VA awards $25.9M for wireless infrastructure, with Peraton Inc. securing the task order
Contract Overview
Contract Amount: $25,898,306 ($25.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2012-03-22
End Date: 2015-01-30
Contract Duration: 1,044 days
Daily Burn Rate: $24.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NATIONAL WIRELESS INFRASTRUCTURE INSTALLATION TASK ORDER AWARD.
Place of Performance
Location: PALM BAY, BREVARD County, FLORIDA, 32905, UNITED STATES OF AMERICA
State: Florida Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $25.9 million to PERATON INC. for work described as: NATIONAL WIRELESS INFRASTRUCTURE INSTALLATION TASK ORDER AWARD. Key points: 1. The contract value represents a significant investment in modernizing the VA's IT infrastructure. 2. Competition dynamics for this task order are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing this award to similar IT infrastructure projects. 5. The sector positioning highlights the VA's ongoing commitment to technological advancement. 6. The fixed-price nature of the contract aims to control costs and manage financial risk.
Value Assessment
Rating: good
The contract value of $25.9 million for wireless infrastructure installation appears reasonable given the scope of services typically required for a federal agency of the VA's size. Benchmarking against similar large-scale IT infrastructure projects within the federal government suggests that the pricing is within an expected range. The firm-fixed-price structure further supports value for money by shifting cost-risk to the contractor, incentivizing efficient execution.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This task order was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 6 bidders suggests a healthy level of competition for this type of IT service. A competitive bidding process generally leads to more favorable pricing and better service offerings for the government, as contractors strive to win the award by offering the most attractive terms.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. This approach maximizes the potential for obtaining high-quality services at the best possible price.
Public Impact
Veterans will benefit from improved access to VA services through enhanced wireless connectivity at facilities. The contract delivers essential IT infrastructure upgrades, supporting the modernization of healthcare and administrative systems. The geographic impact is focused on Florida, where the task order is being executed. Workforce implications include potential job creation for IT professionals and technicians involved in the installation and maintenance of wireless networks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial requirements are not clearly defined.
- Dependence on contractor's ability to meet installation timelines and quality standards.
- Cybersecurity risks associated with new network infrastructure require robust monitoring.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Full and open competition suggests a competitive market for these services.
- Task order structure allows for focused execution on specific infrastructure needs.
Sector Analysis
The IT services sector, particularly within government contracting, is highly competitive. This contract for wireless infrastructure installation falls under the broader category of computer systems design services. The market for such services is substantial, driven by continuous demand for network upgrades and modernization across federal agencies. The VA's spending in this area is consistent with the government's overall push to enhance digital capabilities and improve service delivery through technology.
Small Business Impact
The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Peraton Inc. is a large business, the competitive nature of the award means that opportunities for small business subcontracting may arise if Peraton chooses to engage them. Further analysis would be needed to determine the extent of small business participation in the subcontracting plan.
Oversight & Accountability
Oversight for this task order is likely managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon budget and timeline. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided in the summary data.
Related Government Programs
- VA IT Modernization Initiatives
- Federal Network Infrastructure Contracts
- Department of Defense Wireless Projects
- General Services Administration IT Schedule Contracts
Risk Flags
- Potential for cybersecurity vulnerabilities
- Risk of project delays
- Integration challenges with legacy systems
Tags
it, va, florida, task-order, large-contract, full-and-open-competition, firm-fixed-price, computer-systems-design-services, wireless-infrastructure, peraton-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $25.9 million to PERATON INC.. NATIONAL WIRELESS INFRASTRUCTURE INSTALLATION TASK ORDER AWARD.
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $25.9 million.
What is the period of performance?
Start: 2012-03-22. End: 2015-01-30.
What is Peraton Inc.'s track record with the Department of Veterans Affairs and similar federal agencies?
Peraton Inc. has a significant history of contracting with various U.S. federal agencies, including the Department of Veterans Affairs (VA). Their portfolio often includes complex IT services, cybersecurity, and mission support. For the VA specifically, Peraton has been involved in projects related to IT infrastructure, data management, and modernization efforts. Their performance across numerous contracts, often involving large dollar values and critical services, suggests a substantial capacity to handle federal requirements. However, a detailed review of past performance ratings, any past disputes, or contract modifications would provide a more granular understanding of their specific track record with the VA and their success in delivering similar wireless infrastructure solutions.
How does the awarded amount of $25.9 million compare to similar wireless infrastructure projects within the federal government?
The $25.9 million award for wireless infrastructure installation by the VA is a substantial but not unprecedented figure for large-scale federal IT projects. Similar projects, such as network upgrades or the deployment of new wireless capabilities across multiple facilities or a large campus, can range from tens to hundreds of millions of dollars depending on the scope, complexity, and geographic spread. For instance, other agencies like the Department of Defense or the General Services Administration have awarded contracts in this range for enterprise-wide network enhancements. The specific value is influenced by factors like the number of locations, the type of technology deployed (e.g., Wi-Fi 6, 5G integration), and the duration of the task order. Without more specific details on the VA's exact requirements, a precise comparison is difficult, but the amount aligns with significant federal IT infrastructure investments.
What are the primary risks associated with this type of IT infrastructure contract for the VA?
The primary risks associated with this IT infrastructure contract for the VA include technical risks such as integration challenges with existing systems, potential for obsolescence of deployed technology within the contract's lifespan, and performance issues if the network does not meet specified bandwidth or reliability requirements. Operational risks involve potential disruptions during installation that could impact VA operations. Contractor-related risks include potential delays in deployment, cost overruns (though mitigated by fixed-price), and cybersecurity vulnerabilities introduced by new infrastructure. Furthermore, ensuring adequate training and support for VA staff post-installation is crucial to realizing the full benefits of the new system. Effective risk mitigation strategies, including rigorous testing, phased rollouts, and strong cybersecurity protocols, are essential.
How effective is a firm-fixed-price contract in ensuring value for money for this wireless infrastructure project?
A firm-fixed-price (FFP) contract is generally considered effective in ensuring value for money for projects with well-defined scopes, such as wireless infrastructure installation. Under an FFP agreement, the contractor assumes the majority of the cost risk, agreeing to complete the work for a predetermined price. This incentivizes the contractor to manage costs efficiently and avoid scope creep, as any overruns typically come out of their profit margin. For the VA, this means greater cost certainty and predictability. The value for money is realized if the contractor successfully delivers the required infrastructure within the fixed price, achieving the performance standards outlined in the contract. The key to maximizing value lies in the clarity and completeness of the initial requirements and specifications.
What does the number of bidders (6) indicate about the market for federal wireless infrastructure services?
The fact that six bidders competed for this VA wireless infrastructure task order suggests a moderately competitive market for such federal services. A number like six indicates that there are multiple capable vendors interested in and able to pursue this type of work. This level of competition is generally sufficient to encourage competitive pricing and innovation from the bidders. It implies that the barriers to entry for qualified firms are not excessively high, and that the government has a reasonable pool of options to choose from. While more bidders could potentially drive prices lower, six represents a healthy balance, suggesting that the VA likely received a range of proposals and could select a vendor offering a strong combination of technical capability and cost-effectiveness.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 2235 MONROE ST, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,898,306
Exercised Options: $25,898,306
Current Obligation: $25,898,306
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: VA11811D1009
IDV Type: IDC
Timeline
Start Date: 2012-03-22
Current End Date: 2015-01-30
Potential End Date: 2015-01-30 00:00:00
Last Modified: 2015-09-01
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