GSA's $168.6M Identity Management Contract with Peraton Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $168,598,321 ($168.6M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2017-02-08

End Date: 2027-03-28

Contract Duration: 3,700 days

Daily Burn Rate: $45.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: "IGF::CT,CL::IGF" THE OBJECTIVE OF THIS PROCUREMENT IS TO ACQUIRE A SOLUTION THAT WILL PROVIDE THE U.S. GENERAL SERVICES ADMINISTRATION (GSA) HSPD-12 MSO USACCESS PROGRAM UNINTERRUPTED, GOVERNMENT-WIDE CONTRACTOR MANAGED SERVICES FOR IDENTITY AND CREDENTIAL MANAGEMENT SERVICES INCLUDING: 1) APPLICANT SPONSORSHIP, ENROLLMENT , BIOMETRIC SUBMISSION (FOR BACKGROUND INVESTIGATION PURPOSES); 2) CREDENTIAL ISSUANCE, MAINTENANCE (CERTIFICATE REKEY) AND MANAGEMENT AND 3) BIOGRAPHIC&AGENCY SPECIFIC SPONSORSHIP RECORD MAINTENANCE. THE CONTRACTOR SHALL PROVIDE SERVICES THAT MINIMIZE DISRUPTION TO USACCESS CUSTOMER AGENCIES AND SHALL MAINTAIN THE FULL LIFE AND FUNCTIONALITY OF CURRENTLY EXISTING, ISSUED ACTIVE PIV CARDS AND CREDENTIALS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $168.6 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: "IGF::CT,CL::IGF" THE OBJECTIVE OF THIS PROCUREMENT IS TO ACQUIRE A SOLUTION THAT WILL PROVIDE THE U.S. GENERAL SERVICES ADMINISTRATION (GSA) HSPD-12 MSO USACCESS PROGRAM UNINTERRUPTED, GOVERNMENT-WIDE CONTRACTOR MANAGED SERVICES FOR IDENTITY AND CREDENTIAL MANAGEMENT SERVICES IN… Key points: 1. The contract aims to ensure uninterrupted identity and credential management services for GSA's HSPD-12 USAccess Program. 2. Peraton Enterprise Solutions LLC holds the contract, awarded under full and open competition. 3. Key services include applicant sponsorship, enrollment, biometric submission, and credential issuance/management. 4. The contract duration is substantial, spanning from 2017 to 2027, with a significant total value. 5. The procurement focuses on maintaining the full life and functionality of existing PIV cards and credentials.

Value Assessment

Rating: fair

The contract's total value of $168.6 million over a 10-year period suggests a significant investment. Benchmarking against similar government-wide identity management contracts is necessary to assess if the pricing is competitive and reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, this method should theoretically drive competitive pricing. However, the long-term nature and specific requirements might limit the number of truly competitive bids over its lifespan.

Taxpayer Impact: Taxpayers are funding essential government-wide identity and credential management services, ensuring security and operational continuity for federal agencies.

Public Impact

Ensures secure and continuous access for federal employees and contractors through PIV cards. Supports background investigations and identity verification processes critical for national security. Provides a centralized system for managing digital identities across multiple government agencies. Minimizes disruption to agency operations by maintaining existing credential functionality.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to price increases or reduced innovation over time.
Potential for vendor lock-in despite initial full and open competition.
Complexity of services could lead to scope creep and cost overruns.
Reliance on a single vendor for critical identity infrastructure.

Positive Signals

Awarded through full and open competition, promoting initial cost-effectiveness.
Addresses a critical government need for identity and credential management.
Aims to ensure uninterrupted service delivery for multiple agencies.
Focuses on maintaining existing, functional PIV cards and credentials.

Sector Analysis

This contract falls under the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' sector. Government spending in this area is substantial, driven by the need for secure and efficient IT infrastructure to support agency operations.

Small Business Impact

While awarded under full and open competition, the data does not indicate specific provisions or set-asides for small businesses. The scale of this contract may make it challenging for smaller entities to compete directly.

Oversight & Accountability

The contract's long duration and significant value warrant robust oversight to ensure performance, cost control, and adherence to security standards. Regular performance reviews and audits are crucial for accountability.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Long contract duration (10 years) increases risk of price escalation and technological obsolescence.
Potential for vendor lock-in despite initial full and open competition.
Lack of detailed cost breakdown makes value assessment difficult.
Reliance on a single vendor for critical government-wide identity services.
No explicit mention of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $168.6 million to PERATON ENTERPRISE SOLUTIONS LLC. "IGF::CT,CL::IGF" THE OBJECTIVE OF THIS PROCUREMENT IS TO ACQUIRE A SOLUTION THAT WILL PROVIDE THE U.S. GENERAL SERVICES ADMINISTRATION (GSA) HSPD-12 MSO USACCESS PROGRAM UNINTERRUPTED, GOVERNMENT-WIDE CONTRACTOR MANAGED SERVICES FOR IDENTITY AND CREDENTIAL MANAGEMENT SERVICES INCLUDING: 1) APPLICANT SPONSORSHIP, ENROLLMENT , BIOMETRIC SUBMISSION (FOR BACKGROUND INVESTIGATION PURPOSES); 2) CREDENTIAL ISSUANCE, MAINTENANCE (CERTIFICATE REKEY) AND MANAGEMENT AND 3) BIOGRAPHIC&AGENCY SPECIFIC SPONS

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $168.6 million.

What is the period of performance?

Start: 2017-02-08. End: 2027-03-28.

What is the specific breakdown of costs for each service component (applicant sponsorship, enrollment, credential issuance, etc.) and how do these compare to industry benchmarks?

The provided data does not detail the cost breakdown per service component. A thorough analysis would require access to the contract's detailed financial structure. Comparing these individual service costs against established government or commercial benchmarks for identity management solutions is essential to determine if the pricing is competitive and represents good value for taxpayer money.

Given the long-term nature of the contract (2017-2027), what mechanisms are in place to mitigate the risk of technological obsolescence or the need for future costly upgrades?

The contract's objective to maintain the 'full life and functionality of currently existing, issued active PIV cards and credentials' suggests a focus on sustainment rather than cutting-edge development. Mechanisms to mitigate obsolescence risk might include contract clauses for technology refresh or periodic reviews of emerging technologies. However, without specific details, it's difficult to assess the adequacy of these measures.

How effectively has Peraton Enterprise Solutions LLC managed the transition and ongoing operations to ensure 'uninterrupted' services as stipulated in the contract's objective?

Assessing the effectiveness of Peraton's service delivery requires performance metrics and user feedback, which are not included in the provided data. The 'uninterrupted' service requirement is critical. Evaluating past performance, incident reports, and agency satisfaction surveys would be necessary to determine how well the contractor has met this objective and ensured the continuity of essential identity management functions.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: QTA0016LYA1005

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $168,603,796

Exercised Options: $168,603,796

Current Obligation: $168,598,321

Actual Outlays: $71,645,309

Subaward Activity

Number of Subawards: 168

Total Subaward Amount: $34,248,308

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline