DHS awards $33.6M task order for enterprise applications and services to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $33,570,197 ($33.6M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-07-11

End Date: 2020-06-26

Contract Duration: 351 days

Daily Burn Rate: $95.6K/day

Competition Type: NOT COMPETED

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE SERVICES AND SUPPORT FOR THE ENTERPRISE APPLICATIONS AND SERVICES FOR DHS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.6 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE SERVICES AND SUPPORT FOR THE ENTERPRISE APPLICATIONS AND SERVICES FOR DHS Key points: 1. Task order focuses on essential enterprise applications and services for DHS operations. 2. Contract awarded as a delivery order under a larger contract vehicle. 3. Significant portion of the contract value allocated to computing infrastructure and data processing. 4. Performance period spans approximately one year, indicating a need for ongoing support. 5. Contract type is Time and Materials, which can pose cost control challenges. 6. No small business set-aside was utilized for this specific task order.

Value Assessment

Rating: fair

The total award of $33.6 million for enterprise applications and services appears to be a substantial investment. Benchmarking this against similar contracts for IT infrastructure and support within large federal agencies is challenging without more granular data on the specific services provided. The Time and Materials (T&M) contract type, while offering flexibility, can lead to higher costs if not managed diligently, as it doesn't have a fixed ceiling for labor hours. Further analysis would be needed to compare per-hour rates and total labor costs against market benchmarks for comparable IT support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was not competed, indicating it was likely awarded under an existing contract vehicle that may have had its own competitive process. The absence of a new competition for this specific task order means that Peraton Enterprise Solutions LLC was the sole provider. This approach can expedite service delivery but may limit opportunities for price discovery and potentially lead to higher costs compared to a fully competed scenario.

Taxpayer Impact: Taxpayers may not benefit from the most competitive pricing due to the lack of a new bidding process for this specific task order.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, receiving critical support for its enterprise applications and services. Services delivered are essential for the operational continuity and efficiency of DHS's IT infrastructure. The geographic impact is national, supporting a federal agency with nationwide responsibilities. Workforce implications include the potential need for specialized IT personnel to manage and support these enterprise applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of direct competition for this task order may result in suboptimal pricing.
Reliance on a single vendor for critical enterprise applications could pose a risk if performance falters.

Positive Signals

Awarding to an established vendor likely ensures continuity of essential IT services.
Task order addresses core IT needs for a major federal agency.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computing infrastructure, data processing, and related services. The market for these services is highly competitive, with numerous large and small businesses offering solutions to government agencies. Federal spending in this category is substantial, driven by the continuous need for agencies to modernize and maintain their IT systems. This task order represents a portion of the government's overall investment in maintaining and supporting its critical enterprise applications.

Small Business Impact

This task order was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. Therefore, its direct impact on the small business ecosystem is likely minimal. The primary contractor, Peraton Enterprise Solutions LLC, is a large business, and the focus appears to be on fulfilling the agency's direct IT service needs rather than promoting small business participation through this specific award.

Oversight & Accountability

Oversight for this task order would typically fall under the contracting officer and the Department of Homeland Security's procurement and program management offices. The contract's performance would be monitored against the terms and conditions outlined in the base contract and the task order. Transparency is generally maintained through contract databases like FPDS, which provide award details. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

DHS Enterprise IT Services
Federal Cloud Computing Strategy
IT Infrastructure Modernization Programs
Data Center Consolidation Initiatives

Risk Flags

Non-competitive award
Time and Materials contract type
Lack of specific service details

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.6 million to PERATON ENTERPRISE SOLUTIONS LLC. THE PURPOSE OF THIS TASK ORDER IS TO PROCURE SERVICES AND SUPPORT FOR THE ENTERPRISE APPLICATIONS AND SERVICES FOR DHS

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

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 $33.6 million.

What is the period of performance?

Start: 2019-07-11. End: 2020-06-26.

What specific enterprise applications and services are covered under this task order, and what is their criticality to DHS operations?

The provided data indicates the task order is for 'ENTERPRISE APPLICATIONS AND SERVICES FOR DHS' and falls under NAICS code 518210 (Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services). While the exact applications are not detailed, this suggests services related to the management, maintenance, hosting, and support of DHS's core IT systems and applications. These are likely critical for functions such as data management, communication, security operations, and administrative processes across the department. The $33.6 million award suggests a significant scope of work, implying these services are foundational to DHS's ability to execute its mission.

How does the Time and Materials (T&M) contract type compare to other contract types for similar IT services, and what are the associated risks?

Time and Materials (T&M) contracts are used when the level of effort or the period of performance cannot be estimated precisely. They reimburse the contractor for direct labor hours at specified fixed hourly rates and for the actual cost of materials. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers more flexibility but carries higher risk for the government regarding cost control, as the final price is not known upfront. For IT services like those procured here, FFP contracts are often preferred for well-defined scopes to ensure cost certainty. The primary risk with T&M is potential cost overruns if the contractor's hours or rates are excessive or if the scope creeps without adequate oversight. Robust monitoring of labor hours and rates is crucial.

What was the rationale for awarding this task order on a non-competitive basis, and what was the value of the base contract it was awarded under?

The data explicitly states the contract type as 'NOT COMPETED' for this specific task order. Federal procurement regulations allow for non-competitive awards under certain conditions, such as when the services are available only from a limited number of sources, or under specific exceptions to full and open competition. Without access to the details of the base contract (under which this task order was issued), the specific rationale for the non-competitive award cannot be determined. Information regarding the base contract's value, its award date, and its competitive history would be necessary to fully assess the justification for this task order's sole-source nature.

What is Peraton Enterprise Solutions LLC's track record with DHS and other federal agencies for similar IT services?

Peraton Enterprise Solutions LLC has a significant presence in the federal IT contracting space. While specific details of their past performance with DHS for these exact services are not provided in the data, Peraton (and its predecessor companies) has historically held numerous large contracts with various federal agencies, including defense and civilian departments, for IT modernization, network services, cybersecurity, and enterprise application support. Their track record generally indicates experience in managing complex IT programs. A deeper dive into contract databases and past performance reviews would be needed to assess their specific success and reliability in delivering enterprise application support to DHS.

How does the $33.6 million spending on this task order compare to historical DHS spending on enterprise applications and services?

The provided data only details this specific $33.6 million task order awarded in July 2019, with a performance period ending in June 2020. To compare this to historical DHS spending, one would need access to broader DHS IT budget data and contract award histories over multiple fiscal years. Without this comparative data, it's impossible to determine if this $33.6 million represents an increase, decrease, or stable level of spending for enterprise applications and services. Analyzing trends in DHS's IT procurement over time would provide the necessary context for this specific award.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 13600 EDS DR A3S, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,629,744

Exercised Options: $33,588,175

Current Obligation: $33,570,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC15D00015

IDV Type: IDC

Timeline