Peraton Enterprise Solutions LLC awarded $31.87M for DHS cybersecurity tools and sensors under CDM program

Contract Overview

Contract Amount: $31,870,231 ($31.9M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2014-01-15

End Date: 2014-10-14

Contract Duration: 272 days

Daily Burn Rate: $117.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THE PURPOSE OF THIS ORDER IS TO SUPPORT THE DHS, OFFICE OF CYBER SECURITY AND COMMUNICATIONS (CS&C), OPERATING ON BEHALF OF A SPECIFIC SET OF FEDERAL D/AS BY PROVIDING TOOLS AND SENSORS IN SUPPORT OF THE CDM PROGRAM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $31.9 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF THE PURPOSE OF THIS ORDER IS TO SUPPORT THE DHS, OFFICE OF CYBER SECURITY AND COMMUNICATIONS (CS&C), OPERATING ON BEHALF OF A SPECIFIC SET OF FEDERAL D/AS BY PROVIDING TOOLS AND SENSORS IN SUPPORT OF THE CDM PROGRAM. Key points: 1. Contract supports the Department of Homeland Security's Continuous Diagnostics and Mitigation (CDM) program. 2. Focuses on providing essential tools and sensors for cybersecurity. 3. Awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-competed framework. 4. The contract duration is 272 days, suggesting a focused, short-term operational need. 5. The fixed-price contract type aims to control costs and provide budget certainty. 6. The North American Industry Classification System (NAICS) code 518210 points to data processing and hosting services.

Value Assessment

Rating: good

The contract value of $31.87 million for a 272-day period appears reasonable for specialized cybersecurity tools and sensors supporting a major federal program like CDM. Benchmarking against similar large-scale cybersecurity procurements for federal agencies suggests this is within expected ranges for the scope of work. The firm-fixed-price structure provides cost predictability for the government.

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 offers. While the specific number of bidders is not provided, the 'full and open' designation suggests a competitive process that likely yielded multiple proposals. This approach is generally favored for ensuring fair pricing and access to a broad range of capabilities.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for government spending.

Public Impact

Federal agencies within the Department of Homeland Security (DHS) and other federal departments/agencies (D/As) benefit from enhanced cybersecurity capabilities. Services delivered include the provision of tools and sensors crucial for monitoring and mitigating cyber threats. The geographic impact is national, supporting federal IT infrastructure across the United States. Workforce implications include potential support for cybersecurity professionals involved in the implementation and operation of these tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if tools are proprietary and difficult to integrate with other systems.
Dependence on a single vendor for critical cybersecurity infrastructure could pose a risk if the vendor's performance falters.
Ensuring the long-term sustainability and supportability of the provided tools is crucial.

Positive Signals

Supports a critical national security mission (cybersecurity for federal agencies).
Awarded through full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type provides cost certainty for the government.
The CDM program itself is a strategic initiative aimed at improving federal cybersecurity posture.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on cybersecurity solutions. The market for federal cybersecurity is substantial and growing, driven by increasing cyber threats. Comparable spending benchmarks for federal cybersecurity tools and services often run into billions of dollars annually across various agencies. This contract represents a specific procurement within the broader CDM program, which aims to standardize and improve cybersecurity across the federal government.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically tied to small business set-asides for this particular award. The focus is likely on larger, established providers capable of delivering complex cybersecurity solutions at scale.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA) as the issuing agency, and the specific program office within DHS (Office of Cybersecurity and Communications). Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified goods and services. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported.

Related Government Programs

Continuous Diagnostics and Mitigation (CDM) Program
Department of Homeland Security (DHS) Cybersecurity Initiatives
Federal Information Security Management Act (FISMA) Compliance
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Potential for vendor lock-in
Dependence on single vendor for critical security tools
Ensuring long-term supportability and upgrades

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $31.9 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF THE PURPOSE OF THIS ORDER IS TO SUPPORT THE DHS, OFFICE OF CYBER SECURITY AND COMMUNICATIONS (CS&C), OPERATING ON BEHALF OF A SPECIFIC SET OF FEDERAL D/AS BY PROVIDING TOOLS AND SENSORS IN SUPPORT OF THE CDM PROGRAM.

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 $31.9 million.

What is the period of performance?

Start: 2014-01-15. End: 2014-10-14.

What is the specific nature of the 'tools and sensors' provided under this contract, and how do they contribute to the CDM program's objectives?

The 'tools and sensors' provided under this contract are integral components of the Continuous Diagnostics and Mitigation (CDM) program, which aims to enhance the cybersecurity posture of federal agencies. These tools and sensors are designed to continuously monitor federal networks and systems for vulnerabilities, threats, and unauthorized activities. They can include a range of technologies such as vulnerability scanners, intrusion detection systems, security information and event management (SIEM) solutions, and data loss prevention (DLP) tools. By providing real-time data and alerts, these components enable agencies to identify and address security weaknesses proactively, manage their asset inventories, and implement appropriate mitigation strategies, thereby strengthening their overall defense against cyberattacks.

How does the BPA Call mechanism influence the competition and pricing for this contract compared to a standalone solicitation?

A Blanket Purchase Agreement (BPA) Call operates under a pre-established BPA, which itself has already undergone a competitive process. When a BPA Call is issued, it essentially 'calls off' services or products from that existing agreement. This means the primary competition occurred when the BPA was initially awarded. For this specific BPA Call, the competition might be limited to the vendors who hold the underlying BPA, or it could be a further competitive process among those BPA holders, depending on the BPA's terms. This can lead to faster procurement cycles and potentially more favorable pricing due to pre-negotiated rates within the BPA. However, it might also limit the pool of potential offerors compared to a full and open competition for a standalone contract.

What are the potential risks associated with relying on a single vendor for critical cybersecurity tools and sensors, as might be implied by a BPA Call structure?

Relying on a single vendor for critical cybersecurity tools and sensors, even under a BPA Call, carries several potential risks. Firstly, there's the risk of vendor lock-in, where the government becomes heavily dependent on a specific vendor's proprietary technology, making it difficult and costly to switch to alternative solutions in the future. Secondly, if the vendor experiences financial instability, undergoes mergers, or discontinues product lines, the government could face disruptions in support, maintenance, and upgrades. Thirdly, a single vendor might not offer the most innovative or best-of-breed solutions across all necessary cybersecurity domains. Finally, a concentrated reliance could create a single point of failure or a more attractive target for sophisticated cyber adversaries seeking to compromise federal systems.

How does the $31.87 million award value compare to historical spending on the CDM program or similar cybersecurity initiatives?

The $31.87 million award value for this specific BPA Call under the CDM program is a significant but not extraordinary figure within the context of large-scale federal cybersecurity procurements. The CDM program itself is a multi-year, multi-billion dollar initiative aimed at enhancing the cybersecurity of federal networks and systems. Individual contract awards within CDM can range from millions to hundreds of millions of dollars, depending on the scope, duration, and specific services or products being procured. This particular award, covering tools and sensors over approximately nine months, appears to be a substantial investment for a defined period, aligning with the program's objective of providing necessary security capabilities. Compared to other federal cybersecurity contracts, its value is consistent with procurements for specialized technology and services supporting critical infrastructure.

What is the track record of Peraton Enterprise Solutions LLC in delivering federal cybersecurity contracts, particularly those related to CDM?

Peraton Enterprise Solutions LLC, and its parent company Peraton, have a significant track record in supporting federal government contracts, including those in the defense, intelligence, and civilian sectors. They are known for providing a range of IT and cybersecurity services. While specific details on their performance on this particular BPA Call are not provided in the summary data, Peraton has been a major player in various federal IT and cybersecurity programs. Their experience often includes areas like network security, data analytics, and mission support. For the CDM program specifically, Peraton has been involved in various capacities, often through prime contracts or significant subcontracts, delivering solutions related to asset management, vulnerability management, and continuous monitoring. Their established presence suggests a capacity to handle complex federal requirements.

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: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: HP, Inc. (UEI: 009122532)

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

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $64,392,672

Exercised Options: $31,870,231

Current Obligation: $31,870,231

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T13AJA0014

IDV Type: BPA

Timeline