GSA's $21.7M contract for computerized patient record system services delivered over 5 years

Contract Overview

Contract Amount: $21,697,802 ($21.7M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2009-10-07

End Date: 2015-02-02

Contract Duration: 1,944 days

Daily Burn Rate: $11.2K/day

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: COMPUTERIZED PATIENT RECORD SYSTEM

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84113

State: Utah Government Spending

Plain-Language Summary

General Services Administration obligated $21.7 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: COMPUTERIZED PATIENT RECORD SYSTEM Key points: 1. Value for money appears fair given the 5-year duration and the nature of IT infrastructure services. 2. Competition dynamics were limited, with only 4 bidders, potentially impacting price discovery. 3. Risk indicators include the long contract duration and the reliance on a single vendor for critical IT infrastructure. 4. Performance context shows a sustained need for computing infrastructure and data processing services. 5. Sector positioning is within IT infrastructure services, a critical component for government operations.

Value Assessment

Rating: fair

The total contract value of $21.7 million over approximately 5.4 years averages to about $4 million annually. This figure needs to be benchmarked against similar IT infrastructure contracts for computing, data processing, and hosting services. Without specific comparable data, it's difficult to definitively assess if this represents excellent or questionable value. However, the duration suggests a stable, long-term need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed with 4 bidders, indicating a limited but not entirely restricted competition. A limited number of bidders can sometimes lead to higher prices than a full and open competition, as the vendor pool is smaller. The specific details of the solicitation and evaluation process would be needed to fully understand the impact on price discovery.

Taxpayer Impact: With only 4 bidders, taxpayers may have missed out on potentially more competitive pricing that could have resulted from a broader solicitation. However, the existence of multiple bidders still provides some level of price negotiation.

Public Impact

Federal agencies, particularly those requiring patient record systems, benefit from reliable IT infrastructure. Services delivered include computing infrastructure, data processing, and web hosting, essential for digital operations. The geographic impact is national, supporting federal agencies across the United States. Workforce implications are indirect, supporting IT professionals within the government and the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing for taxpayers.
Long-term IT contracts carry inherent risks of technological obsolescence if not managed proactively.
Reliance on a single vendor for core infrastructure can create vendor lock-in.

Positive Signals

The contract provided sustained IT infrastructure support over several years.
A defined contract period offers budget predictability for the agency.
The existence of multiple bidders, even if limited, suggests some market interest.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and hosting. This is a critical and growing sector for government operations, enabling digital transformation and efficient service delivery. Comparable spending benchmarks would involve looking at other large-scale IT infrastructure contracts awarded by federal agencies for similar services, considering factors like data volume, uptime requirements, and security protocols.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The nature of large-scale IT infrastructure services often favors larger, established companies. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

Oversight would typically be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability measures would be defined in the contract's performance work statement and service level agreements. Transparency is generally facilitated through contract databases like FPDS, though detailed performance metrics are often internal.

Related Government Programs

Electronic Health Records (EHR) Systems
Cloud Computing Services
Data Center Operations
IT Managed Services

Risk Flags

Limited Competition
Long-Term Contract Duration
Potential for Technological Obsolescence

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $21.7 million to PERATON ENTERPRISE SOLUTIONS LLC. COMPUTERIZED PATIENT RECORD SYSTEM

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 $21.7 million.

What is the period of performance?

Start: 2009-10-07. End: 2015-02-02.

What was the specific nature of the 'computerized patient record system' services provided under this contract?

The contract data indicates the primary service category as 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' (NAICS 518210). While the description mentions 'COMPUTERIZED PATIENT RECORD SYSTEM', the underlying services likely involved providing the necessary IT infrastructure – such as servers, storage, networking, and data processing capabilities – to support such a system, rather than developing the software itself. This could include hosting the system, managing the underlying hardware, ensuring data backup and recovery, and providing the computing power needed for the system to operate efficiently for its users.

How does the average annual cost of $4 million compare to similar government IT infrastructure contracts?

Benchmarking the average annual cost of $4 million requires detailed comparison with contracts for similar IT infrastructure services (computing, data processing, hosting) awarded by federal agencies. Factors such as the scale of operations (e.g., number of users supported, data volume), specific service level agreements (e.g., uptime guarantees, response times), security requirements, and the duration of the contract are crucial. Without access to a comprehensive database of comparable contracts with these specific parameters, a precise value-for-money assessment is challenging. However, for large-scale, multi-year IT infrastructure support, $4 million annually could be within a reasonable range, provided the services met all performance requirements.

What were the specific risks associated with Peraton Enterprise Solutions LLC providing these services for over five years?

The primary risks associated with a single contractor providing IT infrastructure services for over five years include technological obsolescence, vendor lock-in, and potential degradation of service quality if not actively managed. Technology evolves rapidly; a system or infrastructure solution that is cutting-edge at the start of a five-year contract might be outdated by its end. Vendor lock-in is a risk because the agency becomes heavily reliant on the incumbent provider, making it difficult and costly to switch providers. Furthermore, over a long period, there's a risk that the contractor might reduce investment in personnel or infrastructure, leading to a decline in service quality if oversight is insufficient.

What was the historical spending pattern for computerized patient record systems or related IT infrastructure by the GSA?

The provided data represents a single delivery order valued at $21.7 million over approximately 5.4 years, ending in February 2015. This specific data point does not allow for an analysis of historical spending patterns for computerized patient record systems or related IT infrastructure by GSA. To understand historical trends, one would need to examine a series of contracts awarded over a longer period, looking at total spending, the number and value of contracts, and the types of services procured within this category. This single contract is a snapshot rather than a trend.

Were there any performance issues or contract modifications noted during the life of this contract?

The provided data does not include details on contract modifications, performance issues, or contractor performance ratings. Such information is typically found in contract modification logs, performance reports, or agency-specific contract management systems. Without access to these records, it is impossible to assess whether the contract experienced performance issues or underwent significant modifications that might have altered its scope, cost, or duration. A thorough review of contract files would be necessary to answer this question.

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

Contractor Details

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

Address: 136000 EDS DR MAIL STOP A3S B53, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $23,880,576

Exercised Options: $21,697,802

Current Obligation: $21,697,802

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0323J

IDV Type: FSS

Timeline