health commands. Benchmarking against similar IT support contracts for Department of Defense entities would provide further context on the scale and pricing of this award.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Peraton Inc., may engage small businesses as subcontractors to fulfill parts of the contract requirements, depending on their own subcontracting strategies and the specific needs of the IT support services.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, quality assurance, and compliance with contract terms are key oversight functions. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.
Related Government Programs
- DoD IT Modernization Programs
- Military Health System IT Infrastructure
- General Services Administration (GSA) IT Schedule Contracts
- Defense Information Systems Agency (DISA) Support Contracts
Risk Flags
- Contract Duration
- Competition Level
- Contract Type
Tags
it-services, department-of-defense, department-of-the-army, full-and-open-competition, delivery-order, firm-fixed-price, wired-telecommunications-carriers, texas, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.5 million to PERATON INC.. IT SUPPORT SERVICES FOR U.S. DENTAL COMMAND (DENCOM)
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $25.5 million.
What is the period of performance?
Start: 2012-05-21. End: 2016-06-08.
What is Peraton Inc.'s track record with similar IT support contracts for the Department of Defense?
Peraton Inc. has a significant history of performing IT and telecommunications services for various U.S. government agencies, including the Department of Defense. They have held numerous contracts involving network infrastructure, cybersecurity, and managed IT services. Their experience often includes supporting complex, mission-critical operations. Analyzing their past performance on similar-sized contracts, particularly those involving fixed-price structures and long durations, would provide insight into their reliability and ability to deliver within budget and schedule. Specific contract performance metrics, such as past performance evaluations and any documented issues or successes, would be crucial for a comprehensive assessment.
How does the per-unit cost or overall value compare to similar IT support contracts for military health commands?
Direct comparison of per-unit costs is difficult without detailed service breakdowns. However, the total contract value of approximately $25.5 million over nearly five years for IT support to the U.S. Dental Command (DENCOM) can be benchmarked against other IT support contracts for specialized military commands. For instance, similar contracts supporting other branches or health-focused commands within the DoD might range from tens to hundreds of millions of dollars, depending on scope, user base, and technological complexity. The fixed-price nature suggests an effort to cap costs. A detailed analysis would require comparing the scope of services (e.g., number of users supported, types of hardware/software managed, network complexity) and the specific deliverables against market rates for comparable IT support services within the federal sector.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential performance shortfalls by the contractor, leading to disruptions in critical IT services for DENCOM. Another risk is the possibility of cost growth if the fixed-price contract doesn't adequately account for unforeseen technical challenges or scope creep, although the fixed-price structure aims to mitigate this. Vendor lock-in is also a concern if the implemented solutions are highly proprietary. Mitigation strategies likely involve robust performance monitoring by the government, clearly defined service level agreements (SLAs), regular progress reviews, and contingency planning. The government's ability to enforce contract terms and potentially seek remedies for non-performance also serves as a mitigation factor.
How effective has Peraton Inc. been in delivering IT support services under previous government contracts?
Assessing Peraton Inc.'s overall effectiveness requires reviewing their past performance records, including any available contractor performance assessment reports (CPARS). Generally, Peraton has a substantial portfolio of government contracts, indicating a capacity to secure and manage large-scale IT projects. Their performance history would detail their success in meeting deadlines, quality standards, and budget requirements. Any instances of significant underperformance, contract disputes, or successful contract completions would be critical indicators. Without access to specific CPARS data for this particular contract or closely related ones, a definitive statement on effectiveness is limited, but their continued success in winning competitive bids suggests a generally positive performance record.
What are the historical spending patterns for IT support within the U.S. Dental Command or similar military health organizations?
Historical spending on IT support for organizations like the U.S. Dental Command (DENCOM) typically reflects the evolving needs for digital health records, network connectivity, and data security. Spending often increases with the adoption of new technologies, expansion of digital services, and heightened cybersecurity requirements. Prior to this $25.5 million contract, DENCOM would have had existing IT support arrangements, potentially through different contracts or task orders, the spending on which would provide a baseline. Analyzing year-over-year IT spending for DENCOM or comparable military health entities would reveal trends, identify periods of significant investment or cost-saving measures, and contextualize the current contract's value within a broader historical financial landscape.
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
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 12975 WORLDGATE STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,508,785
Exercised Options: $25,508,785
Current Obligation: $25,508,785
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $7,189,797
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ07D0001
IDV Type: IDC
Timeline
Start Date: 2012-05-21
Current End Date: 2016-06-08
Potential End Date: 2016-06-08 00:00:00
Last Modified: 2022-04-08
More Contracts from Peraton Inc.
- 200107!000034!5700!GZ80 !smc/Pks !F0470101C0001 !A!N!*!Y! !20001103!20061031!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000016429445!n!n!000000000000!ac26!rdte/Missile and Space Systems-Mgmt Support !A2 !missile and Space Systems !3000!NOT Discernable or Classified !541710!*!*!3! ! ! !*!*!*!B!*!*!B! !A !Y!R!2!003!B! !A!N!Z! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! !Y! ! !0001! — $1.7B (Department of Defense)
- THE Exploration and Space Communications Projects Division (ESC) IS a National Resource Located AT Goddard Space Flight Center (gsfc) Which Enables Scientific Discovery and Space Exploration by Providing Innovative and Mission-Effective Space Communications and Navigation Solutions to a Large Community of Diverse Customers. ESC Manages Operational Geostationary Communications Relay Satellites and Ground Systems for the Space Communications and Navigation (scan) Program AT Nasa Headquarters. Today, Scan Network Systems Consist of the Space Network (SN), the Near Earth Network (NEN), and the Deep Space Network (DSN). the Day-To-Day Management of These Three Networks IS Currently NOT Fully Consistent. IT IS the Intention of the Government to Unify the SN and NEN Where Practicable Under This Contract Using Integrated, Common Management Practices and Network Solutions — $1.5B (National Aeronautics and Space Administration)
- Nasa Goddard Space Flight Center's (gsfc) Goal for the Space Communications Networks Services Contract (scns) IS to Enable Mission Success for Every Customer Using Scns Services. KEY Objectives of the Scns Contract ARE to Decrease Cost and Maintain or Improve Operational Efficiency and Reliability, While Maintaining an Acceptable Level of Risk and Providing for Safe Operation of the Missions. the Contractor Shall Implement a Safety, Health, and Mission Assurance Program That Provides a Safe and Healthy Work Environment, Minimizes Program Risk, and Maximizes Nasa Mission Success. the Contractor Shall BE Responsible and Accountable for Achieving the Required Results. Core Requirement Functions, Such AS Configuration Management, Quality Assurance, ETC. ARE Required to Support Idiq Task Orders. the Space Network (SN) IS Comprised of a Fleet of On-Orbit Tracking and Data Relay Satellites (tdrs) and Associated Ground Systems That Provide Telecommunications Services. the Nature of the SN Architecture, I.E., Extremely Large Capital Investment, Contractor Operated Facilities, Continuous 24X7 Requirements, ETC., Lends Itself to a Core Requirements Approach. the Ground Network (GN) Consists of an Orbital Tracking Network and the Satellite Laser Ranging Network. the Nature of the Ground Network Architecture, I.E., Diverse MIX of Commercial and Government Assets, Evolving Geographic and Technical Customer Requirements, and Legacy Systems, ETC. Lends Itself to an Idiq Approach. Other Activities, I.E., Very Long Baseline Interferometry Network Operations and Maintenance (O&M), Electronic System Test Laboratory, Requirements Development, Hardware and Software Development, ETC. ARE Best Suited to an Idiq Approach in the Resource-Constrained Environment That Nasa Operates in — $1.2B (National Aeronautics and Space Administration)
- Operational Planning Implementation and Assessment Services (opias) Base Award — $800.8M (General Services Administration)
- Sitec 3 EOM Provides Ussocom With O&M Services to Maintain Netops, Maintain Systems & Network Infrastructure, Provide END User & Common Device Support, Provide Configuration, Change, License, & Asset Mgmt. Conduct Training and Perform Imacs Services — $651.0M (General Services Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)