DoD's $12.75M ITSS Contract for Army Cyber Center Awarded to Peraton Inc
Contract Overview
Contract Amount: $12,752,821 ($12.8M)
Contractor: Peraton Inc.
Awarding Agency: Department of Defense
Start Date: 2025-10-01
End Date: 2026-02-28
Contract Duration: 150 days
Daily Burn Rate: $85.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS) FOR THE U.S. ARMY GLOBAL CYBER CENTER (GCC).
Place of Performance
Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $12.8 million to PERATON INC. for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS) FOR THE U.S. ARMY GLOBAL CYBER CENTER (GCC). Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires robust oversight. 3. The duration of 150 days indicates a short-term need for IT support services. 4. The awardee, Peraton Inc., is a significant player in the government contracting space. 5. The North American Industry Classification System (NAICS) code 541519 covers 'Other Computer Related Services,' indicating a broad scope of potential IT support. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Value Assessment
Rating: fair
Benchmarking the value of this $12.75 million contract is challenging without knowing the specific services rendered and the contract's place within a larger IDIQ. The Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure costs remain reasonable and the fixed fee is justified. Comparing it to similar IT support contracts for cyber operations would provide better context on pricing and value for money. The number of bids (7) suggests some level of competition, which can help in price discovery, but the ultimate value depends on the efficiency and effectiveness of the services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with seven bids received. This indicates that the Army actively sought proposals from a wide range of qualified contractors. The presence of multiple bidders generally fosters price competition and allows the government to select the offer that provides the best value, considering both technical approach and cost. The competitive nature of this award suggests that Peraton Inc. was selected based on its ability to meet the government's requirements at a competitive price point.
Taxpayer Impact: A competitive bidding process for this IT support contract helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging the selection of the most capable and cost-effective provider.
Public Impact
The U.S. Army Global Cyber Center (GCC) will benefit from enhanced IT support services. Services delivered are expected to bolster the operational capabilities of the Army's cyber defense and operations. The contract's impact is primarily focused on the Department of Defense's cybersecurity infrastructure. Workforce implications may include the need for specialized IT personnel to fulfill the contract requirements, potentially impacting both Peraton's staff and the Army's internal IT teams.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contracts can lead to cost overruns if not managed diligently.
- The short duration (150 days) might indicate a gap-filling or urgent need, potentially leading to rushed execution or higher costs.
- Reliance on a single delivery order under a potentially larger IDIQ could limit flexibility if requirements change significantly.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- The awardee, Peraton Inc., has a significant presence and experience in government IT services.
- The contract supports critical cyber operations for the U.S. Army, aligning with national security priorities.
Sector Analysis
The IT services sector for government contracts is highly competitive, with numerous firms vying for lucrative deals. This contract falls under the broader category of IT support services, which includes a wide range of activities from network management to cybersecurity. The market size for federal IT services is substantial, with agencies like the Department of Defense being major spenders. This specific contract, supporting a cyber center, is within a critical and growing segment of the IT market, reflecting the increasing importance of cyber defense. Comparable spending benchmarks for similar IT support services for defense agencies can vary widely based on scope and duration.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements for small businesses mandated by this specific award. The primary contractor, Peraton Inc., is a large business. While Peraton may engage small businesses as subcontractors on its own initiative, this contract does not appear to leverage the small business ecosystem through a set-aside provision. This means the direct economic impact on small businesses from this particular contract is likely minimal unless Peraton voluntarily includes them in its supply chain.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee (CPFF) contract will likely involve regular reviews of Peraton Inc.'s incurred costs and the justification for the fixed fee by the Department of the Army contracting officers and potentially the Defense Contract Audit Agency (DCAA). Transparency will depend on the reporting requirements stipulated in the contract. Accountability measures are typically enforced through contract clauses related to performance standards, delivery schedules, and quality control. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance or closeout.
Related Government Programs
- Department of Defense IT Services
- Army Cyber Command Support Contracts
- Information Technology Professional Services
- Cost-Plus-Fixed-Fee Contracts
- Cybersecurity Support Services
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
- Short contract duration (150 days) may indicate urgent needs or potential for rushed execution.
- Potential for scope creep if requirements are not clearly defined within the delivery order.
Tags
it-services, department-of-defense, department-of-the-army, army-global-cyber-center, peraton-inc, full-and-open-competition, cost-plus-fixed-fee, delivery-order, cybersecurity, arizona, it-support, naics-541519
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to PERATON INC.. INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS) FOR THE U.S. ARMY GLOBAL CYBER CENTER (GCC).
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 $12.8 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-02-28.
What is Peraton Inc.'s track record with the Department of Defense, particularly in IT support for cyber operations?
Peraton Inc. has a substantial track record with the Department of Defense (DoD) and other federal agencies, often securing large contracts related to IT modernization, cybersecurity, and mission support. They are known for their work in complex environments, including intelligence and defense sectors. For IT support specifically within cyber operations, Peraton has been involved in various programs that require secure network management, data analysis, and advanced technological solutions. Their history suggests a capacity to handle the technical demands and security requirements inherent in supporting entities like the Army Global Cyber Center (GCC). However, a detailed review of past performance metrics, any past disputes, or specific successes related to cyber support would be necessary for a comprehensive assessment.
How does the $12.75 million value compare to similar IT support contracts for cyber centers within the DoD?
Comparing the $12.75 million value of this contract requires context regarding its duration and scope. This contract has a relatively short performance period of 150 days (approximately 5 months). For short-term, specialized IT support, this value might be within a reasonable range. However, larger, multi-year contracts for comprehensive IT infrastructure and cybersecurity services for major cyber commands can easily run into hundreds of millions or even billions of dollars. To benchmark effectively, one would need to identify contracts with similar service requirements (e.g., network operations, system administration, cybersecurity support) and comparable durations awarded to similar entities within the DoD or other federal agencies. The number of bids (7) suggests a competitive market, which typically helps align pricing with market rates.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT support?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT support revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor's allowable costs. If these costs are not rigorously monitored and controlled, they can escalate beyond initial projections, leading to the government paying more than anticipated, even with a fixed fee. The contractor may have less incentive to aggressively control costs compared to a firm-fixed-price contract, as their profit is fixed regardless of the total cost incurred (within allowable limits). Effective oversight, detailed cost accounting, and clear definition of allowable costs are crucial to mitigate these risks.
What is the expected effectiveness of Peraton Inc. in delivering IT support for the Army Global Cyber Center given the contract details?
The expected effectiveness of Peraton Inc. in delivering IT support for the Army Global Cyber Center (GCC) is influenced by several factors. Peraton's established presence in the government IT sector and the fact that the contract was awarded through full and open competition with seven bids suggest a strong likelihood of meeting basic requirements. The CPFF structure, while requiring oversight, allows for flexibility in addressing evolving IT needs critical for cyber operations. However, the short 150-day duration might indicate a focus on specific, immediate needs rather than long-term strategic support. The ultimate effectiveness will hinge on the clarity of the SOW, the quality of Peraton's technical team assigned, and the Army's program management and oversight capabilities in ensuring performance standards are met and services are delivered efficiently.
How does this contract fit into the broader historical spending patterns for IT support within the Department of the Army?
This $12.75 million contract for IT support services represents a small fraction of the Department of the Army's overall IT spending. The Army, like other branches of the DoD, consistently allocates significant portions of its budget to IT infrastructure, cybersecurity, and related services due to the critical role technology plays in modern military operations. Historical spending patterns show a continuous demand for IT support, ranging from basic help desk functions to highly specialized cyber defense capabilities. Contracts like this one, awarded via delivery orders, are common and allow for agile procurement of specific services needed at different times. While this particular award is for a short duration, it reflects the ongoing investment in maintaining and enhancing the IT capabilities essential for the Army's global cyber mission.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W91RUS24RGCCC
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
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: $170,158,653
Exercised Options: $12,756,230
Current Obligation: $12,752,821
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J18DA137
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-02-28
Potential End Date: 2029-02-28 00:00:00
Last Modified: 2026-01-08
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