VA's $14.3M contract for HSPD-12 system deployment managed by Peraton Enterprise Solutions

Contract Overview

Contract Amount: $14,299,796 ($14.3M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-09-28

End Date: 2010-10-01

Contract Duration: 1,099 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEPLOYMENT, OPERATIONS, MAINTENANCE FOR THE PMO TO DIRECT AND MANAGE THE DEPLOYMENT OF AN HSPD 12 COMPLIANT SYSTEM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.3 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: DEPLOYMENT, OPERATIONS, MAINTENANCE FOR THE PMO TO DIRECT AND MANAGE THE DEPLOYMENT OF AN HSPD 12 COMPLIANT SYSTEM. Key points: 1. Contract focused on deployment, operations, and maintenance for a critical identity management system. 2. Awarded under full and open competition, suggesting a broad market search. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. Duration of nearly three years indicates a substantial, ongoing need. 5. The contract's value is moderate within the IT services sector. 6. Performance was managed by the Department of Veterans Affairs (VA) itself.

Value Assessment

Rating: good

The contract value of approximately $14.3 million over three years for IT deployment and management services appears reasonable. Benchmarking against similar contracts for HSPD-12 system implementation and maintenance is challenging without more specific service details. However, the fixed-price nature of the award suggests an effort to ensure value for money by shifting some risk to the contractor. The number of bids received (6) indicates a healthy level of interest, which typically correlates with competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Six offers were received, indicating a competitive marketplace for these services. The level of competition suggests that the VA likely received a range of pricing and technical solutions, allowing for selection of the best value. This approach generally leads to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition process ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation from multiple vendors.

Public Impact

Veterans and VA employees benefit from a secure and compliant identity management system (HSPD-12). Ensures compliance with federal identity standards, enhancing security across VA systems. Supports the operational efficiency of the VA's IT infrastructure. The contract likely supported IT professionals and project managers involved in system deployment and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in deployment and maintenance contracts if not tightly managed.
Reliance on a single contractor for critical system operations could pose a risk if performance falters.

Positive Signals

Fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The contract's focus on deployment, operations, and maintenance indicates a comprehensive approach to system lifecycle management.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming and IT management. The market for identity management solutions and associated deployment/maintenance services is significant within the federal government, driven by mandates like HSPD-12. Comparable spending benchmarks would involve looking at other federal agencies' investments in similar identity solutions and IT project management support, which often range from millions to tens of millions of dollars depending on scale and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses like Peraton Enterprise Solutions were eligible to bid and likely won. There is no direct information on subcontracting plans for small businesses within this award. The lack of a small business set-aside means opportunities for small business participation may have been limited unless they were part of a larger team or subcontracted by the prime.

Oversight & Accountability

The contract was managed by the Department of Veterans Affairs (VA), which has its own internal oversight mechanisms for contract performance. The fixed-price nature of the contract provides a degree of financial oversight by setting a ceiling on costs. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. Specific Inspector General (IG) jurisdiction would typically fall under the VA's Office of Inspector General for any performance or financial concerns.

Related Government Programs

HSPD-12 Implementation
Federal Identity, Credential, and Access Management (ICAM)
IT Project Management Services
Custom Computer Programming Services
IT Operations and Maintenance

Risk Flags

Contract Duration
Fixed-Price Contract Type
Full and Open Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.3 million to PERATON ENTERPRISE SOLUTIONS LLC. DEPLOYMENT, OPERATIONS, MAINTENANCE FOR THE PMO TO DIRECT AND MANAGE THE DEPLOYMENT OF AN HSPD 12 COMPLIANT SYSTEM.

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $14.3 million.

What is the period of performance?

Start: 2007-09-28. End: 2010-10-01.

What was the specific nature of the HSPD-12 compliant system being deployed and managed?

The contract description indicates 'DEPLOYMENT, OPERATIONS, MAINTENANCE FOR THE PMO TO DIRECT AND MANAGE THE DEPLOYMENT OF AN HSPD 12 COMPLIANT SYSTEM.' HSPD-12 (Homeland Security Presidential Directive 12) mandates a common identification standard for Federal employees and contractors. This typically involves the creation, production, and use of a secure, interoperable identification card (like a PIV card) and associated systems for managing identities, credentials, and physical/logical access. The PMO (Program Management Office) likely oversaw the implementation and ongoing management of the infrastructure, processes, and policies required to meet these federal standards within the VA.

How does the $14.3 million contract value compare to other VA IT contracts of similar scope?

Without specific details on the scope of 'deployment, operations, and maintenance' for this particular HSPD-12 system, a direct comparison is difficult. However, the $14.3 million award over approximately three years ($4.77 million annually) is a moderate-sized IT services contract for a federal agency. Larger agencies like the VA often award multi-million dollar contracts for enterprise-wide IT systems. Contracts for comprehensive identity management solutions, including hardware, software, integration, and ongoing support, can easily reach tens of millions or even hundreds of millions of dollars depending on the user base and system complexity. This contract appears to be for a specific system or component within the VA's broader identity management strategy.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for a contract involving system deployment, operations, and maintenance, KPIs would focus on system availability, uptime, response times for support requests, security incident response times, successful credential issuance rates, and adherence to project timelines for deployment phases. SLAs would define the minimum acceptable performance levels for these metrics, often with associated remedies or penalties for non-compliance. These details would normally be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

What is the track record of Peraton Enterprise Solutions LLC in managing similar federal IT contracts?

Peraton Enterprise Solutions LLC, as part of the larger Peraton entity, has a significant track record in managing complex federal IT contracts, including those related to cybersecurity, mission systems, and enterprise IT services. While specific details for this particular $14.3M VA contract aren't provided, Peraton has historically been involved in large-scale government IT projects. Their experience often includes managing identity and access management solutions, secure communications, and IT infrastructure support for various federal agencies. Assessing their performance on this specific contract would require reviewing performance reports, past performance questionnaires, and any contract modifications or disputes.

Were there any significant challenges or risks identified during the performance of this contract?

The provided data does not explicitly list challenges or risks encountered during the performance of this contract. However, common risks associated with IT deployment and maintenance contracts include technical difficulties during integration, delays in hardware or software delivery, cybersecurity threats, changes in federal requirements (like updates to HSPD-12 or related mandates), and contractor performance issues. The fixed-price nature of the contract implies that the contractor bears the primary financial risk for cost overruns, but risks related to schedule delays or unmet performance standards could still arise and require active management by the VA.

How has VA spending on HSPD-12 related services evolved over time, and where does this contract fit?

VA spending on HSPD-12 related services has likely been consistent over the years as maintaining compliance with federal identity standards is an ongoing requirement. This $14.3 million contract, awarded in 2007 and ending in 2010, represents a specific investment during that period for the deployment and management of a particular HSPD-12 compliant system. It's part of a larger, continuous effort by the VA to secure its IT infrastructure and personnel identities. Analyzing historical spending would involve looking at cumulative contract obligations for HSPD-12, ICAM, and related IT services across different fiscal years to understand trends and the relative size of this particular award within the VA's overall IT budget.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA-101-07-RP-0376

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: HP, Inc. (UEI: 009122532)

Address: 13600 EDS DR, HERNDON, VA, 11

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

Financial Breakdown

Contract Ceiling: $23,256,220

Exercised Options: $21,935,062

Current Obligation: $14,299,796

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline