DoD's $121.6M contract for computer systems design services awarded to Peraton Inc. for ICOE G6 mission
Contract Overview
Contract Amount: $121,622,116 ($121.6M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2019-03-29
End Date: 2024-04-30
Contract Duration: 1,859 days
Daily Burn Rate: $65.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE CONTRACTOR SHALL PROVIDE COMPUTER SYSTEMS DESIGN SERVICES IN SUPPORT OF THE ICOE G6 MISSION. THE CURRENT ENVIRONMENT ENCOMPASSES A FEDERATION OF COMPLEX SYSTEMS AND IT CAPABILITIES DISTRIBUTED THROUGHOUT FORT HUACHUCA, ARIZONA (AZ), AND EXTENDS TO ORGANIZATIONS AT GOODFELLOW AFB, CORRY NAVAL STATION IN PENSACOLA FL, AND MI SCHOOLS AT ARMY NATIONAL GUARD REGIONAL TRAINING INSTITUTIONS (RTIS) IN CAMP WILLIAMS UT, AND CAMP CLAY GA.
Place of Performance
Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $121.6 million to PERATON INC. for work described as: THE CONTRACTOR SHALL PROVIDE COMPUTER SYSTEMS DESIGN SERVICES IN SUPPORT OF THE ICOE G6 MISSION. THE CURRENT ENVIRONMENT ENCOMPASSES A FEDERATION OF COMPLEX SYSTEMS AND IT CAPABILITIES DISTRIBUTED THROUGHOUT FORT HUACHUCA, ARIZONA (AZ), AND EXTENDS TO ORGANIZATIONS AT GOODFELLOW … Key points: 1. Contract focuses on complex IT systems across multiple military installations, indicating a broad operational scope. 2. The firm fixed-price contract type suggests a defined scope and budget, potentially mitigating cost overruns. 3. A 1,859-day duration points to a long-term need for these critical IT support services. 4. The contract was awarded under full and open competition, implying a robust selection process. 5. Peraton Inc. is the sole awardee, highlighting their specialized capabilities in this domain. 6. The geographic spread of services across Arizona, Texas, Florida, Utah, and Georgia underscores the national importance of the mission.
Value Assessment
Rating: good
The contract's value of approximately $121.6 million over 1,859 days (roughly 5 years) averages to about $65,423 per day. Benchmarking against similar large-scale IT systems design contracts, this daily rate appears competitive, especially considering the complexity and geographic distribution of the supported mission. The firm fixed-price structure further supports value by locking in costs for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bids suggests a reasonable level of competition for this specialized IT systems design service. While not an extremely high number of bidders, it signifies that the market was engaged and that Peraton Inc. was selected as the most advantageous offer.
Taxpayer Impact: Full and open competition generally leads to better price discovery and ensures taxpayers receive services at a fair market value, as vendors compete to offer the best terms.
Public Impact
The primary beneficiaries are the Department of the Army and its Information Command Operations Element (ICOE) G6 mission, ensuring critical IT infrastructure and systems are operational. Services delivered include computer systems design, supporting the complex IT capabilities across various military bases. The geographic impact spans Fort Huachuca, AZ; Goodfellow AFB, TX; Corry Naval Station, FL; and Army National Guard RTIs in UT and GA. Workforce implications include the potential for skilled IT professionals to be employed by Peraton Inc. and its subcontractors to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in due to the long contract duration and specialized nature of services.
- Dependence on a single contractor for critical IT infrastructure across multiple key locations.
- Risk of scope creep if the 'complex systems' evolve significantly beyond the initial design parameters.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Awarded through full and open competition, suggesting a competitive selection process.
- Long duration indicates a stable, ongoing requirement for essential IT support.
- Services support a critical military mission (ICOE G6), ensuring operational readiness.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer systems design. The market for such services is substantial, driven by ongoing digital transformation and the need for robust IT infrastructure in government and defense. Peraton Inc. operates in a competitive landscape of large federal IT contractors. This specific contract supports a critical defense mission, aligning with significant government spending in defense IT modernization and sustainment.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded through full and open competition, there is potential for subcontracting opportunities for small businesses. However, the extent to which small businesses will participate depends on Peraton Inc.'s subcontracting plan and the specific technical requirements that can be fulfilled by smaller entities.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army and the relevant contracting activity within the Department of Defense. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Modernization Programs
- Army Network Enterprise Technology Command (NETCOM) Contracts
- Information Technology Support Services
- Computer Systems Design Services
- Defense Information Systems Agency (DISA) Contracts
Risk Flags
- Long-term contract duration may increase risk of vendor lock-in.
- Sole awardee status could reduce competitive pressure over time.
- Complexity of systems requires robust government oversight to manage scope.
- Geographic distribution of services adds logistical complexity.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, large-contract, mission-critical, arizona, multi-state, peraton-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $121.6 million to PERATON INC.. THE CONTRACTOR SHALL PROVIDE COMPUTER SYSTEMS DESIGN SERVICES IN SUPPORT OF THE ICOE G6 MISSION. THE CURRENT ENVIRONMENT ENCOMPASSES A FEDERATION OF COMPLEX SYSTEMS AND IT CAPABILITIES DISTRIBUTED THROUGHOUT FORT HUACHUCA, ARIZONA (AZ), AND EXTENDS TO ORGANIZATIONS AT GOODFELLOW AFB, CORRY NAVAL STATION IN PENSACOLA FL, AND MI SCHOOLS AT ARMY NATIONAL GUARD REGIONAL TRAINING INSTITUTIONS (RTIS) IN CAMP WILLIAMS UT, AND CAMP CLAY GA.
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 $121.6 million.
What is the period of performance?
Start: 2019-03-29. End: 2024-04-30.
What is Peraton Inc.'s track record with similar large-scale IT systems design contracts for the Department of Defense?
Peraton Inc. has a significant history of performing large, complex IT and mission support contracts for the Department of Defense and other federal agencies. They are known for handling systems integration, cybersecurity, and enterprise IT services. While specific details on past ICOE G6-like projects would require deeper analysis, Peraton's portfolio generally includes contracts involving the design, implementation, and sustainment of critical IT infrastructure across various military branches and commands. Their experience often involves managing geographically dispersed systems and ensuring operational continuity, which aligns with the requirements of this contract. Reviewing their past performance on similar contracts, including any past performance evaluations or award fees, would provide further insight into their capabilities and reliability for this specific engagement.
How does the average daily cost of this contract compare to industry benchmarks for similar IT systems design services?
The average daily cost for this contract is approximately $65,423 ($121.6M / 1859 days). Benchmarking this against industry standards for complex IT systems design and integration services for the federal government requires considering several factors, including the level of security clearance required, the criticality of the mission, the geographic distribution of services, and the specific technologies involved. Generally, large-scale, mission-critical IT support contracts for the DoD can range significantly, but this daily rate appears to be within a competitive range for the scope and complexity described. Factors like specialized expertise, 24/7 support requirements, and the integration of diverse legacy and modern systems can drive costs up. Without specific details on the technical requirements and labor mix, a precise comparison is difficult, but the rate does not immediately suggest overpricing given the context.
What are the primary risks associated with Peraton Inc. being the sole awardee for this long-term contract?
The primary risks associated with a sole awardee for a long-term contract like this include potential vendor lock-in, reduced incentive for innovation, and a lack of competitive pressure on pricing and performance over time. If Peraton Inc. faces financial difficulties, operational challenges, or strategic shifts, the government has limited immediate alternatives, potentially leading to mission disruption. Furthermore, without ongoing competition, there's a risk that Peraton's focus on efficiency and cost-effectiveness might wane. To mitigate these risks, the government typically employs robust contract management, performance monitoring, and clear incentive/disincentive clauses within the contract to ensure Peraton maintains high standards and competitive pricing throughout the contract's duration.
How effective is the firm fixed-price (FFP) contract type in managing costs for complex IT systems design?
The Firm Fixed-Price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and understood, as it shifts most of the cost risk to the contractor. For complex IT systems design, FFP can be advantageous as it provides budget certainty for the government. However, it can also incentivize the contractor to cut corners on quality or scope if not managed carefully, or lead to disputes if the scope is not precisely defined. In this case, the long duration and the description of 'complex systems' suggest that the initial scope definition was critical. Effective management by the government, including clear requirements and performance metrics, is essential to ensure that the FFP structure delivers value without compromising the quality or completeness of the IT systems design.
What is the historical spending trend for computer systems design services within the Department of the Army?
Historical spending on computer systems design services within the Department of the Army has generally been substantial and increasing, reflecting the continuous need for IT modernization, cybersecurity enhancements, and the integration of new technologies across its vast network of operations. The Army, like other branches of the DoD, relies heavily on sophisticated IT infrastructure to support training, logistics, intelligence, and command and control functions. Spending in this category is influenced by evolving threats, technological advancements, and strategic priorities. Contracts for systems design are often long-term and high-value, contributing significantly to the overall IT services budget. Analyzing past FPDS data would reveal specific trends, major contract vehicles, and key contractors dominating this space within the Army over the last decade.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W900KK19R0012
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $122,593,106
Exercised Options: $122,593,106
Current Obligation: $121,622,116
Subaward Activity
Number of Subawards: 620
Total Subaward Amount: $178,394,590
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0056
IDV Type: GWAC
Timeline
Start Date: 2019-03-29
Current End Date: 2024-04-30
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2025-02-27
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