Department of Education Obligated $12.58M to Peraton Enterprise Solutions LLC for IT Services
Contract Overview
Contract Amount: $12,577,646 ($12.6M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Education
Start Date: 2004-09-30
End Date: 2008-12-12
Contract Duration: 1,534 days
Daily Burn Rate: $8.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DEOBLIGATION
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202
Plain-Language Summary
Department of Education obligated $12.6 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: DEOBLIGATION Key points: 1. Contract awarded to Peraton Enterprise Solutions LLC. 2. The contract was not competed, raising potential concerns about price discovery. 3. The contract duration was 1534 days, indicating a long-term commitment. 4. The total value of the contract was $12.58 million. 5. The contract was awarded by the Department of Education.
Value Assessment
Rating: questionable
The contract value of $12.58 million for IT services over 1534 days is difficult to benchmark without specific service details. The lack of competition makes a direct pricing assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices due to a lack of market pressure and potentially less favorable terms for the government.
Taxpayer Impact: The lack of competition may have resulted in taxpayers paying more than necessary for the IT services provided.
Public Impact
Taxpayers may have overpaid due to the non-competitive nature of the award. The Department of Education relied on a single vendor for IT services for an extended period. Lack of transparency in the procurement process could hinder future competitive bidding opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited vendor options
Positive Signals
- Long-term vendor relationship established
Sector Analysis
The IT sector is characterized by rapid technological advancements and diverse service needs. Benchmarking IT contract spending requires detailed analysis of service scope, duration, and vendor capabilities, which is limited here due to the non-competitive nature.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature of the award likely excluded small business participation.
Oversight & Accountability
The non-competitive award raises questions about the oversight applied during the procurement process. Further review would be needed to confirm if justification for sole-source was adequately documented and approved.
Related Government Programs
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs
- Limited transparency in procurement
- Risk of vendor lock-in
Tags
department-of-education, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $12.6 million to PERATON ENTERPRISE SOLUTIONS LLC. DEOBLIGATION
Who is the contractor on this award?
The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $12.6 million.
What is the period of performance?
Start: 2004-09-30. End: 2008-12-12.
What was the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED'. A full justification for a sole-source award would typically involve detailed documentation explaining why only one vendor could meet the requirement, such as unique capabilities, urgent need, or lack of available alternatives. Without this documentation, it's impossible to assess the validity of the sole-source decision.
How did the Department of Education ensure fair pricing without competition?
Ensuring fair pricing without competition is inherently challenging. Agencies typically rely on historical pricing data, independent government cost estimates, or price analysis techniques based on commercial prices for similar items. The absence of competitive bids means there's no market-driven validation of the price, increasing the risk of overpayment.
What was the impact of this long-term, non-competitive contract on the Department of Education's IT infrastructure and vendor landscape?
A long-term, non-competitive contract can lead to vendor lock-in, potentially stifling innovation and making it difficult to adopt new technologies. It may also reduce the incentive for the incumbent vendor to maintain competitive pricing or service levels. Furthermore, it limits opportunities for other vendors, including small businesses, to enter the market and provide services.
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: HP, Inc. (UEI: 009122532)
Address: 13600 EDS DR, HERNDON, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,520,673
Exercised Options: $12,577,646
Current Obligation: $12,577,646
Parent Contract
Parent Award PIID: ED03CO0102
IDV Type: IDC
Timeline
Start Date: 2004-09-30
Current End Date: 2008-12-12
Potential End Date: 2008-12-12 00:00:00
Last Modified: 2010-04-10
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