DoD awards $20.76M IT support contract to Peraton Inc. for Military Intelligence Center of Excellence
Contract Overview
Contract Amount: $20,757,290 ($20.8M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2025-05-01
End Date: 2026-03-15
Contract Duration: 318 days
Daily Burn Rate: $65.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST NO FEE
Sector: IT
Official Description: INFORMATION TECHNOLOGY SERVICE AND SUPPORT CONTRACT FOR MILITARY INTELLIGENCE CENTER OF EXCELLENCE
Place of Performance
Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $20.8 million to PERATON INC. for work described as: INFORMATION TECHNOLOGY SERVICE AND SUPPORT CONTRACT FOR MILITARY INTELLIGENCE CENTER OF EXCELLENCE Key points: 1. Contract value represents a significant investment in specialized IT services for a critical intelligence training facility. 2. Full and open competition suggests a potentially competitive bidding process, though specific bidder numbers are not detailed. 3. The contract duration of 318 days indicates a focused, short-term need for services. 4. The 'Computer Systems Design Services' NAICS code points to a need for expertise in IT infrastructure and support. 5. Awarded as a delivery order, this contract likely fulfills a specific requirement within a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The absence of small business set-aside flags indicates the primary award was not specifically targeted to small businesses.
Value Assessment
Rating: good
Benchmarking the value of this $20.76 million contract requires comparison to similar IT support contracts for specialized training facilities. Given the specific nature of military intelligence IT needs, pricing could be higher than general IT support. The 'COST NO FEE' contract type suggests the government will reimburse allowable costs plus a fixed fee, which can be efficient if costs are well-managed. Further analysis would involve comparing Peraton's proposed costs against industry benchmarks for similar services and contract types.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the data specifies 'full and open competition,' it does not provide the number of bids received. A robust competition typically involves multiple bidders, which can drive down prices and ensure the government receives the best value. The absence of specific bidder numbers makes it difficult to definitively assess the level of competition achieved.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can lead to more cost-effective solutions and better pricing for the government.
Public Impact
The primary beneficiaries are the personnel of the Military Intelligence Center of Excellence, who will receive enhanced IT support for their training and operations. The contract delivers essential IT services and support, ensuring the smooth functioning of computer systems and networks critical for intelligence training. The geographic impact is localized to Arizona, where the Military Intelligence Center of Excellence is situated. Workforce implications may include the need for specialized IT personnel to fulfill the contract requirements, potentially creating opportunities for skilled professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if 'COST NO FEE' contract type is not closely monitored.
- Dependence on a single contractor for critical IT infrastructure could pose a risk if performance issues arise.
- The short contract duration might lead to transition challenges if follow-on contracts are not secured promptly.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Peraton Inc. is an established government contractor with experience in IT services.
- The contract supports a critical military intelligence training facility, indicating strategic importance.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract for the Military Intelligence Center of Excellence represents a specialized segment of that market, requiring expertise tailored to sensitive defense operations. Comparable spending benchmarks would involve analyzing other IT support contracts awarded to defense agencies for similar facilities or intelligence-related functions.
Small Business Impact
The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This suggests that the primary focus was on obtaining the best value through full and open competition, rather than specifically reserving the opportunity for small businesses. Consequently, there are no direct subcontracting implications mandated by a small business set-aside for this particular award. However, the prime contractor, Peraton Inc., may still engage small businesses as subcontractors based on their own procurement strategies.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army contracting officers and program managers responsible for the Military Intelligence Center of Excellence. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award announcements and public databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Defense Information Technology Contracting
- Military Intelligence Systems Support
- Computer Systems Design Services
- Federal IT Services and Support
- Department of Defense IT Modernization
Risk Flags
- Cost Control Risk (COST NO FEE)
- Service Continuity Risk (Short Duration)
- Contractor Performance Monitoring
Tags
it-services, computer-systems-design, department-of-defense, army, military-intelligence, full-and-open-competition, delivery-order, cost-plus-fixed-fee, arizona, intelligence-training
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.8 million to PERATON INC.. INFORMATION TECHNOLOGY SERVICE AND SUPPORT CONTRACT FOR MILITARY INTELLIGENCE CENTER OF EXCELLENCE
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 $20.8 million.
What is the period of performance?
Start: 2025-05-01. End: 2026-03-15.
What is Peraton Inc.'s track record with the Department of Defense, particularly in IT support for intelligence agencies?
Peraton Inc. has a significant history of contracting with the Department of Defense (DoD) across various IT and mission support services. While specific details on their IT support for intelligence agencies within the DoD would require deeper analysis of their contract portfolio, Peraton is known for providing advanced technology and mission-critical solutions to defense and intelligence communities. Their experience often includes areas like cyber security, enterprise IT, and command and control systems. Examining their past performance ratings and any past performance issues on similar DoD contracts would provide further insight into their reliability and capability for this specific award. The scale and nature of this $20.76 million contract suggest a need for proven expertise in sensitive environments.
How does the awarded price of $20.76 million compare to similar IT support contracts for military intelligence facilities?
Benchmarking the $20.76 million award requires comparing it against IT support contracts for comparable military intelligence facilities or specialized training centers. Factors influencing price include the scope of services (e.g., network management, cybersecurity, system design, user support), contract duration, labor rates, and the specific technological requirements of the intelligence mission. Given the specialized nature of military intelligence IT, costs can be higher than general IT support due to security clearances, specialized software, and stringent operational requirements. Without specific comparable contract data, it's challenging to definitively state if this price is high or low. However, the 'COST NO FEE' structure implies that the government reimburses allowable costs plus a fixed fee, making cost control and oversight crucial to ensure value.
What are the primary risks associated with this 'COST NO FEE' contract type for the government?
The primary risk associated with a 'COST NO FEE' (CNF) contract type for the government is the potential for cost overruns. In a CNF contract, the government reimburses the contractor for all allowable costs incurred in performing the contract, plus a fixed fee. This structure places the cost risk on the government, as the contractor has less incentive to control costs compared to a fixed-price contract. Effective oversight, rigorous cost tracking, and clear definitions of allowable costs are essential to mitigate this risk. Without strong management, the total cost could exceed initial estimates. The fixed fee, however, provides some predictability regarding the contractor's profit margin.
How effective is full and open competition in ensuring value for money for this type of specialized IT service?
Full and open competition is generally considered the most effective method for ensuring value for money, as it allows all responsible sources to compete, fostering a competitive environment that can drive down prices and encourage innovation. For specialized IT services like those required by the Military Intelligence Center of Excellence, a robust competition with multiple qualified bidders is crucial. It increases the likelihood that the government will receive competitive proposals that meet technical requirements at a reasonable price. However, the effectiveness is contingent on the number and quality of bids received. If only a few bidders participate, or if the requirements are so niche that only one or two contractors can realistically compete, the price discovery benefits of competition may be diminished.
What are the potential implications of the short contract duration (318 days) on service continuity and future IT needs?
A short contract duration of 318 days for critical IT support can have several implications. Firstly, it may indicate a short-term, specific need, such as bridging a gap until a larger contract is awarded or a specific project is completed. This can lead to potential inefficiencies if the contractor needs to ramp up and then demobilize quickly. Secondly, it raises concerns about service continuity. If this contract is essential for ongoing operations, the government must ensure a seamless transition to a follow-on contract or internal solution. This requires proactive planning and timely re-solicitation or extension processes. For the contractor, it might mean less incentive for long-term investment in optimizing the client's systems, focusing instead on meeting the immediate requirements within the given timeframe.
How does the 'Computer Systems Design Services' NAICS code (541512) align with the needs of a Military Intelligence Center of Excellence?
The NAICS code 541512, 'Computer Systems Design Services,' is highly relevant to a Military Intelligence Center of Excellence. This code encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. For an intelligence center, this would involve designing secure and robust IT infrastructures, developing custom software solutions for data analysis and operational support, integrating various intelligence platforms, and ensuring seamless communication networks. The design services are critical for establishing or upgrading the complex technological backbone required for intelligence gathering, processing, and dissemination, ensuring that the systems are tailored to the unique and often classified operational requirements of military intelligence.
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 › IT AND TELECOM - DELIVERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST NO FEE (S)
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: $201,952,989
Exercised Options: $26,533,809
Current Obligation: $20,757,290
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $887,284
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2025-05-01
Current End Date: 2026-03-15
Potential End Date: 2030-03-30 00:00:00
Last Modified: 2025-09-17
More Contracts from Peraton Inc.
- 200107!000034!5700!GZ80 !smc/Pks !F0470101C0001 !A!N!*!Y! !20001103!20061031!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000016429445!n!n!000000000000!ac26!rdte/Missile and Space Systems-Mgmt Support !A2 !missile and Space Systems !3000!NOT Discernable or Classified !541710!*!*!3! ! ! !*!*!*!B!*!*!B! !A !Y!R!2!003!B! !A!N!Z! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! !Y! ! !0001! — $1.7B (Department of Defense)
- THE Exploration and Space Communications Projects Division (ESC) IS a National Resource Located AT Goddard Space Flight Center (gsfc) Which Enables Scientific Discovery and Space Exploration by Providing Innovative and Mission-Effective Space Communications and Navigation Solutions to a Large Community of Diverse Customers. ESC Manages Operational Geostationary Communications Relay Satellites and Ground Systems for the Space Communications and Navigation (scan) Program AT Nasa Headquarters. Today, Scan Network Systems Consist of the Space Network (SN), the Near Earth Network (NEN), and the Deep Space Network (DSN). the Day-To-Day Management of These Three Networks IS Currently NOT Fully Consistent. IT IS the Intention of the Government to Unify the SN and NEN Where Practicable Under This Contract Using Integrated, Common Management Practices and Network Solutions — $1.5B (National Aeronautics and Space Administration)
- Nasa Goddard Space Flight Center's (gsfc) Goal for the Space Communications Networks Services Contract (scns) IS to Enable Mission Success for Every Customer Using Scns Services. KEY Objectives of the Scns Contract ARE to Decrease Cost and Maintain or Improve Operational Efficiency and Reliability, While Maintaining an Acceptable Level of Risk and Providing for Safe Operation of the Missions. the Contractor Shall Implement a Safety, Health, and Mission Assurance Program That Provides a Safe and Healthy Work Environment, Minimizes Program Risk, and Maximizes Nasa Mission Success. the Contractor Shall BE Responsible and Accountable for Achieving the Required Results. Core Requirement Functions, Such AS Configuration Management, Quality Assurance, ETC. ARE Required to Support Idiq Task Orders. the Space Network (SN) IS Comprised of a Fleet of On-Orbit Tracking and Data Relay Satellites (tdrs) and Associated Ground Systems That Provide Telecommunications Services. the Nature of the SN Architecture, I.E., Extremely Large Capital Investment, Contractor Operated Facilities, Continuous 24X7 Requirements, ETC., Lends Itself to a Core Requirements Approach. the Ground Network (GN) Consists of an Orbital Tracking Network and the Satellite Laser Ranging Network. the Nature of the Ground Network Architecture, I.E., Diverse MIX of Commercial and Government Assets, Evolving Geographic and Technical Customer Requirements, and Legacy Systems, ETC. Lends Itself to an Idiq Approach. Other Activities, I.E., Very Long Baseline Interferometry Network Operations and Maintenance (O&M), Electronic System Test Laboratory, Requirements Development, Hardware and Software Development, ETC. ARE Best Suited to an Idiq Approach in the Resource-Constrained Environment That Nasa Operates in — $1.2B (National Aeronautics and Space Administration)
- Operational Planning Implementation and Assessment Services (opias) Base Award — $800.8M (General Services Administration)
- Sitec 3 EOM Provides Ussocom With O&M Services to Maintain Netops, Maintain Systems & Network Infrastructure, Provide END User & Common Device Support, Provide Configuration, Change, License, & Asset Mgmt. Conduct Training and Perform Imacs Services — $651.0M (General Services Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)