DHS Classified Networks Support Contract Awarded to Peraton Inc. for $609M
Contract Overview
Contract Amount: $609,128,624 ($609.1M)
Contractor: Peraton Inc.
Awarding Agency: General Services Administration
Start Date: 2011-02-02
End Date: 2018-05-02
Contract Duration: 2,646 days
Daily Burn Rate: $230.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IS TO PROVIDE SUPPORT FOR THE CONTINUED OPERATIONS, MAINTENANCE AND EVOLUTION OF DEPARTMENT OF HOMELAND SECURITY (DHS) CLASSIFIED NETWORKS. DHS CLASSIFIED NETWORKS ARE A FEDERAL ENTERPRISE INFRASTRUCTURE FOR CLASSIFIED INFORMATION SHARING WHICH EXTEND EXISTING US GOVERNMENT CAPABILITIES NOT ONLY TO THE DEPARTMENT OF HOMELAND SECURITY AND ITS COMPONENTS, BUT TO OTHER FEDERAL GOVERNMENT AGENCIES, AND TO FIRST RESPONDERS AT THE STATE, LOCAL, AND TRIBAL LEVELS.
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22101
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $609.1 million to PERATON INC. for work described as: IS TO PROVIDE SUPPORT FOR THE CONTINUED OPERATIONS, MAINTENANCE AND EVOLUTION OF DEPARTMENT OF HOMELAND SECURITY (DHS) CLASSIFIED NETWORKS. DHS CLASSIFIED NETWORKS ARE A FEDERAL ENTERPRISE INFRASTRUCTURE FOR CLASSIFIED INFORMATION SHARING WHICH EXTEND EXISTING US GOVERNMENT CAPAB… Key points: 1. Contract supports critical DHS classified networks, enabling information sharing across federal agencies and first responders. 2. Peraton Inc. secured the contract through full and open competition. 3. The contract value is substantial at over $609 million. 4. Services include operations, maintenance, and evolution of these vital networks.
Value Assessment
Rating: good
The contract was awarded as a Delivery Order under an existing GSA schedule, suggesting a pre-negotiated pricing structure. The Cost Plus Award Fee (CPAF) type indicates that pricing can fluctuate based on performance, potentially leading to higher costs if performance targets are not met.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust bidding process. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential government operations.
Public Impact
Ensures continuity of operations for critical Department of Homeland Security classified networks. Facilitates secure information sharing among federal agencies and state/local first responders. Supports national security by maintaining secure communication infrastructure. Potential for enhanced network capabilities and evolution under the contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee (CPAF) can lead to higher than anticipated costs if performance incentives are not carefully managed.
- Long contract duration (2646 days) may limit flexibility for future technological advancements or cost savings.
- Reliance on a single awardee for critical infrastructure support.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Supports a critical government function with broad inter-agency and first responder impact.
- Contract includes provisions for network evolution, indicating a forward-looking approach.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government, supporting essential digital infrastructure and operational capabilities.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.
Oversight & Accountability
The contract was awarded by the General Services Administration (GSA), a key agency for government procurement oversight. The use of a Delivery Order under an existing schedule also implies some level of pre-existing oversight.
Related Government Programs
- Computer Systems Design Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Long-term reliance on a single vendor for critical infrastructure.
- Risk of technological obsolescence if 'evolution' is not adequately funded or managed.
- Limited visibility into specific performance metrics and award fee determination.
Tags
computer-systems-design-services, general-services-administration, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $609.1 million to PERATON INC.. IS TO PROVIDE SUPPORT FOR THE CONTINUED OPERATIONS, MAINTENANCE AND EVOLUTION OF DEPARTMENT OF HOMELAND SECURITY (DHS) CLASSIFIED NETWORKS. DHS CLASSIFIED NETWORKS ARE A FEDERAL ENTERPRISE INFRASTRUCTURE FOR CLASSIFIED INFORMATION SHARING WHICH EXTEND EXISTING US GOVERNMENT CAPABILITIES NOT ONLY TO THE DEPARTMENT OF HOMELAND SECURITY AND ITS COMPONENTS, BUT TO OTHER FEDERAL GOVERNMENT AGENCIES, AND TO FIRST RESPONDERS AT THE STATE, LOCAL, AND TRIBAL LEVELS.
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $609.1 million.
What is the period of performance?
Start: 2011-02-02. End: 2018-05-02.
What is the benchmark for Computer Systems Design Services (NAICS 541512) for contracts of this size and scope?
Benchmarking for IT services contracts, especially those involving classified networks, is complex. Factors like security requirements, specialized personnel, and the specific scope of operations (maintenance, evolution) significantly influence pricing. A direct comparison to standard IT services may not be fully representative. Further analysis would require access to detailed cost breakdowns and market research specific to classified network support.
How is the 'Award Fee' component of the Cost Plus Award Fee (CPAF) structure determined and what are the potential cost implications?
The 'Award Fee' is typically determined by the government based on pre-defined performance criteria and metrics. If Peraton Inc. exceeds these metrics, they receive a higher fee. Conversely, if performance is subpar, the fee is reduced. The potential cost implication is that the total contract cost could exceed initial estimates if performance is exceptionally good, or be lower if performance is poor. Careful monitoring of performance metrics is crucial.
What specific measures are in place to ensure the continued evolution and modernization of DHS classified networks under this contract?
The contract specifies 'evolution' as a service, implying a requirement for Peraton Inc. to propose and implement upgrades. The effectiveness of this depends on the clarity of performance standards related to modernization, the government's oversight of proposed changes, and the budget allocated for new capabilities. Regular reviews and technical assessments would be necessary to ensure the networks remain current and secure.
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
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
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: $1,114,022,610
Exercised Options: $1,114,022,610
Current Obligation: $609,128,624
Subaward Activity
Number of Subawards: 301
Total Subaward Amount: $454,705,048
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0056
IDV Type: GWAC
Timeline
Start Date: 2011-02-02
Current End Date: 2018-05-02
Potential End Date: 2018-05-02 00:00:00
Last Modified: 2024-10-18
More Contracts from Peraton Inc.
- 200107!000034!5700!GZ80 !smc/Pks !F0470101C0001 !A!N!*!Y! !20001103!20061031!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000016429445!n!n!000000000000!ac26!rdte/Missile and Space Systems-Mgmt Support !A2 !missile and Space Systems !3000!NOT Discernable or Classified !541710!*!*!3! ! ! !*!*!*!B!*!*!B! !A !Y!R!2!003!B! !A!N!Z! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! !Y! ! !0001! — $1.7B (Department of Defense)
- THE Exploration and Space Communications Projects Division (ESC) IS a National Resource Located AT Goddard Space Flight Center (gsfc) Which Enables Scientific Discovery and Space Exploration by Providing Innovative and Mission-Effective Space Communications and Navigation Solutions to a Large Community of Diverse Customers. ESC Manages Operational Geostationary Communications Relay Satellites and Ground Systems for the Space Communications and Navigation (scan) Program AT Nasa Headquarters. Today, Scan Network Systems Consist of the Space Network (SN), the Near Earth Network (NEN), and the Deep Space Network (DSN). the Day-To-Day Management of These Three Networks IS Currently NOT Fully Consistent. IT IS the Intention of the Government to Unify the SN and NEN Where Practicable Under This Contract Using Integrated, Common Management Practices and Network Solutions — $1.5B (National Aeronautics and Space Administration)
- Nasa Goddard Space Flight Center's (gsfc) Goal for the Space Communications Networks Services Contract (scns) IS to Enable Mission Success for Every Customer Using Scns Services. KEY Objectives of the Scns Contract ARE to Decrease Cost and Maintain or Improve Operational Efficiency and Reliability, While Maintaining an Acceptable Level of Risk and Providing for Safe Operation of the Missions. the Contractor Shall Implement a Safety, Health, and Mission Assurance Program That Provides a Safe and Healthy Work Environment, Minimizes Program Risk, and Maximizes Nasa Mission Success. the Contractor Shall BE Responsible and Accountable for Achieving the Required Results. Core Requirement Functions, Such AS Configuration Management, Quality Assurance, ETC. ARE Required to Support Idiq Task Orders. the Space Network (SN) IS Comprised of a Fleet of On-Orbit Tracking and Data Relay Satellites (tdrs) and Associated Ground Systems That Provide Telecommunications Services. the Nature of the SN Architecture, I.E., Extremely Large Capital Investment, Contractor Operated Facilities, Continuous 24X7 Requirements, ETC., Lends Itself to a Core Requirements Approach. the Ground Network (GN) Consists of an Orbital Tracking Network and the Satellite Laser Ranging Network. the Nature of the Ground Network Architecture, I.E., Diverse MIX of Commercial and Government Assets, Evolving Geographic and Technical Customer Requirements, and Legacy Systems, ETC. Lends Itself to an Idiq Approach. Other Activities, I.E., Very Long Baseline Interferometry Network Operations and Maintenance (O&M), Electronic System Test Laboratory, Requirements Development, Hardware and Software Development, ETC. ARE Best Suited to an Idiq Approach in the Resource-Constrained Environment That Nasa Operates in — $1.2B (National Aeronautics and Space Administration)
- Operational Planning Implementation and Assessment Services (opias) Base Award — $800.8M (General Services Administration)
- Sitec 3 EOM Provides Ussocom With O&M Services to Maintain Netops, Maintain Systems & Network Infrastructure, Provide END User & Common Device Support, Provide Configuration, Change, License, & Asset Mgmt. Conduct Training and Perform Imacs Services — $651.0M (General Services Administration)
Other General Services Administration Contracts
- Software Life Cycle Development — $1.4B (Science Applications International Corporation)
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (Booz Allen Hamilton Inc)
- Federal Contract — $1.2B (Booz Allen Hamilton Inc)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (Science Applications International Corporation)
- Task Order Award — $1.1B (Booz Allen Hamilton Inc)