DOJ's ATF spent over $84M on IT managed services, continuing a prior contract

Contract Overview

Contract Amount: $84,145,931 ($84.1M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Justice

Start Date: 2011-06-22

End Date: 2013-03-22

Contract Duration: 639 days

Daily Burn Rate: $131.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT MANAGED SERVICES (CONTINUATION OF ESA3)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20226

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $84.1 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IT MANAGED SERVICES (CONTINUATION OF ESA3) Key points: 1. The contract represents a significant investment in IT infrastructure for the ATF. 2. Performance is tied to a firm-fixed-price structure, indicating clear cost expectations. 3. The duration of the contract suggests a need for sustained IT support. 4. This award is a continuation, implying prior satisfactory performance. 5. The contract falls under R&D in Physical, Engineering, and Life Sciences, which may warrant further clarification given the IT managed services description. 6. The single award indicates a specific vendor was selected for this continuation.

Value Assessment

Rating: fair

The total award amount of over $84 million for IT managed services over approximately two years is substantial. Benchmarking this against similar large-scale IT managed service contracts within federal agencies is difficult without more granular data on the specific services provided. However, the firm-fixed-price structure suggests an attempt to control costs. The continuation of a prior contract (ESA3) implies a degree of value was perceived in the initial award, but a direct comparison to market rates for comparable services is not readily available from the provided data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it resulted in a single award suggests that Peraton Enterprise Solutions LLC was the most advantageous offer based on the evaluation criteria. While full and open competition is generally positive for price discovery, the specific details of the bidding process and the number of proposals received are not provided.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a competitive bidding environment, which typically leads to better pricing and service quality.

Public Impact

The primary beneficiaries are the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) personnel who rely on stable and efficient IT systems. The services delivered likely encompass a broad range of IT support, including network management, system maintenance, and potentially cybersecurity. The geographic impact is primarily within the District of Columbia, where the ATF is headquartered. Workforce implications may include the retention of specialized IT skills within the contractor's organization to support ATF operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The description 'Research and Development in the Physical, Engineering, and Life Sciences' for a contract explicitly labeled 'IT MANAGED SERVICES' raises a potential discrepancy that warrants clarification.
The absence of specific details on the scope of 'IT Managed Services' makes it challenging to fully assess value for money.
The continuation of a prior contract without explicit performance metrics makes it difficult to independently verify ongoing value.

Positive Signals

The contract was awarded through full and open competition, suggesting a robust selection process.
The firm-fixed-price contract type provides cost certainty for the government.
The continuation of the contract implies a level of satisfaction with the incumbent provider's performance.

Sector Analysis

This contract falls within the broader IT managed services sector, which is a critical component of federal IT infrastructure. The federal IT services market is substantial, with agencies increasingly relying on external vendors for specialized support. This contract, specifically for the ATF, highlights the ongoing need for robust IT operations within law enforcement and regulatory bodies. Comparable spending benchmarks for IT managed services can vary widely based on scope, duration, and complexity, but this award represents a significant investment in maintaining and operating essential IT systems.

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 for small businesses stemming from a small business set-aside. The primary focus of this award appears to be on large-scale IT managed services, likely requiring specialized capabilities that may not be readily available from smaller firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division within the Department of Justice. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is facilitated by the contract's award under full and open competition, with the award details being publicly available. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

IT Managed Services
Department of Justice IT Contracts
Law Enforcement Technology Support
Federal Civilian Agency IT Procurement

Risk Flags

Potential NAICS code misclassification
Lack of detailed performance data for predecessor contract
Limited transparency on specific IT services provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $84.1 million to PERATON ENTERPRISE SOLUTIONS LLC. IT MANAGED SERVICES (CONTINUATION OF ESA3)

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 $84.1 million.

What is the period of performance?

Start: 2011-06-22. End: 2013-03-22.

What specific IT managed services were included under this contract, and how do they align with the stated North American Industry Classification System (NAICS) code of 'Research and Development in th

The provided data lists the contract as 'IT MANAGED SERVICES (CONTINUATION OF ESA3)' with a NAICS code of 541712, which corresponds to 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. This presents a potential discrepancy, as IT managed services typically fall under different NAICS codes such as 541512 (Computer Systems Design Services) or 541513 (Computer Facilities Management Services). It is possible that the R&D code was applied due to specific research-oriented IT support functions within the ATF, or it could be an administrative misclassification. Without further details on the contract's statement of work, it is difficult to definitively reconcile the service description with the NAICS code. Clarification would be needed to understand the precise nature of the services rendered and the rationale behind the chosen classification.

How does the total contract value of over $84 million compare to other IT managed services contracts awarded by the Department of Justice or similar agencies?

The total award amount of $84,145,931.13 for IT managed services over approximately two years is a substantial figure. To provide a precise comparison, one would need to analyze a dataset of similar federal IT managed services contracts, filtering by agency (e.g., Department of Justice, other law enforcement agencies), contract duration, and scope of services. However, generally speaking, contracts of this magnitude are indicative of significant IT infrastructure support requirements. Agencies often award large contracts for managed services due to the complexity and criticality of their IT systems. Without access to a comprehensive database of comparable contracts and their specific service details, it's challenging to definitively state whether this represents a high, low, or average expenditure. Nevertheless, it signifies a major investment in maintaining the operational capabilities of the ATF's IT environment.

What was the performance history of the predecessor contract (ESA3) that this award continues?

The provided data indicates that this contract is a 'CONTINUATION OF ESA3'. While this implies that Peraton Enterprise Solutions LLC was the incumbent provider and that the ATF likely had a satisfactory experience with the prior contract to warrant its continuation, specific performance metrics or details from ESA3 are not included in this dataset. To assess the performance history, one would need to access contract performance reports, past performance evaluations, or any documented issues or successes related to ESA3. The continuation itself serves as an indirect indicator of acceptable performance, as agencies typically do not extend contracts without meeting certain standards. However, a thorough review would require access to more detailed historical contract data.

Given the firm-fixed-price contract type, what are the potential risks associated with scope creep or unforeseen technical challenges?

The firm-fixed-price (FFP) contract type is designed to provide cost certainty for the government by establishing a fixed price for a defined scope of work. For IT managed services, potential risks associated with scope creep include the contractor performing work beyond the original agreement without a formal modification and price adjustment. Unforeseen technical challenges could also arise, such as unexpected system failures or the need for complex troubleshooting that was not fully anticipated. In an FFP contract, the contractor typically bears the risk of cost overruns due to such issues. However, if the scope is not clearly defined or if significant unforeseen technical challenges arise, the contractor might seek contract modifications, which could lead to increased costs for the government. Robust contract management and clear definition of services are crucial to mitigate these risks.

What is the significance of this contract being a single award under full and open competition?

A single award under full and open competition suggests that while multiple vendors were eligible to bid, Peraton Enterprise Solutions LLC submitted the most advantageous proposal according to the evaluation criteria set forth by the ATF. This could be due to a combination of factors, including competitive pricing, superior technical approach, strong past performance, or a better understanding of the ATF's specific needs. From a taxpayer perspective, full and open competition is generally favorable as it fosters a competitive environment that can drive down prices and improve service quality. However, a single award might also indicate that the market for these specific IT managed services is concentrated, or that only one offeror met all the stringent requirements. Further analysis of the evaluation criteria and the number of bids received would provide more insight.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hewlett Packard Enterprise CO (UEI: 079834910)

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: $84,145,931

Exercised Options: $84,145,931

Current Obligation: $84,145,931

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2018

IDV Type: IDC

Timeline