GSA's $48.8M IGF contract for IT systems design awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $48,804,812 ($48.8M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2015-12-17

End Date: 2020-12-16

Contract Duration: 1,826 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF SYNCHRONIZED PREDEPLOYMENT AND OPERATIONAL TRACKER ENTERPRISE SUITE

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $48.8 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF SYNCHRONIZED PREDEPLOYMENT AND OPERATIONAL TRACKER ENTERPRISE SUITE Key points: 1. Contract value represents a significant investment in IT infrastructure. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1826 days indicates a long-term need for these services. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. The services fall under computer systems design, a critical area for federal operations. 6. The contract was awarded as a delivery order, implying it's part of a larger vehicle.

Value Assessment

Rating: good

The contract's total value of approximately $48.8 million over five years suggests a substantial investment. Benchmarking this against similar IT systems design contracts is challenging without more specific service details. However, the firm-fixed-price structure is generally favorable for the government in managing costs. The number of bids received (2) is on the lower side for full and open competition, which could warrant further investigation into pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. However, only two bids were received. While full and open competition is the preferred method, a low number of bidders can sometimes indicate market limitations or a lack of broad interest, potentially impacting price discovery.

Taxpayer Impact: The low number of bidders in this full and open competition may have limited the government's ability to secure the lowest possible price, potentially costing taxpayers more than if there had been greater competition.

Public Impact

Federal agencies requiring integrated IT systems for operational tracking and deployment will benefit from the services provided. The contract supports the delivery of advanced IT solutions to enhance federal operational efficiency. The geographic impact is primarily within the United States, supporting federal operations nationwide. The contract likely supports a workforce of IT professionals, including system designers, developers, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) in a full and open competition could indicate potential market concentration or barriers to entry.
The specific nature of 'synchronized predeployment and operational tracker enterprise suite' is not detailed, making it difficult to assess the full scope of work and potential risks.
The contract's duration and value warrant close monitoring to ensure continued value for money and performance.

Positive Signals

Awarded under full and open competition, adhering to best practices for government procurement.
Firm-fixed-price contract type provides cost certainty and incentivizes contractor efficiency.
The contract addresses a critical need for IT systems supporting federal operations.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design. The federal government is a major consumer of such services, with significant spending allocated to developing and maintaining complex IT infrastructure. Comparable spending benchmarks would typically involve analyzing other large-scale IT system development contracts awarded by agencies like GSA, DOD, or DHS, considering factors like contract type, duration, and specific service offerings.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Peraton Enterprise Solutions LLC actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration. Performance monitoring, adherence to contract terms, and financial accountability are standard oversight mechanisms. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Systems Modernization
Enterprise Resource Planning (ERP) Systems
Cloud Computing Services
Cybersecurity Services
Data Management Solutions

Risk Flags

Low number of bidders in full and open competition.
Potential for cost overruns despite fixed-price contract if scope is not well-defined.
Technical complexity of integrating 'synchronized predeployment and operational tracker enterprise suite'.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $48.8 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF SYNCHRONIZED PREDEPLOYMENT AND OPERATIONAL TRACKER ENTERPRISE SUITE

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $48.8 million.

What is the period of performance?

Start: 2015-12-17. End: 2020-12-16.

What is the track record of Peraton Enterprise Solutions LLC with similar federal IT contracts?

Peraton Enterprise Solutions LLC has a significant history of performing federal IT contracts. While specific details for this IGF contract are limited, Peraton, as a larger entity, has been involved in numerous large-scale IT and technology services procurements across various government agencies. Their experience often includes complex system integration, cybersecurity, and mission support services. Analyzing their past performance on similar firm-fixed-price, long-duration IT system design contracts would provide further insight into their capabilities and reliability. Government contract databases and past performance reviews would be essential resources for a comprehensive assessment of their track record.

How does the pricing of this contract compare to similar IT systems design contracts?

Direct price comparison is difficult without granular data on the specific services rendered under this $48.8 million contract and comparable contracts. However, the firm-fixed-price (FFP) structure is generally considered advantageous for the government, shifting cost overrun risks to the contractor. The fact that only two bids were received under full and open competition might suggest that the market price could have been more competitive with more bidders. Benchmarking would require identifying contracts with similar scope (e.g., enterprise suite development, operational tracking systems) and duration, then comparing total contract values, labor rates, and overhead structures, adjusted for inflation and specific agency requirements.

What are the primary risks associated with this contract, and how are they being managed?

Key risks include potential cost overruns (though mitigated by FFP), schedule delays, contractor performance issues, and scope creep. Given the 'synchronized predeployment and operational tracker enterprise suite' nature, technical complexity and integration challenges are also significant risks. Management strategies likely involve robust project management by the GSA, regular performance reviews, clear milestones, and defined deliverables. The FFP contract type incentivizes the contractor to manage costs and schedules effectively. However, the limited number of bidders could indicate a risk that the government did not receive the most competitive pricing available in the market.

How effective has the IGF program been in achieving its stated objectives, and how does this contract contribute?

The effectiveness of the IGF (Information Technology Governance Framework or similar acronym) program is not detailed in the provided data. This contract, 'IGF::OT::IGF SYNCHRONIZED PREDEPLOYMENT AND OPERATIONAL TRACKER ENTERPRISE SUITE,' directly supports the program by providing the necessary IT systems. Its contribution is likely in enhancing the synchronization, predeployment, and operational tracking capabilities of federal entities. To assess effectiveness, one would need to examine program-specific metrics related to improved operational efficiency, reduced deployment times, better resource tracking, and enhanced decision-making resulting from the implemented IT suite. Without these metrics, the contribution is assumed based on the contract's stated purpose.

What are the historical spending patterns for similar IT systems design services by the General Services Administration?

The General Services Administration (GSA) consistently spends significant amounts on IT systems design and related services to support its own operations and provide services to other federal agencies through its acquisition vehicles. Historical spending patterns show a trend towards modernization, cloud migration, and the development of integrated enterprise solutions. GSA often utilizes large, multi-award indefinite-delivery/indefinite-quantity (IDIQ) contracts to procure these services, allowing for task orders like the one awarded to Peraton. Analyzing GSA's IT budget and contract awards over the past 5-10 years would reveal substantial and growing investments in areas like computer systems design, data analytics, and cybersecurity.

What is the potential impact of this contract on federal IT modernization efforts?

This contract directly contributes to federal IT modernization by funding the development and implementation of a 'synchronized predeployment and operational tracker enterprise suite.' Such systems are crucial for agencies to move away from legacy systems, improve data integration, and enhance operational visibility. Modern IT suites enable better resource allocation, faster deployment of assets or personnel, and more informed decision-making. The success of this contract could serve as a model or foundation for further modernization initiatives within GSA or other agencies seeking to improve their operational tracking and deployment capabilities through advanced IT solutions.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID03150053

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,350,729

Exercised Options: $48,965,865

Current Obligation: $48,804,812

Actual Outlays: $-1,022

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0027

IDV Type: GWAC

Timeline