Navy Marine Corps Intranet IDV for Electronics and Communications Equipment and Services Awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $312,649,110 ($312.6M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2008-09-30

Contract Duration: 365 days

Daily Burn Rate: $856.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INDEFINITE DELIVERY VEHICLE FOR ELECTRONICS AND COMMUNICATIONS EQUIPMENT AND SERVICES FOR THE NAVY MARINE CORPS INTRANET PROGRAM.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $312.6 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: INDEFINITE DELIVERY VEHICLE FOR ELECTRONICS AND COMMUNICATIONS EQUIPMENT AND SERVICES FOR THE NAVY MARINE CORPS INTRANET PROGRAM. Key points: 1. The contract's total value of over $312 million indicates a significant investment in the Navy Marine Corps Intranet infrastructure. 2. The award to Peraton Enterprise Solutions LLC suggests a competitive selection process for a critical IT services provider. 3. The indefinite delivery vehicle (IDV) structure allows for flexibility in acquiring a range of electronics and communications equipment and services. 4. The contract's duration and delivery order nature point to ongoing support and potential for future task orders. 5. The primary NAICS code (541519) signifies a focus on IT services beyond standard software development or hardware sales. 6. The firm-fixed-price contract type aims to provide cost certainty for the government, though it may limit flexibility for scope changes.

Value Assessment

Rating: good

Benchmarking the value of this contract requires comparison to similar large-scale IT infrastructure IDVs for military branches. The total award amount of over $312 million over its period of performance suggests a substantial investment. Without specific details on the services and equipment procured under this IDV, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the delivery orders likely provides a degree of cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and innovative solutions. The presence of 4 bidders suggests a reasonable level of competition for this significant IT services contract.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and capabilities, driving down costs and maximizing the value of government spending.

Public Impact

The primary beneficiaries are the U.S. Navy and Marine Corps personnel who rely on the NMCI for secure and reliable communication and information access. The contract delivers a wide range of electronics and communications equipment and services essential for maintaining and upgrading the NMCI network. The geographic impact is nationwide, supporting military bases and operations across the United States and potentially overseas. The contract supports a segment of the IT services workforce, including engineers, technicians, and support staff involved in network management and equipment deployment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in IDVs if not managed tightly, leading to cost overruns.
Reliance on a single prime contractor for a broad range of critical IT services could pose risks if performance falters.
The firm-fixed-price nature might disincentivize contractors from proactively identifying and resolving issues outside the defined scope.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and competitive pricing.
The IDV structure allows for flexibility in adapting to evolving technological needs within the NMCI.
The firm-fixed-price contract type provides cost certainty for the government on awarded delivery orders.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on network infrastructure, electronics, and communications equipment for a large government entity. The market for such services is highly competitive, with numerous large and small businesses vying for significant federal contracts. The total spending on IT services by the Department of Defense alone is in the tens of billions annually, making contracts like this a crucial component of the sector's landscape. Comparable spending benchmarks would involve analyzing other large IDVs for network modernization and sustainment across federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While Peraton Enterprise Solutions LLC is a large business, the subcontracting opportunities generated by this IDV could potentially benefit small businesses within the IT and communications sectors. The extent of small business participation would depend on Peraton's subcontracting plan and the specific requirements of individual delivery orders.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance metrics, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Navy Marine Corps Intranet (NMCI) Program
Department of Defense IT Services Contracts
Indefinite Delivery Vehicles (IDVs)
Information Technology Infrastructure Support
Communications Equipment Procurement

Risk Flags

Large contract value may indicate complexity and potential for cost overruns if not managed effectively.
Reliance on a single IDV for critical infrastructure could pose a single point of failure risk.
Firm-fixed-price delivery orders may limit flexibility in adapting to unforeseen technical requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $312.6 million to PERATON ENTERPRISE SOLUTIONS LLC. INDEFINITE DELIVERY VEHICLE FOR ELECTRONICS AND COMMUNICATIONS EQUIPMENT AND SERVICES FOR THE NAVY MARINE CORPS INTRANET PROGRAM.

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 $312.6 million.

What is the period of performance?

Start: 2007-10-01. End: 2008-09-30.

What is the historical spending trend for this specific IDV over its lifespan?

The provided data reflects a single award with a total value of $312,649,110.40, covering a period from October 1, 2007, to September 30, 2008. This suggests that the data point represents the total value obligated or awarded for that specific contract period. To understand the historical spending trend, one would need access to data across multiple award years or subsequent IDVs for the Navy Marine Corps Intranet program. Without that longitudinal data, it's impossible to discern trends, such as increasing or decreasing investment, or shifts in spending patterns over time for this particular contract vehicle.

How does the per-unit cost of electronics and communications equipment under this contract compare to market rates?

Determining the precise per-unit cost comparison is challenging with the provided data. The contract is an Indefinite Delivery Vehicle (IDV) for 'Electronics and Communications Equipment and Services,' and the total award value of over $312 million encompasses a broad range of potential items and services over its performance period. Without specific line-item details for individual pieces of equipment or services rendered, and their associated quantities and prices, a direct benchmark against market rates is not feasible. Furthermore, government procurement often involves negotiated prices that may differ from commercial off-the-shelf rates due to factors like volume discounts, specific security requirements, or bundled service agreements.

What is Peraton Enterprise Solutions LLC's track record with similar large-scale IT infrastructure contracts for the Department of Defense?

Peraton Enterprise Solutions LLC has a significant track record in supporting federal agencies, including the Department of Defense, with complex IT and mission-critical solutions. While the specific details of their past performance on contracts of this exact scale and scope (NMCI IDV) would require deeper analysis of contract databases, Peraton has been a major player in areas such as enterprise IT, cybersecurity, and telecommunications services for various government entities. Their history often involves managing large, integrated systems and providing sustainment and modernization services. Assessing their performance would involve reviewing past contract awards, performance evaluations (e.g., CPARS), and any documented issues or successes on comparable projects.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for an Indefinite Delivery Vehicle (IDV) focused on electronics and communications equipment and services for a critical network like the Navy Marine Corps Intranet (NMCI), typical KPIs would likely include network uptime and availability, system performance metrics (e.g., latency, bandwidth utilization), response times for service requests, equipment delivery timelines, adherence to security protocols, and overall user satisfaction. The effectiveness of the contract is also implicitly measured by the successful operation and modernization of the NMCI, ensuring seamless communication and data flow for Navy and Marine Corps operations.

What is the potential impact of this contract on the overall IT spending within the Department of the Navy?

This contract, with a total value exceeding $312 million, represents a substantial portion of the Department of the Navy's IT infrastructure investment during its performance period. It underscores the Navy's commitment to maintaining and upgrading its core communication network, the NMCI. Such a significant award influences the Navy's overall IT budget allocation, potentially diverting funds from other IT initiatives or reflecting a strategic prioritization of network modernization and sustainment. The scale of this contract suggests it is a foundational element of the Navy's operational capability, impacting how resources are distributed across various technology domains.

Were there any significant challenges or disputes associated with the award or execution of this contract?

The provided summary data does not contain information regarding challenges or disputes related to the award or execution of this contract. To ascertain this, a thorough review of contract award protests, litigation records, or official dispute resolution dockets would be necessary. Such information is typically found in specialized legal or contract compliance databases, or through official government transparency portals that track contract disputes. Without access to these sources, it is not possible to determine if any significant challenges or disputes arose during the lifecycle of this particular IDV.

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: FIRM 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: $141,835,751,865

Exercised Options: $141,826,864,291

Current Obligation: $312,649,110

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002400D6000

IDV Type: IDC

Timeline