VA Awards $185M to Peraton for VISTA/Imaging Systems Support

Contract Overview

Contract Amount: $185,475,491 ($185.5M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-10-04

End Date: 2019-01-03

Contract Duration: 1,917 days

Daily Burn Rate: $96.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS REQUIREMENT IS TO PROVIDE TECHNICAL, MANAGERIAL AND ADMINISTRATIVE SERVICES TO VA IN SUPPORT OF ITS VISTA AND VISTA IMAGING SYSTEMS ENGINEERING, MAINTENANCE, SUSTAINMENT, AND LOGISTIC REQUIREMENTS. IGF::OT::IGF

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $185.5 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: THIS REQUIREMENT IS TO PROVIDE TECHNICAL, MANAGERIAL AND ADMINISTRATIVE SERVICES TO VA IN SUPPORT OF ITS VISTA AND VISTA IMAGING SYSTEMS ENGINEERING, MAINTENANCE, SUSTAINMENT, AND LOGISTIC REQUIREMENTS. IGF::OT::IGF Key points: 1. Contract awarded to Peraton Enterprise Solutions LLC for critical VISTA and imaging systems. 2. Significant funding of $185.5M over nearly 6 years highlights long-term system reliance. 3. Lack of competition raises concerns about potential overpricing and limited innovation. 4. Custom Computer Programming Services (NAICS 541511) sector is vital for government IT infrastructure.

Value Assessment

Rating: questionable

The $185.5M contract value over 1917 days suggests a substantial investment. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar custom programming services contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best value.

Taxpayer Impact: The lack of competition on this large contract may result in taxpayers paying more than necessary for these essential IT services.

Public Impact

Veterans rely on VISTA for healthcare access and management. System stability and maintenance are crucial for uninterrupted healthcare services. Potential for cost overruns impacts overall VA budget allocation. Data security and system integrity are paramount for sensitive veteran information.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Long contract duration without re-competition

Positive Signals

Supports critical VA systems
Long-term engagement provides stability

Sector Analysis

This contract falls within the Custom Computer Programming Services sector, essential for maintaining and developing government IT systems. Benchmarks for similar large-scale, long-term IT support contracts are often difficult to establish due to unique system requirements and vendor relationships.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of subcontracting opportunities for small businesses in the provided data. This represents a missed opportunity to support small business growth within the IT services sector.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure Peraton Enterprise Solutions LLC is delivering services effectively and at a reasonable cost. Regular performance reviews and cost audits would be advisable.

Related Government Programs

Custom Computer Programming Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competitive bidding may lead to inflated costs.
Sole-source award limits market competition and innovation.
Potential for vendor lock-in due to specialized system knowledge.
No clear indication of small business participation.
Long contract duration without re-competition raises oversight concerns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $185.5 million to PERATON ENTERPRISE SOLUTIONS LLC. THIS REQUIREMENT IS TO PROVIDE TECHNICAL, MANAGERIAL AND ADMINISTRATIVE SERVICES TO VA IN SUPPORT OF ITS VISTA AND VISTA IMAGING SYSTEMS ENGINEERING, MAINTENANCE, SUSTAINMENT, AND LOGISTIC REQUIREMENTS. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

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 $185.5 million.

What is the period of performance?

Start: 2013-10-04. End: 2019-01-03.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. For critical systems like VISTA, the agency might argue that only Peraton possessed the specific knowledge and experience required for seamless maintenance and sustainment, thus precluding a competitive process to avoid disruption.

How can the VA ensure cost-effectiveness without competition?

The VA can implement robust performance metrics and service level agreements (SLAs) tied to payment. Regular, detailed cost analysis, benchmarking against industry standards where possible, and potentially engaging independent cost estimators can help ensure Peraton's pricing remains fair and reasonable throughout the contract's life, despite the absence of competitive pressure.

What is the risk of vendor lock-in with this sole-source contract?

The primary risk of vendor lock-in is significant. With a sole-source award for critical systems over a long period, the VA becomes heavily reliant on Peraton. Transitioning to a new vendor in the future could be extremely costly and disruptive due to the specialized knowledge required, potentially limiting future negotiation leverage.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Solutions Inc. (UEI: 081218565)

Address: 13600 EDS DR A3S-B53, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $185,475,491

Exercised Options: $185,475,491

Current Obligation: $185,475,491

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline