DoD's $30.8M contract for engineering task orders awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $30,820,276 ($30.8M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2025-12-19

Contract Duration: 1,632 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: BASELINE ENGINEERING TASK ORDER

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $30.8 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: BASELINE ENGINEERING TASK ORDER Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost savings but also carries inherent risk. 3. Performance period spans over 4 years, indicating a long-term need for these services. 4. The contract is for Computer Systems Design Services, a critical area for defense operations. 5. No small business set-aside was utilized, potentially limiting opportunities for smaller firms in this contract. 6. The contract is a delivery order under a larger contract vehicle, implying it's part of a broader acquisition strategy.

Value Assessment

Rating: fair

Benchmarking the value of this $30.8 million contract is challenging without specific performance metrics or comparable contract data. The CPIF contract type means the final cost is subject to performance incentives, making direct price comparisons difficult. However, the duration of over four years suggests a significant investment in engineering task orders. Further analysis would require understanding the specific services rendered and comparing them to industry standards for similar system design and integration projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this approach generally fosters a competitive environment, which can lead to better pricing and innovation. The agency likely sought the best value through a structured evaluation process. The absence of specific details on the bidding process means a precise assessment of competition intensity is limited.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple companies to compete, potentially driving down costs and improving the quality of services received.

Public Impact

The Department of the Air Force benefits from enhanced computer systems design and engineering support. This contract supports critical defense infrastructure and operational capabilities. The services are likely to impact the technological readiness and efficiency of Air Force operations. Workforce implications may include specialized engineering and IT professionals supporting the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPIF contract type introduces potential for cost overruns if incentives are not structured effectively.
Lack of small business set-aside may limit broader economic participation.
Dependence on a single contractor for a significant period could pose continuity risks if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long-term contract duration indicates a sustained need and potential for stable support.
Focus on computer systems design is crucial for modern defense capabilities.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the broader IT and defense industries. The market for these services is highly competitive, with numerous firms offering specialized expertise. The Department of Defense is a major consumer of such services, investing heavily in maintaining and upgrading its complex technological infrastructure. Benchmarks for similar contracts would typically consider the scope of system design, integration complexity, and the level of security clearance required.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of specific subcontracting goals for small businesses. This means that opportunities for small businesses to directly participate in this specific contract are limited. While the prime contractor may engage small businesses as subcontractors, the absence of explicit set-aside provisions suggests that the primary focus was on securing the best overall offer from any qualified source, potentially overlooking specific small business development objectives.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures are embedded within the Cost Plus Incentive Fee (CPIF) structure, which links contractor payment to performance outcomes. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Air Force Network Integration
Cloud Computing Services Contracts
Cybersecurity Support Services

Risk Flags

Cost Plus Incentive Fee (CPIF) contract type requires careful monitoring to manage costs.
Long-term duration of the contract necessitates robust performance management.
Lack of explicit small business subcontracting goals may limit broader economic impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.8 million to PERATON ENTERPRISE SOLUTIONS LLC. BASELINE ENGINEERING 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 Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $30.8 million.

What is the period of performance?

Start: 2021-07-01. End: 2025-12-19.

What is the track record of Peraton Enterprise Solutions LLC with similar Cost Plus Incentive Fee (CPIF) contracts within the Department of Defense?

Peraton Enterprise Solutions LLC has a history of performing various IT and engineering services for the Department of Defense. Analyzing their past CPIF contracts would involve reviewing performance reports, award fees, and any documented issues or successes. CPIF contracts require careful monitoring to ensure the incentive structure effectively drives desired outcomes without leading to excessive costs. A review of Peraton's historical performance on similar contracts would assess their ability to manage costs, meet performance targets, and deliver value under this specific contract type. Without access to detailed performance data and award fee determinations for Peraton's prior CPIF contracts, a definitive assessment of their track record is limited. However, their continued awards suggest a generally satisfactory performance history.

How does the awarded amount of $30.8 million compare to similar computer systems design services contracts awarded by the Air Force or other DoD branches?

Comparing the $30.8 million value requires context regarding the scope, duration, and complexity of the services. Computer systems design contracts can vary significantly. For a contract spanning over four years (July 2021 to December 2025), $30.8 million translates to an average annual value of approximately $7.7 million. This figure needs to be benchmarked against contracts for similar system design, integration, and engineering support within the DoD. Factors such as the number of systems involved, the level of customization, security requirements, and the specific technologies being designed heavily influence pricing. Without detailed service descriptions and comparable contract data, it's difficult to definitively state if this represents high or low value. However, it appears to be a substantial investment indicative of significant system development or enhancement.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for computer systems design services?

The primary risks with a CPIF contract for computer systems design services revolve around cost control and performance alignment. For the government, the risk is that the contractor may not achieve the target cost savings or performance improvements, leading to higher-than-expected expenditures. The contractor bears risk related to not meeting performance targets, which can reduce their profit margin. For complex system design, defining clear, measurable, and achievable performance metrics can be challenging. If metrics are poorly defined, it can lead to disputes or unintended consequences. Additionally, the administrative burden of monitoring and evaluating performance to determine incentive payouts is higher for the government compared to fixed-price contracts. Ensuring the incentive structure truly aligns contractor behavior with government objectives is paramount.

What is the expected impact of this contract on the Air Force's overall IT infrastructure modernization efforts?

This contract is expected to contribute directly to the Air Force's IT infrastructure modernization by providing essential engineering task orders for computer systems design. Modernization efforts often involve upgrading legacy systems, integrating new technologies, and enhancing network capabilities. The specific focus on computer systems design suggests that this contract will support the development or refinement of the underlying architecture and functionalities of critical IT systems. This could involve designing new platforms, optimizing existing ones, or ensuring interoperability between different components. Successful execution of these task orders should lead to a more robust, secure, and efficient IT infrastructure, better equipped to support current and future Air Force missions.

How has spending on computer systems design services by the Department of the Air Force trended over the past five years?

Analyzing the spending trends for computer systems design services by the Department of the Air Force over the past five years would require access to historical contract databases and budget reports. Generally, defense agencies like the Air Force have consistently invested significant funds in IT services, including system design, to maintain technological superiority and operational effectiveness. Spending in this area is often influenced by evolving threats, technological advancements (e.g., cloud migration, AI integration), and specific modernization initiatives. It is plausible that spending has increased or remained high due to the increasing reliance on sophisticated digital systems for command, control, intelligence, and logistics. A detailed trend analysis would reveal specific patterns and priorities within the Air Force's IT acquisition strategy.

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 INCENTIVE FEE (V)

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: $32,953,595

Exercised Options: $32,953,595

Current Obligation: $30,820,276

Actual Outlays: $382,167

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $981,825

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