DoD's $192M NMCI Services Contract Awarded to Peraton Enterprise Solutions LLC
Contract Overview
Contract Amount: $192,282,037 ($192.3M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2019-08-31
End Date: 2019-09-30
Contract Duration: 30 days
Daily Burn Rate: $6.4M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NMCI SERVICES
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $192.3 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: NMCI SERVICES Key points: 1. Contract value of $192.2M for Computer Systems Design Services. 2. Awarded to Peraton Enterprise Solutions LLC under full and open competition. 3. Significant spending in the IT sector for the Department of the Navy. 4. Potential risk associated with a single delivery order for a large contract.
Value Assessment
Rating: fair
The contract value of $192.2M is substantial for Computer Systems Design Services. Benchmarking against similar contracts is difficult without more detailed service descriptions, but the scale suggests a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT services.
Public Impact
Ensures continued IT infrastructure support for the Department of the Navy. Supports critical operational capabilities through computer systems design. Impacts the IT services market through a large federal contract award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Single delivery order for a large contract value.
- Limited duration of the delivery order (30 days).
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Federal IT spending is consistently high, with significant portions allocated to infrastructure and support services like those provided under NMCI.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business participation was incorporated through subcontracting.
Oversight & Accountability
Oversight would typically involve contract performance monitoring by the Department of the Navy to ensure services meet requirements and are delivered on time and within budget.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited duration of the delivery order (30 days) for a large value.
- Lack of detail on specific services provided under the broad NAICS code.
- Potential for scope creep or quality issues if FFP is not well-managed for complex IT.
- No indication of small business subcontracting.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $192.3 million to PERATON ENTERPRISE SOLUTIONS LLC. NMCI 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 $192.3 million.
What is the period of performance?
Start: 2019-08-31. End: 2019-09-30.
What is the specific scope of services covered by this $192M delivery order, and how does it align with the Navy's long-term IT strategy?
The provided data classifies the service as 'Computer Systems Design Services' (NAICS 541512) under the NMCI program. The specific scope within this broad category and its alignment with the Navy's strategic IT goals would require access to the detailed contract statement of work. Understanding the precise deliverables is crucial for assessing value and effectiveness beyond the headline figures.
Given the 30-day duration, what is the nature of this delivery order, and does it represent a short-term surge requirement or a transitionary phase?
A 30-day duration for a $192M contract value is highly unusual and suggests this is not a typical service contract. It could represent a very specific, high-value, short-term task, a critical transitionary period between major contracts, or potentially an administrative or funding mechanism. Clarification on the exact purpose is essential for risk assessment.
How does the firm fixed price structure mitigate risks for the government, considering the potential complexity of computer systems design?
A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor, Peraton Enterprise Solutions LLC. This structure provides budget certainty for the Department of the Navy. However, for complex IT services, FFP can sometimes lead to contractors cutting corners on quality or scope if not meticulously managed and defined in the SOW.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Peraton Solutions Inc. (UEI: 081218565)
Address: 13600 EDS DR, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $192,282,037
Exercised Options: $192,282,037
Current Obligation: $192,282,037
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003913D0013
IDV Type: IDC
Timeline
Start Date: 2019-08-31
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2019-12-23
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