DoD's $12.9M Other ADP Services Contract Awarded to Peraton Enterprise Solutions LLC
Contract Overview
Contract Amount: $12,906,397 ($12.9M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2009-03-31
End Date: 2009-09-30
Contract Duration: 183 days
Daily Burn Rate: $70.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIXED PRICE
Sector: IT
Official Description: OTHER ADP & TELECOMMUNICATIONS SERVICES
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70146
Plain-Language Summary
Department of Defense obligated $12.9 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: OTHER ADP & TELECOMMUNICATIONS SERVICES Key points: 1. Contract awarded for Other Computer Related Services (NAICS 541519). 2. Significant award value of $12.9 million. 3. Competition was full and open, suggesting potential for competitive pricing. 4. Contract duration was 183 days, indicating a short-term need. 5. Awarded by the Department of the Navy, part of the DoD.
Value Assessment
Rating: fair
The contract value of $12.9 million for 183 days suggests a daily rate of approximately $70,527. This rate needs to be benchmarked against similar short-term IT service contracts to assess value.
Cost Per Unit: $70,527 per day
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The impact on price discovery is generally positive in such scenarios.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible pricing through market forces.
Public Impact
This contract supports critical Department of Defense operations. The services provided are essential for maintaining ADP and telecommunications infrastructure. The short duration suggests a specific, time-bound project or surge requirement. Awarding to Peraton Enterprise Solutions LLC indicates their capability in this specialized IT service area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price creep if not closely monitored.
- Short duration may indicate a reactive rather than strategic procurement.
Positive Signals
- Full and open competition utilized.
- Clear contract type (Fixed Price) for cost certainty.
Sector Analysis
The IT services sector is highly competitive. Benchmarking this contract's daily rate against other government IT service contracts, especially those for similar specialized services and durations, is crucial for assessing value.
Small Business Impact
While this contract was awarded to Peraton Enterprise Solutions LLC, there is no specific indication of small business participation or subcontracting in the provided data. Further analysis would be needed to determine if small businesses were involved.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms. However, the short duration might limit the scope for extensive long-term oversight.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High daily rate requires benchmarking.
- Short duration may indicate a reactive need.
- Lack of detail on specific services.
- No explicit small business participation noted.
Tags
other-computer-related-services, department-of-defense, la, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.9 million to PERATON ENTERPRISE SOLUTIONS LLC. OTHER ADP & TELECOMMUNICATIONS SERVICES
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.9 million.
What is the period of performance?
Start: 2009-03-31. End: 2009-09-30.
What specific ADP and telecommunications services were rendered under this contract, and how did they align with the Department of the Navy's strategic IT goals?
The provided data categorizes the services under 'Other ADP & Telecommunications Services' and NAICS code 541519 ('Other Computer Related Services'). Without further details on the Statement of Work, it's difficult to ascertain the precise services. However, such contracts typically cover a range of IT support, network management, or system integration tasks crucial for operational readiness and communication within the Navy.
Given the $70,527 daily rate, what risks are associated with potential cost overruns or scope creep, even under a fixed-price contract?
Even with a fixed-price contract, risks of cost overruns or scope creep can arise from poorly defined requirements, unforeseen technical challenges, or inadequate project management. If the initial scope was underestimated or if the contractor encounters unexpected complexities, they might seek change orders or extensions, potentially increasing the overall cost to the government beyond the initial estimate.
How effective was the full and open competition in ensuring the best value for taxpayers on this $12.9 million contract?
Full and open competition is designed to maximize value by encouraging multiple bids. Its effectiveness in this case depends on the number and quality of bids received, the negotiation process, and the final price relative to market rates. While the mechanism itself promotes value, the ultimate effectiveness hinges on the execution and market conditions specific to these 'Other Computer Related Services'.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: FIXED PRICE (J)
Contractor Details
Parent Company: HP, Inc.
Address: 13600 EDS DRIVE, HERNDON, VA, 20171
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,906,397
Exercised Options: $12,906,397
Current Obligation: $12,906,397
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002400D6000
IDV Type: IDC
Timeline
Start Date: 2009-03-31
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2023-08-08
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