DoD's $187M IT Services Contract with Peraton Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $187,242,721 ($187.2M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2024-04-01
End Date: 2026-07-31
Contract Duration: 851 days
Daily Burn Rate: $220.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE IT SERVICES INTEGRATOR
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $187.2 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: ENTERPRISE IT SERVICES INTEGRATOR Key points: 1. The contract's significant value raises questions about cost-effectiveness given the IT services sector. 2. While awarded under full and open competition, the specific BPA call mechanism warrants further review. 3. Potential risks include vendor lock-in and ensuring competitive pricing throughout the contract lifecycle. 4. The IT services sector is highly competitive, suggesting opportunities for better pricing and performance.
Value Assessment
Rating: fair
The $187.2 million contract value for enterprise IT services needs comparison against similar Defense Health Agency contracts. Without specific benchmarks, assessing if this price reflects market rates for Computer Systems Design Services is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded via a BPA Call under full and open competition, this method aims for broad market participation. However, the effectiveness of price discovery within this specific call needs evaluation to ensure optimal taxpayer value.
Taxpayer Impact: The large contract value necessitates careful oversight to ensure taxpayer funds are used efficiently and competitively.
Public Impact
Impacts military healthcare IT infrastructure and services. Affects Peraton Enterprise Solutions LLC's revenue and market position. Potential for improved or degraded IT support for defense personnel. Highlights the significant government spending on enterprise IT solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Value for money assessment needed
- Competition effectiveness in BPA call
- Potential for cost overruns
Positive Signals
- Awarded under full and open competition
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the enterprise IT services sector, a critical area for government operations, particularly defense. Spending benchmarks in this area are substantial, but efficiency and value vary widely based on service scope and competition.
Small Business Impact
The contract data indicates no specific set-aside for small businesses. While awarded through full and open competition, the prime contractor is a large business, suggesting limited direct opportunities for small businesses unless subcontracted.
Oversight & Accountability
Oversight will be crucial to ensure Peraton delivers on its IT integration services as specified. The Defense Health Agency must monitor performance, costs, and adherence to contract terms to ensure accountability and value.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for cost overruns
- Effectiveness of competition within BPA call
- Vendor lock-in risk
- Ensuring service quality and performance
Tags
computer-systems-design-services, department-of-defense, va, bpa-call, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $187.2 million to PERATON ENTERPRISE SOLUTIONS LLC. ENTERPRISE IT SERVICES INTEGRATOR
Who is the contractor on this award?
The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $187.2 million.
What is the period of performance?
Start: 2024-04-01. End: 2026-07-31.
How does the per-unit cost of these enterprise IT services compare to industry benchmarks for similar government contracts?
A detailed analysis of the contract's line items and service descriptions is required to establish relevant industry benchmarks. Comparing the cost of specific services like system design, integration, and maintenance against GSA schedules or other agency IT contracts would reveal potential overpricing or cost savings. Without this granular data, a definitive per-unit cost assessment is not feasible.
What specific risks are associated with the 'BPA CALL' award mechanism for a contract of this magnitude?
While BPA calls can offer flexibility and speed, risks include potentially less rigorous price competition compared to a standalone solicitation, especially if the underlying BPA wasn't recently competed. There's also a risk of scope creep if not managed tightly. Ensuring the call adequately defined requirements and solicited competitive offers is key to mitigating these risks.
How effectively does this contract support the Defense Health Agency's mission objectives, and what are the key performance indicators?
The effectiveness hinges on the successful integration and reliable operation of IT systems supporting military healthcare. Key performance indicators should focus on system uptime, data security, user satisfaction, and the timely delivery of IT solutions that enhance medical readiness and patient care. Without access to these specific KPIs and performance reports, a definitive assessment of mission support effectiveness is not possible.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HT001521Q0003
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $251,941,991
Exercised Options: $194,588,510
Current Obligation: $187,242,721
Actual Outlays: $20,106,840
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT001523A0002
IDV Type: BPA
Timeline
Start Date: 2024-04-01
Current End Date: 2026-07-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2025-12-24
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