DHS ICE's $37.2M IT Operations Contract Awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $37,188,758 ($37.2M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Homeland Security

Start Date: 2007-12-03

End Date: 2013-09-30

Contract Duration: 2,128 days

Daily Burn Rate: $17.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ADMINISTRATIVE SYSTEMS BRANCH IT OPERATIONS AND MAINTENANCE AND ENHANCEMENTS TO THE APPLICATIONS.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.2 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: ADMINISTRATIVE SYSTEMS BRANCH IT OPERATIONS AND MAINTENANCE AND ENHANCEMENTS TO THE APPLICATIONS. Key points: 1. Contract focused on IT operations, maintenance, and application enhancements. 2. Awarded as a competitive delivery order, indicating multiple bids were considered. 3. Duration of over 2100 days suggests a long-term need for these services. 4. The contract type, Cost Plus Fixed Fee, allows for cost reimbursement plus a fixed profit. 5. Services fall under Computer Facilities Management, a critical IT support function. 6. Virginia is the listed state for this contract, potentially indicating operational location.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee structure can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for expenses plus a fixed fee. However, the competitive nature of the award suggests some level of price negotiation occurred. Further analysis would require understanding the scope of 'enhancements' and comparing the fixed fee percentage to industry standards for similar IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'Competitive Delivery Order,' which implies it was competed under a larger indefinite-delivery indefinite-quantity (IDIQ) contract or a similar framework that allowed for full and open competition. The presence of a competitive award suggests that multiple vendors had the opportunity to bid, leading to a more robust price discovery process. The specific number of bidders is not provided, but the competitive nature is a positive indicator for price efficiency.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering a more efficient market and potentially driving down costs through vendor rivalry. It ensures that the government is not locked into a single provider, allowing for better value for the public funds expended.

Public Impact

U.S. Immigration and Customs Enforcement (ICE) benefits from enhanced IT operations and application maintenance. Services ensure the smooth functioning of critical administrative and operational IT systems. The contract supports the technological infrastructure necessary for ICE's law enforcement and national security missions. Workforce implications are likely within the IT support and development sectors, potentially in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not meticulously monitored.
Lack of specific performance metrics makes it difficult to assess true value for money.
The long duration of the contract could lead to vendor lock-in if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Focus on essential IT operations and maintenance ensures continuity of critical government functions.
The contract addresses application enhancements, indicating a commitment to modernizing systems.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT operations and maintenance. The market for these services is vast and highly competitive, encompassing a wide range of providers from large system integrators to specialized IT support firms. Government spending in this area is substantial, driven by the need to maintain and upgrade complex legacy systems while adopting new technologies. Comparable spending benchmarks would typically involve analyzing IT support contracts across various federal agencies for similar scope and duration.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific delivery order was not provided in the data. As a competitive award, it's possible that larger prime contractors were involved, which may or may not have included specific provisions for small business participation. Further investigation into the prime contractor's subcontracting reports would be necessary to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices, with specific oversight from U.S. Immigration and Customs Enforcement. The Cost Plus Fixed Fee structure necessitates diligent financial oversight to ensure costs are reasonable and allocable. Transparency would be enhanced through regular reporting requirements and potential audits. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

DHS IT Modernization Programs
Federal Civilian IT Operations and Maintenance
ICE Application Development and Support
Government Facilities Management IT Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may present risks of vendor lock-in if not managed proactively.
Lack of specific performance metrics makes value-for-money assessment challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.2 million to PERATON ENTERPRISE SOLUTIONS LLC. ADMINISTRATIVE SYSTEMS BRANCH IT OPERATIONS AND MAINTENANCE AND ENHANCEMENTS TO THE APPLICATIONS.

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $37.2 million.

What is the period of performance?

Start: 2007-12-03. End: 2013-09-30.

What is the track record of Peraton Enterprise Solutions LLC with the Department of Homeland Security, particularly on similar IT operations and maintenance contracts?

Peraton Enterprise Solutions LLC has a significant history of contracting with various U.S. federal agencies, including the Department of Homeland Security (DHS). While specific details on their performance for this particular contract (awarded in 2007 and ending in 2013) are not readily available in this data snippet, Peraton is known for providing a wide range of IT and mission support services. Their broader contract portfolio often includes complex systems integration, cybersecurity, and IT infrastructure management. To assess their track record specifically for this DHS ICE contract, one would need to review past performance evaluations, contract award histories, and any publicly available reports from DHS or the Government Accountability Office (GAO) related to their work with ICE during that period. This would provide insights into their reliability, quality of service, and adherence to contract terms.

How does the total contract value of approximately $37.2 million compare to similar IT operations and maintenance contracts awarded by ICE or other DHS components during the 2007-2013 period?

The total contract value of approximately $37.2 million over its duration (roughly 6 years) translates to an average annual value of about $6.2 million. During the 2007-2013 period, federal agencies, including DHS and its components like ICE, were increasingly reliant on robust IT infrastructure for their operations. Contracts for IT operations and maintenance, especially those involving application enhancements, could range significantly in value depending on the scope, complexity, and number of systems supported. While $6.2 million annually might be considered moderate for large-scale enterprise IT support, it could represent a substantial investment for specific application suites or facility management services within ICE. Benchmarking would require comparing this to contracts for similar services (e.g., help desk, network management, application support) awarded by agencies of comparable size and mission during that timeframe. Without access to a comprehensive database of historical IT contract values for ICE, a precise comparison is difficult, but it falls within a plausible range for specialized IT support.

What were the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract, and how were they managed?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a predetermined fixed fee (profit). This structure can incentivize the contractor to incur higher costs, as their profit margin remains constant regardless of the total expenditure. For this contract, risks could include scope creep, inefficient resource allocation, or unexpected technical challenges that drive up costs. Effective management of these risks would have required rigorous oversight from ICE contracting officers and technical monitors. This would involve detailed review and approval of all claimed costs, regular performance reviews to ensure efficiency, clear definition and control of the contract scope, and potentially establishing cost ceilings or incentive clauses within the fee structure. Audits by the DHS Inspector General could also serve as a risk mitigation tool.

What specific IT applications or systems were subject to maintenance and enhancement under this contract?

The provided data indicates the contract covered 'ADMINISTRATIVE SYSTEMS BRANCH IT OPERATIONS AND MAINTENANCE AND ENHANCEMENTS TO THE APPLICATIONS.' This suggests the contract focused on the IT infrastructure and software applications supporting the administrative functions of U.S. Immigration and Customs Enforcement (ICE). These administrative systems could encompass a wide range of applications, such as human resources management systems, financial management systems, case management support tools, internal communication platforms, or data processing applications essential for ICE's operational support. The term 'enhancements' implies that the contractor was responsible for not only maintaining the existing functionality but also for implementing updates, upgrades, or new features to improve performance, security, or user capabilities. Without more specific documentation, the exact suite of applications remains undefined but is clearly tied to ICE's internal administrative operations.

How did the competitive delivery order process impact the final price and service levels compared to a sole-source or limited competition award?

A competitive delivery order process, as indicated for this contract, generally leads to a more favorable outcome for the government in terms of price and potentially service levels compared to sole-source or limited competition. By allowing multiple qualified vendors to bid, the government can leverage market competition to negotiate lower prices and ensure that the chosen vendor offers the best value proposition. This process encourages vendors to be more efficient and cost-conscious in their proposals. In contrast, sole-source awards, often used in emergencies or when only one vendor possesses unique capabilities, typically lack this price pressure and may result in higher costs. Limited competition, while better than sole-source, still restricts the pool of potential bidders, potentially leading to less aggressive pricing than a full and open competition. Therefore, the competitive nature of this award suggests that taxpayers likely benefited from a more efficient price discovery and a potentially higher standard of service due to vendor rivalry.

What is the significance of the NAICS code 541513 (Computer Facilities Management Services) in understanding the scope and market for this contract?

The North American Industry Classification System (NAICS) code 541513, 'Computer Facilities Management Services,' is crucial for defining the scope and understanding the market context of this contract. This code specifically categorizes businesses primarily engaged in providing on-site management and operation of clients' computer systems and/or data processing facilities. This includes services such as computer systems administration, network management, data center operations, and technical support for computer hardware and software. For this DHS ICE contract, it signifies that the core services required were focused on the day-to-day operational health, maintenance, and support of ICE's IT infrastructure and facilities. The market for NAICS 541513 is broad, encompassing numerous IT service providers ranging from small, specialized firms to large government contractors. This code helps in identifying comparable contracts, potential bidders, and understanding the general pricing structures and service expectations within this segment of the IT services industry.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCEOP-07-Q-00066

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)

Address: 13600 EDS DR, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $37,970,242

Exercised Options: $37,970,242

Current Obligation: $37,188,758

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00032

IDV Type: IDC

Timeline