HHS awards $24.6M for disease surveillance software, with Peraton Inc. as the prime contractor
Contract Overview
Contract Amount: $24,628,496 ($24.6M)
Contractor: Peraton Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2016-11-30
End Date: 2022-09-30
Contract Duration: 2,130 days
Daily Burn Rate: $11.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS ELECTRONIC INTEGRATED DISEASE SURVEILLANCE SYSTEM (EIDSS)&PATHOGEN ASSET CONTROL SYSTEM (PACS) SOFTWARE DEVELOPMENT, SOFTWARE MAINTENANCE&SUSTAINMENT, REQUIREMENTS MANAGEMENT, AND TRAINING DEVELOPMENT.
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $24.6 million to PERATON INC. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS ELECTRONIC INTEGRATED DISEASE SURVEILLANCE SYSTEM (EIDSS)&PATHOGEN ASSET CONTROL SYSTEM (PACS) SOFTWARE DEVELOPMENT, SOFTWARE MAINTENANCE&SUSTAINMENT, REQUIREMENTS MANAGEMENT, AND TRAINING DEVELOPMENT. Key points: 1. Contract focuses on critical disease surveillance and pathogen asset control systems. 2. Value-for-money assessment is pending further benchmarking against similar IT services. 3. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 4. Risk indicators are moderate, given the long-term nature of software sustainment. 5. Performance context involves ongoing development, maintenance, and training for vital public health systems. 6. Sector positioning is within the health IT domain, supporting national disease monitoring capabilities.
Value Assessment
Rating: fair
The contract's total value of $24.6 million over approximately six years for software development, maintenance, and training suggests a moderate annual spend. Benchmarking against similar IT services contracts for public health systems is necessary to fully assess value for money. Without specific details on the scope of work and deliverables, a precise comparison to market rates for comparable services is challenging. The cost-plus-fixed-fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can introduce cost variability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of five bidders indicates a degree of competition. A competitive bidding process is generally expected to lead to more favorable pricing for the government compared to sole-source or limited competition awards. The specific details of the evaluation criteria and the number of proposals received would provide further insight into the strength of the competition.
Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the best possible value by allowing all eligible sources to compete, potentially leading to cost savings.
Public Impact
Benefits public health agencies by providing essential tools for disease surveillance and pathogen control. Delivers software development, maintenance, sustainment, and training services. Geographic impact is national, supporting federal and potentially state/local public health initiatives. Workforce implications include the need for skilled IT professionals in software engineering, cybersecurity, and public health informatics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
- Long-term sustainment costs for complex software systems can escalate over time.
- Dependence on a single contractor for critical disease surveillance software requires robust oversight.
Positive Signals
- Full and open competition suggests a robust market response and potential for competitive pricing.
- Contract duration allows for sustained development and improvement of critical public health infrastructure.
- Focus on essential public health functions like disease surveillance aligns with agency mission.
Sector Analysis
The health information technology (Health IT) sector is a significant and growing area within federal spending, particularly for agencies like the Department of Health and Human Services (HHS). This contract falls under IT services, specifically focusing on software development and maintenance for critical public health systems. The market for such specialized software and services is competitive, with numerous firms offering expertise in health informatics, data management, and system integration. Comparable spending benchmarks would involve analyzing other HHS contracts for similar IT development and sustainment efforts, as well as contracts awarded by agencies like the CDC for disease surveillance platforms.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of significant subcontracting opportunities for small businesses within the provided data. The prime contractor, Peraton Inc., is a large business. Further analysis would be needed to determine if any small business subcontracting plans were mandated or voluntarily pursued by the prime contractor to ensure broader participation in the federal contracting ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Institutes of Health (NIH) contracting officers and program managers. The contract type (CPFF) necessitates close monitoring of costs and performance to ensure adherence to the fixed fee and prevent cost overruns. Transparency is facilitated through contract reporting mechanisms. While specific Inspector General (IG) jurisdiction is not detailed here, the HHS Office of Inspector General (OIG) would have oversight authority for potential fraud, waste, and abuse related to federal funds.
Related Government Programs
- Centers for Disease Control and Prevention (CDC) IT Modernization
- Public Health Emergency Preparedness (PHEP) Grants IT Support
- Biomedical Advanced Research and Development Authority (BARDA) IT Systems
- Food and Drug Administration (FDA) IT Infrastructure
Risk Flags
- Cost-Plus-Fixed-Fee contract type requires diligent oversight to manage costs.
- Long-term software sustainment can lead to technical debt and increased maintenance expenses.
- Dependence on a single contractor for critical infrastructure poses a potential risk.
Tags
healthcare, information-technology, software-development, disease-surveillance, pathogen-control, department-of-health-and-human-services, national-institutes-of-health, cost-plus-fixed-fee, full-and-open-competition, peraton-inc, virginia, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $24.6 million to PERATON INC.. IGF::OT::IGF FOR OTHER FUNCTIONS ELECTRONIC INTEGRATED DISEASE SURVEILLANCE SYSTEM (EIDSS)&PATHOGEN ASSET CONTROL SYSTEM (PACS) SOFTWARE DEVELOPMENT, SOFTWARE MAINTENANCE&SUSTAINMENT, REQUIREMENTS MANAGEMENT, AND TRAINING DEVELOPMENT.
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $24.6 million.
What is the period of performance?
Start: 2016-11-30. End: 2022-09-30.
What is the historical spending trend for the Electronic Integrated Disease Surveillance System (EIDSS) and Pathogen Asset Control System (PACS) software?
The provided data indicates a total award of $24,628,496.33 for this contract, spanning from November 30, 2016, to September 30, 2022, a period of approximately 6.8 years. This equates to an average annual spend of roughly $3.6 million. To establish a historical trend, one would need to examine prior contracts or task orders related to EIDSS and PACS, looking at their duration, value, and scope. Understanding if this represents an increase, decrease, or stable level of investment in these systems is crucial for assessing long-term budget planning and the evolving needs of disease surveillance.
How does the per-unit cost of this contract compare to similar disease surveillance software development contracts?
Determining a precise per-unit cost for comparison is challenging without a detailed breakdown of the services rendered (e.g., per developer hour, per module developed, per training session delivered). The contract is a Cost Plus Fixed Fee (CPFF), which reimburses costs plus a predetermined profit. Benchmarking would require identifying contracts with similar scopes of work, such as custom software development, ongoing maintenance, and training for public health systems. Comparing the average annual spend ($3.6 million) against the complexity and criticality of the EIDSS and PACS systems, and against similar federal IT service contracts, would be necessary. A higher annual spend might be justified if the systems are highly complex, mission-critical, or involve advanced features.
What is Peraton Inc.'s track record with the Department of Health and Human Services (HHS) and similar IT contracts?
Peraton Inc. has a significant track record of performing IT services for various U.S. federal agencies, including HHS. Their experience often spans complex system integration, cybersecurity, and software development. For HHS specifically, Peraton has likely been involved in projects supporting public health initiatives, research, and administrative functions. Assessing their performance on this specific EIDSS/PACS contract would involve reviewing performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past performance issues, and their overall success in meeting milestones and deliverables. Their broader experience in large-scale government IT projects suggests a capacity to handle such contracts, but specific performance metrics are key.
What are the key performance indicators (KPIs) used to measure the success of this contract?
While specific KPIs are not detailed in the provided summary, typical performance indicators for a contract of this nature (software development, maintenance, sustainment, training) would likely include: system uptime and availability, bug resolution times, successful deployment of new features/updates, adherence to project schedules, user satisfaction ratings, effectiveness of training programs, and cybersecurity compliance. The effectiveness of the EIDSS and PACS systems in supporting disease surveillance and pathogen control efforts would be the ultimate measure of success, often evaluated through metrics related to data accuracy, timeliness, and the ability to support public health decision-making.
What is the risk associated with the long-term sustainment of the EIDSS and PACS software under this contract?
The primary risks associated with long-term sustainment involve technological obsolescence, increasing maintenance costs, and potential security vulnerabilities. As software ages, it can become more difficult and expensive to maintain, especially if underlying technologies become outdated. Security risks increase if systems are not continuously updated to address emerging threats. Furthermore, dependence on a single vendor for sustainment can create lock-in and limit flexibility. Mitigating these risks requires proactive technology refresh strategies, robust cybersecurity practices, and potentially planning for future system replacements or major overhauls.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: NIHJT2010001
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
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: $28,822,262
Exercised Options: $24,628,496
Current Obligation: $24,628,496
Actual Outlays: $494,894
Subaward Activity
Number of Subawards: 150
Total Subaward Amount: $42,610,312
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HHSN316201200036W
IDV Type: GWAC
Timeline
Start Date: 2016-11-30
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2022-06-30
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