HHS awards $14.4M for population health IT modernization, with Peraton Inc. leading the effort
Contract Overview
Contract Amount: $14,427,850 ($14.4M)
Contractor: Peraton Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2021-09-30
End Date: 2026-09-30
Contract Duration: 1,826 days
Daily Burn Rate: $7.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: POPULATION HEALTH SURVEILLANCE IT AND DATA MODERNIZATION SUPPORT SERVICES
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $14.4 million to PERATON INC. for work described as: POPULATION HEALTH SURVEILLANCE IT AND DATA MODERNIZATION SUPPORT SERVICES Key points: 1. Contract focuses on critical IT and data modernization for population health surveillance. 2. Full and open competition suggests a competitive bidding process. 3. Firm-fixed-price contract type aims to control costs. 4. Long duration of 1826 days indicates a significant, ongoing project. 5. Services are categorized under Computer Systems Design Services. 6. Contract awarded to Peraton Inc., a major federal contractor.
Value Assessment
Rating: good
The contract value of $14.4 million over approximately five years appears reasonable for comprehensive IT and data modernization services supporting population health surveillance. Benchmarking against similar large-scale IT modernization contracts within federal health agencies suggests this is within a typical range. The firm-fixed-price structure provides cost certainty for the government, although it places more risk on the contractor to manage performance within the agreed price. Without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to drive better pricing and service offerings. The agency's decision to use full and open competition suggests confidence in the market's ability to meet the complex requirements for population health IT modernization.
Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, leading to potentially lower prices and higher quality services through robust market forces.
Public Impact
Enhances the Centers for Disease Control and Prevention's (CDC) ability to monitor and respond to public health threats. Improves data infrastructure for more effective population health surveillance. Supports the modernization of critical IT systems within the Department of Health and Human Services. Potential for improved public health outcomes through better data analysis and insights. Services delivered primarily impact federal health agencies and indirectly benefit the general public through enhanced health security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 1826 days (approx. 5 years) may lead to contractor lock-in if not managed carefully.
- Reliance on a single contractor for critical IT modernization could pose risks if performance falters.
- Scope creep could increase costs if not rigorously managed under the firm-fixed-price contract.
Positive Signals
- Firm-fixed-price contract type provides cost predictability for the government.
- Awarded through full and open competition, suggesting a competitive market was leveraged.
- Modernization of IT systems is crucial for improving public health surveillance capabilities.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The federal IT market is substantial, with significant investments made annually in modernizing legacy systems and enhancing data management capabilities across various agencies. This contract aligns with the broader government trend towards digital transformation and improving data analytics for mission-critical functions like public health surveillance. Comparable spending benchmarks for large-scale IT modernization projects within HHS and other health-focused agencies would typically range from millions to tens of millions of dollars.
Small Business Impact
This contract was awarded under full and open competition and does not indicate any specific small business set-aside. The prime contractor, Peraton Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is not immediately clear from the data, though large prime contractors often utilize small business subcontractors for specialized services.
Oversight & Accountability
Oversight for this contract would primarily reside with the Centers for Disease Control and Prevention (CDC) contracting officers and program managers. The firm-fixed-price nature of the contract implies performance-based oversight to ensure deliverables are met. Transparency is facilitated by the contract award notice, but detailed performance metrics and ongoing oversight activities are typically internal to the agency. The Inspector General for HHS would have jurisdiction for audits and investigations if any concerns regarding fraud, waste, or abuse arise.
Related Government Programs
- HHS IT Modernization Centers of Excellence
- CDC Data Modernization Initiative
- Public Health Surveillance Systems
- Federal Health IT Contracts
- Computer Systems Design Services
Risk Flags
- Long contract duration may increase risk of technological obsolescence.
- Firm-fixed-price contract places performance risk on the contractor.
- Lack of specific bidder count limits assessment of competition intensity.
Tags
it-services, data-modernization, population-health, surveillance, hhs, cdc, peraton-inc, firm-fixed-price, full-and-open-competition, computer-systems-design, georgia, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $14.4 million to PERATON INC.. POPULATION HEALTH SURVEILLANCE IT AND DATA MODERNIZATION 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 $14.4 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-09-30.
What is the specific scope of work for the 'POPULATION HEALTH SURVEILLANCE IT AND DATA MODERNIZATION SUPPORT SERVICES' contract?
The provided data indicates the contract is for 'POPULATION HEALTH SURVEILLANCE IT AND DATA MODERNIZATION SUPPORT SERVICES' under NAICS code 541512 (Computer Systems Design Services). While the exact scope is not detailed, it implies services related to upgrading, maintaining, and enhancing the IT infrastructure and data systems used for monitoring public health trends, disease outbreaks, and other population health indicators. This could include software development, system integration, data warehousing, cybersecurity enhancements, and cloud migration efforts to improve the CDC's ability to collect, analyze, and disseminate critical health data.
How does the $14.4 million contract value compare to historical spending on similar IT modernization efforts at the CDC?
The $14.4 million contract value represents a significant investment over its 1826-day (approximately 5-year) period. To provide a precise comparison, historical spending data for similar IT modernization projects at the CDC would be needed. However, large-scale IT modernization efforts within federal health agencies often range from several million to tens of millions of dollars, especially when involving system-wide upgrades, data integration, and enhanced analytical capabilities. Given the critical nature of population health surveillance, this investment appears aligned with the scale of modernization required for such a vital function.
What are the key performance indicators (KPIs) or metrics used to evaluate Peraton Inc.'s performance under this contract?
The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. However, for IT and data modernization services, typical KPIs often include system uptime and availability, data accuracy and integrity, successful integration of new components, adherence to project timelines, cybersecurity compliance, and user satisfaction. As this is a firm-fixed-price contract, performance will likely be measured against defined milestones and deliverables outlined in the contract's Statement of Work (SOW). The CDC program office would be responsible for monitoring these metrics.
What are the potential risks associated with a 5-year contract for IT modernization, and how are they mitigated?
A 5-year contract duration for IT modernization presents several potential risks. These include technological obsolescence, where the systems developed might become outdated before the contract ends; scope creep, where requirements expand beyond the initial agreement, potentially increasing costs; and contractor performance issues. Mitigation strategies often involve clearly defined SOWs, robust change control processes, regular performance reviews, and contingency planning. The firm-fixed-price structure incentivizes the contractor to manage costs and deliver within scope, while the government's oversight ensures adherence to requirements and quality standards.
What is Peraton Inc.'s track record with the Department of Health and Human Services and similar IT modernization contracts?
Peraton Inc. is a significant federal contractor with a substantial presence across various government agencies, including the Department of Health and Human Services (HHS). While specific details of their past performance on HHS IT modernization contracts are not in this dataset, Peraton has a history of providing IT services, cybersecurity, and mission support to federal clients. Their experience often includes large-scale system integration, cloud services, and data management solutions. A deeper dive into contract databases like FPDS or SAM.gov would reveal specific past performance records, including awards, past performance evaluations, and any reported issues.
How does the 'Computer Systems Design Services' classification (NAICS 541512) inform the nature of the work performed under this contract?
The NAICS code 541512, 'Computer Systems Design Services,' indicates that the primary work involves planning and designing computer systems that integrate hardware, software, and communication technologies. For this contract, it suggests Peraton Inc. is responsible for activities such as analyzing user needs, designing system architecture, developing custom software, implementing and integrating hardware and software, and providing technical consulting related to computer systems. This is distinct from simply providing off-the-shelf software or hardware, focusing instead on tailored solutions for the CDC's population health surveillance needs.
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-73176
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12975 WORLDGATE DR 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: $15,121,406
Exercised Options: $14,427,850
Current Obligation: $14,427,850
Actual Outlays: $11,838,425
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $681,333
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2021-09-30
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-02-10
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