Army Knowledge Online Services Contract Awarded to Peraton Inc. for $74.8M Over 5 Years
Contract Overview
Contract Amount: $74,846,196 ($74.8M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2016-12-27
End Date: 2022-02-26
Contract Duration: 1,887 days
Daily Burn Rate: $39.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF ARMY KNOWLEDGE ONLINE - ENTERPRISE SERVICES OPERATIONS AND MAINTENANCE
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $74.8 million to PERATON INC. for work described as: IGF::OT::IGF ARMY KNOWLEDGE ONLINE - ENTERPRISE SERVICES OPERATIONS AND MAINTENANCE Key points: 1. Contract awarded to Peraton Inc. for enterprise services operations and maintenance. 2. Significant contract value of $74.8 million over its 5-year duration. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under the Computer Systems Design Services sector.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed carefully. However, the benchmark of $39.66 million in obligated funds suggests a reasonable allocation for the services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust process for selecting the most advantageous offer. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value for money in enterprise IT services.
Public Impact
Ensures continued operation of the Army Knowledge Online platform, a critical resource for soldiers. Supports communication and information sharing within the Department of the Army. Potential impact on user experience and access to information based on service provider performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee pricing can incentivize contractor to increase costs.
- Contract duration of 5 years may not align with rapidly evolving technology needs.
- Lack of specific performance metrics in provided data.
Positive Signals
- Awarded under full and open competition.
- Supports critical Army knowledge management functions.
- Experienced contractor likely to provide stable service.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. The value of $74.8 million is substantial for this type of service, reflecting the scale of the Army Knowledge Online platform.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The primary contractor, Peraton Inc., is a large business, suggesting limited direct opportunities for small businesses through this prime contract.
Oversight & Accountability
The contract was awarded by the Department of the Army, with oversight likely managed by relevant Army contracting and program management offices. The Inspector General (IG) designation suggests potential for audit and review.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to CPFF pricing.
- Risk of service degradation if performance is not rigorously monitored.
- Technology obsolescence if contract is not agile.
- Dependence on a single large contractor for critical infrastructure.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.8 million to PERATON INC.. IGF::OT::IGF ARMY KNOWLEDGE ONLINE - ENTERPRISE SERVICES OPERATIONS AND MAINTENANCE
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $74.8 million.
What is the period of performance?
Start: 2016-12-27. End: 2022-02-26.
What is the specific value proposition of Peraton Inc.'s bid compared to other competitors under the full and open competition?
While the data confirms full and open competition, it does not detail the specific value proposition of Peraton Inc.'s bid or how it compared to other offers. A deeper analysis would require reviewing the source selection decision document to understand the technical and cost trade-offs made during the evaluation process.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure effective service delivery?
The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Effective oversight would require these metrics to be clearly defined and monitored to ensure Peraton Inc. meets the Army's requirements for operations and maintenance of the Army Knowledge Online platform.
How does the Cost Plus Fixed Fee (CPFF) structure mitigate risks of cost overruns for this specific contract?
The CPFF structure inherently carries a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies would typically involve stringent government oversight, detailed cost tracking, and clear definitions of allowable costs to prevent contractor inefficiencies from inflating the final price.
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
Solicitation ID: W15QKN16R0109
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 12975 WORLDGATE DR STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $75,262,796
Exercised Options: $75,262,796
Current Obligation: $74,846,196
Actual Outlays: $811,949
Subaward Activity
Number of Subawards: 1219
Total Subaward Amount: $780,605,102
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0056
IDV Type: GWAC
Timeline
Start Date: 2016-12-27
Current End Date: 2022-02-26
Potential End Date: 2022-02-26 00:00:00
Last Modified: 2022-03-25
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