CDC awards $24.3M for digital media services to Peraton Inc., highlighting IT support needs
Contract Overview
Contract Amount: $24,285,145 ($24.3M)
Contractor: Peraton Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2024-09-20
End Date: 2026-08-31
Contract Duration: 710 days
Daily Burn Rate: $34.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: CDC DIGITAL MEDIA SERVICES
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $24.3 million to PERATON INC. for work described as: CDC DIGITAL MEDIA SERVICES Key points: 1. Contract value represents a significant investment in IT infrastructure and digital outreach capabilities. 2. Competition dynamics suggest a robust market for IT services, with potential for price optimization. 3. Performance risk is moderate, given the need for specialized digital media expertise. 4. This contract aligns with the CDC's strategic goals for public health communication and data dissemination. 5. The sector positioning indicates a growing demand for advanced digital solutions within government agencies.
Value Assessment
Rating: good
The contract value of approximately $24.3 million over its period of performance appears reasonable for comprehensive digital media services. Benchmarking against similar IT service contracts awarded by HHS or other federal agencies for system design and integration would provide a clearer picture of value for money. Without specific per-unit cost data or detailed service breakdowns, a definitive assessment of pricing efficiency is challenging, but the overall award size is within expected ranges for such specialized IT support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring the government receives competitive offers. The number of bidders, if available, would further illuminate the level of market interest and the intensity of competition, potentially driving down costs and improving service quality.
Taxpayer Impact: A full and open competition process maximizes taxpayer value by encouraging a wide range of qualified contractors to submit proposals, leading to potentially lower prices and better service offerings.
Public Impact
The CDC benefits from enhanced digital media capabilities to support its public health mission. Services delivered will likely include website management, content creation, social media engagement, and digital campaign execution. The geographic impact is national, as CDC's digital outreach serves the entire United States. Workforce implications may include the need for specialized digital marketing and IT professionals, both within the contractor and potentially within the agency for oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined and managed.
- Dependence on contractor expertise could create knowledge transfer challenges.
- Ensuring data privacy and security in digital communications is paramount.
Positive Signals
- Award to a single, established contractor can ensure continuity of services.
- Full and open competition suggests a healthy market and potential for innovation.
- Clear performance metrics and oversight can drive successful outcomes.
Sector Analysis
The IT services sector, particularly within government contracting, is highly competitive and diverse. This contract falls under computer systems design services, a segment focused on planning and designing computer systems that integrate hardware, software, and communication technologies. The market size for federal IT services is substantial, with agencies increasingly relying on external expertise for digital transformation, cybersecurity, and data management. This award to Peraton Inc. reflects the ongoing trend of agencies outsourcing complex IT functions to specialized providers.
Small Business Impact
The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, Peraton Inc., is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Peraton's own subcontracting plan and the specific requirements of the digital media services. Further analysis would be needed to determine the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Centers for Disease Control and Prevention (CDC) through its contracting officers and program managers. Accountability measures will be tied to the performance work statement and delivery orders, with regular reviews and reporting. Transparency is facilitated by the public nature of federal contract awards, though specific performance details may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- HHS IT Modernization Initiatives
- CDC Public Health Communication Services
- Federal Digital Services Contracts
- Computer Systems Design Services
Risk Flags
- Potential for vendor lock-in if services are highly specialized.
- Need for clear performance metrics to ensure value for money.
- Cybersecurity risks associated with digital platforms and data handling.
Tags
it-services, digital-media, computer-systems-design, hhs, cdc, centers-for-disease-control-and-prevention, peraton-inc, delivery-order, full-and-open-competition, labor-hours, virginia, health-and-human-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $24.3 million to PERATON INC.. CDC DIGITAL MEDIA 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 $24.3 million.
What is the period of performance?
Start: 2024-09-20. End: 2026-08-31.
What is Peraton Inc.'s track record with the CDC and HHS for similar digital media or IT services?
Peraton Inc. has a significant history of contracting with various U.S. federal agencies, including the Department of Health and Human Services (HHS) and its sub-agencies like the CDC. Their portfolio often includes complex IT solutions, cybersecurity, and mission support services. While specific details on past digital media services for the CDC would require a deeper dive into contract databases, Peraton's general experience in providing IT infrastructure and systems integration suggests a capability to handle such requirements. Analyzing their past performance ratings and any past performance issues on similar contracts would be crucial for a comprehensive assessment of their suitability for this specific award.
How does the awarded amount of $24.3 million compare to historical spending on CDC digital media services?
To assess how the $24.3 million award compares to historical spending, one would need to analyze previous CDC contracts for digital media services, IT support, or related communication functions over several fiscal years. This would involve identifying similar contract vehicles, their values, durations, and the scope of work. If historical spending on comparable services was significantly lower, it might indicate an increase in service scope, market price inflation, or a less competitive bidding environment for this specific award. Conversely, if historical spending was similar or higher, it suggests this award is in line with established budget allocations for such critical IT and communication functions.
What are the key performance indicators (KPIs) for this contract, and how will they be measured?
The key performance indicators (KPIs) for this contract are not explicitly detailed in the provided data but would typically be outlined in the Performance Work Statement (PWS) or Statement of Work (SOW) attached to the contract award. Common KPIs for digital media services might include website traffic metrics (e.g., unique visitors, page views), engagement rates on social media platforms (likes, shares, comments), reach of digital campaigns, content production timeliness, and adherence to brand guidelines. Measurement methods would likely involve analytics platforms (e.g., Google Analytics), social media monitoring tools, and regular reporting by the contractor, with oversight and validation by the CDC's contracting officer's representative (COR).
What is the potential risk associated with the 'Computer Systems Design Services' NAICS code for this contract?
The NAICS code 541512, 'Computer Systems Design Services,' encompasses a broad range of IT activities, including analyzing user needs and designing and implementing customized information technology solutions. For this contract, the primary risks associated with this code could include the complexity of integrating new digital media platforms with existing CDC IT infrastructure, ensuring cybersecurity and data privacy compliance, and managing the technical aspects of system design and deployment. Potential risks also involve the contractor's ability to accurately assess the CDC's specific needs and deliver a system that is both functional and scalable. Effective risk mitigation would rely on detailed requirements gathering, robust testing phases, and strong project management from both the contractor and the government.
How does the contract duration (710 days) and estimated start/end dates impact the CDC's ability to adapt to evolving digital media trends?
The contract duration of 710 days (approximately 23 months) provides a substantial period for the CDC to leverage Peraton Inc.'s services for its digital media needs. This timeframe allows for consistent execution of digital strategies and campaigns. However, the rapid pace of change in digital media trends (e.g., new social platforms, evolving algorithms, emerging content formats) means that adaptability is crucial. The contract's success will depend on built-in flexibility, mechanisms for scope adjustments, and the contractor's agility in incorporating new trends and technologies. The CDC will need to actively manage the contract to ensure services remain current and effective throughout its term, potentially through task orders or contract modifications if significant shifts are required.
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: 75D301-24-R-73116
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
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: $24,285,145
Exercised Options: $24,285,145
Current Obligation: $24,285,145
Actual Outlays: $16,264,973
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200025W
IDV Type: GWAC
Timeline
Start Date: 2024-09-20
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2025-06-24
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