GSA's $170.9M IT Services Contract Awarded to Peraton Enterprise Solutions LLC for Hardware/Software Maintenance

Contract Overview

Contract Amount: $170,941,537 ($170.9M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2013-09-01

End Date: 2016-08-31

Contract Duration: 1,095 days

Daily Burn Rate: $156.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF WORLDWIDE COTS HARDWARE SOFTWARE MAINTENANCE AND INTEGRATION SERVICES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $170.9 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF WORLDWIDE COTS HARDWARE SOFTWARE MAINTENANCE AND INTEGRATION SERVICES Key points: 1. Contract provides essential IT hardware, software maintenance, and integration services. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Contract duration of 1095 days (3 years) indicates a medium-term service requirement. 4. Firm Fixed Price contract type aims to control costs and provide budget certainty. 5. Services are categorized under Computer Systems Design, a key IT support sector. 6. Virginia-based contract performance suggests a focus on regional IT infrastructure support.

Value Assessment

Rating: good

The contract's value of $170.9 million over three years averages approximately $57 million annually. Benchmarking this against similar large-scale IT maintenance and integration contracts is challenging without more specific service details. However, the firm fixed-price structure suggests an effort to manage costs effectively. The number of bids received (3) is on the lower side for a full and open competition of this magnitude, which could imply either a highly specialized requirement or potential limitations in market reach.

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 bids. Three bids were received for this contract. While three bidders indicate some level of competition, it is on the lower end for a contract of this value and scope, potentially limiting the full benefits of price discovery that a larger pool of bidders might offer.

Taxpayer Impact: A competitive process, even with a limited number of bidders, generally benefits taxpayers by encouraging providers to offer competitive pricing to secure the contract. However, more bidders could have potentially driven prices lower.

Public Impact

Federal agencies requiring IT hardware, software maintenance, and integration services benefit from this contract. Ensures continued operation and modernization of critical IT infrastructure. Services likely support various federal programs and operational needs across different departments. Potential workforce implications for IT professionals involved in maintenance and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (3) for a full and open competition could indicate potential market concentration or specialized requirements.
Lack of specific details on the services provided makes it difficult to fully assess value for money.
Contract duration of 3 years might not align with rapidly evolving IT needs, potentially requiring frequent re-competition or modifications.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Awarded through full and open competition, adhering to principles of fair and transparent procurement.
Contract supports essential IT infrastructure, crucial for government operations.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services, which includes maintenance and integration. The IT services market is vast and highly competitive, with numerous large and small businesses offering a wide range of solutions. Contracts of this nature are common across federal agencies to ensure the smooth functioning and modernization of their IT systems. Benchmarking against similar contracts would require detailed analysis of the specific hardware and software covered, as well as the scope of integration services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The prime contractor, Peraton Enterprise Solutions LLC, is a large business, and any subcontracting would be at their discretion, not driven by a set-aside requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA has established procurement regulations and oversight mechanisms to ensure contract compliance and performance. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Hardware Maintenance Services
Software Maintenance Services
IT Integration Services
Computer Systems Design Services
General Services Administration IT Contracts

Risk Flags

Limited number of bidders
Potential for scope creep in IT services
Rapid technological evolution may outpace contract scope

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $170.9 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF WORLDWIDE COTS HARDWARE SOFTWARE MAINTENANCE AND INTEGRATION SERVICES

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 $170.9 million.

What is the period of performance?

Start: 2013-09-01. End: 2016-08-31.

What is the track record of Peraton Enterprise Solutions LLC in delivering similar IT maintenance and integration services to the federal government?

Peraton Enterprise Solutions LLC has a significant track record in providing IT services to the federal government. As a large government contractor, they have been involved in numerous contracts across various agencies, including IT modernization, cybersecurity, and enterprise IT services. Their experience often spans complex systems integration, hardware and software maintenance, and managed services. Analyzing their past performance on similar contracts, including any past performance evaluations or contract disputes, would provide a clearer picture of their capabilities and reliability in fulfilling the requirements of this specific award. Specific details on their performance metrics for this contract would be available through government performance reporting systems.

How does the average annual value of this contract compare to other large-scale IT maintenance and integration contracts awarded by GSA?

The average annual value of this contract is approximately $57 million ($170.9 million / 3 years). This is a substantial amount, placing it among significant IT service contracts. However, to provide a precise comparison, one would need to analyze the average annual values of other GSA IT maintenance and integration contracts awarded within a similar timeframe and with comparable scopes of work. GSA manages a vast portfolio of IT contracts, and while $57 million annually is considerable, it may fall within a typical range for large enterprise-level IT support services, especially those involving hardware, software, and integration for multiple systems or agencies.

What are the primary risks associated with a firm fixed-price contract for IT hardware and software maintenance and integration?

The primary risks with a firm fixed-price (FFP) contract for IT maintenance and integration revolve around scope creep and unforeseen technical challenges. If the scope of work is not precisely defined, the contractor may incur additional costs trying to meet evolving or poorly defined requirements, potentially leading to disputes or reduced profit margins. Conversely, if the contractor underestimates the complexity or effort required, they might cut corners on quality or service to maintain profitability, impacting system reliability. For the government, the risk is paying a premium for services that might be less flexible to adapt to rapid technological changes or emergent needs compared to cost-reimbursement contracts, although FFP offers strong cost certainty.

How effective is the firm fixed-price model in ensuring value for money for IT maintenance and integration services over a three-year period?

The firm fixed-price (FFP) model aims to ensure value for money by providing cost certainty to the government. The contractor assumes the risk of cost overruns, incentivizing them to manage resources efficiently. For IT maintenance and integration, FFP can be effective if the scope of work is well-defined and stable. However, the IT landscape evolves rapidly. If the contract doesn't adequately account for necessary upgrades, patches, or integration with new technologies, the government might not receive the most up-to-date or cost-effective solutions. The value for money is maximized when the initial price accurately reflects the required services and the contractor is motivated to deliver high-quality, efficient support within that fixed price.

What are the historical spending patterns for similar IT hardware, software maintenance, and integration services under GSA?

Historical spending patterns for IT hardware, software maintenance, and integration services under GSA have shown a consistent and significant investment. GSA, through its various contract vehicles like MAS (Multiple Award Schedule) and GWACs (Government-Wide Acquisition Contracts), facilitates billions of dollars in IT spending annually. Spending in these categories has generally increased over time, driven by the government's continuous need to maintain legacy systems, modernize infrastructure, and integrate new technologies to support agency missions. The trend reflects a growing reliance on external IT service providers for specialized expertise and efficient service delivery.

What is the potential impact of having only three bidders on the overall cost-effectiveness and innovation for this contract?

Having only three bidders in a full and open competition, while indicating some level of competition, can limit the potential for achieving the lowest possible price and fostering maximum innovation. With fewer bidders, the competitive pressure to undercut rivals might be reduced. Each bidder may have a stronger position to negotiate terms and pricing. Furthermore, a smaller pool might mean that potentially more innovative solutions or more cost-effective approaches from other market players were not considered. While three bidders can still yield a competitive outcome, a larger number typically enhances price discovery and encourages a broader range of technological approaches.

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: ID03130003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Solutions Inc.

Address: 13600 EDS DR A3S, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $538,314,562

Exercised Options: $170,941,537

Current Obligation: $170,941,537

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0027

IDV Type: GWAC

Timeline