Peraton Enterprise Solutions LLC received $130.6M for IT systems support to the Army Accessions Command

Contract Overview

Contract Amount: $130,648,615 ($130.6M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2006-10-01

End Date: 2009-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $119.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE OBJECTIVE OF THIS PERFORMANCE WORK STATEMENT (PWS) IS TO OBTAIN CONTRACT SUPPORT SERVICES TO ASSIST THE INFORMATION SUPPORT ACTIVITY UNITED STATES ARMY ACCESSIONS COMMAND (ISA-USAAC) IN MEETING ITS MISSION OF PROVIDING INFORMATION TECHNOLOGY (IT) SYSTEMS SUPPORT SERVICES TO THE UNITED STATES ARMY ACCESSIONS COMMAND (USAAC). THE USAAC IT SYSTEMS SUPPORT REQUIREMENTS INCLUDE BUSINESS INFORMATION SYSTEMS (DEVELOPMENT AND SUSTAINMENT); SYSTEMS INTEGRATION; COMMUNICATIONS, ELECTRONICS, AND OPERATIONS; AND INFORMATION SERVICES.

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

General Services Administration obligated $130.6 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: THE OBJECTIVE OF THIS PERFORMANCE WORK STATEMENT (PWS) IS TO OBTAIN CONTRACT SUPPORT SERVICES TO ASSIST THE INFORMATION SUPPORT ACTIVITY UNITED STATES ARMY ACCESSIONS COMMAND (ISA-USAAC) IN MEETING ITS MISSION OF PROVIDING INFORMATION TECHNOLOGY (IT) SYSTEMS SUPPORT SERVICES TO T… Key points: 1. Contract provides crucial IT systems support for Army recruitment and personnel management. 2. Services include business information systems development, sustainment, and integration. 3. Contract was awarded as a competitive delivery order, suggesting multiple bids. 4. The contract duration of 1095 days indicates a medium-term need for these services. 5. Focus on IT infrastructure and operations is key to the command's mission. 6. The contract type is Time and Materials, which can pose cost control challenges.

Value Assessment

Rating: fair

The contract's value of $130.6 million over three years for IT support services appears within a reasonable range for a federal agency of this size and scope. However, without specific benchmarks for similar IT support contracts within the Army or comparable organizations, a precise value-for-money assessment is difficult. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not managed diligently, potentially exceeding fixed-price alternatives. Further analysis of the specific labor categories and rates billed would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader contract vehicle, likely allowing for multiple bidders to submit proposals. The presence of competition is generally positive for price discovery and ensuring the government receives competitive pricing. The data indicates there were 3 bids received, which suggests a moderate level of competition for this specific delivery order.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. The competition here likely resulted in a more favorable price than a sole-source award would have.

Public Impact

Benefits the United States Army Accessions Command (USAAC) by ensuring the reliability and functionality of its IT systems. Delivers essential IT systems support, including development, sustainment, integration, communications, and information services. Impacts the efficiency of Army recruitment and personnel management processes. Supports the technological infrastructure necessary for the Army's accession missions. Workforce implications include the need for skilled IT professionals to perform the contracted services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Scope creep could increase costs without corresponding adjustments to the contract.
Reliance on external contractors for critical IT functions may pose security risks if not managed properly.

Positive Signals

Awarded through a competitive process, indicating potential for cost savings.
Provides essential IT support, contributing to the operational effectiveness of a key military command.
Contract duration suggests a stable, long-term need for these services, allowing for focused expertise development.

Sector Analysis

The Information Technology (IT) sector is a vast and critical component of federal spending. This contract falls within the IT services sub-sector, specifically focusing on systems support, development, and sustainment for a military command. Federal IT spending is consistently one of the largest categories of government expenditure, encompassing everything from software development and cybersecurity to cloud computing and infrastructure management. Comparable spending benchmarks for IT support services can vary widely based on the complexity of systems, security requirements, and the specific agency's mission. This contract's value of approximately $45 million per year is substantial but needs to be viewed within the context of the Army's overall IT budget.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As a competitive delivery order, it's possible that small businesses could have participated as subcontractors to the prime contractor, Peraton Enterprise Solutions LLC. However, without explicit information on subcontracting plans or goals, the direct impact on the small business ecosystem remains unclear. Further investigation into the prime contractor's subcontracting practices would be needed to assess this aspect.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) as the issuing agency and the United States Army Accessions Command (USAAC) as the end-user. The contract type (Time and Materials) necessitates robust oversight to monitor labor hours, rates, and material costs to prevent overspending. Performance metrics outlined in the Performance Work Statement (PWS) would be crucial for accountability. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by agency contracting officers or oversight bodies.

Related Government Programs

Army IT Modernization Programs
Defense Information Systems Agency (DISA) Contracts
General Services Administration (GSA) IT Schedule Contracts
Federal Civilian IT Support Services
Military Personnel and Recruitment IT Systems

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for robust oversight to manage contractor performance and costs.
Reliance on contractor for critical IT functions requires strong security protocols.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $130.6 million to PERATON ENTERPRISE SOLUTIONS LLC. THE OBJECTIVE OF THIS PERFORMANCE WORK STATEMENT (PWS) IS TO OBTAIN CONTRACT SUPPORT SERVICES TO ASSIST THE INFORMATION SUPPORT ACTIVITY UNITED STATES ARMY ACCESSIONS COMMAND (ISA-USAAC) IN MEETING ITS MISSION OF PROVIDING INFORMATION TECHNOLOGY (IT) SYSTEMS SUPPORT SERVICES TO THE UNITED STATES ARMY ACCESSIONS COMMAND (USAAC). THE USAAC IT SYSTEMS SUPPORT REQUIREMENTS INCLUDE BUSINESS INFORMATION SYSTEMS (DEVELOPMENT AND SUSTAINMENT); SYSTEMS INTEGRATION; COMMUNICATIONS, ELECTRONICS, AND OPERAT

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 $130.6 million.

What is the period of performance?

Start: 2006-10-01. End: 2009-09-30.

What is the track record of Peraton Enterprise Solutions LLC in delivering similar IT support services to federal agencies?

Peraton Enterprise Solutions LLC has a history of providing IT services to various federal agencies. Their experience often includes areas such as enterprise IT, cybersecurity, and mission support. For this specific contract with USAAC, their performance would be evaluated against the requirements outlined in the Performance Work Statement (PWS), which covers business information systems development and sustainment, systems integration, and IT operations. A review of past performance evaluations, contract modifications, and any reported issues or successes on similar contracts would provide a clearer picture of their capabilities and reliability in delivering complex IT support services within the federal landscape.

How does the $130.6 million contract value compare to other Army IT support contracts of similar scope?

The $130.6 million contract value, spread over three years (approximately $43.5 million annually), positions it as a significant, but not exceptionally large, IT support contract within the Department of the Army. The Army procures a wide range of IT services, from enterprise-wide solutions to specialized support for specific commands like USAAC. Contracts for enterprise resource planning (ERP) systems, network infrastructure modernization, or large-scale software development can often exceed this value. However, for dedicated IT systems support and sustainment for a specific command's operational needs, this value appears commensurate. Benchmarking against contracts with similar PWS requirements and user bases would provide a more precise comparison.

What are the primary risks associated with a Time and Materials (T&M) contract for IT support services?

The primary risk with a Time and Materials (T&M) contract for IT support services 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 can incentivize longer task durations or less efficient work if not rigorously managed. For the government, risks include difficulty in accurately forecasting total costs, potential for scope creep without formal change orders, and the need for intensive oversight to ensure that labor hours and material costs are reasonable and allocable to the contract. Effective management requires detailed tracking, regular audits, and clear communication to mitigate these risks.

How effective is the competitive delivery order process in ensuring value for taxpayer money in this context?

The competitive delivery order process is generally effective in ensuring value for taxpayer money, especially when compared to sole-source awards. By allowing multiple qualified vendors to bid on specific requirements under an existing contract vehicle, it introduces market competition. This competition typically drives down prices, encourages innovation, and ensures that the government selects the offer that provides the best overall value, considering factors like price, technical approach, and past performance. In this case, with 3 bids received, there was a degree of competition that likely benefited the government. However, the ultimate value depends on the thoroughness of the evaluation process and the clarity of the requirements.

What are the potential implications of this contract on the Army's overall IT infrastructure resilience and modernization efforts?

This contract directly supports the operational resilience of the Army Accessions Command's IT infrastructure by ensuring the continued availability and functionality of critical systems. By providing sustainment and development services, it helps maintain the current IT environment. However, the focus on 'support services' might imply a maintenance-oriented approach rather than a proactive modernization effort. The extent to which this contract contributes to modernization depends on whether the 'development' aspect includes upgrading systems to newer technologies or merely enhancing existing ones. If the Army's broader goal is modernization, this contract's role would need to be assessed in conjunction with other initiatives aimed at adopting advanced technologies and architectures.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 4TEG21063280

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, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $245,116,204

Exercised Options: $130,648,615

Current Obligation: $130,648,615

Parent Contract

Parent Award PIID: GS35F0323J

IDV Type: FSS

Timeline