DoD's Air Force Awards $24M CPFF Contract for Computer Systems Design Services to Peraton
Contract Overview
Contract Amount: $24,020,407 ($24.0M)
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: $14.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: AFLCMC CPFF PROJECT TRANSFER FROM FA4600-16-C-0008 - TASK ORDER ESTABLISHMENT
Place of Performance
Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $24.0 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: AFLCMC CPFF PROJECT TRANSFER FROM FA4600-16-C-0008 - TASK ORDER ESTABLISHMENT Key points: 1. The contract is for computer systems design services, a critical area for defense operations. 2. Peraton Enterprise Solutions LLC, the awardee, is a significant player in the government contracting space. 3. The contract's cost-plus-fixed-fee (CPFF) structure requires careful monitoring to ensure cost control. 4. The sector is IT services, a large and competitive market within federal spending.
Value Assessment
Rating: good
The contract value of $24M over approximately 4 years appears reasonable for complex computer systems design services. Benchmarking against similar CPFF contracts for IT services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should lead to fair pricing. The use of a delivery order mechanism within this framework is standard.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering competitive pricing and encouraging efficient service delivery.
Public Impact
Ensures continued modernization and support for Air Force IT systems. Supports critical defense infrastructure through advanced computer systems design. Potential for technological advancements in defense capabilities. Impacts the IT services sector by creating demand for specialized skills.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type requires diligent oversight to manage costs effectively.
- Long duration (over 4 years) necessitates ongoing performance monitoring.
- No small business set-aside, potentially limiting opportunities for smaller firms.
Positive Signals
- Awarded under full and open competition, indicating a robust selection process.
- Services are critical to Air Force operational capabilities.
- Experienced contractor likely to deliver required services.
Sector Analysis
The IT services sector is highly dynamic, with significant federal spending allocated to systems design, integration, and support. Benchmarks for similar contracts vary widely based on complexity and duration.
Small Business Impact
This contract was not set aside for small businesses, meaning opportunities for small business participation may be limited unless subcontracting occurs. Further analysis would be needed to determine if small businesses are involved.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The CPFF structure necessitates robust financial and performance monitoring to ensure accountability and prevent cost overruns.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost overruns due to CPFF structure.
- Potential for scope creep impacting budget.
- Contractor performance not meeting evolving Air Force requirements.
- Cybersecurity vulnerabilities in designed systems.
- Dependency on a single contractor for critical IT functions.
Tags
computer-systems-design-services, department-of-defense, ne, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.0 million to PERATON ENTERPRISE SOLUTIONS LLC. AFLCMC CPFF PROJECT TRANSFER FROM FA4600-16-C-0008 - TASK ORDER ESTABLISHMENT
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 $24.0 million.
What is the period of performance?
Start: 2021-07-01. End: 2025-12-31.
What is the projected return on investment for these computer systems design services in terms of enhanced Air Force operational efficiency or security?
Quantifying the precise ROI is challenging without specific performance metrics and operational goals. However, effective computer systems design is fundamental to maintaining and improving the Air Force's technological edge, contributing to enhanced mission effectiveness, cybersecurity, and potentially long-term cost savings through optimized infrastructure and reduced downtime.
What are the primary risks associated with the CPFF contract type for this project, and how are they being mitigated?
The primary risk with CPFF is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. Mitigation strategies include stringent cost accounting standards, detailed audits, clear definition of allowable costs, and robust oversight by the contracting officer to ensure all expenditures are necessary and reasonable for project completion.
How does the chosen contractor, Peraton Enterprise Solutions LLC, compare to other potential providers in terms of innovation and long-term strategic value for the Air Force?
Peraton is a recognized provider of IT and defense solutions. While the full and open competition likely surfaced other innovative bidders, Peraton's established presence suggests a capacity to deliver complex services. Long-term strategic value would depend on their ability to adapt to evolving Air Force needs, integrate new technologies, and provide reliable support throughout the contract lifecycle.
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: $29,081,717
Exercised Options: $29,081,717
Current Obligation: $24,020,407
Actual Outlays: $386,653
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $866,362
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
Start Date: 2021-07-01
Current End Date: 2025-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-14
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