DoD awards $24M for computer systems design, rated for national defense use

Contract Overview

Contract Amount: $24,023,049 ($24.0M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-30

End Date: 2025-11-25

Contract Duration: 148 days

Daily Burn Rate: $162.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: IT

Official Description: PROCUREMENT OP PD 11 (30 JUN 25 - 31 DEC 25). THIS IS A RATED ORDER CERTIFIED FOR NATIONAL DEFENSE USE AND YOU ARE REQUIRED TO FOLLOW ALL THE PROVISIONS OF THE DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM REGULATIONS (15 CFR PART 700)

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: PROCUREMENT OP PD 11 (30 JUN 25 - 31 DEC 25). THIS IS A RATED ORDER CERTIFIED FOR NATIONAL DEFENSE USE AND YOU ARE REQUIRED TO FOLLOW ALL THE PROVISIONS OF THE DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM REGULATIONS (15 CFR PART 700) Key points: 1. Contract value of $24 million for a 5-month period indicates a significant investment in critical IT infrastructure. 2. The national defense rating suggests this procurement supports high-priority military operations. 3. Competition was full and open, implying a robust bidding process and potential for competitive pricing. 4. The contractor, Peraton Enterprise Solutions LLC, has a track record in government contracting. 5. The contract type is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The specific NAICS code (541512) points to specialized computer systems design services.

Value Assessment

Rating: fair

The contract value of $24 million over approximately 5 months translates to a monthly burn rate of roughly $4.8 million. Without specific deliverables or performance metrics, it's challenging to benchmark this against similar contracts. However, the duration is relatively short for such a substantial award, suggesting either a focused project or a bridge to a larger effort. The cost-plus-no-fee (CPNF) contract type, while less common for IT services, might be used in situations where scope is uncertain or to incentivize contractor efficiency.

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 a bid. The data does not specify the number of bidders, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The fact that it was competed suggests that the Department of the Air Force sought the best value through a broad solicitation.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at a competitive market price, preventing potential overcharges associated with less competitive procurement methods.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Air Force, which will receive computer systems design services. These services are critical for supporting national defense operations, ensuring the functionality and security of military IT systems. The contract is rated for national defense use, highlighting its importance in maintaining military readiness. The geographic impact is likely within the operational areas of the Air Force, though specific locations are not detailed. Workforce implications may include the need for specialized IT personnel, potentially both within the contractor's organization and supporting government IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-no-fee (CPNF) contract type can sometimes lead to less direct cost control compared to fixed-price contracts if not managed diligently.
The short duration of the contract (approx. 5 months) might indicate a need for rapid deployment or a temporary solution, raising questions about long-term strategic planning.
The 'rated order' for national defense use, while indicating importance, also means the contractor must prioritize this work, potentially impacting other commitments.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield good value.
The contract is for computer systems design services, a critical area for modern defense operations.
The contractor, Peraton Enterprise Solutions LLC, is an established entity in the government contracting space.
The national defense rating underscores the critical nature and high priority of the services being procured.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services (NAICS 541512). This is a broad category encompassing the design, development, and integration of computer hardware and software systems. The federal IT market is substantial, with agencies consistently investing in modernizing and securing their digital infrastructure. Comparable spending benchmarks for IT services vary widely based on complexity, duration, and security requirements, but contracts in the tens of millions are common for significant system design and integration projects supporting critical government functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. However, the prime contractor, Peraton Enterprise Solutions LLC, may still engage small businesses as subcontractors to fulfill portions of the contract, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means the primary competition was open to all responsible sources, including large businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a rated order for national defense, it is subject to the Defense Priorities and Allocations System (DPAS) regulations. Transparency is facilitated through contract databases like FPDS.gov. While specific Inspector General (IG) jurisdiction isn't detailed, the DoD IG typically oversees contracts involving national defense priorities to ensure proper use of funds and compliance with regulations.

Related Government Programs

Department of Defense IT Modernization Programs
Air Force Cloud Computing Initiatives
Defense Information Systems Agency (DISA) Contracts
Cybersecurity Modernization Efforts
Next Generation Air Force Network

Risk Flags

Potential for cost overruns due to CPNF structure.
Short contract duration may indicate a temporary solution or phase.
Prioritization requirements for rated orders could impact contractor's overall capacity.
Lack of specific performance metrics in provided data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to PERATON ENTERPRISE SOLUTIONS LLC. PROCUREMENT OP PD 11 (30 JUN 25 - 31 DEC 25). THIS IS A RATED ORDER CERTIFIED FOR NATIONAL DEFENSE USE AND YOU ARE REQUIRED TO FOLLOW ALL THE PROVISIONS OF THE DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM REGULATIONS (15 CFR PART 700)

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: 2025-06-30. End: 2025-11-25.

What is the track record of Peraton Enterprise Solutions LLC with the Department of Defense, particularly in computer systems design?

Peraton Enterprise Solutions LLC is a significant player in the government contracting space, with a substantial portfolio of contracts across various federal agencies, including the Department of Defense. They have a history of providing IT services, including systems integration, cybersecurity, and enterprise IT management. While specific details on their past performance on contracts identical to this one (NAICS 541512, rated order) would require deeper analysis of contract databases, Peraton's overall experience suggests they possess the capabilities to handle complex IT projects. Their track record often involves large-scale enterprise solutions and mission-critical support, aligning with the nature of defense-related IT procurements. Evaluating their past performance would involve reviewing contract awards, past performance questionnaires, and any documented issues or successes on similar prior engagements.

How does the $24 million value compare to typical computer systems design contracts for the Air Force?

The $24 million contract value for approximately five months of service is substantial, indicating a significant project or a critical need. Typical computer systems design contracts for the Air Force can range widely, from smaller, specialized projects costing a few million dollars to large-scale enterprise-wide system overhauls that can reach hundreds of millions or even billions over several years. This particular contract's value, when annualized, suggests a significant investment. Its short duration might imply a focused scope, a specific phase of a larger project, or a bridge contract. Benchmarking requires comparing it against contracts with similar scope, complexity, duration, and security requirements within the Air Force or DoD IT portfolio. Without more granular details on the specific services and deliverables, a precise comparison is difficult, but the award size suggests a high-priority initiative.

What are the primary risks associated with a Cost Plus No Fee (CPNF) contract for IT services?

The primary risk associated with a Cost Plus No Fee (CPNF) contract, especially for IT services, is the potential for cost overruns without a direct profit incentive for the contractor to control expenses. In a CPNF structure, the contractor is reimbursed for allowable costs, but receives no additional fee or profit. This can disincentivize efficiency and cost management, as the contractor's primary motivation might shift from profit maximization to simply covering costs and fulfilling the contract's technical requirements. For the government, this increases the risk of paying higher-than-necessary costs. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for money. The 'rated order' aspect adds complexity, as prioritization might override cost-saving measures.

What does the 'rated order' designation for national defense use imply for contract performance and priority?

A 'rated order' designation under the Defense Priorities and Allocations System (DPAS) signifies that the contract is considered essential for national defense. This means the contractor is legally obligated to prioritize the performance of this contract over unrated orders or commercial work. It grants the contractor the authority to obtain necessary materials, components, and services from their suppliers on a priority basis. For the government, it ensures that critical defense needs are met promptly, even in times of material shortages or high demand. The implication for performance is that Peraton Enterprise Solutions LLC must allocate resources and attention to this contract to meet its requirements, potentially impacting their ability to service other clients or contracts simultaneously.

How does the NAICS code 541512 (Computer Systems Design Services) define the scope of this contract?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' defines the scope of this contract as encompassing establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. This includes activities such as analyzing and designing business and computer systems; providing feasibility studies and consultations; designing integrated computer systems; and planning for the installation of computer systems. It typically involves the development of system specifications, architectural design, and potentially the integration of various hardware and software components. This code excludes establishments primarily engaged in manufacturing computer hardware or software, or providing data processing services.

What is the significance of the contract being a 'Delivery Order' (AW: DELIVERY ORDER)?

The designation 'Delivery Order' indicates that this contract is likely a task order issued under a larger, pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of flexible contract vehicle. IDIQ contracts allow agencies to procure a range of supplies or services over a set period, with specific quantities and delivery dates defined by individual delivery orders. This approach provides flexibility for the agency to order what it needs, when it needs it, up to a certain ceiling amount. For the contractor, it represents a commitment from the agency to purchase a certain volume of services. The fact that this is a delivery order suggests it's a specific call for services within a broader framework, likely competed at the IDIQ level previously.

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: $39,500,000

Exercised Options: $39,500,000

Current Obligation: $24,023,049

Actual Outlays: $9,728,224

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