HHS Awards $1.24B for Computing Infrastructure to Peraton Enterprise Solutions, Highlighting Long-Term Contract
Contract Overview
Contract Amount: $1,238,890,340 ($1.2B)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2013-07-01
End Date: 2021-06-30
Contract Duration: 2,921 days
Daily Burn Rate: $424.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $1.24 billion to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF Key points: 1. Significant contract value of $1.24 billion over 8 years. 2. Peraton Enterprise Solutions holds the contract, indicating a specific vendor relationship. 3. The contract falls under Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. 4. Full and open competition was used, suggesting a competitive bidding process.
Value Assessment
Rating: good
The contract value of $1.24 billion over nearly 8 years suggests a substantial investment. Without specific pricing details or benchmarks for similar services, it's difficult to definitively assess value, but the duration implies a strategic, long-term need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple vendors had the opportunity to bid. This process is generally expected to drive competitive pricing and ensure fair market value is obtained.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the computing infrastructure and related services provided.
Public Impact
Ensures continued operation of critical health data processing and web hosting services for CMS. Supports the digital infrastructure necessary for healthcare services and public health initiatives. Long-term award provides stability for both the agency and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (nearly 8 years), potentially leading to vendor lock-in or missed opportunities for cost savings through re-competition.
- Lack of specific performance metrics or cost-saving targets in the provided data.
- Potential for scope creep over the contract's extended period.
Positive Signals
- Full and open competition was utilized, promoting a competitive environment.
- Firm Fixed Price contract type helps manage cost certainty for the government.
- The contract supports essential healthcare IT infrastructure.
Sector Analysis
This contract falls within the IT and data processing sector, specifically for computing infrastructure. Spending in this area is crucial for government operations, with benchmarks varying widely based on service scope and duration.
Small Business Impact
The data does not indicate any specific set-asides or participation requirements for small businesses in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Centers for Medicare and Medicaid Services (CMS), a major agency within HHS. Oversight would typically involve contract management teams within CMS to ensure performance and compliance.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Long contract duration may limit flexibility and opportunities for cost savings.
- Potential for vendor lock-in.
- Lack of specific performance metrics in the provided data.
- Scope creep risk over an extended period.
Tags
computing-infrastructure-providers-data-, department-of-health-and-human-services, va, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $1.24 billion to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $1.24 billion.
What is the period of performance?
Start: 2013-07-01. End: 2021-06-30.
What specific services are included under 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' for CMS, and how do they align with current technological needs?
These services likely encompass a broad range of IT functions critical to CMS operations, including server hosting, data storage and management, network infrastructure, cloud services, and potentially application hosting. The alignment with current needs would depend on the specific technological architecture CMS employs and its strategic IT roadmap, which may involve modernization efforts or continued reliance on established infrastructure.
Given the $1.24 billion value and nearly 8-year duration, what are the key performance indicators (KPIs) and service level agreements (SLAs) in place to ensure Peraton's performance and cost-effective
Detailed KPIs and SLAs are crucial for managing such a large, long-term contract. They would typically cover aspects like system uptime, data security, response times for technical support, data integrity, and disaster recovery capabilities. The effectiveness of the contract hinges on robust monitoring of these metrics and clear consequences for non-performance, ensuring value for taxpayer money.
How does the firm fixed price (FFP) structure mitigate risks associated with potential cost overruns or changes in scope over the contract's extended period?
A Firm Fixed Price contract shifts the risk of cost overruns to the contractor, Peraton. This structure provides budget certainty for CMS. However, it necessitates careful initial scope definition. Significant changes in scope requested by CMS could lead to contract modifications and potentially higher costs, while Peraton bears the risk if their costs exceed the agreed-upon price due to unforeseen internal issues.
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
Solicitation ID: RFPCMS20120007
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,240,067,551
Exercised Options: $1,238,890,340
Current Obligation: $1,238,890,340
Actual Outlays: $60,869
Subaward Activity
Number of Subawards: 638
Total Subaward Amount: $402,193,428
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201300014I
IDV Type: IDC
Timeline
Start Date: 2013-07-01
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2024-12-17
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