Department of Defense Awarded a Contract to PERATON ENTERPRISE SOLUTIONS LLC for $500,000,000.01

Summary of Award

The JSON response from usaspending.gov provides a detailed overview of a federal contract awarded by the U.S. government, specifically through the Federal Acquisition Service (FAS), part of the General Services Administration (GSA). The contract, identified by the unique ID "CONT_IDV_GS03Q17DSA0008_4732", is a Blanket Purchase Agreement (BPA), a type of Indefinite Delivery Vehicle (IDV) contract. Here, the GSA acts as the awarding agency, while the contract's funding comes from the Department of Defense’s Defense Human Resources Activity, with a specific connection to the Defense Manpower Data Center.

Awarded on September 22, 2017, the contract has a base and all options ceiling set at slightly over $500 million, a figure reflecting the maximum potential value of services or products that could be procured under the agreement. As of the latest update, total obligations amount to zero, while the total account outlay stands at approximately $143.6 million. This disbursement, classified under a Defense Contract (DEFC) code "Q", indicates the actual amount spent under this agreement. Notably, there are no stated subawards, hinting that the services have been directly fulfilled by the primary recipient.

The primary recipient, Peraton Enterprise Solutions LLC, operates from Herndon, Virginia. Peraton is recognized for providing comprehensive computing infrastructure solutions, data processing, web hosting, and related IT services. The company, falling under the North American Industry Classification System (NAICS) code 518210, is part of a larger corporate umbrella, Veritas Capital Fund Management, LLC, indicating strong backing and extensive resources to fulfill large-scale government contracts. The contract primarily addresses IT and telecommunications needs, categorized under the Product Service Code (PSC) "D399", essentially focusing on areas not specifically covered in other Information Technology (IT) and Telecom categories. Given the GSA's description of this contract as "IT AND TELECOM- OTHER IT AND TELECOMMUNICATIONS", it is expected that services range widely across different innovative and operational IT solutions. This perhaps explains the various technological needs and flexibility required in a BPA. Within the contract domain, 17 proposals were evaluated, demonstrating a competitive angle to the bidding process, ultimately resulting in a selection based on full and open competition principles. This underscores the fair and transparent nature of federal procurement processes. The specific contract is not categorized under small business set asides, indicative of the scale and scope that typically excludes smaller entities. Peraton, not defined as a small business and categorized broadly under "Category Business", suggests a robust infrastructure and capability to manage substantial federal endeavors effectively. An interesting aspect of this contract is its long period of performance, starting on September 26, 2017, and extending to March 25, 2023, affording Peraton a multi-year duration which allows for sustained support and service delivery, aligning with long-term strategic IT goals of the Defense Manpower Data Center. It is important to understand the implications of these financial transactions and disbursements. While the total obligation is currently at zero, the substantial outlay already indicates an extensive delivery of services under the agreement. This discrepancy could be due to the nature of IDV contracts, where funds are obligated incrementally as needs arise without a large upfront financial commitment. The financial method allows flexibility and targeted spending that aligns with evolving project requirements and budgetary constraints. Additionally, executive compensation details in the summary reveal significant amounts paid to top officers handling the contract. Personnel like Stu Shea and Jeremy Wensinger have received substantial remunerations, reflecting the executive-level oversight and decision-making pivotal in managing such a sizable federal project. Overall, this contract with Peraton Enterprise Solutions reflects a sophisticated and critical transaction within the federal IT procurement structure. The contract underscores the government's reliance on private sector expertise to modernize and maintain critical IT infrastructure. Through strategic contracting, entities like Peraton provide essential services that keep federal IT systems current and resilient, aligning with broader defense and security objectives. The financial data, although extensive, immediately illustrates the complexities and depth of government contracts. Such engagements require not only transparent accountability but also adaptive and innovative service providers like Peraton, which continue to play an essential role in the landscape of federal procurement.