State Dept. Spends $171M on Peraton Help Desk Services Over 6 Years
Contract Overview
Contract Amount: $171,446,361 ($171.4M)
Contractor: Peraton Inc.
Awarding Agency: Department of State
Start Date: 2009-09-01
End Date: 2015-02-28
Contract Duration: 2,006 days
Daily Burn Rate: $85.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: LABOR HOURS
Sector: IT
Official Description: INSTALLATION, HELP DESK SERVICES
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $171.4 million to PERATON INC. for work described as: INSTALLATION, HELP DESK SERVICES Key points: 1. Significant contract value of $171.4M for IT support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration spans over 6 years, indicating a long-term need. 4. The 'All Other Telecommunications' NAICS code suggests a broad scope of IT services.
Value Assessment
Rating: fair
The contract value of $171.4M over 6 years averages to approximately $28.5M annually. Without specific per-unit cost data or benchmarks for similar help desk services, a precise value assessment is difficult. However, the duration and scope suggest a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple vendors had the opportunity to bid, which typically fosters price discovery and can lead to more competitive pricing. The award to Peraton Inc. suggests they offered the best value under the established criteria.
Taxpayer Impact: The competitive nature of the award is a positive sign for taxpayers, as it likely resulted in a fair market price for the services rendered.
Public Impact
Ensures critical IT infrastructure and user support for the Department of State. Supports the operational continuity of government functions through reliable help desk services. The long-term nature of the contract provides stability for service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or quality data.
- Potential for cost creep over the 6-year contract duration.
- Limited insight into the specific technologies or services covered.
Positive Signals
- Awarded under full and open competition.
- Long contract duration suggests a stable and ongoing requirement.
- Significant investment indicates a high priority for IT support.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on IT support and telecommunications services. Spending benchmarks for similar IT support contracts can vary widely based on scope, complexity, and agency size, but $171M over six years for a major agency like the State Department is substantial.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
Oversight would typically involve contract performance reviews, audits, and monitoring by the Department of State's contracting officers to ensure Peraton Inc. meets its obligations and that taxpayer funds are used appropriately.
Related Government Programs
- All Other Telecommunications
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of detailed performance metrics.
- Potential for undefined scope creep within the NAICS code.
- Labor hour contracts can be susceptible to overbilling if not closely monitored.
- Long contract duration may not reflect current technological needs.
Tags
all-other-telecommunications, department-of-state, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $171.4 million to PERATON INC.. INSTALLATION, HELP DESK SERVICES
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $171.4 million.
What is the period of performance?
Start: 2009-09-01. End: 2015-02-28.
What was the specific scope of 'All Other Telecommunications' services provided under this contract?
The 'All Other Telecommunications' NAICS code is broad and can encompass a wide range of services beyond basic help desk support. This could include network management, telecommunications equipment installation and maintenance, and other related IT infrastructure services. Without a more detailed contract statement of work, the precise services rendered remain unspecified, making it difficult to fully assess the value and effectiveness.
How did the pricing structure (labor hours) compare to industry benchmarks for similar help desk services?
Pricing based on labor hours can be challenging to benchmark without detailed information on skill levels, hours billed, and specific tasks performed. While full and open competition suggests competitive pricing, the actual cost-effectiveness depends on the efficiency of service delivery and the prevailing market rates for IT support personnel with the required expertise. A comparison to similar government or commercial contracts would be necessary for a definitive assessment.
What were the key performance indicators (KPIs) and how did Peraton Inc. perform against them?
The provided data does not include information on the contract's Key Performance Indicators (KPIs) or Peraton Inc.'s performance against them. Effective oversight requires tracking metrics such as response times, resolution rates, customer satisfaction, and system uptime. The absence of this data limits the ability to evaluate the contract's effectiveness and the quality of services provided to the Department of State.
Industry Classification
NAICS: Information › Other Telecommunications › All Other Telecommunications
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
Offers Received: 3
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)
Address: 21000 ATLANTIC BLVD STE 300, DULLES, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $171,446,361
Exercised Options: $171,446,361
Current Obligation: $171,446,361
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2009-09-01
Current End Date: 2015-02-28
Potential End Date: 2015-02-28 00:00:00
Last Modified: 2017-09-14
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