GSA's $73M IT contract for ESPDS processing and distribution awarded to Peraton Inc
Contract Overview
Contract Amount: $73,288,654 ($73.3M)
Contractor: Peraton Inc.
Awarding Agency: General Services Administration
Start Date: 2016-08-01
End Date: 2021-01-31
Contract Duration: 1,644 days
Daily Burn Rate: $44.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::CL::IGF INFORMATION TECHNOLOGY SERVICES, HARDWARE AND SOFTWARE AND SYSTEMS DEVELOPMENT FOR THE ENVIRONMENTAL SATELLITE PROCESSING AND DISTRIBUTION SYSTEM (ESPDS)
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
General Services Administration obligated $73.3 million to PERATON INC. for work described as: IGF::CL::IGF INFORMATION TECHNOLOGY SERVICES, HARDWARE AND SOFTWARE AND SYSTEMS DEVELOPMENT FOR THE ENVIRONMENTAL SATELLITE PROCESSING AND DISTRIBUTION SYSTEM (ESPDS) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is over 4 years, indicating a significant, long-term IT service requirement. 4. The contract is for Computer Systems Design Services, a critical area for federal IT infrastructure. 5. The award was a Delivery Order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contract value of $73.3M over 4 years suggests a substantial investment in IT modernization or support.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without knowing the scope of the ESPDS system and the specific services rendered. However, the Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation if the contractor's costs exceed projections. While the fixed fee provides some predictability, the overall cost can still fluctuate significantly. Comparing this to similar IT system development and support contracts within GSA or other agencies would be necessary for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This designation suggests that while the competition was intended to be broad, certain sources may have been excluded for specific reasons, potentially limiting the overall pool of bidders. The number of bidders is not specified, but the 'exclusion of sources' phrasing warrants further investigation into the rationale behind any limitations.
Taxpayer Impact: The 'exclusion of sources' aspect could potentially limit competitive pressure, which might result in less favorable pricing for taxpayers compared to a truly unrestricted full and open competition.
Public Impact
Federal agencies, particularly those involved in environmental monitoring and data processing, benefit from the enhanced capabilities of the ESPDS. The contract delivers essential IT services for processing and distributing environmental satellite data, crucial for research and policy-making. The primary geographic impact is likely within the federal agencies utilizing the ESPDS, with potential downstream benefits for researchers and the public. The contract supports IT professionals and system designers, contributing to the federal IT workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to incur higher costs, as a portion of these costs are reimbursed.
- The 'exclusion of sources' in the competition type may have limited the number of potential bidders, potentially reducing competitive pressure and price discovery.
- The specific details of the ESPDS system and its criticality are not fully elaborated, making it difficult to assess the full risk profile of system failure or underperformance.
Positive Signals
- The contract was awarded under a full and open competition framework, indicating an effort to solicit bids from a wide range of qualified vendors.
- The contract addresses a critical federal need for environmental satellite data processing and distribution, aligning with important governmental functions.
- The duration of the contract suggests a stable, long-term commitment to supporting and developing this vital IT system.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT market is vast, with significant spending on system development, integration, and maintenance. Contracts like this are essential for agencies to manage and leverage complex data systems, such as those used for environmental monitoring. Benchmarks for similar IT system design and support contracts would typically be assessed based on labor categories, project complexity, and duration.
Small Business Impact
The data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and larger, established IT firms were likely the primary bidders. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for engaging the small business ecosystem in this significant IT project.
Oversight & Accountability
Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. The Inspector General's office for GSA would likely have jurisdiction for audits and investigations. Transparency is generally facilitated through contract award databases like FPDS, but detailed performance metrics and cost breakdowns may not always be publicly available. The CPFF structure necessitates robust oversight to ensure costs are reasonable and allocable.
Related Government Programs
- Environmental Satellite Data Processing
- Federal IT Infrastructure Modernization
- Computer Systems Design Services
- GSA IT Services Contracts
- Environmental Monitoring Systems
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Limited competition due to 'exclusion of sources' may impact price discovery.
- Lack of small business set-aside or subcontracting information.
- Dependence on a single contractor for critical IT system support.
Tags
it, gsa, maryland, delivery-order, large-contract, full-and-open-competition, cost-plus-fixed-fee, computer-systems-design-services, environmental-data, satellite-processing
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $73.3 million to PERATON INC.. IGF::CL::IGF INFORMATION TECHNOLOGY SERVICES, HARDWARE AND SOFTWARE AND SYSTEMS DEVELOPMENT FOR THE ENVIRONMENTAL SATELLITE PROCESSING AND DISTRIBUTION SYSTEM (ESPDS)
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $73.3 million.
What is the period of performance?
Start: 2016-08-01. End: 2021-01-31.
What is the Environmental Satellite Processing and Distribution System (ESPDS) and what are its primary functions?
The Environmental Satellite Processing and Distribution System (ESPDS) is a critical IT infrastructure designed to manage, process, and distribute data acquired from environmental satellites. Its primary functions include ingesting raw satellite data, performing quality control checks, processing the data into usable formats (e.g., imagery, scientific products), and disseminating this information to various federal agencies, researchers, and potentially the public. This data is vital for a wide range of applications, including climate monitoring, weather forecasting, disaster management, and environmental research. The system's reliability and efficiency directly impact the government's ability to understand and respond to environmental changes.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of risk and cost control for IT projects?
The Cost Plus Fixed Fee (CPFF) contract type is a hybrid that reimburses the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. For IT projects, CPFF can be advantageous when the scope is not fully defined or is expected to evolve, as it allows for flexibility. However, it carries a higher risk of cost overruns compared to fixed-price contracts because the government bears the risk of cost increases. The fixed fee provides some incentive for the contractor to control costs to maximize their profit margin relative to the fee, but it doesn't eliminate the risk of overall project cost escalation. Robust oversight and clear definition of allowable costs are crucial for managing CPFF contracts effectively.
What are the implications of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' for taxpayer value?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation implies that while the competition was intended to be broad, certain potential bidders were deliberately excluded. The reasons for exclusion could range from national security concerns, proprietary technology limitations, or specific performance requirements that only a subset of vendors could meet. While it's still a form of competition, the exclusion of sources can potentially limit the number of viable bidders. If the exclusion significantly reduces the competitive landscape, it might lead to less aggressive pricing and innovation than a truly unrestricted full and open competition, potentially impacting taxpayer value. The justification for such exclusions is critical to assess.
What is the typical performance period and value range for similar federal IT system design and support contracts?
Federal IT system design and support contracts can vary widely in performance period and value depending on the complexity, criticality, and scope of the system. Contracts for major system development or modernization can span several years, often with base periods and multiple option years, leading to total values in the tens or hundreds of millions of dollars. Support and maintenance contracts, while potentially shorter in duration, can also represent significant ongoing costs. The $73.3 million awarded over approximately 4.5 years for the ESPDS falls within a moderate to large range for specialized IT system support and development, especially considering the critical nature of environmental data.
What are the potential risks associated with Peraton Inc. as the contractor for this IT system?
Assessing the specific risks associated with Peraton Inc. requires a review of their past performance, financial stability, and any history of contract issues or disputes. Without specific data on Peraton's track record related to similar environmental IT systems or large-scale federal contracts, it's difficult to pinpoint unique risks. However, general risks for any large IT contractor include potential for schedule delays, cost overruns (especially with CPFF contracts), cybersecurity vulnerabilities, and failure to meet performance requirements. A thorough review of Peraton's performance on previous GSA or similar agency contracts would be necessary to identify any contractor-specific risk factors.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: ID01160042
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 950 N GLEBE RD STE 1100, ARLINGTON, VA, 22203
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $77,167,990
Exercised Options: $73,699,444
Current Obligation: $73,288,654
Actual Outlays: $-385,161
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $77,760
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: GS06F0654Z
IDV Type: GWAC
Timeline
Start Date: 2016-08-01
Current End Date: 2021-01-31
Potential End Date: 2021-01-31 00:00:00
Last Modified: 2025-09-09
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