State Department awards $91.6M for Consular Systems Modernization to Peraton Inc
Contract Overview
Contract Amount: $91,586,401 ($91.6M)
Contractor: Peraton Inc.
Awarding Agency: Department of State
Start Date: 2024-09-04
End Date: 2026-06-05
Contract Duration: 639 days
Daily Burn Rate: $143.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: CONSULAR SYSTEMS MODERNIZATION
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520
Plain-Language Summary
Department of State obligated $91.6 million to PERATON INC. for work described as: CONSULAR SYSTEMS MODERNIZATION Key points: 1. Contract focuses on modernizing critical consular systems, enhancing efficiency and security. 2. Competition was full and open, suggesting a robust market for these services. 3. The contract duration of 639 days indicates a significant, multi-year effort. 4. Peraton Inc. is the sole awardee, highlighting their specific capabilities in this niche. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. This award represents a substantial investment in the Department of State's technological infrastructure.
Value Assessment
Rating: fair
The total award amount of $91.6 million for a period of approximately 21 months suggests a significant investment. Benchmarking this against similar IT modernization contracts is challenging without more granular data on specific deliverables and labor categories. The Time and Materials (T&M) contract type, while flexible, carries inherent risks for cost overruns if not managed diligently. The provided data does not include specific unit costs or labor rates to perform a detailed price assessment, making it difficult to definitively assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which should theoretically lead to better pricing and service offerings. The Department of State's use of this method suggests confidence in the market's ability to provide qualified contractors for complex IT modernization projects.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of vendors to compete, potentially driving down costs and improving the quality of services received.
Public Impact
Citizens and foreign nationals seeking consular services will benefit from potentially more efficient and secure systems. The modernization effort aims to improve the delivery of services such as passport issuance and visa processing. The primary geographic impact is within the District of Columbia, where the Department of State is headquartered, but the systems affect global operations. The contract supports IT professionals and potentially other roles involved in system design, development, and implementation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type increases risk of cost overruns if not closely monitored.
- Lack of specific performance metrics in the provided data makes it difficult to assess project success.
- Potential for scope creep in T&M contracts can lead to increased costs beyond initial estimates.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process.
- Modernization of critical consular systems indicates a strategic investment in government efficiency.
- The contractor, Peraton Inc., likely possesses specialized expertise for this complex project.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology industry. The IT sector is characterized by rapid innovation and significant government spending on modernization and cybersecurity. The market size for government IT services is substantial, with agencies continually seeking to upgrade legacy systems. This award aligns with a broader trend of federal agencies investing in digital transformation to improve service delivery and operational efficiency.
Small Business Impact
The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Peraton Inc. is the prime contractor, there is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contractors often engage small businesses for specialized IT services, so there may be indirect opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures are usually embedded in the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases like FPDS. The Inspector General's office for the Department of State may conduct audits or investigations if performance issues or concerns arise.
Related Government Programs
- Consular Affairs IT Modernization
- State Department IT Infrastructure
- Federal Civilian IT Modernization Programs
- Computer Systems Design Services Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Complexity of modernizing legacy systems can introduce unforeseen technical challenges.
- Dependence on a single prime contractor for critical infrastructure modernization.
Tags
it, department-of-state, consular-affairs, computer-systems-design-services, time-and-materials, full-and-open-competition, delivery-order, large-contract, it-modernization, district-of-columbia
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $91.6 million to PERATON INC.. CONSULAR SYSTEMS MODERNIZATION
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 $91.6 million.
What is the period of performance?
Start: 2024-09-04. End: 2026-06-05.
What is Peraton Inc.'s track record with the Department of State and similar federal agencies for large IT modernization projects?
Peraton Inc. has a significant history of contracting with the U.S. federal government, including the Department of State, across various IT and defense-related services. They have been involved in complex system integration, cybersecurity, and modernization efforts for agencies such as the Department of Defense, NASA, and the intelligence community. Their experience often includes managing large-scale, mission-critical systems. For the Department of State specifically, Peraton has previously been awarded contracts related to IT infrastructure support and modernization. A review of their past performance on similar-sized IT modernization contracts would be necessary to fully assess their capability and reliability for this specific Consular Systems Modernization effort. This would involve examining past project outcomes, adherence to schedules and budgets, and client satisfaction feedback.
How does the $91.6 million award compare to historical spending on consular system modernization by the Department of State?
The $91.6 million award for Consular Systems Modernization represents a substantial, but not unprecedented, investment for the Department of State. Federal agencies, particularly those with global operations like the State Department, frequently undertake multi-year IT modernization initiatives that can run into tens or hundreds of millions of dollars. To provide a precise comparison, one would need to analyze historical spending data for specific consular IT projects over the last 5-10 years. This would involve looking at previous contract awards for similar services, such as passport systems, visa processing platforms, and internal consular databases. The current award's value should be assessed in the context of inflation, the scope of modernization (e.g., replacing legacy systems vs. incremental upgrades), and the overall IT budget allocation of the Department of State.
What are the primary risks associated with a Time and Materials (T&M) contract for a project of this scale and complexity?
The primary risk with a Time and Materials (T&M) contract for a large-scale IT modernization project like Consular Systems Modernization is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred, plus a fixed fee or profit margin. This structure can incentivize longer project durations or less efficient work if not rigorously managed. Scope creep, where the project's requirements expand beyond the initial agreement, is a significant concern, as each added hour or material purchase directly increases the total cost. Effective oversight, detailed tracking of labor hours, robust change control processes, and clear performance metrics are crucial to mitigate these risks and ensure the project stays within budget and delivers the intended value.
What specific consular services or functions are expected to be improved or modernized under this contract?
This contract is specifically aimed at modernizing the Department of State's consular systems, which are fundamental to delivering a wide range of services to U.S. citizens abroad and foreign nationals seeking to enter the United States. Key areas likely to be impacted include systems related to passport issuance and renewal, visa application processing and adjudication, and the management of consular data. Modernization efforts could encompass upgrading aging infrastructure, implementing new software applications for improved efficiency and user experience, enhancing data security and integrity, and potentially integrating disparate systems for better data flow and reporting. The goal is typically to streamline processes, reduce wait times, improve accuracy, and bolster security measures associated with these critical diplomatic functions.
Given the 'full and open competition' award, what does the absence of multiple bidders (if applicable) or the selection of a single prime contractor imply about market dynamics?
The fact that this contract was awarded under 'full and open competition' implies that the solicitation was made available to all responsible sources, and the government intended to award to the responsible offeror whose proposal, conforming to the solicitation, was most advantageous. However, the selection of a single prime contractor, Peraton Inc., does not necessarily mean there were few bidders. It indicates that Peraton's proposal was deemed the most advantageous based on the evaluation criteria outlined in the solicitation, which could include technical approach, past performance, price, and other factors. If only a few bids were received despite full and open competition, it might suggest a specialized market where only a limited number of companies possess the required expertise or capacity, potentially leading to less price competition. Conversely, if many bids were received and Peraton was selected, it highlights their competitive strength in this specific domain.
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 - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SAQMMA16Q0152
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
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: $93,127,980
Exercised Options: $93,127,980
Current Obligation: $91,586,401
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $7,091,767
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: 2024-09-04
Current End Date: 2026-06-05
Potential End Date: 2026-06-05 00:00:00
Last Modified: 2026-03-26
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