DHS Awards $77M for OBIM O&M Support to Peraton Technology Services Inc

Contract Overview

Contract Amount: $77,149,838 ($77.1M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-04-01

End Date: 2027-11-30

Contract Duration: 1,704 days

Daily Burn Rate: $45.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THIS IS A HYBRID (FIRM-FIXED-PRICE AND TIME AND MATERIALS) TASK ORDER FOR OPERATION AND MAINTENANCE SUPPORT FOR THE OFFICE OF BIOMETRIC IDENTITY MANAGEMENT (OBIM) INFRASTRUCTURE COMPONENTS AND ASSOCIATED FUNCTIONALITY OF THE PRODUCTION AND NON-PRODUC

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $77.1 million to PERATON TECHNOLOGY SERVICES INC. for work described as: THIS IS A HYBRID (FIRM-FIXED-PRICE AND TIME AND MATERIALS) TASK ORDER FOR OPERATION AND MAINTENANCE SUPPORT FOR THE OFFICE OF BIOMETRIC IDENTITY MANAGEMENT (OBIM) INFRASTRUCTURE COMPONENTS AND ASSOCIATED FUNCTIONALITY OF THE PRODUCTION AND NON-PRODUC Key points: 1. Contract awarded to Peraton Technology Services Inc. for biometric identity management O&M. 2. Hybrid contract type (FFP & T&M) may lead to cost variability. 3. Competition was full and open, suggesting potential for competitive pricing. 4. Spending falls within the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services sector.

Value Assessment

Rating: fair

The contract uses a hybrid pricing structure (Firm-Fixed-Price and Time & Materials). While FFP components offer cost certainty, the T&M portion introduces risk for cost overruns if not managed closely. Benchmarking against similar O&M contracts for IT infrastructure is needed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the hybrid pricing structure, particularly the Time and Materials component, requires careful monitoring to ensure price discovery remains effective and costs are controlled.

Taxpayer Impact: The use of full and open competition is positive for taxpayer value. However, the Time and Materials component necessitates robust oversight to prevent potential cost overruns, which could impact overall taxpayer investment.

Public Impact

Ensures continued operation of critical biometric identity management systems. Supports national security and law enforcement through reliable identity data. Potential for cost increases due to Time and Materials component. Contract duration extends over four years, indicating a long-term need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing component
Long contract duration
Potential for scope creep in T&M

Positive Signals

Full and open competition
Supports critical national security function

Sector Analysis

This contract falls under the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services sector. Spending in this area is substantial across government, with significant investments in maintaining and upgrading IT infrastructure to support agency operations.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses had an opportunity to participate or subcontract.

Oversight & Accountability

The contract's hybrid nature (FFP and T&M) requires diligent oversight to manage costs effectively, especially within the T&M portion. Robust performance monitoring and financial tracking are crucial for accountability.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Potential for cost overruns due to Time and Materials component.
Lack of clarity on FFP vs. T&M cost allocation.
Long contract duration may not reflect evolving technological needs.
Need for robust oversight to manage T&M costs effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $77.1 million to PERATON TECHNOLOGY SERVICES INC.. THIS IS A HYBRID (FIRM-FIXED-PRICE AND TIME AND MATERIALS) TASK ORDER FOR OPERATION AND MAINTENANCE SUPPORT FOR THE OFFICE OF BIOMETRIC IDENTITY MANAGEMENT (OBIM) INFRASTRUCTURE COMPONENTS AND ASSOCIATED FUNCTIONALITY OF THE PRODUCTION AND NON-PRODUC

Who is the contractor on this award?

The obligated recipient is PERATON TECHNOLOGY SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $77.1 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-11-30.

What is the estimated cost breakdown between the Firm-Fixed-Price and Time & Materials components of this contract?

The provided data does not specify the cost breakdown between the Firm-Fixed-Price (FFP) and Time & Materials (T&M) components. Understanding this allocation is crucial for assessing cost risk. A higher proportion of T&M could indicate greater potential for cost variability and requires more intensive oversight to ensure value for money.

How will the government ensure cost control and prevent potential overruns within the Time and Materials portion of this contract?

Effective cost control for the T&M portion relies on stringent contract administration, including detailed tracking of labor hours and rates, material costs, and justification for all expenditures. The government should establish clear ceilings, conduct regular audits, and closely monitor performance metrics to ensure efficient resource utilization and prevent cost overruns.

What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure the effectiveness of the OBIM O&M support?

Key performance indicators would likely focus on system uptime, response times for maintenance requests, incident resolution rates, and adherence to security protocols. The government must define measurable KPIs with clear targets and implement a robust system for tracking and reporting on performance against these metrics throughout the contract's duration.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70RDAD23Q00000019

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $188,821,981

Exercised Options: $77,149,838

Current Obligation: $77,149,838

Actual Outlays: $49,239,644

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $3,645,237

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RTAC21D00000006

IDV Type: IDC

Timeline