GSA awards $96.8M IT support contract to Peraton Enterprise Solutions for Army Accessions Command

Contract Overview

Contract Amount: $96,825,721 ($96.8M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2009-10-01

End Date: 2012-03-31

Contract Duration: 912 days

Daily Burn Rate: $106.2K/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 $96.8 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 critical IT systems support for Army recruitment and accessions. 2. Focus on business information systems, integration, and communication infrastructure. 3. Performance period spans over two years, indicating a need for sustained support. 4. Delivery order awarded competitively, suggesting potential for good value. 5. Contract type is Time and Materials, which can pose cost control challenges. 6. Small business participation is not a stated requirement for this contract. 7. Geographic location in Kentucky highlights a specific operational hub.

Value Assessment

Rating: fair

The contract value of $96.8 million over approximately 2.5 years suggests a significant investment in IT support for a key military function. Benchmarking this against similar IT support contracts for large government organizations is difficult without more specific service details. However, the Time and Materials (T&M) contract type, while flexible, often carries a higher risk of cost overruns compared to fixed-price contracts if not managed diligently. The absence of a specific ceiling price in the provided data makes a direct value-for-money assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The fact that it was competed suggests that the General Services Administration (GSA) sought to leverage market competition to obtain favorable pricing and terms. The number of bidders is not specified, but a competitive award generally implies a degree of price discovery and a selection based on a balance of technical merit and cost.

Taxpayer Impact: A competitive award process is generally beneficial for taxpayers as it encourages vendors to offer their best pricing and services to win the contract, potentially leading to cost savings and better performance.

Public Impact

The primary beneficiaries are the United States Army Accessions Command (USAAC), ensuring their IT systems effectively support recruitment missions. Services delivered include development and sustainment of business information systems, systems integration, and IT operations support. The contract has a geographic impact centered in Kentucky, likely supporting a specific command or operational center. Workforce implications include the potential for IT professionals employed by Peraton Enterprise Solutions to support Army IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to unpredictable costs if not closely monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
The duration of the contract (over two years) requires ongoing vigilance for potential scope creep or inefficiencies.

Positive Signals

Awarded competitively, suggesting a potentially robust selection process.
Supports a critical mission for the U.S. Army, indicating strategic importance.
Managed by GSA, which typically has established oversight and procurement processes.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT systems support, data processing, and related services. The market for government IT support is substantial, with agencies constantly seeking to modernize and maintain their technological infrastructure. This contract represents a portion of the broader federal spending on IT services, which includes areas like cloud computing, cybersecurity, and software development. Comparable spending benchmarks would typically involve analyzing IT support contracts awarded to similar-sized organizations within the Department of Defense or other large federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was likely open to businesses of all sizes, or that larger prime contractors were expected to participate. There is no explicit information regarding subcontracting requirements for small businesses. Consequently, the direct impact on the small business ecosystem for this specific contract appears limited, though larger prime contractors may engage small businesses for specialized support.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), a federal agency with established procurement and oversight procedures. GSA's Federal Acquisition Service (FAS) is involved, suggesting adherence to standard federal acquisition regulations. Oversight would typically involve contract performance monitoring, financial reviews, and ensuring compliance with the Performance Work Statement (PWS). Transparency is generally maintained through federal contract databases, though specific performance metrics and detailed financial breakdowns may not always be publicly accessible.

Related Government Programs

Army IT Modernization Programs
DoD Information Technology Services
GSA IT Schedule Contracts
Federal Civilian IT Support Services
Defense Business Information Systems

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of specific performance metrics in provided data.
Contract awarded in 2009, historical context may differ from current market rates.
Limited information on small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $96.8 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 $96.8 million.

What is the period of performance?

Start: 2009-10-01. End: 2012-03-31.

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

Peraton Enterprise Solutions LLC, now part of Peraton, has a significant history of providing IT and mission support services to various U.S. government agencies, including the Department of Defense and intelligence community. Their experience often encompasses complex systems integration, cybersecurity, and enterprise IT management. While specific performance details for this particular contract (awarded in 2009) are not detailed here, Peraton's broader portfolio suggests they possess the capabilities to handle large-scale IT support requirements. Assessing their track record would involve reviewing past performance evaluations, contract awards, and any reported issues or successes on similar government contracts.

How does the awarded amount of $96.8 million compare to similar IT support contracts for Army commands?

The $96.8 million awarded for IT support services to the Army Accessions Command (USAAC) over approximately 2.5 years (from Oct 2009 to Mar 2012) represents a substantial investment. To benchmark this, one would need to compare it with IT support contracts for other large Army commands or similar-sized federal entities during that period. Factors like the scope of services (e.g., infrastructure, software development, help desk), the number of users supported, and the complexity of the systems are crucial for a fair comparison. Without access to a comprehensive database of comparable contracts from that era, a precise comparison is difficult, but this value indicates a significant requirement for sustained IT operations and development support.

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

The primary risk with a Time and Materials (T&M) contract, especially one valued at nearly $100 million, is the potential for cost overruns and a lack of defined cost ceiling. 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 and potentially less efficient work if not managed stringently. For the government, risks include difficulty in accurately forecasting total expenditure and ensuring that the contractor is motivated to complete tasks efficiently. Robust oversight, detailed tracking of labor hours, and clear task definitions are essential to mitigate these risks.

How effective is IT support for Army recruitment and accessions likely to be under this contract?

The effectiveness of IT support for Army recruitment and accessions under this contract hinges on several factors, including the clarity of the Performance Work Statement (PWS), the contractor's execution, and the government's oversight. The PWS outlines requirements for business information systems, integration, and operations, which are critical for USAAC's mission. If Peraton Enterprise Solutions effectively delivers on these requirements, it should enhance the efficiency and reliability of the IT infrastructure supporting recruitment. However, the effectiveness is also dependent on the government's ability to monitor performance, manage the T&M aspects, and adapt to evolving technological needs within the Army's accessions process.

What has been the historical spending trend for IT support services by the Army Accessions Command?

Analyzing the historical spending trend for IT support services by the Army Accessions Command (USAAC) prior to this $96.8 million contract (awarded in 2009) would provide valuable context. Without specific historical data, it's challenging to determine if this award represented an increase, decrease, or stable level of spending. Generally, federal agencies like the Army aim to optimize IT spending while ensuring mission critical systems are supported. Trends might reflect shifts towards outsourcing, consolidation of IT services, or investments in new technologies. Understanding past spending patterns would help assess if this contract aligns with long-term IT strategies and budget allocations for USAAC.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 4THG21103280

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: $229,593,703

Current Obligation: $96,825,721

Parent Contract

Parent Award PIID: GS35F0323J

IDV Type: FSS

Timeline