DoD's $26M ITCC II contract to Peraton Enterprise Solutions LLC for computer systems design services

Contract Overview

Contract Amount: $25,977,845 ($26.0M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2025-12-31

Contract Duration: 1,644 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ITCC II CPFF PROJECTS

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: ITCC II CPFF PROJECTS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The Cost Plus Fixed Fee (CPFF) pricing structure carries inherent risk of cost overruns. 3. Delivery Order under a larger IDIQ contract (ITCC II) indicates a phased approach to IT services. 4. The contract duration of over four years suggests a significant, long-term IT support requirement. 5. Focus on computer systems design services points to critical infrastructure support for the Air Force. 6. The absence of small business set-aside flags potential missed opportunities for smaller firms.

Value Assessment

Rating: fair

Benchmarking the value of this $25.98 million contract is challenging without specific deliverables and performance metrics. However, the CPFF structure, while common for complex IT projects, can lead to higher costs compared to fixed-price contracts if not managed tightly. Comparing this to similar large-scale computer systems design contracts within the DoD would provide better context on its relative value. The contract's duration and scope suggest a substantial investment, and its effectiveness will depend on the successful delivery of the designed systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The Air Force likely sought the best technical solution and value through this open process, aiming to leverage the broadest possible market.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and a wider range of innovative solutions, potentially leading to better value for public funds.

Public Impact

The primary beneficiary is the Department of the Air Force, receiving essential computer systems design services. This contract supports the modernization and maintenance of critical IT infrastructure. The services are likely to have a significant impact on Air Force operations within Nebraska, where the contract is managed. Workforce implications may include the need for specialized IT professionals, both within the contractor and potentially within the government for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize fee.
Long contract duration (over 4 years) increases the risk of scope creep and potential for outdated technology by completion.
Lack of specific performance metrics or outcome-based measures makes it difficult to assess true value for money.
No explicit small business subcontracting goals mentioned, potentially limiting opportunities for smaller businesses.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process and potential for competitive pricing.
Contract is a Delivery Order under a larger IDIQ, indicating a structured approach to fulfilling IT needs.
Focus on computer systems design is crucial for maintaining and modernizing essential Air Force IT infrastructure.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with significant spending allocated to system design, integration, and support. Contracts like this are crucial for maintaining and upgrading the complex technological infrastructure required by defense agencies. Benchmarks for similar IT systems design contracts within the DoD often range in the tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary contractor, Peraton Enterprise Solutions LLC, will likely handle the majority of the work. While larger prime contractors often engage small businesses for subcontracting, the absence of specific set-aside or reporting requirements means opportunities for small businesses in this particular contract may be limited or at the discretion of the prime.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program management office within the Department of the Air Force. As a Delivery Order under an IDIQ, the overarching ITCC II contract likely has established oversight mechanisms. Transparency is facilitated by public contract databases, but detailed performance reports and specific oversight activities are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Professional Services
Computer Systems Design
Defense Information Technology Contracting
Air Force IT Modernization Programs
IDIQ Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure
Long contract duration
Lack of specific performance metrics in provided data
No explicit small business subcontracting requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to PERATON ENTERPRISE SOLUTIONS LLC. ITCC II CPFF PROJECTS

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 Air Force).

What is the total obligated amount?

The obligated amount is $26.0 million.

What is the period of performance?

Start: 2021-07-01. End: 2025-12-31.

What is the track record of Peraton Enterprise Solutions LLC with similar large-scale IT design contracts for the Department of Defense?

Peraton Enterprise Solutions LLC has a significant history of performing large-scale IT and defense-related contracts. As a major government contractor, they have been awarded numerous prime contracts across various agencies, including the Department of Defense. Their experience often spans areas like enterprise IT services, cybersecurity, cloud migration, and systems integration. Analyzing their past performance on similar Cost Plus Fixed Fee (CPFF) contracts, particularly those involving complex systems design and long durations, would be crucial. This includes reviewing past performance evaluations, any documented issues or successes, and their ability to manage costs and deliver within schedule on comparable projects. Understanding their specific expertise in computer systems design services for the Air Force would provide further context for this ITCC II contract.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar IT systems design services, and what are the associated risks?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development or complex projects where the scope is not fully defined at the outset, allowing for flexibility. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to fixed-price contracts, CPFF can offer greater flexibility but carries a higher risk of cost overruns for the government, as the contractor is incentivized to incur costs to increase the base upon which the fee is calculated (though the fee itself is fixed). For IT systems design, fixed-price contracts might be suitable if requirements are very well-defined, potentially offering better cost certainty. However, for innovative or evolving design projects, CPFF can facilitate adaptation. The key risk is ensuring robust government oversight to manage costs effectively and prevent inefficiencies.

What are the specific performance metrics or key performance indicators (KPIs) associated with this contract, and how is performance being measured?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this ITCC II contract. Typically, for a contract of this nature, KPIs would be defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These might include metrics related to system design quality, adherence to technical specifications, project timelines, successful integration testing, user satisfaction, and potentially cybersecurity compliance. The effectiveness of the contract is measured by the government's assessment of whether Peraton Enterprise Solutions LLC meets these defined performance standards. Without access to the SOW/PWS and performance reports, a detailed assessment of how performance is being measured and achieved is not possible.

What is the historical spending trend for computer systems design services by the Department of the Air Force, and how does this contract fit within that trend?

The Department of the Air Force consistently spends significant amounts on IT services, including computer systems design, to maintain and modernize its vast technological infrastructure. Historical spending trends show a continuous demand for these services, often driven by evolving threats, technological advancements, and the need for operational efficiency. This $25.98 million contract represents a specific investment within that broader trend. It is likely part of a larger strategy to upgrade or maintain specific systems or networks. Analyzing past years' spending on similar services would reveal whether this contract amount is typical, an increase, or a decrease relative to previous investments, providing context on the Air Force's current priorities and budget allocation for IT systems design.

Are there any known risks or challenges associated with the ITCC II IDIQ contract vehicle itself, beyond the specifics of this delivery order?

The ITCC II (Information Technology Center Contract II) IDIQ contract vehicle, managed by the Air Force, is designed to provide a broad range of IT services. Like any large IDIQ vehicle, potential risks can include the complexity of managing numerous delivery orders, ensuring consistent quality across different task orders and contractors, and the potential for scope creep if requirements are not tightly managed at the task order level. There's also the risk that the vehicle might not always represent the most cost-effective solution if competition within subsequent delivery orders is not robust or if the underlying contract terms are not optimal. Furthermore, the rapid pace of technological change means that the services procured under such a vehicle need continuous evaluation to ensure they remain relevant and effective.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,970,034

Exercised Options: $31,309,914

Current Obligation: $25,977,845

Actual Outlays: $269,311

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA460021D0001

IDV Type: IDC

Timeline