GSA's $107M IT Services Contract with Peraton Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $107,319,166 ($107.3M)
Contractor: Peraton Inc.
Awarding Agency: General Services Administration
Start Date: 2010-08-05
End Date: 2016-07-31
Contract Duration: 2,187 days
Daily Burn Rate: $49.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: INFORMATION TECHNOLOGY SERVICES (SOFTWARE DEVELOPMENT)
Place of Performance
Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746
State: Maryland Government Spending
Plain-Language Summary
General Services Administration obligated $107.3 million to PERATON INC. for work described as: INFORMATION TECHNOLOGY SERVICES (SOFTWARE DEVELOPMENT) Key points: 1. The contract awarded to Peraton Inc. for IT services reached over $107 million. 2. Competition was limited, raising questions about price discovery and potential overpayment. 3. The Cost Plus Award Fee structure may incentivize cost escalation. 4. This spending falls within the broad IT services sector, specifically computer systems design.
Value Assessment
Rating: questionable
The Cost Plus Award Fee (CPAF) structure, combined with limited competition, raises concerns about the government's ability to secure the best possible price. Without robust competition, the incentive for the contractor to control costs is reduced, potentially leading to inflated prices.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a non-standard procurement process that likely limited the pool of eligible bidders. This restricted competition can hinder effective price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The limited competition and CPAF structure suggest a risk of overpaying for IT services, impacting taxpayer value.
Public Impact
Taxpayers may be overpaying for IT services due to restricted competition. The effectiveness of IT service delivery under this contract warrants further investigation. Lack of transparency in the procurement process could set a precedent for future contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Award Fee structure
- Potential for cost overruns
Positive Signals
- Contract awarded to a single vendor, potentially indicating specialized capabilities.
Sector Analysis
This contract for Computer Systems Design Services (NAICS 541512) falls within the large IT services sector. Spending benchmarks for similar contracts are difficult to ascertain without more specific service details, but the $107M value is significant.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the prime contractor is Peraton Inc. Further analysis would be needed to determine if small businesses were subcontracted.
Oversight & Accountability
The procurement method ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES') and the Cost Plus Award Fee structure suggest a need for robust oversight to ensure cost control and effective performance monitoring.
Related Government Programs
- Computer Systems Design Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Limited competition raises concerns about price fairness.
- Cost Plus Award Fee structure may incentivize higher costs.
- Lack of transparency in source exclusion.
- Potential for suboptimal value for taxpayer dollars.
Tags
computer-systems-design-services, general-services-administration, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $107.3 million to PERATON INC.. INFORMATION TECHNOLOGY SERVICES (SOFTWARE DEVELOPMENT)
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 $107.3 million.
What is the period of performance?
Start: 2010-08-05. End: 2016-07-31.
What specific factors led to the exclusion of other sources, and were these justified?
The exclusion of sources typically occurs when only one or a limited number of contractors possess the unique capabilities or proprietary technology required for a specific project. Justification often involves demonstrating that full and open competition would not be in the government's best interest due to technical requirements, national security concerns, or the unavailability of alternatives. A thorough review would assess the validity and necessity of these exclusions.
How effectively did the Cost Plus Award Fee structure incentivize Peraton Inc. to control costs and deliver high-quality IT services?
The effectiveness of a CPAF structure hinges on the clarity and attainability of performance metrics and award fee criteria. If poorly defined, it can lead to contractors maximizing fees with minimal cost control. Conversely, well-defined criteria tied to specific, measurable outcomes can drive efficiency and quality. An audit would be needed to assess Peraton's performance against these criteria and the resulting fee awards.
What was the overall value proposition delivered by Peraton Inc. under this contract, considering the total expenditure?
Determining the overall value proposition requires comparing the delivered IT services against the contract's objectives and the $107 million expenditure. This involves assessing the quality, timeliness, and impact of the software development and computer systems design services provided. Benchmarking against industry standards and evaluating the long-term benefits and operational improvements achieved would be crucial for a comprehensive value assessment.
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: R1BK13090030
Offers Received: 8
Pricing Type: COST PLUS AWARD FEE (R)
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: $119,066,202
Exercised Options: $118,182,248
Current Obligation: $107,319,166
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS06F0654Z
IDV Type: GWAC
Timeline
Start Date: 2010-08-05
Current End Date: 2016-07-31
Potential End Date: 2018-01-31 00:00:00
Last Modified: 2021-03-11
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