DoD's $39.8M ITCC II contract to Peraton Enterprise Solutions for computer systems design services

Contract Overview

Contract Amount: $39,806,531 ($39.8M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-01

End Date: 2024-12-31

Contract Duration: 183 days

Daily Burn Rate: $217.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: IT

Official Description: ITCC II - PROCUREMENT OP PD 8 (1 JUN 2024 - 31 DEC 2024)

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $39.8 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: ITCC II - PROCUREMENT OP PD 8 (1 JUN 2024 - 31 DEC 2024) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is relatively short (183 days), indicating a focused scope or interim solution. 3. The award amount of $39.8M for a 6-month period warrants scrutiny for cost-effectiveness. 4. The specific task order (ITCC II - PROCUREMENT OP PD 8) suggests it's part of a larger IT framework. 5. The contractor, Peraton Enterprise Solutions LLC, is a significant player in the government contracting space. 6. The service category (Computer Systems Design Services) is critical for modern defense operations.

Value Assessment

Rating: fair

The contract value of $39.8 million for a 183-day period averages approximately $217,522 per day. Benchmarking this against similar, shorter-term IT system design contracts is challenging without more granular data on the specific services rendered. However, the daily rate suggests a substantial investment for the defined period, necessitating a close review of the deliverables and the necessity of this specific award within the broader ITCC II framework.

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 number of bidders is not specified, but this procurement method generally fosters price discovery and allows the government to select the best value offer. The competitive nature is a positive indicator for achieving a fair market price.

Taxpayer Impact: A full and open competition aims to ensure taxpayer dollars are used efficiently by driving down costs through market forces and selecting the most advantageous offer.

Public Impact

The Department of the Air Force benefits from enhanced computer systems design capabilities. This contract supports critical IT infrastructure and operational readiness for defense missions. The services delivered are likely to impact the efficiency and effectiveness of Air Force IT systems. The geographic impact is primarily within the Department of Defense's operational footprint, potentially global.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The high daily burn rate for a short-term contract requires justification of necessity and efficiency.
Lack of specific details on the scope of 'Computer Systems Design Services' makes independent value assessment difficult.
The contract is a delivery order under a larger IDIQ, so its specific performance metrics are tied to the parent contract's structure.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Peraton Enterprise Solutions LLC is an established government contractor with a significant presence.
The contract supports essential IT modernization and operational capabilities for the Air Force.

Sector Analysis

The IT services sector for the federal government is vast, encompassing a wide range of capabilities from software development to cybersecurity and systems integration. This contract falls under Computer Systems Design Services, a core component of IT modernization efforts. The total federal spending on IT services is in the tens of billions annually, with significant portions allocated to defense agencies for maintaining and upgrading complex systems. This specific award, as a delivery order under the ITCC II IDIQ, represents a targeted investment within this larger ecosystem.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a delivery order under a larger IDIQ, the subcontracting opportunities for small businesses would depend on the prime contractor's strategy and the specific requirements of this task order. Without explicit set-aside provisions or reported subcontracting plans, the direct impact on the small business ecosystem for this specific award is likely minimal, though Peraton may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a delivery order under the ITCC II IDIQ, its performance is monitored against the terms of the parent contract. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

ITCC II (Information Technology Center Contract II)
Department of Defense IT Services Contracts
Air Force Computer Systems Design Services
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Short contract duration with high value may indicate potential for rushed work or scope definition issues.
Lack of specific performance metrics in the provided data makes independent assessment of value difficult.
The contract is a delivery order, meaning its risks and performance are tied to the parent IDIQ contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.8 million to PERATON ENTERPRISE SOLUTIONS LLC. ITCC II - PROCUREMENT OP PD 8 (1 JUN 2024 - 31 DEC 2024)

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 $39.8 million.

What is the period of performance?

Start: 2024-07-01. End: 2024-12-31.

What is the specific scope of 'Computer Systems Design Services' for this delivery order?

The specific scope of 'Computer Systems Design Services' for Delivery Order 8 under ITCC II is not detailed in the provided data. Generally, this category encompasses activities such as analyzing user needs, designing system architecture, developing system specifications, and planning for system implementation. For this particular order, it likely involves designing or modifying specific computer systems to meet the Air Force's operational requirements within the 183-day timeframe. Further details would typically be found in the Statement of Work (SOW) associated with the delivery order, which outlines the precise tasks, deliverables, and performance standards expected from Peraton Enterprise Solutions LLC.

How does the daily cost of this contract compare to similar IT system design services awarded by the DoD?

The daily cost for this contract is approximately $217,522 ($39.8M / 183 days). Comparing this to similar IT system design services requires access to a benchmark database of recent DoD contracts with comparable scopes and durations. Without such data, a direct comparison is difficult. However, this daily rate is substantial and suggests either a highly complex design task, the involvement of specialized expertise, or a rapid development cycle. It is crucial to assess if this rate is justified by the criticality and complexity of the systems being designed, and whether it aligns with industry standards for similar government IT projects.

What is Peraton Enterprise Solutions LLC's track record with similar IT design contracts for the Department of the Air Force?

Peraton Enterprise Solutions LLC has a significant history of performing IT services for the Department of Defense, including the Air Force. While specific details on their track record for 'Computer Systems Design Services' under contracts of this exact nature and value are not provided, Peraton is known for its broad range of IT and mission support capabilities. Their performance on previous contracts, including those under larger IDIQ vehicles, would be a key factor in the government's decision-making process. A review of their past performance ratings and any documented issues on prior Air Force IT contracts would offer further insight into their capabilities and reliability for this specific task order.

What are the potential risks associated with a short-duration, high-value IT design contract?

Short-duration, high-value IT design contracts can present several risks. One primary risk is the potential for scope creep, where the requirements expand beyond the initial definition within the limited timeframe, leading to cost overruns or missed deadlines. Another risk is the pressure to deliver complex solutions quickly, which could compromise the quality or thoroughness of the system design, potentially leading to future operational issues. Furthermore, if the contract is an interim solution, there's a risk that it may not fully integrate with long-term IT strategies, requiring costly rework later. The rapid expenditure of funds also necessitates stringent oversight to ensure value for money is achieved.

How does this contract fit into the broader IT modernization strategy of the Department of the Air Force?

This delivery order, ITCC II - PROCUREMENT OP PD 8, is likely a component of the Department of the Air Force's larger IT modernization strategy, executed through the ITCC II Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The Air Force continuously invests in upgrading its IT infrastructure to maintain technological superiority and operational effectiveness. Contracts like this enable the acquisition of specialized computer systems design services needed to develop or enhance critical systems. The short duration suggests it might address a specific, immediate need or serve as a building block for a larger, phased modernization effort. Understanding its place within the ITCC II framework and the Air Force's overall IT roadmap is key to assessing its strategic value.

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: $39,806,531

Exercised Options: $39,806,531

Current Obligation: $39,806,531

Actual Outlays: $19,762

Subaward Activity

Number of Subawards: 57

Total Subaward Amount: $21,231,777

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