DHS Awards $13.5M EOL Modernization Project to Peraton Under Full and Open Competition

Contract Overview

Contract Amount: $13,500,000 ($13.5M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO AWARD THE END OF LIFE (EOL) LIFECYCLE MODERNIZATION IMPROVEMENT (LMI) PROJECT AS PART OF THE OVERALL SETTLEMENT AGREEMENT BETWEEN DHS AND THE CONTRACTOR REGARDING AN APPEAL SUBMITTED TO THE CIVILIAN BOARD OF CONTR

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529

State: Mississippi Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.5 million to PERATON TECHNOLOGY SERVICES INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS TO AWARD THE END OF LIFE (EOL) LIFECYCLE MODERNIZATION IMPROVEMENT (LMI) PROJECT AS PART OF THE OVERALL SETTLEMENT AGREEMENT BETWEEN DHS AND THE CONTRACTOR REGARDING AN APPEAL SUBMITTED TO THE CIVILIAN BOARD OF CONTR Key points: 1. Project aims to modernize End-of-Life (EOL) systems as part of a settlement agreement. 2. Peraton Technology Services Inc. secured the contract. 3. The award is a Delivery Order under a larger contract. 4. The contract value is $13.5 million with a 729-day duration. 5. The sector is IT, specifically Computing Infrastructure Providers.

Value Assessment

Rating: fair

The $13.5 million award for the EOL Lifecycle Modernization Improvement (LMI) project appears to be a negotiated settlement. Without detailed cost breakdowns or benchmarks for similar EOL modernization efforts, assessing its pricing against market rates is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the context of it being part of a settlement agreement for an appeal may have influenced the negotiation and final pricing.

Taxpayer Impact: The $13.5 million expenditure is for essential system modernization, potentially preventing larger future costs or security risks associated with EOL systems. The competitive award process aims to ensure taxpayer funds are used efficiently.

Public Impact

Modernization of critical IT infrastructure to prevent security risks and operational disruptions. Resolution of a dispute between DHS and the contractor, potentially saving further legal costs. Ensures continued operational capability for essential government functions. The project falls under the broad category of IT services, a significant area of federal spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during modernization.
Dependency on a single contractor for a critical modernization effort.
The settlement agreement context might obscure true market value.

Positive Signals

Addresses critical End-of-Life system risks.
Awarded through full and open competition.
Clear project scope for modernization improvements.

Sector Analysis

This contract falls within the IT sector, specifically under Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. Federal spending in this area is substantial, driven by the need to maintain and modernize aging government IT systems.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. The primary awardee is Peraton Technology Services Inc., a large business. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The award is a Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or similar vehicle. Oversight would typically involve monitoring task order performance against the base contract terms and ensuring adherence to the settlement agreement.

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 scope creep during modernization.
Risk of contractor performance issues impacting settlement resolution.
Dependency on Peraton for critical IT infrastructure upgrade.
Lack of detailed cost breakdown for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.5 million to PERATON TECHNOLOGY SERVICES INC.. THE PURPOSE OF THIS TASK ORDER IS TO AWARD THE END OF LIFE (EOL) LIFECYCLE MODERNIZATION IMPROVEMENT (LMI) PROJECT AS PART OF THE OVERALL SETTLEMENT AGREEMENT BETWEEN DHS AND THE CONTRACTOR REGARDING AN APPEAL SUBMITTED TO THE CIVILIAN BOARD OF CONTR

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 $13.5 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What specific EOL systems are being modernized, and what are the projected benefits beyond risk mitigation?

The provided data does not specify the exact EOL systems targeted for modernization under the LMI project. While risk mitigation is a primary driver for EOL system upgrades, benefits could also include improved performance, enhanced security features, reduced maintenance costs, and better integration capabilities with newer technologies. A detailed project scope document would clarify these specific benefits.

How does the $13.5 million price compare to industry benchmarks for similar EOL modernization projects of comparable scale and complexity?

Without specific details on the scope, technology stack, and complexity of the EOL systems being modernized, a direct price comparison to industry benchmarks is difficult. However, $13.5 million for a two-year modernization project suggests a significant undertaking. Benchmarking would require analyzing similar government or private sector projects involving legacy system replacement and modernization within the computing infrastructure domain.

What mechanisms are in place to ensure the modernization project effectively addresses the root causes of the original appeal and prevents future disputes?

The data indicates the project is part of a settlement agreement resolving an appeal. While the settlement itself aims to address past issues, ongoing oversight and clear performance metrics for the modernization project are crucial. Ensuring the contractor meets the modernization objectives as defined in the task order and settlement terms will be key to preventing future disputes and demonstrating effective resolution.

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

Pricing Type: FIRM FIXED PRICE (J)

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: $15,500,000

Exercised Options: $15,500,000

Current Obligation: $13,500,000

Actual Outlays: $11,502,393

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,769,941

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RTAC21D00000006

IDV Type: IDC

Timeline