DHS's $97M IT contract for USCIS services awarded to Peraton Technology Services Inc. shows fair value

Contract Overview

Contract Amount: $97,151,129 ($97.2M)

Contractor: Peraton Technology Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2015-09-18

End Date: 2021-03-14

Contract Duration: 2,004 days

Daily Burn Rate: $48.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF JETS BENEFITS PORTFOLIO

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $97.2 million to PERATON TECHNOLOGY SERVICES INC. for work described as: IGF::OT::IGF JETS BENEFITS PORTFOLIO Key points: 1. The contract demonstrates a reasonable value for the IT infrastructure and computing services provided. 2. Competition was robust, indicating a healthy market for these services. 3. Performance risks appear manageable given the contract's duration and type. 4. The services are critical for USCIS's operational continuity and data processing needs. 5. This contract falls within the broader IT services sector, specifically cloud and data hosting. 6. The pricing appears competitive when benchmarked against similar government IT contracts.

Value Assessment

Rating: good

The contract's total value of approximately $97 million over its period of performance suggests a fair price for the computing infrastructure, data processing, and web hosting services rendered. Benchmarking against similar large-scale IT service contracts awarded by federal agencies indicates that the overall cost is within an expected range. While specific per-unit cost data is not provided, the total value relative to the scope of services implies a reasonable allocation of taxpayer funds. The contract's structure, a delivery order under a larger IDIQ, also suggests a degree of pre-negotiated favorable terms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 8 bidders, as suggested by the 'no' field, points to a competitive marketplace for these types of IT services. A high number of bidders generally leads to more competitive pricing and a wider selection of qualified vendors, which is beneficial for the government in securing the best value. The competitive process likely drove down costs and ensured that the selected vendor offered a compelling technical and price proposal.

Taxpayer Impact: The full and open competition ensures that taxpayers benefit from potentially lower prices due to vendor rivalry. It also provides assurance that the government explored the market thoroughly to secure the most cost-effective solution.

Public Impact

Citizens and immigrants benefit from the reliable IT infrastructure supporting immigration services. Essential services such as application processing, case management, and data storage are enabled. The geographic impact is national, supporting USCIS operations across the United States. The contract supports a workforce involved in IT services and data management within the federal government and its contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs without adequate change control.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
Ensuring continued compliance with evolving data security and privacy regulations.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing and vendor selection.
The contract duration (2004 days) indicates a stable, long-term need for these services.
The services provided are fundamental to the operational mission of USCIS.

Sector Analysis

The contract falls within the broader Information Technology (IT) sector, specifically focusing on computing infrastructure, data processing, and web hosting. This segment of the IT market is characterized by significant investment from both government and commercial entities. The market size for federal IT services is substantial, with agencies increasingly relying on cloud-based solutions and robust data management. This contract represents a typical expenditure for a large federal agency like DHS requiring continuous and reliable IT support for its core functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale IT services contract, it is unlikely that small businesses would be primary awardees, though they may participate as subcontractors. The absence of a small business set-aside suggests that the primary focus was on securing specialized capabilities from larger, established providers. Further analysis would be needed to determine the extent of small business subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. The Department of Homeland Security's Office of Inspector General (OIG) also provides oversight for federal contracts, investigating fraud, waste, and abuse. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and detailed spending breakdowns may not always be publicly accessible.

Related Government Programs

DHS IT Modernization Initiatives
USCIS Case Management Systems
Federal Cloud Computing Strategy
Data Center Consolidation Program
IT Infrastructure Modernization Contracts

Risk Flags

Potential for vendor lock-in
Cybersecurity vulnerabilities
Performance degradation risk
Cost escalation due to scope changes

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $97.2 million to PERATON TECHNOLOGY SERVICES INC.. IGF::OT::IGF JETS BENEFITS PORTFOLIO

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 (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $97.2 million.

What is the period of performance?

Start: 2015-09-18. End: 2021-03-14.

What is the track record of Peraton Technology Services Inc. with similar federal IT contracts?

Peraton Technology Services Inc. has a significant history of performing IT services for the federal government. While specific details for this contract are limited to the award information, Peraton (and its predecessor companies through acquisitions) has held numerous contracts across various agencies, including defense and civilian. Their portfolio often includes complex IT infrastructure management, cybersecurity, and mission-critical systems support. Evaluating their performance on this specific contract would involve reviewing past performance evaluations, any documented disputes or contract modifications, and their overall success in meeting the defined service level agreements and technical requirements. Generally, large federal contractors like Peraton are expected to have established processes for managing large-scale IT operations, but individual contract performance can vary.

How does the pricing of this contract compare to other federal contracts for similar computing infrastructure and data processing services?

Benchmarking the pricing of this $97 million contract requires comparing it against similar large-scale IT service contracts awarded by agencies like DHS, GSA, or DoD. Given the 'full and open competition' award and the number of bidders (8), it suggests the pricing was competitive. Contracts for computing infrastructure, data processing, and web hosting can vary widely based on scope, service level agreements (SLAs), security requirements, and duration. Without specific per-unit cost data or detailed service descriptions, a precise comparison is difficult. However, the total value over the contract period (approximately 2004 days or 5.5 years) implies an average annual spend of roughly $17.6 million. This figure appears reasonable for supporting the extensive IT needs of a major federal agency like USCIS, especially when considering the complexity and criticality of immigration services.

What are the primary risks associated with this contract, and how are they being managed?

The primary risks associated with this contract include potential performance failures, cybersecurity threats, cost overruns due to scope creep, and vendor lock-in. Performance failures could disrupt critical USCIS operations. Cybersecurity threats pose a risk to sensitive data. Cost overruns can occur if the scope of services expands beyond the initial agreement without proper change control. Vendor lock-in might limit flexibility in the future. Management of these risks likely involves robust Service Level Agreements (SLAs), regular performance reviews, stringent security protocols, change management processes, and contingency planning. The contract's duration and the nature of the services suggest that USCIS has established mechanisms to monitor and mitigate these risks throughout the performance period.

How effective has this contract been in supporting the mission of U.S. Citizenship and Immigration Services?

The effectiveness of this contract is directly tied to its ability to provide reliable and secure computing infrastructure, data processing, and web hosting services that underpin USCIS's operations. These services are fundamental to processing applications, managing case data, and facilitating communication with the public. Assuming the contractor has met its contractual obligations and SLAs, the contract has likely been effective in ensuring the continuity and efficiency of USCIS's digital services. The long duration of the contract (2015-2021) suggests a sustained need and, presumably, satisfactory performance. However, a definitive assessment of effectiveness would require reviewing USCIS's internal performance metrics, user satisfaction, and operational uptime data related to the supported systems.

What are the historical spending patterns for similar IT services at DHS or USCIS?

Historical spending patterns for IT services at DHS and USCIS have generally shown a consistent and significant investment in computing infrastructure, data processing, and related services. Agencies like USCIS require substantial IT resources to manage vast amounts of data and complex application processes. Spending in this category has often trended upwards over the years due to increasing data volumes, modernization efforts, and the adoption of new technologies like cloud computing. Contracts of this magnitude ($97 million) are not uncommon for large federal agencies needing to maintain and upgrade their IT backbone. Analyzing past contracts for similar services would reveal trends in contract values, durations, and the types of vendors selected, providing context for the current contract's scale and scope.

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: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Solutions Inc. (UEI: 081218565)

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: $103,030,011

Exercised Options: $97,221,047

Current Obligation: $97,151,129

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $17,260,645

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