DOJ's $61.4M ATF Task Order to Peraton Faces Scrutiny for Limited Competition and Potential Overpricing
Contract Overview
Contract Amount: $61,418,279 ($61.4M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Justice
Start Date: 2009-10-09
End Date: 2011-06-22
Contract Duration: 621 days
Daily Burn Rate: $98.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: IT
Official Description: EDS FISCAL YEAR 2010 MAIN TASK ORDER
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20226
Plain-Language Summary
Department of Justice obligated $61.4 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: EDS FISCAL YEAR 2010 MAIN TASK ORDER Key points: 1. The contract awarded to Peraton Enterprise Solutions LLC for $61.4 million raises concerns regarding the competitive landscape. 2. The fixed-price incentive contract structure could lead to cost overruns if not managed effectively. 3. Analysis of the pricing against similar contracts is crucial to determine fair value. 4. The lack of small business participation is noted.
Value Assessment
Rating: questionable
The contract's total value of $61.4 million requires a thorough benchmark against similar IT services contracts. Without detailed cost breakdowns and comparisons, it's difficult to definitively assess if the pricing is competitive or inflated.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Awarded as a competitive delivery order, the data suggests limited competition, potentially impacting price discovery. The specific reasons for limited competition and the evaluation process are key to understanding the price achieved.
Taxpayer Impact: The potential for overpricing due to limited competition directly impacts taxpayer funds, necessitating careful oversight to ensure value for money.
Public Impact
Taxpayers may be overpaying for IT services due to a potentially uncompetitive award. Lack of transparency in the procurement process could set a precedent for future contracts. The ATF's reliance on a single vendor for this task order warrants further investigation into its necessity and the vendor's performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for cost overruns
- Lack of small business participation
Positive Signals
- Fixed-price incentive contract structure can incentivize performance
- Contract awarded to a known entity
Sector Analysis
This contract falls within the Information Technology sector, specifically for IT services. Benchmarking IT service contracts is essential, as costs can vary widely based on complexity, duration, and vendor expertise.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests that opportunities for small businesses were either not pursued or not met in this procurement, which could be a missed opportunity for economic development.
Oversight & Accountability
Oversight of this task order is critical, especially given the fixed-price incentive structure. The Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division should ensure rigorous monitoring of performance and costs to prevent waste.
Related Government Programs
- Department of Justice Contracting
- Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division Programs
Risk Flags
- Limited competition raises concerns about price fairness.
- Potential for cost overruns due to FPI structure.
- Lack of small business participation.
- Contract duration of 621 days is substantial.
- PSC code is missing, hindering specific benchmarking.
Tags
department-of-justice, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $61.4 million to PERATON ENTERPRISE SOLUTIONS LLC. EDS FISCAL YEAR 2010 MAIN TASK ORDER
Who is the contractor on this award?
The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).
What is the total obligated amount?
The obligated amount is $61.4 million.
What is the period of performance?
Start: 2009-10-09. End: 2011-06-22.
What specific factors led to limited competition for this task order, and how were these addressed in the procurement process?
The limited competition for this task order likely stems from specific requirements or existing vendor relationships that narrowed the field of eligible bidders. Agencies typically justify limited competition by citing factors such as unique capabilities, urgent needs, or the follow-on nature of the work. A thorough review of the justification for other than full and open competition (JOFOC) or similar documentation is necessary to understand the rationale and assess whether it was appropriate and adequately documented.
How does the fixed-price incentive (FPI) contract structure impact the potential for cost overruns and taxpayer risk?
An FPI contract establishes target costs, target profits, and ceiling prices. While it incentivizes the contractor to control costs by sharing savings below the target cost, it also means the government shares in cost overruns above the target cost, up to the ceiling. This structure can lead to taxpayer risk if the contractor's cost estimates are inaccurate or if unforeseen issues drive costs significantly higher than anticipated, potentially exceeding the ceiling.
What is the estimated value of this contract relative to similar IT services procured by the Department of Justice or other federal agencies?
Without access to a comprehensive database of comparable IT services contracts, a precise valuation is challenging. However, a $61.4 million task order over approximately two years suggests a significant investment. Benchmarking against contracts for similar scope, duration, and complexity, particularly those awarded through competitive processes, is essential to determine if this represents fair market value or if there are indications of overpricing.
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: HP, Inc. (UEI: 009122532)
Address: 13600 EDS DR, HERNDON, VA, 11
Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $61,418,279
Exercised Options: $61,418,279
Current Obligation: $61,418,279
Parent Contract
Parent Award PIID: DCA20002D5007
IDV Type: IDC
Timeline
Start Date: 2009-10-09
Current End Date: 2011-06-22
Potential End Date: 2011-06-22 00:00:00
Last Modified: 2012-07-13
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