GSA's $95.8M HSPD-12 Shared Services Contract Awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $95,816,907 ($95.8M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2012-04-01

End Date: 2017-06-30

Contract Duration: 1,916 days

Daily Burn Rate: $50.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HSPD-12 SHARED SERVICES PROVIDER III- LOGICAL FOLLOW ON

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $95.8 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: HSPD-12 SHARED SERVICES PROVIDER III- LOGICAL FOLLOW ON Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1916 days (over 5 years) indicates a long-term need for these services. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The award was a delivery order under a larger contract, implying it's part of a broader acquisition strategy. 5. The NAICS code 518210 points to services related to computing infrastructure and data processing. 6. The contract was awarded to a single entity, Peraton Enterprise Solutions LLC. 7. The contract was not set aside for small businesses. 8. The contract is located in Virginia (VA).

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total contract ceiling and the specific services rendered. However, a $95.8 million award over approximately five years suggests a significant investment in shared identity services. The firm-fixed-price structure is generally favorable for cost control, but the ultimate value depends on the efficiency and effectiveness of the provider in meeting the government's requirements. Without more granular data on the scope of services and comparable market rates for HSPD-12 shared services, a definitive value-for-money assessment is difficult.

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 fact that it resulted in a single award suggests that Peraton Enterprise Solutions LLC was the most advantageous offer received based on the evaluation criteria. The level of competition, while initially broad, ultimately led to one selected provider, which can be a positive sign for price discovery if the competition was robust.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing, potentially leading to lower costs for the government.

Public Impact

Federal employees and contractors requiring identity credentials benefit from standardized and secure HSPD-12 compliant services. The contract supports the delivery of computing infrastructure, data processing, and web hosting, essential for government operations. The geographic impact is primarily within Virginia, where the contract is managed and services may be delivered. The contract supports the federal government's cybersecurity and identity management initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition to another provider is complex or costly.
Reliance on a single provider for critical identity services could pose a risk if the provider experiences performance issues or financial instability.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should have yielded a fair price.
Firm-fixed-price contract type helps to control costs and provides budget certainty.
Long contract duration indicates a stable, ongoing requirement, suggesting the service is valued and necessary.

Sector Analysis

The Information Technology sector, specifically focusing on computing infrastructure, data processing, and web hosting, is a critical area for government operations. The market for these services is highly competitive, with numerous large and small businesses offering solutions. Government spending in this area is substantial, driven by the need for secure, reliable, and scalable IT infrastructure to support a wide range of federal agencies and their missions. This contract fits within the broader trend of agencies seeking to consolidate and modernize their IT services, often through shared service models to achieve economies of scale and improve efficiency.

Small Business Impact

This contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses in the provided data. This means that opportunities for small businesses to directly participate in this specific award are limited. The absence of small business set-aside provisions suggests that the primary focus was on securing the most capable and cost-effective solution from the broader market, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

HSPD-12
Shared Services
Identity, Credential, and Access Management (ICAM)
IT Infrastructure Services
Data Center Services

Risk Flags

Potential for vendor lock-in
Reliance on a single provider for critical services
Performance risk
Security breach risk

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $95.8 million to PERATON ENTERPRISE SOLUTIONS LLC. HSPD-12 SHARED SERVICES PROVIDER III- LOGICAL FOLLOW ON

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 $95.8 million.

What is the period of performance?

Start: 2012-04-01. End: 2017-06-30.

What is the track record of Peraton Enterprise Solutions LLC in delivering similar federal IT services?

Peraton Enterprise Solutions LLC, and its predecessor companies, have a significant history of performing IT services for the federal government. The company has been involved in various large-scale contracts related to IT infrastructure, cybersecurity, and enterprise solutions. Their experience often includes managing complex systems, providing mission-critical support, and adhering to stringent government security requirements. While specific performance metrics for this particular HSPD-12 contract are not detailed here, Peraton's general profile suggests a capacity to handle substantial federal IT procurements. Further analysis would involve reviewing past performance evaluations and contract histories for similar service categories to assess their reliability and effectiveness.

How does the awarded amount compare to similar HSPD-12 shared service contracts?

Comparing the $95.8 million award for this HSPD-12 Shared Services Provider III contract requires context regarding the scope, duration, and specific services included. HSPD-12 mandates secure identification and authentication for federal employees and contractors. Shared service models aim for economies of scale. Without detailed service level agreements (SLAs) and specific deliverables for this contract, direct comparison is difficult. However, other federal agencies have awarded multi-year contracts in the tens to hundreds of millions of dollars for identity management and credentialing services. Factors like the number of users supported, the complexity of the identity lifecycle management, and the integration with other systems significantly influence cost. This award appears to be within a reasonable range for a large-scale, multi-year federal shared service initiative, assuming comprehensive service delivery.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include potential vendor lock-in, where transitioning away from Peraton Enterprise Solutions LLC could be complex and costly due to the integrated nature of identity services. There's also a risk of performance degradation or service disruptions if the contractor fails to meet service level agreements, impacting federal employees' ability to access systems. Security vulnerabilities, though mitigated by HSPD-12 standards, remain a constant concern, and any breach could have severe consequences. Furthermore, cost overruns, despite the firm-fixed-price structure, could occur if the scope of work expands significantly or if unforeseen technical challenges arise, requiring contract modifications. Dependence on a single provider for critical identity functions also presents a strategic risk.

How effective has the GSA's approach to providing shared IT services been historically?

The General Services Administration (GSA) has been a key player in promoting shared IT services across the federal government, aiming to reduce duplication, improve efficiency, and lower costs. Their initiatives, including cloud offerings and shared service centers, have seen varying degrees of success. While GSA has facilitated significant cost savings and modernization efforts in some areas, challenges have included agency adoption rates, integration complexities, and ensuring services meet diverse agency needs. The HSPD-12 Shared Services Provider contracts represent GSA's effort to standardize and centralize critical functions like identity management. The effectiveness is often measured by the number of agencies participating, the cost savings realized compared to individual agency solutions, and the reliability and security of the services provided. Continuous evaluation and adaptation are crucial for the ongoing success of these shared service models.

What is the historical spending trend for HSPD-12 related services by the GSA?

Historical spending by the GSA on HSPD-12 related services, including shared identity services, has been substantial and generally increasing as agencies prioritize robust identity and access management. The GSA, through various contract vehicles and programs, facilitates the procurement and delivery of these services to multiple federal agencies. Spending trends reflect the government's ongoing commitment to implementing and maintaining secure credentialing systems mandated by the policy. While specific year-over-year figures for all HSPD-12 related spending by GSA are complex to isolate due to the integration with broader IT infrastructure and security contracts, the consistent need for these services suggests sustained investment. The $95.8 million award to Peraton Enterprise Solutions LLC for the HSPD-12 Shared Services Provider III contract is indicative of this ongoing financial commitment to secure identity management.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: DXC Technology Company (UEI: 080521853)

Address: 13600 EDS DR A3S-B53, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $95,816,907

Exercised Options: $95,816,907

Current Obligation: $95,816,907

Subaward Activity

Number of Subawards: 55

Total Subaward Amount: $9,485,187

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0323J

IDV Type: FSS

Timeline