GSA awards $95.8M IT support contract to Peraton Enterprise Solutions LLC for Army Personnel Command

Contract Overview

Contract Amount: $95,848,377 ($95.8M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2007-07-25

End Date: 2012-08-27

Contract Duration: 1,860 days

Daily Burn Rate: $51.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT SUPPORT FOR US TOTAL ARMY PERSONNEL COMMAND

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $95.8 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IT SUPPORT FOR US TOTAL ARMY PERSONNEL COMMAND Key points: 1. Contract awarded via a competitive delivery order, indicating multiple bids were considered. 2. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 3. The duration of the contract is 5 years, suggesting a long-term need for these IT services. 4. The award was made by the General Services Administration (GSA), a common channel for IT procurement. 5. The North American Industry Classification System (NAICS) code 517110 points to wired telecommunications services. 6. The contract was not set aside for small businesses, suggesting a focus on larger, established providers.

Value Assessment

Rating: fair

Benchmarking the value of this $95.8 million contract over five years requires more granular data on the specific IT support services rendered. However, the Time and Materials (T&M) pricing model, while flexible, can lead to higher costs compared to fixed-price contracts if not meticulously managed. Without detailed performance metrics or comparisons to similar T&M contracts for IT support within the Department of Defense, it's difficult to definitively assess value for money. The relatively high number of bids (3) suggests some level of competitive pricing, but the ultimate cost-effectiveness hinges on the efficiency and necessity of the labor hours billed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, implying that it was competed under a broader indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar vehicle that allowed for full and open competition. The presence of three bidders suggests a moderate level of competition for this specific delivery order. While three bidders are better than one, a higher number typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The competitive nature of this award, with three bidders, likely resulted in a more favorable price for taxpayers than a sole-source or limited competition scenario. However, the full extent of taxpayer savings is difficult to quantify without knowing the initial proposed prices and the final negotiated amounts.

Public Impact

The primary beneficiaries are the personnel within the US Total Army Personnel Command, who will receive enhanced IT support. Services delivered include wired telecommunications support, crucial for maintaining operational communication and data infrastructure. The geographic impact is primarily within Virginia, where the contract is stated to be performed. Workforce implications include the potential for employment of IT specialists and telecommunications technicians by the contractor, Peraton Enterprise Solutions LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the true value for money.
The number of bidders (3) is moderate; higher competition could have potentially driven down costs further.

Positive Signals

Awarded through a competitive delivery order, indicating a structured procurement process.
The contract duration of 5 years suggests a stable, long-term IT support requirement.
GSA's involvement implies adherence to established federal procurement standards.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on wired telecommunications infrastructure and support. The IT services market is highly competitive and dynamic, with significant government spending allocated to maintaining and upgrading federal IT systems. The NAICS code 517110, Wired Telecommunications Carriers, indicates a focus on the physical infrastructure and services related to network connectivity. Comparable spending benchmarks for similar IT support contracts can vary widely based on scope, duration, and specific technologies involved, but this $95.8 million award over five years represents a substantial investment in maintaining critical communication capabilities for a major Army command.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting goals for small businesses in the provided data. This suggests that the primary contractor, Peraton Enterprise Solutions LLC, is likely a large business, and the focus was on fulfilling the requirement with the most capable provider, regardless of size. The absence of small business considerations in the award data means there's no direct positive impact on the small business ecosystem from this specific contract's structure, though Peraton may engage small businesses as subcontractors independently.

Oversight & Accountability

The General Services Administration (GSA) typically provides oversight for contracts awarded through its Federal Acquisition Service. Oversight mechanisms would include contract administration, performance monitoring, and financial management. Accountability measures are embedded in the contract terms, requiring Peraton Enterprise Solutions LLC to meet defined service levels and reporting requirements. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are recorded. Inspector General jurisdiction would typically fall under the Department of Defense, as the end-user of the services, for any potential fraud, waste, or abuse.

Related Government Programs

Army IT Modernization Programs
DoD Telecommunications Infrastructure Contracts
GSA IT Schedule Contracts
Federal Network Infrastructure Services
Defense Personnel Support Systems

Risk Flags

Potential for cost overruns due to Time and Materials pricing model.
Moderate competition level (3 bidders) may not have yielded the lowest possible price.
Lack of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $95.8 million to PERATON ENTERPRISE SOLUTIONS LLC. IT SUPPORT FOR US TOTAL ARMY PERSONNEL COMMAND

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 $95.8 million.

What is the period of performance?

Start: 2007-07-25. End: 2012-08-27.

What is the track record of Peraton Enterprise Solutions LLC with similar IT support contracts for the Department of the Army?

Peraton Enterprise Solutions LLC has a significant presence in the federal IT contracting space, including work with the Department of Defense. While specific details on their track record with the Department of the Army for similar IT support contracts require a deeper dive into contract databases, Peraton has historically secured large-scale contracts for IT services, cybersecurity, and telecommunications across various government agencies. Their experience often involves managing complex networks and providing mission-critical support. Evaluating their past performance on contracts with comparable scope, duration, and technical requirements would be essential to fully assess their capability and reliability for this specific award. This includes reviewing past performance evaluations and any documented issues or successes.

How does the $95.8 million value compare to similar IT support contracts for Army personnel commands?

Comparing the $95.8 million value over five years requires benchmarking against similar IT support contracts awarded to other Army commands or for comparable personnel management functions. The average annual value of this contract is approximately $19.16 million. This figure needs to be contextualized within the broader landscape of federal IT spending. Factors such as the number of users supported, the complexity of the IT environment, and the specific services included (e.g., network management, help desk, cybersecurity, telecommunications) significantly influence contract values. Without access to a detailed list of comparable contracts and their specific scopes, a precise value comparison is challenging. However, for a large command like the Army Personnel Command, this level of investment is not unusual for comprehensive IT support over a multi-year period.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk associated with a Time and Materials (T&M) contract of this magnitude ($95.8 million over 5 years) is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure places a greater burden on the government to closely monitor contractor performance, labor hours, and material costs to ensure efficiency and prevent unnecessary expenditures. Without robust oversight, the contractor may have less incentive to control costs, potentially leading to the government paying more than anticipated. Additionally, defining the scope of work and ensuring that the labor and materials are directly attributable to the contract requirements are critical risk mitigation areas.

How effective is GSA's procurement process in ensuring competitive pricing for IT services?

The General Services Administration (GSA) utilizes various contract vehicles, including IDIQ contracts and competitive delivery orders, designed to foster competition and achieve competitive pricing for IT services. The fact that this contract was awarded as a competitive delivery order with three bidders suggests the process is functioning as intended to solicit multiple offers. GSA's established procurement procedures and oversight aim to ensure fair and reasonable pricing. However, the effectiveness can vary depending on the specific vehicle, the market conditions for the services being procured, and the diligence of the contracting officers in managing the competition and evaluating proposals. While GSA generally facilitates competitive pricing, the ultimate outcome depends on the specific circumstances of each procurement.

What are the historical spending patterns for IT support at the US Total Army Personnel Command?

Analyzing historical spending patterns for IT support at the US Total Army Personnel Command is crucial for understanding the context of this $95.8 million award. Without direct access to historical budget data for this specific command, we can infer trends from broader Department of the Army and Department of Defense IT spending. Federal IT spending has consistently been in the hundreds of billions annually, with significant portions dedicated to maintaining existing infrastructure and providing user support. Commands like the Army Personnel Command rely heavily on robust IT systems for personnel management, data processing, and communication. Spending typically increases with the need for system upgrades, cybersecurity enhancements, and expanded user bases. This $95.8 million contract likely represents a continuation or evolution of previous IT support investments, reflecting ongoing requirements for reliable and secure IT services.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SEALED BID

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Address: 13600 EDS DR, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $132,441,301

Exercised Options: $95,848,377

Current Obligation: $95,848,377

Parent Contract

Parent Award PIID: W91QUZ06D0013

IDV Type: IDC

Timeline