DHS awarded $22M for IT support services to Peraton Technology Services Inc. under a full and open competition

Contract Overview

Contract Amount: $21,958,608 ($22.0M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2015-07-25

End Date: 2020-07-24

Contract Duration: 1,826 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CT::IGF FPS HQ IT SUPPORT SERVICES ORDER AGAINST EAGLE II

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.0 million to PERATON TECHNOLOGY SERVICES INC. for work described as: IGF::CT::IGF FPS HQ IT SUPPORT SERVICES ORDER AGAINST EAGLE II Key points: 1. The contract value of $21.96 million over five years suggests a significant investment in IT infrastructure support. 2. The use of a Delivery Order under an existing IDIQ contract (EAGLE II) indicates a streamlined procurement process for established needs. 3. The 'Labor Hours' contract type can introduce cost uncertainty if not carefully managed, but allows flexibility. 4. The contract was awarded to Peraton Technology Services Inc., a large business, with no specific small business set-aside noted. 5. The services fall under 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services,' a critical area for agency operations. 6. The contract duration of 1826 days (approximately 5 years) provides a stable period for service delivery and planning.

Value Assessment

Rating: fair

The contract value of $21.96 million over five years averages approximately $4.39 million per year. Benchmarking this against similar IT support contracts is challenging without more specific service details. However, the 'Labor Hours' pricing structure requires careful monitoring to ensure value for money, as costs can escalate if not managed efficiently. The absence of a fixed price component or clear performance metrics in the provided data makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The data shows 14 offers were received, suggesting a competitive environment. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive award process with 14 offers is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source or limited competition scenario.

Public Impact

The Department of Homeland Security (DHS) benefits from enhanced IT support services, ensuring the continuity and efficiency of its operations. The contract delivers essential computing infrastructure, data processing, and web hosting services critical for agency functions. Services are primarily delivered within the District of Columbia, impacting the federal IT landscape in the nation's capital. The contract supports the IT workforce through the provision of labor hours, potentially involving skilled technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to 'Labor Hours' pricing if not rigorously managed.
Limited insight into specific performance metrics and their impact on service quality.
Dependence on a single large contractor for critical IT infrastructure support.

Positive Signals

Awarded under full and open competition with a significant number of bidders (14), indicating a robust selection process.
The contract is a delivery order against an existing IDIQ (EAGLE II), suggesting a pre-vetted and capable contractor.
Long-term contract duration provides stability for service delivery and planning.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. The market for these services is vast and highly competitive, with numerous large and small businesses offering solutions. Government spending in this area is substantial, driven by the increasing reliance on digital infrastructure for agency operations. The EAGLE II IDIQ contract vehicle itself represents a significant government-wide procurement strategy for IT services.

Small Business Impact

The contract was not awarded as a small business set-aside, and the primary awardee is Peraton Technology Services Inc., a large business. This suggests that subcontracting opportunities for small businesses may exist, but they are not mandated by the primary contract structure. The impact on the small business ecosystem would depend on Peraton's subcontracting plans and the specific requirements of the EAGLE II IDIQ program.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security's Office of Procurement Operations. Accountability measures are usually embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

EAGLE II IDIQ Contract
DHS IT Support Services
Federal IT Infrastructure Procurement
Cloud Computing Services Contracts
Data Center Operations Contracts

Risk Flags

Labor Hours pricing requires diligent oversight to control costs.
Scope creep potential in IT support contracts.
Dependence on contractor performance for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.0 million to PERATON TECHNOLOGY SERVICES INC.. IGF::CT::IGF FPS HQ IT SUPPORT SERVICES ORDER AGAINST EAGLE II

Who is the contractor on this award?

The obligated recipient is PERATON TECHNOLOGY SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2015-07-25. End: 2020-07-24.

What is the historical spending pattern for IT support services by the Department of Homeland Security?

The Department of Homeland Security (DHS) is a significant spender on IT services, including support, infrastructure, and software. Historical data indicates consistent and substantial investment in these areas to maintain and modernize its complex technological infrastructure. Annual spending often runs into billions of dollars across various contracts and task orders. The EAGLE II IDIQ contract vehicle, under which this order was placed, was designed to streamline IT procurement for DHS and other agencies, reflecting a strategic approach to managing IT expenditures. Analyzing past spending trends within DHS for similar services can provide context for the $21.96 million awarded here, helping to determine if it aligns with historical investment levels or represents a shift in priorities or scale.

How does Peraton Technology Services Inc.'s performance on similar contracts compare to this award?

Assessing Peraton Technology Services Inc.'s performance on similar contracts requires access to detailed performance evaluations and past performance data, which is not publicly available in this dataset. However, Peraton is a large government contractor with a broad portfolio of IT and defense-related services. Their track record would typically be reviewed by the agency during the procurement process. For this specific contract, the 'Delivery Order' nature suggests it was placed against an existing IDIQ (EAGLE II), implying that Peraton was already an established awardee on that vehicle, likely having undergone some level of pre-qualification. A comprehensive comparison would involve examining past performance metrics, any documented issues or commendations, and the overall success rate of their previous government IT support contracts.

What are the primary risks associated with a 'Labor Hours' contract type for IT support?

The primary risk associated with a 'Labor Hours' contract type for IT support is the potential for cost overruns and a lack of definitive cost certainty. Unlike fixed-price contracts, 'Labor Hours' contracts reimburse the contractor for the direct labor hours expended at specified fixed hourly rates. If the scope of work is not well-defined, or if project management is weak, the contractor may expend more hours than anticipated, leading to higher overall costs for the government. This necessitates robust oversight, detailed timesheet tracking, and vigilant monitoring by the government to ensure efficiency and prevent unnecessary labor expenditure. It can also make budgeting more challenging compared to fixed-price arrangements.

What is the typical market rate for IT support services comparable to those provided under this contract?

Determining the precise 'typical market rate' for IT support services comparable to this contract is complex without specific details on the labor categories, skill levels, and geographic locations involved. However, the IT services market, particularly for computing infrastructure, data processing, and web hosting, is generally competitive. Rates can vary significantly based on the complexity of the tasks, the required certifications, and the experience level of the personnel. Government contracts often aim to secure rates that are competitive within the market, but may also include specific negotiated rates under IDIQ vehicles like EAGLE II. Benchmarking would involve comparing the hourly rates for specific labor categories against industry surveys, other government contracts for similar services, and commercial IT service provider pricing.

How does the number of bidders (14) impact the value proposition for taxpayers in this specific contract?

A high number of bidders, such as the 14 offers received for this contract, generally signifies a robust and competitive marketplace for the services sought. For taxpayers, this increased competition typically translates into better value. A larger pool of potential offerors encourages more aggressive pricing strategies as companies vie for the contract. It also increases the likelihood that the government will receive technically sound proposals at a more favorable price point. The competitive pressure can drive innovation and efficiency among bidders, further benefiting the government. Therefore, the 14 bidders suggest a strong foundation for achieving cost-effectiveness and maximizing the return on taxpayer investment for these IT support services.

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

Offers Received: 14

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

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

Address: 15050 CONFERENCE CTR DR, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $36,615,566

Exercised Options: $21,958,608

Current Obligation: $21,958,608

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,480,792

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC13DE2092

IDV Type: IDC

Timeline