DHS Awards $32M T&M Contract to Peraton Inc. for Computer Systems Design Services

Contract Overview

Contract Amount: $32,153,067 ($32.2M)

Contractor: Peraton Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-05-12

End Date: 2020-09-30

Contract Duration: 141 days

Daily Burn Rate: $228.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THIS IS A T&M BRIDGE TO CONTINUE SERVICES UNTIL THE RECOMPETE IS AWARDED

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.2 million to PERATON INC. for work described as: THIS IS A T&M BRIDGE TO CONTINUE SERVICES UNTIL THE RECOMPETE IS AWARDED Key points: 1. Contract awarded to Peraton Inc. for $32.15 million. 2. Services are for Computer Systems Design, NAICS 541512. 3. Contract type is Time and Materials (T&M). 4. This is a bridge contract until a recompete is awarded. 5. Awarded by U.S. Customs and Border Protection (CBP).

Value Assessment

Rating: questionable

Time and Materials contracts can lead to cost overruns if not closely managed. The benchmark of $228,036 for this contract duration is difficult to assess without more detail on the scope of services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive process. However, the T&M nature and bridge contract status may limit price discovery and potentially lead to higher costs than a fixed-price contract.

Taxpayer Impact: Taxpayer funds are being used for services essential to CBP operations, but the T&M structure introduces a risk of inefficient spending if not properly monitored.

Public Impact

Ensures continuity of critical IT services for U.S. Customs and Border Protection. Supports national security and border enforcement operations. Potential for increased costs due to Time and Materials pricing structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under IT services, specifically computer systems design. The IT services sector is vast, and spending benchmarks vary significantly based on the complexity and criticality of the systems supported.

Small Business Impact

The awardee, Peraton Inc., is a large business. There is no indication that small businesses were involved in this specific award, which is common for large, complex IT service contracts.

Oversight & Accountability

Oversight is crucial for T&M contracts to ensure costs remain reasonable and services are delivered efficiently. The agency's contract management practices will determine the effectiveness of accountability.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-homeland-security, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.2 million to PERATON INC.. THIS IS A T&M BRIDGE TO CONTINUE SERVICES UNTIL THE RECOMPETE IS AWARDED

Who is the contractor on this award?

The obligated recipient is PERATON INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $32.2 million.

What is the period of performance?

Start: 2020-05-12. End: 2020-09-30.

What specific computer systems design services are being provided under this T&M contract, and how is their necessity being validated?

The contract details are limited, but it's described as a bridge to continue services until a recompete. Specific services would likely include system design, integration, maintenance, or support for CBP's IT infrastructure. Validation of necessity would typically involve agency program managers confirming that these services are critical for ongoing operations and cannot be deferred or handled internally.

What measures are in place to mitigate the cost risks associated with a Time and Materials contract, especially given its bridge nature?

Mitigation strategies often include establishing strong contract surveillance, setting clear labor categories and rates, implementing spending limits or ceiling prices, and requiring detailed reporting of hours and materials. For a bridge contract, the focus is on maintaining essential functions, so the agency must balance cost control with the urgent need for service continuity.

How will the effectiveness of these computer systems design services be measured to ensure value for taxpayer money, particularly before the recompete award?

Effectiveness is typically measured through performance metrics defined in the contract, such as system uptime, response times, or successful completion of design tasks. For a T&M bridge contract, the primary measure of effectiveness is the uninterrupted delivery of critical services. Post-award reviews and user feedback would also contribute to assessing value.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $32,163,067

Exercised Options: $32,153,067

Current Obligation: $32,153,067

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $3,467,846

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC14DE2035

IDV Type: IDC

Timeline

Start Date: 2020-05-12

Current End Date: 2020-09-30

Potential End Date: 2020-09-30 15:25:36

Last Modified: 2022-09-15

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