DoD's $37.3M IT Task Order for Computer Systems Design Services awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $37,339,284 ($37.3M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2023-07-01

End Date: 2023-12-31

Contract Duration: 183 days

Daily Burn Rate: $204.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: IT

Official Description: ITCC II PROCUREMENT TASK ORDER OPTION PD 7

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $37.3 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: ITCC II PROCUREMENT TASK ORDER OPTION PD 7 Key points: 1. The contract value represents a significant investment in IT infrastructure support. 2. Competition dynamics for this task order are crucial for assessing value for money. 3. Performance metrics and delivery timelines will be key indicators of success. 4. This contract falls within the broader IT services sector for the Department of Defense. 5. The duration of 183 days suggests a focused, short-term project or service period.

Value Assessment

Rating: fair

Benchmarking the $37.3 million value against similar IT task orders within the Department of Defense is challenging without more specific service details. The 'COST NO FEE' contract type suggests that the government reimburses the contractor for allowable costs, with no fee. This can sometimes lead to cost overruns if not managed tightly. Further analysis would require comparing actual incurred costs against projected budgets and industry standards for similar IT systems design services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders likely had the opportunity to submit proposals. This competitive process is generally expected to drive better pricing and service quality. The number of bidders and the evaluation criteria would provide further insight into the effectiveness of this competition in securing optimal value for the government.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, potentially leading to cost savings and better service delivery.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving essential computer systems design services. This contract supports the operational readiness and technological advancement of Air Force systems. The services delivered are critical for maintaining and potentially upgrading complex IT infrastructure. The geographic impact is likely concentrated within the Air Force's operational areas, though the exact locations are not specified.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep under a 'COST NO FEE' contract if not rigorously monitored.
Ensuring the selected vendor has the specialized expertise for complex IT systems design.
The short duration may indicate a need for rapid deployment, increasing execution risk.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The task order is for a specific IT function, implying a focused and potentially efficient service delivery.
The Department of Defense's significant investment signals the importance of these IT services.

Sector Analysis

This contract falls within the broader IT services sector, specifically Computer Systems Design Services (NAICS 541512). This sector is characterized by a wide range of companies, from large prime contractors to specialized small businesses, offering services like system integration, IT consulting, and custom software development. The Department of Defense is a major client in this sector, with significant spending on IT modernization and support. Comparable spending benchmarks would typically involve analyzing the average cost of similar task orders for IT systems design within defense agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Peraton Enterprise Solutions LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Peraton engages small businesses as subcontractors for specialized services or components.

Oversight & Accountability

Oversight for this task order would typically fall under the contracting officer and program management within the Department of the Air Force. Accountability measures would be defined in the contract's performance work statement (PWS). Transparency is facilitated by contract award databases, but detailed performance reports and Inspector General involvement would depend on specific findings or audits related to cost, performance, or compliance.

Related Government Programs

IT Systems Modernization
Cloud Computing Services
Cybersecurity Support
Defense Information Systems Agency (DISA) Contracts
Enterprise Resource Planning (ERP) Systems

Risk Flags

Cost Control Risk (Cost No Fee)
Schedule Adherence Risk (Short Duration)
Scope Definition Risk (Complex IT Design)
Performance Monitoring Intensity Required

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.3 million to PERATON ENTERPRISE SOLUTIONS LLC. ITCC II PROCUREMENT TASK ORDER OPTION PD 7

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 $37.3 million.

What is the period of performance?

Start: 2023-07-01. End: 2023-12-31.

What is the track record of Peraton Enterprise Solutions LLC in delivering similar IT systems design services to the Department of Defense?

Peraton Enterprise Solutions LLC has a significant history of contracting with the U.S. government, including the Department of Defense. They are known for providing a range of technology and mission support services. For IT systems design, their experience would encompass areas like network infrastructure, software development, and system integration. Specific performance data for this particular task order, such as on-time delivery, budget adherence, and quality of deliverables, would be detailed in performance reports and potentially available through contract performance assessment reporting tools. Analyzing past performance on similar contracts would reveal their ability to manage complex IT projects within the defense sector, including their capacity to meet stringent security and operational requirements.

How does the 'COST NO FEE' contract type typically compare in terms of value and risk to other contract types for IT services?

The 'COST NO FEE' (CNF) contract type is a variation of a cost-reimbursement contract where the contractor is reimbursed for allowable costs but receives no fee or profit. This type is typically used when the scope of work is uncertain or when the contractor is a non-profit or governmental entity. For IT services, CNF contracts can be advantageous if the primary goal is to ensure service availability or to facilitate research and development where profit is not the main incentive. However, they carry significant risk for the government regarding cost control. Without a fee to incentivize efficiency, contractors may have less motivation to minimize costs. Robust government oversight, detailed cost accounting, and clear performance metrics are essential to mitigate the risk of cost overruns and ensure value for money. Compared to fixed-price contracts, CNF offers flexibility but demands greater administrative effort and vigilance from the government to manage expenditures effectively.

What are the potential risks associated with a 183-day contract duration for complex IT systems design?

A 183-day (approximately six-month) duration for a task order involving complex IT systems design presents several potential risks. Firstly, it suggests a highly focused or urgent requirement, which can increase pressure on the contractor and potentially lead to rushed work or compromises in quality if not managed meticulously. Secondly, complex IT systems design often involves extensive planning, development, testing, and integration phases, which may be difficult to complete thoroughly within such a short timeframe. This could lead to scope creep, schedule delays, or the delivery of an incomplete or suboptimal system. Thirdly, the short duration might limit the contractor's ability to fully understand the long-term implications or scalability needs of the system, potentially requiring significant rework later. Finally, if the task order is part of a larger program, a compressed timeline could create integration challenges with other ongoing efforts.

What does the 'NE' (Nebraska) designation for 'st' (State) imply for the delivery of these IT services?

The 'NE' designation for 'st' (State) indicates that the contract was awarded to a contractor located in or primarily operating out of Nebraska. For IT systems design services, the physical location of the contractor can have implications for project management, communication, and potentially the cost structure, although many IT services can be delivered remotely. If the services require on-site presence at Department of the Air Force facilities, the Nebraska location might necessitate travel costs or the use of local support personnel. However, for many design and development tasks, remote collaboration tools and methodologies are standard, minimizing the impact of geographic distance. The specific nature of the 'Computer Systems Design Services' will determine the extent to which the contractor's state of operation affects service delivery and overall value.

How does the PSC code (if available) or NAICS code relate to the overall IT spending landscape within the Department of Defense?

The NAICS code 541512 ('Computer Systems Design Services') is a key indicator of the type of IT support being procured. This code encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. Within the Department of Defense's vast IT spending, this category represents a significant portion related to system architecture, development, and integration. DoD spending in this area is crucial for modernizing legacy systems, developing new command and control capabilities, and ensuring interoperability across different branches and platforms. Analyzing spending under this NAICS code provides insight into the DoD's investment in foundational IT capabilities, which underpin its operational effectiveness and strategic objectives. It's a critical component of the broader defense IT budget, often running into billions of dollars annually across various agencies and task orders.

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 NO FEE (S)

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: $37,339,284

Exercised Options: $37,339,284

Current Obligation: $37,339,284

Subaward Activity

Number of Subawards: 49

Total Subaward Amount: $12,673,785

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