DHS Awards $77M Microsoft Cloud & MDM Support Task Order to Peraton Under Full & Open Competition

Contract Overview

Contract Amount: $76,914,448 ($76.9M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-30

End Date: 2026-02-09

Contract Duration: 1,593 days

Daily Burn Rate: $48.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: FOLLOW-ON TASK ORDER FOR THE MICROSOFT CLOUD SERVICES & MDM SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $76.9 million to PERATON TECHNOLOGY SERVICES INC. for work described as: FOLLOW-ON TASK ORDER FOR THE MICROSOFT CLOUD SERVICES & MDM SUPPORT Key points: 1. Significant award for cloud services and mobile device management (MDM) support. 2. Peraton Technology Services Inc. is the incumbent contractor. 3. The contract is a follow-on to previous work, indicating potential for continued reliance. 4. The sector is IT infrastructure, a critical area for government operations.

Value Assessment

Rating: good

The award amount of $76.9M over approximately 4.5 years suggests a substantial investment. Benchmarking against similar cloud and MDM support contracts is necessary for a precise value assessment, but the scale indicates a significant operational need.

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 and allows for a broad range of potential offerors. This method is expected to yield fair market value.

Taxpayer Impact: Awarding through full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

Ensures continuity of essential Microsoft cloud services and MDM support for DHS. Supports the operational needs of the Department of Homeland Security's various components. Impacts users relying on these services for daily operations and data management. Highlights the government's reliance on cloud-based solutions for IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with follow-on contracts.
Reliance on a single vendor for critical cloud infrastructure.
Cybersecurity risks associated with cloud service provision.

Positive Signals

Awarded through full and open competition.
Supports critical national security functions.
Follow-on nature suggests proven performance.

Sector Analysis

This contract falls within the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services sector. Spending in this area is substantial across federal agencies as they migrate to and manage cloud-based IT infrastructure.

Small Business Impact

The contract was awarded under full and open competition, and the data indicates the prime contractor is Peraton Technology Services Inc., which is not listed as a small business. There is no explicit indication of small business subcontracting in the provided data.

Oversight & Accountability

The award was made by the Department of Homeland Security's Office of Procurement Operations. Oversight will involve monitoring contract performance, adherence to terms, and ensuring delivery of required services within budget.

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

Follow-on contract may indicate limited competition in practice.
Reliance on a single vendor for critical IT services.
Potential for cost escalation over the contract duration.
Cybersecurity risks inherent in cloud service provision.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $76.9 million to PERATON TECHNOLOGY SERVICES INC.. FOLLOW-ON TASK ORDER FOR THE MICROSOFT CLOUD SERVICES & MDM SUPPORT

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 $76.9 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-02-09.

What is the specific scope of 'MDM Support' and how does it align with current cybersecurity best practices for mobile device management within DHS?

The scope of 'MDM Support' likely encompasses the deployment, configuration, management, and security of mobile devices used by DHS personnel. This includes enforcing security policies, managing applications, tracking device inventory, and responding to security incidents. Alignment with current cybersecurity best practices would involve ensuring the MDM solution supports features like multi-factor authentication, data encryption, remote wipe capabilities, and compliance with relevant federal security mandates such as NIST guidelines.

Given this is a follow-on task order, what mechanisms are in place to ensure continued cost-effectiveness and prevent price creep compared to the previous contract?

As a follow-on task order awarded under full and open competition, the initial pricing should reflect market rates. However, mechanisms to ensure continued cost-effectiveness include regular performance reviews, potential for re-competition at future milestones, and clear performance metrics tied to payment. The contract's labor hour (LH) pricing structure allows for flexibility but requires diligent monitoring by the agency to ensure efficient resource utilization and prevent unnecessary escalation of costs.

How does the reliance on Microsoft Cloud Services and a specific vendor like Peraton impact DHS's long-term IT strategy and potential for adopting multi-cloud or hybrid cloud solutions?

A significant follow-on contract for Microsoft Cloud Services and Peraton's support could indicate a strategic alignment with Microsoft's ecosystem. This might streamline operations and leverage existing expertise but could also lead to vendor lock-in, potentially hindering the adoption of multi-cloud or hybrid strategies. DHS would need to actively manage this relationship, ensuring interoperability and maintaining flexibility to integrate other cloud platforms or services as its long-term IT strategy evolves.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70RTAC22Q00000047

Pricing Type: LABOR HOURS (Z)

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: $79,968,512

Exercised Options: $76,914,448

Current Obligation: $76,914,448

Actual Outlays: $66,146,094

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,483,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RTAC21D00000006

IDV Type: IDC

Timeline