DHS Awards $5.8M ENCAAS Contract to Peraton for Network and Cloud Services

Contract Overview

Contract Amount: $5,796,886 ($5.8M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-03-30

End Date: 2026-03-29

Contract Duration: 1,095 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DHS HQ ENTERPRISE NETWORK AND CLOUD ARCHITECTURE/ADVANCED SERVICES (ENCAAS)

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.8 million to PERATON TECHNOLOGY SERVICES INC. for work described as: DHS HQ ENTERPRISE NETWORK AND CLOUD ARCHITECTURE/ADVANCED SERVICES (ENCAAS) Key points: 1. The contract focuses on enterprise network and cloud architecture, a critical area for DHS operations. 2. Peraton Technology Services Inc. is the awardee, indicating a competitive landscape for these services. 3. The contract's Time and Materials pricing model presents a potential risk for cost overruns. 4. Spending falls within the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services sector.

Value Assessment

Rating: fair

The contract value of $5.8M over three years appears moderate for enterprise network and cloud services. Benchmarking against similar large-scale government IT infrastructure contracts would be necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Time and Materials (T&M) pricing structure can limit price certainty and potentially lead to higher costs if not closely managed.

Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure supporting DHS operations. The T&M nature of the contract warrants careful monitoring to ensure cost-effectiveness.

Public Impact

Ensures continuity of critical DHS network and cloud infrastructure. Supports advanced services for homeland security operations. Potential for cost escalation due to Time and Materials pricing. Impacts the IT services sector supporting federal agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Lack of specific performance metrics in provided data

Positive Signals

Full and open competition
Supports critical national security functions

Sector Analysis

This contract falls under the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services sector. Government spending in this area is substantial, driven by the increasing reliance on cloud computing and robust network infrastructure for agency operations.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. The prime contractor, Peraton, is a large business, suggesting limited direct opportunities for small businesses in this prime contract.

Oversight & Accountability

Oversight will be crucial to manage the Time and Materials contract effectively, ensuring that costs remain within reasonable bounds and that the services delivered meet DHS requirements. The Office of Procurement Operations is responsible for this award.

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 pricing.
Lack of specific performance metrics in the award data.
Reliance on a single vendor for critical infrastructure services.
Limited visibility into small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.8 million to PERATON TECHNOLOGY SERVICES INC.. DHS HQ ENTERPRISE NETWORK AND CLOUD ARCHITECTURE/ADVANCED SERVICES (ENCAAS)

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 $5.8 million.

What is the period of performance?

Start: 2023-03-30. End: 2026-03-29.

What is the projected breakdown of labor categories and estimated hours within the Time and Materials structure, and how will DHS ensure these are reasonable and necessary?

The Time and Materials (T&M) structure necessitates detailed oversight from DHS. The agency must establish clear labor category definitions, track actual hours worked diligently, and implement robust approval processes for all expenditures. Regular reviews of invoices against estimated efforts and market rates for similar labor will be essential to prevent cost overruns and ensure value for taxpayer money.

How will DHS measure the effectiveness and performance of Peraton's network and cloud architecture services beyond basic uptime?

Effectiveness will be measured through a combination of technical performance metrics and alignment with DHS mission objectives. Key Performance Indicators (KPIs) should include network latency, data throughput, system availability, security incident response times, and successful integration of new cloud services. Regular performance reviews and user feedback will ensure the services not only function but also actively contribute to enhanced homeland security capabilities.

Given the full and open competition, what specific technical differentiators or innovative solutions did Peraton offer to secure this contract over other potential bidders?

While the provided data doesn't detail Peraton's specific technical proposal, a full and open competition implies that the award was based on a combination of factors, likely including technical merit, past performance, and price. Peraton likely demonstrated superior capabilities in enterprise network design, cloud integration strategies, advanced security protocols, or a more cost-effective approach to meeting DHS's complex requirements compared to competitors.

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: 70RTAC23Q00000034

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

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: $8,077,804

Exercised Options: $5,967,626

Current Obligation: $5,796,886

Actual Outlays: $4,254,389

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RTAC21D00000006

IDV Type: IDC

Timeline