State Department awards $300M+ IT support contract to Peraton Inc. for ConsularOne services
Contract Overview
Contract Amount: $300,366,051 ($300.4M)
Contractor: Peraton Inc.
Awarding Agency: Department of State
Start Date: 2020-08-04
End Date: 2024-09-03
Contract Duration: 1,491 days
Daily Burn Rate: $201.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: THE PURPOSE OF THIS ACTION IS TO ISSUE A NEW TASK ORDER (TO4) FOR CONSULARONE SUPPORT SERVICES AGAINST IDIQ # 19AQMM18D0086.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520
Plain-Language Summary
Department of State obligated $300.4 million to PERATON INC. for work described as: THE PURPOSE OF THIS ACTION IS TO ISSUE A NEW TASK ORDER (TO4) FOR CONSULARONE SUPPORT SERVICES AGAINST IDIQ # 19AQMM18D0086. Key points: 1. Contract provides essential IT support for consular operations, impacting global citizen services. 2. Long-term contract duration suggests a need for sustained, specialized technical expertise. 3. Cost-plus award fee structure incentivizes performance but requires diligent oversight. 4. The award follows a full and open competition, indicating a broad market search. 5. Contracting for computer systems design services highlights the critical role of IT in modern diplomacy. 6. Geographic scope includes the District of Columbia, likely encompassing headquarters operations.
Value Assessment
Rating: good
The contract's value of over $300 million over approximately five years for IT support services appears substantial. Benchmarking against similar large-scale IT support contracts for federal agencies is necessary for a precise value-for-money assessment. The cost-plus award fee structure allows for flexibility and performance incentives, but requires careful monitoring to ensure costs remain reasonable and that award fees are justified by exceptional performance. Without specific performance metrics and award fee payouts, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but a full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings. This approach allows the agency to select the best value solution from a wide range of potential contractors.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider pool of qualified vendors, leading to potentially better value for the government.
Public Impact
Benefits the Department of State by ensuring the continuity and efficiency of consular operations. Delivers critical IT support services essential for processing passports, visas, and other citizen services globally. Impacts the workforce by potentially requiring specialized IT professionals for contract performance. Supports the agency's mission to protect and serve U.S. citizens abroad and facilitate international travel and relations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee contracts can lead to cost overruns if not managed tightly.
- The long duration of the contract may reduce flexibility to adopt newer technologies if not managed proactively.
- Reliance on a single contractor for critical IT infrastructure poses a potential single point of failure risk.
Positive Signals
- Full and open competition suggests a robust vetting process and potential for competitive pricing.
- The contract aims to provide essential support, indicating a commitment to maintaining critical government functions.
- The award fee structure incentivizes contractor performance, potentially leading to higher quality service delivery.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The federal IT services market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure to support mission-critical operations. This contract represents a significant portion of spending within this sub-sector for the Department of State, likely supporting core diplomatic and consular functions. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded by agencies like the Department of Defense or Homeland Security.
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 prime contractor, Peraton Inc., is a large business, and its subcontracting practices will be governed by its overall small business subcontracting plan, if applicable. This means that while small businesses may not be directly targeted through a set-aside, they could still participate as subcontractors if Peraton chooses to engage them.
Oversight & Accountability
Oversight for this contract will primarily be managed by the Department of State's contracting officers and program managers. The cost-plus award fee structure necessitates close monitoring of performance metrics and expenditures to ensure that award fees are earned appropriately and that costs are reasonable. Transparency is facilitated through contract awards databases, but detailed operational oversight and accountability measures are internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Consular Affairs IT Modernization
- State Department IT Infrastructure Support
- Federal Civilian Agency IT Services
- IDIQ Contract Vehicles
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Risk of vendor lock-in given the long contract duration.
- Dependence on a single contractor for critical systems.
Tags
it-services, department-of-state, consular-affairs, computer-systems-design, cost-plus-award-fee, full-and-open-competition, large-contract, district-of-columbia, peraton-inc, idIQ
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $300.4 million to PERATON INC.. THE PURPOSE OF THIS ACTION IS TO ISSUE A NEW TASK ORDER (TO4) FOR CONSULARONE SUPPORT SERVICES AGAINST IDIQ # 19AQMM18D0086.
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $300.4 million.
What is the period of performance?
Start: 2020-08-04. End: 2024-09-03.
What is Peraton Inc.'s track record with large federal IT support contracts, particularly within the Department of State?
Peraton Inc. has a significant history of performing large-scale IT and mission support services for various U.S. federal agencies, including the Department of Defense and intelligence community. Their experience often involves complex systems integration, cybersecurity, and operational support. For the Department of State specifically, Peraton has held contracts related to IT infrastructure and services. Evaluating their past performance on similar contracts, including adherence to schedules, budget, and quality standards, is crucial. Data on past performance, such as contract close-out reports or performance evaluations, would provide deeper insight into their capabilities and reliability in delivering complex IT solutions for sensitive government operations.
How does the $300M+ contract value compare to historical IT spending for consular support services at the State Department?
The $300 million+ contract value represents a substantial investment in consular IT support services over its duration. To benchmark this against historical spending, one would need to analyze previous contracts awarded for similar services by the Department of State's Bureau of Consular Affairs. This would involve examining the total obligated amounts, contract types, and durations of prior agreements. If previous contracts were smaller or shorter in duration, this new award might indicate an expansion of services, an increase in IT complexity, or an adjustment for inflation and market rates. Conversely, if it aligns with or is lower than previous large-scale investments, it could suggest cost efficiencies or a consolidation of services.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for critical IT services?
Cost Plus Award Fee (CPAF) contracts, while offering flexibility and incentivizing performance, carry inherent risks. A primary risk is potential cost growth, as the contractor is reimbursed for allowable costs plus a fee that is contingent upon meeting performance objectives. Without stringent oversight, there's a risk that costs could escalate beyond initial projections. Another risk is the subjective nature of 'award' fees; defining and measuring performance objectives clearly is critical to prevent disputes and ensure that fees are genuinely earned for exceptional service. Furthermore, the contractor may focus on achieving award fee criteria at the expense of other important, but less quantifiable, aspects of performance. Diligent monitoring by the government is essential to mitigate these risks.
How does the 'Computer Systems Design Services' NAICS code (541512) typically align with the scope of consular support IT needs?
The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' is highly relevant to the scope of consular support IT needs. This code encompasses a broad range of activities, including analyzing and designing computer systems, integrating hardware and software, and providing consulting services. For the Department of State's ConsularOne support, this likely translates to designing, developing, implementing, and maintaining the complex IT infrastructure that underpins passport issuance, visa processing, and other critical citizen services. It covers everything from network architecture and database management to application development and system security, all essential for efficient and secure consular operations worldwide.
What are the potential implications of this contract on the broader federal IT services market and competition?
The award of a large, multi-year IT support contract like this to Peraton Inc. has several implications for the broader federal IT services market. Firstly, it signifies continued significant government investment in IT modernization and support. Secondly, as a full and open competition, it demonstrates the agency's commitment to leveraging market competition, which can encourage other large IT service providers to maintain competitive offerings. However, it also means that large prime contractors will continue to dominate significant portions of the federal IT spending landscape. The success of this contract could also influence future procurement strategies for similar large-scale IT support requirements across other agencies, potentially favoring integrated solutions providers.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: TORP 4
Pricing Type: COST PLUS AWARD FEE (R)
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: $371,830,377
Exercised Options: $370,011,321
Current Obligation: $300,366,051
Actual Outlays: $156,245,757
Subaward Activity
Number of Subawards: 358
Total Subaward Amount: $309,447,329
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 19AQMM18D0086
IDV Type: IDC
Timeline
Start Date: 2020-08-04
Current End Date: 2024-09-03
Potential End Date: 2024-09-03 00:00:00
Last Modified: 2024-10-18
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