Peraton Inc. awarded $37.8M for USAF Product Data Systems support, focusing on systems and data management
Contract Overview
Contract Amount: $37,861,464 ($37.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2024-07-14
End Date: 2026-01-14
Contract Duration: 549 days
Daily Burn Rate: $69.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: PROVIDE SERVICES REQUIRED TO SUPPORT UNITED STATES AIR FORCE (USAF) PRODUCT DATA SYSTEMS (PDSS II.5). THESE SERVICES INCLUDE SYSTEMS MGMT, DATA MNGMT, AND ENTERPRISE MIGRATION SUPPORT REQUIRED FOR CONTINUED PERFORMANCE OF TECHNICAL SERVICES AT (RAFB)
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $37.9 million to PERATON INC. for work described as: PROVIDE SERVICES REQUIRED TO SUPPORT UNITED STATES AIR FORCE (USAF) PRODUCT DATA SYSTEMS (PDSS II.5). THESE SERVICES INCLUDE SYSTEMS MGMT, DATA MNGMT, AND ENTERPRISE MIGRATION SUPPORT REQUIRED FOR CONTINUED PERFORMANCE OF TECHNICAL SERVICES AT (RAFB) Key points: 1. Contract focuses on critical IT infrastructure for the Air Force, ensuring data integrity and system migration. 2. The award utilizes a Cost Plus Fixed Fee (CPFF) pricing structure, which can present cost control challenges. 3. Competition was full and open, suggesting a potentially competitive bidding process that could drive value. 4. The contract duration of 549 days indicates a medium-term engagement for essential support services. 5. This award falls under Computer Systems Design Services, a common category for defense IT support. 6. The geographic location of performance is not explicitly detailed beyond RAFB, limiting location-specific insights.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure cost efficiency. While the total award is $37.8 million, the specific profit margins and cost ceilings will be crucial for assessing value. Benchmarking against similar IT support contracts for defense agencies is necessary to determine if the pricing is competitive. Without detailed cost breakdowns, a definitive value assessment is challenging, but the CPFF model inherently carries higher risk for the government if not managed tightly.
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 had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The number of bidders is not specified, but the 'full and open' designation suggests a robust process was intended.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.
Public Impact
The United States Air Force (USAF) is the primary beneficiary, receiving essential support for its Product Data Systems. Services include systems management, data management, and enterprise migration support. Performance is tied to technical services at a Royal Air Force Base (RAFB), implying a direct impact on operational readiness. The contract supports the maintenance and modernization of critical IT infrastructure, indirectly benefiting the defense workforce and mission execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF pricing structure can lead to cost overruns if not rigorously managed.
- Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
- Limited detail on the scope of 'enterprise migration support' could hide potential cost drivers.
- Geographic performance location beyond RAFB is unspecified, potentially obscuring logistical complexities.
Positive Signals
- Full and open competition suggests a potentially competitive pricing environment.
- The contract addresses critical IT systems, indicating a focus on essential defense capabilities.
- Peraton Inc. has a track record in government contracting, suggesting familiarity with requirements.
- The contract duration provides a stable period for service delivery and system improvement.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market supporting government operations. The defense IT market is substantial, with agencies like the Air Force investing heavily in maintaining and upgrading complex data systems. Comparable spending benchmarks would involve analyzing other contracts for similar IT support services within the Department of Defense, particularly those focused on data management, systems integration, and legacy system modernization.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Peraton Inc., may engage small businesses as subcontractors, which would depend on their internal subcontracting plans and the specific needs of the contract's scope of work.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force and potentially the Department of Defense's Inspector General. The CPFF structure necessitates robust financial oversight to track costs and ensure adherence to the fixed fee. Transparency would be enhanced through regular reporting requirements mandated by the contract, detailing expenditures, progress, and any identified risks. Accountability measures would be tied to performance metrics and delivery schedules.
Related Government Programs
- USAF Product Data Systems (PDSS)
- Defense IT Infrastructure Support
- Computer Systems Design Services
- Enterprise IT Migration Projects
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to manage potential cost escalations.
- Scope of 'enterprise migration support' needs clear definition to avoid scope creep and budget overruns.
- Performance metrics and success criteria should be clearly defined and monitored to ensure value.
- Dependence on specific legacy systems could pose risks if modernization plans are not robust.
Tags
it-services, computer-systems-design, department-of-defense, us-air-force, cost-plus-fixed-fee, full-and-open-competition, medium-value-contract, systems-management, data-management, enterprise-migration, defense-it, product-data-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.9 million to PERATON INC.. PROVIDE SERVICES REQUIRED TO SUPPORT UNITED STATES AIR FORCE (USAF) PRODUCT DATA SYSTEMS (PDSS II.5). THESE SERVICES INCLUDE SYSTEMS MGMT, DATA MNGMT, AND ENTERPRISE MIGRATION SUPPORT REQUIRED FOR CONTINUED PERFORMANCE OF TECHNICAL SERVICES AT (RAFB)
Who is the contractor on this award?
The obligated recipient is PERATON INC..
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 $37.9 million.
What is the period of performance?
Start: 2024-07-14. End: 2026-01-14.
What is Peraton Inc.'s track record with similar Air Force IT support contracts?
Peraton Inc. has a significant history of supporting U.S. government agencies, including the Department of Defense and various branches of the Air Force, with a range of IT and mission support services. They have been involved in large-scale IT modernization, cybersecurity, and data management initiatives. While specific contract details and performance reviews are often proprietary, their sustained presence in the federal contracting space suggests a capacity to meet complex requirements. Analyzing their past performance on contracts with similar scope, such as systems management and data migration for critical defense systems, would provide further insight into their capabilities and reliability for this PDSS II.5 award.
How does the $37.8 million award compare to similar IT support contracts for the Air Force?
The $37.8 million award for 549 days of service (approximately 1.5 years) for Product Data Systems support is a substantial but not unprecedented figure for complex defense IT contracts. The average annual value is roughly $25.2 million. To benchmark effectively, one would compare this to other Air Force contracts for systems management, data management, and enterprise migration support, particularly those involving large-scale data repositories or critical operational systems. Factors like the specific technologies involved, the level of security clearance required, and the criticality of the systems supported heavily influence pricing. Contracts for similar scope and duration within the defense IT sector can range from tens to hundreds of millions of dollars, making direct comparison essential for value assessment.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this award?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract for the government is the potential for cost overruns. While the contractor's profit is fixed, the government bears the risk of all allowable costs incurred. If the contractor's costs exceed initial estimates, the government pays the actual costs plus the agreed-upon fixed fee. This necessitates stringent oversight and robust cost accounting controls by the contracting agency to ensure that costs are reasonable, allocable, and allowable. Ineffective management or unforeseen technical challenges could lead to the government paying more than anticipated, diminishing the overall value proposition compared to fixed-price contracts, assuming performance is met.
How effective is full and open competition in ensuring value for taxpayer money in defense IT contracts?
Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in defense IT contracts. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. This process typically results in multiple proposals, allowing the government to select the offer that provides the best combination of technical merit and price. While the administrative effort to manage a full and open competition can be higher, the potential savings and improved service quality often outweigh these costs. The key is a well-defined scope of work and a fair evaluation process to prevent lowest-price, technically unacceptable solutions.
What are the historical spending patterns for Product Data Systems support within the Air Force?
Historical spending on Product Data Systems (PDS) support within the Air Force likely shows a consistent need for maintaining and evolving these critical data infrastructures. The PDSS II.5 contract represents a continuation or evolution of previous support efforts. Analyzing past spending on similar PDS contracts, including their duration, total value, and the contractors involved, would reveal trends in investment and potential increases or decreases in demand for these services. Such analysis could highlight whether spending has been stable, increasing due to modernization efforts, or decreasing due to consolidation or shifts in technology. Understanding these patterns provides context for the current award's value and scope.
What are the implications of the 549-day duration for system stability and future modernization?
A contract duration of 549 days (approximately 1.5 years) for Product Data Systems support suggests a focus on maintaining current operations and potentially executing specific migration or upgrade tasks within that timeframe. This duration is sufficient for addressing immediate needs and implementing planned improvements but may be too short for comprehensive, long-term modernization strategies or complete system overhauls. It implies that follow-on contracts or phased approaches will likely be necessary for sustained development and adaptation to evolving technological landscapes and Air Force requirements. The stability provided by this period allows for consistent service delivery, but the limited timeframe necessitates careful planning for future phases.
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 - PLATFORM
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12975 WORLDGATE DR STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,119,683
Exercised Options: $38,119,683
Current Obligation: $37,861,464
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $10,696,190
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2024-07-14
Current End Date: 2026-01-14
Potential End Date: 2026-01-14 00:00:00
Last Modified: 2025-12-17
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