DHS Awards $16.7M Cloud Support Renewal to Peraton via Full and Open Competition

Contract Overview

Contract Amount: $16,682,541 ($16.7M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-08

End Date: 2026-09-07

Contract Duration: 364 days

Daily Burn Rate: $45.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TO AWARD THE DHS CLOUD ENGINEERING AND OPERATIONS (CEO) SUPPORT RENEWAL UNDER THE DATA CENTER AND CLOUD OPTIMIZATION (DCCO) SUPPORT SERVICES IDIQ CONTRACT VEHICLE.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.7 million to PERATON TECHNOLOGY SERVICES INC. for work described as: TO AWARD THE DHS CLOUD ENGINEERING AND OPERATIONS (CEO) SUPPORT RENEWAL UNDER THE DATA CENTER AND CLOUD OPTIMIZATION (DCCO) SUPPORT SERVICES IDIQ CONTRACT VEHICLE. Key points: 1. Contract renewal for Cloud Engineering and Operations (CEO) support. 2. Awarded under the DCCO Support Services IDIQ contract vehicle. 3. Competition method: Full and Open Competition. 4. Sector: IT Services (Computing Infrastructure, Data Processing, Hosting).

Value Assessment

Rating: good

The $16.7M award for a 1-year renewal appears reasonable given the scope of cloud engineering and operations support. Benchmarking against similar IT managed services contracts suggests this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: The competitive award process is expected to yield fair pricing, ensuring taxpayer funds are used efficiently for essential cloud support services.

Public Impact

Ensures continuity of critical cloud engineering and operations for DHS. Supports the ongoing optimization of DHS data centers and cloud infrastructure. Maintains essential IT services for national security and public safety operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a renewal.
Reliance on a single vendor for critical cloud operations.

Positive Signals

Awarded via full and open competition.
Supports critical DHS mission functions.
Renewal ensures service continuity.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on cloud computing infrastructure and support. Spending in this area has grown significantly as agencies migrate to cloud environments, with benchmarks varying based on complexity and service level agreements.

Small Business Impact

The data indicates this contract was not awarded to a small business. While this specific award may not directly benefit small businesses, the IDIQ vehicle itself could potentially have set-asides for future task orders.

Oversight & Accountability

The award was made by the DHS Office of Procurement Operations under a specific IDIQ vehicle, suggesting adherence to established procurement procedures. Ongoing oversight will be crucial to ensure performance and cost control.

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 vendor lock-in.
Reliance on Time and Materials pricing structure.
Limited visibility into specific performance metrics.
No indication of small business participation in this specific award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.7 million to PERATON TECHNOLOGY SERVICES INC.. TO AWARD THE DHS CLOUD ENGINEERING AND OPERATIONS (CEO) SUPPORT RENEWAL UNDER THE DATA CENTER AND CLOUD OPTIMIZATION (DCCO) SUPPORT SERVICES IDIQ CONTRACT VEHICLE.

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 $16.7 million.

What is the period of performance?

Start: 2025-09-08. End: 2026-09-07.

What specific performance metrics are in place to ensure the quality and efficiency of Peraton's cloud engineering and operations support?

The contract details do not explicitly list performance metrics. However, standard practice for IT support contracts includes Service Level Agreements (SLAs) for uptime, response times, and issue resolution. The DHS Office of Procurement Operations should monitor these metrics closely to ensure Peraton meets its contractual obligations and delivers value.

How does the renewal pricing compare to the initial contract award or previous renewals, considering inflation and market trends?

Without the initial award data or previous renewal pricing, a direct comparison is difficult. However, the $16.7M for a 364-day period suggests a monthly cost of approximately $1.4M. This figure should be benchmarked against current market rates for similar cloud support services to assess its competitiveness and account for any inflationary pressures.

What is the long-term strategy for DHS cloud infrastructure support beyond this renewal, and are there plans to re-compete the core services?

This renewal suggests a short-to-medium term strategy. Agencies typically review their long-term IT needs and contract vehicles. DHS should be evaluating future requirements, potential technology shifts, and whether to re-compete the CEO support services or explore alternative acquisition strategies to ensure continued optimal support.

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: 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: $24,511,327

Exercised Options: $17,694,230

Current Obligation: $16,682,541

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RTAC21D00000006

IDV Type: IDC

Timeline