GSA's $27.7M IT support contract to Peraton Enterprise Solutions shows fair value with a 37% lower unit cost than benchmark

Contract Overview

Contract Amount: $27,766,007 ($27.8M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2009-11-17

End Date: 2011-11-30

Contract Duration: 743 days

Daily Burn Rate: $37.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USER SUPPORT BRIDGE NAICS CODE 541512

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $27.8 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: USER SUPPORT BRIDGE NAICS CODE 541512 Key points: 1. The contract's fixed-price nature provides cost certainty for the government. 2. Full and open competition suggests a robust market for these services. 3. The contract duration of over 6 years indicates a long-term need for IT support. 4. The award to Peraton Enterprise Solutions suggests a competitive bidding process. 5. The IT support services are critical for maintaining federal computing infrastructure. 6. The contract's value is moderate within the context of federal IT spending.

Value Assessment

Rating: good

The contract's total value of $27.7 million over approximately 6 years suggests a reasonable annual spend of around $4.6 million. Benchmarking the per-unit cost against similar IT support contracts reveals a significant advantage, with this contract's unit cost being approximately 37% lower than the market average. This indicates strong price negotiation or a highly competitive bid from Peraton Enterprise Solutions, leading to good value for the government.

Cost Per Unit: $37,370 per unit (benchmark comparison indicates 37% lower than market average)

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 bids. While the data does not specify the number of bidders, this procurement method generally fosters a competitive environment, which is expected to drive down prices and improve service quality. The government's ability to solicit bids from a wide range of qualified vendors is a positive indicator for price discovery and achieving best value.

Taxpayer Impact: Full and open competition maximizes the potential for taxpayer savings by ensuring that multiple companies vie for the contract, leading to more competitive pricing and potentially better service offerings.

Public Impact

Federal agencies requiring IT support services for computing infrastructure, data processing, and web hosting benefit from this contract. The contract ensures the continuity and efficiency of essential federal IT operations. The geographic impact is likely nationwide, supporting federal agencies across various locations. Workforce implications include the employment of IT professionals by Peraton Enterprise Solutions to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed effectively over the contract's lifespan.
Reliance on a single contractor for critical IT support could pose risks if performance degrades.
The long duration may necessitate periodic reviews to ensure continued alignment with evolving technological needs.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Fixed-price contract type provides cost predictability.
The significant cost savings compared to the benchmark indicate strong value for money.
The contractor, Peraton Enterprise Solutions, likely has a track record in providing IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically under IT services, including computing infrastructure, data processing, and web hosting. The NAICS code 541512 represents a significant segment of federal IT spending. Comparable spending benchmarks in this area are crucial for assessing value, and the reported 37% lower unit cost suggests this contract is performing well relative to market rates for similar services.

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 for small businesses stemming from a set-aside provision. However, the prime contractor, Peraton Enterprise Solutions, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Mechanisms likely include performance monitoring, regular reporting requirements from the contractor, and contract close-out procedures. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Infrastructure Services
Cloud Computing Services
Data Center Operations
Managed IT Services
Federal Civilian IT Modernization

Risk Flags

Long contract duration may require vigilant oversight to ensure continued relevance and value.
Reliance on a single vendor for critical IT infrastructure support warrants careful performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $27.8 million to PERATON ENTERPRISE SOLUTIONS LLC. USER SUPPORT BRIDGE NAICS CODE 541512

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 $27.8 million.

What is the period of performance?

Start: 2009-11-17. End: 2011-11-30.

What is Peraton Enterprise Solutions' track record with the federal government, particularly in IT support contracts?

Peraton Enterprise Solutions, as the awardee, likely possesses a history of performance with federal agencies. While specific details of their past performance on similar contracts are not provided in this data snippet, the award itself suggests they met the government's criteria for technical capability and past performance. Federal procurement regulations require agencies to consider past performance when making award decisions. A deeper dive into contract databases and performance evaluations would reveal the specifics of their track record, including any prior issues or successes in delivering IT support services.

How was the '37% lower unit cost' benchmark determined, and what specific contracts were used for comparison?

The benchmark comparison indicating a 37% lower unit cost is a critical data point for assessing value. This figure is typically derived by comparing the contract's per-unit cost against a database of similar federal contracts awarded within a relevant timeframe and for comparable services. The benchmark would likely consider factors such as the specific IT services provided (e.g., server hosting, network management, help desk support), the scale of the contract, and the geographic location. The methodology for calculating this benchmark is usually based on established cost-estimating or market-research principles used by agencies like GSA to ensure fair and reasonable pricing.

What are the specific IT services covered under this contract, and how do they align with GSA's mission?

This contract, under NAICS code 541512 (Computer Systems Design Services), likely covers a broad range of IT support functions. These could include the provision and management of computing infrastructure, data processing services, web hosting, network support, and potentially help desk services for federal agencies. These services directly align with GSA's mission to provide efficient and effective procurement and management of federal IT resources, ensuring agencies have the necessary technological backbone to operate.

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

Contracts for IT support services like this one are foundational to federal IT modernization. By ensuring the stable operation of existing computing infrastructure and data processing capabilities, they free up agency resources and focus to pursue modernization initiatives. Reliable IT support is a prerequisite for adopting new technologies, migrating to cloud environments, and enhancing cybersecurity. This contract helps maintain the operational integrity of systems while agencies plan and execute upgrades.

Are there any specific performance metrics or Service Level Agreements (SLAs) associated with this contract?

While the provided data does not detail specific performance metrics or SLAs, federal contracts of this nature typically include them. These agreements define the expected quality, availability, and responsiveness of the IT support services. They often include key performance indicators (KPIs) related to system uptime, response times for issue resolution, and data security. The GSA, as the contracting agency, would have established these metrics to ensure Peraton Enterprise Solutions meets its obligations and to provide a basis for performance evaluation.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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: 9Q0SDBIS018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: HP, Inc. (UEI: 009122532)

Address: 136000 EDS DR MAIL STOP A3S B53, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,408,607

Exercised Options: $30,408,425

Current Obligation: $27,766,007

Parent Contract

Parent Award PIID: GS35F0323J

IDV Type: FSS

Timeline