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
- Time and Materials pricing
- Potential for scope creep
Positive Signals
- Full and open competition
- Long-term support
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
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Time and Materials pricing
- Potential for cost overruns
- Lack of detailed performance metrics in provided data
- Incumbent contractor may have an advantage in future procurements
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 Services › Computer Systems Design and Related Services › Computer 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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