HHS Awards $25.8M Multimedia Production Contract to Peraton Inc. for CDC

Contract Overview

Contract Amount: $25,771,456 ($25.8M)

Contractor: Peraton Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-13

End Date: 2026-09-12

Contract Duration: 1,825 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: MULTIMEDIA PRODUCTION AND TECHNICAL SUPPORT SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.8 million to PERATON INC. for work described as: MULTIMEDIA PRODUCTION AND TECHNICAL SUPPORT SERVICES Key points: 1. Contract Value: $25.8 million over 5 years. 2. Incumbent: Peraton Inc. is the incumbent contractor. 3. Risk: Potential for cost overruns with Time and Materials pricing. 4. Sector: Information Technology (IT) - Computer Systems Design Services.

Value Assessment

Rating: fair

The contract is priced on a Time and Materials basis, which can lead to higher costs if not carefully managed. Benchmarking against similar IT support contracts is difficult without detailed labor rates and hours.

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 Time and Materials pricing structure may limit price discovery and control compared to fixed-price contracts.

Taxpayer Impact: Taxpayers may face increased costs due to the Time and Materials pricing, which lacks a fixed ceiling and relies on contractor efficiency.

Public Impact

Ensures continued multimedia production and technical support for critical CDC public health initiatives. Potential for cost escalation due to Time and Materials pricing structure. Supports federal agency's operational needs through specialized IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across federal agencies, supporting a wide range of digital infrastructure and operational needs.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to Peraton Inc., a large business. There is no indication of small business subcontracting requirements in the provided data.

Oversight & Accountability

The contract is a delivery order under a larger contract vehicle, suggesting some level of pre-competed terms. Oversight will be crucial to manage the Time and Materials aspect and ensure efficient service delivery.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-health-and-human-services, ga, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.8 million to PERATON INC.. MULTIMEDIA PRODUCTION AND TECHNICAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PERATON INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $25.8 million.

What is the period of performance?

Start: 2021-09-13. End: 2026-09-12.

What is the estimated total cost if the contract is fully utilized?

The contract has a ceiling of $25,771,455.85 over 1825 days (5 years). Without specific labor rates and estimated hours, it's impossible to determine the exact total cost. However, if the full ceiling is reached, it represents a significant investment in multimedia production and technical support services for the CDC.

What are the primary risks associated with the Time and Materials pricing structure?

The main risk with Time and Materials (T&M) pricing is the potential for cost overruns. Unlike fixed-price contracts, T&M does not have a predetermined total cost. This can lead to increased expenses for the government if the contractor's labor hours are higher than anticipated or if project scope expands without adequate controls.

How does the full and open competition impact the value for taxpayers?

Full and open competition generally benefits taxpayers by fostering a competitive environment that should drive down prices and encourage innovation. However, the effectiveness of this competition in securing the best value is somewhat mitigated by the Time and Materials pricing model, which can obscure true cost efficiencies and potentially lead to higher overall expenditures if not managed diligently.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D301-21-Q-73050

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12975 WORLDGATE STE 7322, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,771,504

Exercised Options: $25,771,504

Current Obligation: $25,771,456

Actual Outlays: $21,989,100

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $524,048

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200025W

IDV Type: GWAC

Timeline

Start Date: 2021-09-13

Current End Date: 2026-09-12

Potential End Date: 2026-09-12 00:00:00

Last Modified: 2026-01-16

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