Treasury's IRS awards $52.9M contract for Contact Center Support to Peraton Inc
Contract Overview
Contract Amount: $52,879,547 ($52.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of the Treasury
Start Date: 2020-09-30
End Date: 2026-03-29
Contract Duration: 2,006 days
Daily Burn Rate: $26.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: IT
Official Description: CONTACT CENTER SUPPORT DIVISION (CCSD) SUPPORT COVID-19
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $52.9 million to PERATON INC. for work described as: CONTACT CENTER SUPPORT DIVISION (CCSD) SUPPORT COVID-19 Key points: 1. Contract value of $52.9M over its period of performance. 2. Awarded to Peraton Inc. under a full and open competition. 3. Potential risk associated with a long performance period (2026). 4. Spending falls within the Computer Systems Design Services sector.
Value Assessment
Rating: good
The contract value of $52.9M for Computer Systems Design Services appears reasonable given the 6-year performance period. Benchmarking against similar contracts for large-scale IT support services would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that should have driven favorable pricing. The use of a delivery order indicates a specific task order under a larger contract vehicle.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, likely resulting in a fair market price for the services rendered.
Public Impact
Ensures continued support for critical IRS contact center operations. Impacts taxpayers by facilitating communication and service access. Supports a significant government function through IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to price escalation.
- Reliance on a single vendor for critical support.
Positive Signals
- Awarded via full and open competition.
- Supports essential IRS functions.
Sector Analysis
This contract falls under Computer Systems Design Services, a broad category encompassing IT support and system development. Spending in this sector can vary widely based on project scope and duration.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting larger prime contractors are handling this requirement.
Oversight & Accountability
Oversight is managed by the Department of the Treasury's Internal Revenue Service. The long duration necessitates ongoing monitoring to ensure performance and cost-effectiveness.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Long contract duration (2020-2026).
- Potential for vendor lock-in.
- Reliance on a single vendor for critical functions.
Tags
computer-systems-design-services, department-of-the-treasury, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $52.9 million to PERATON INC.. CONTACT CENTER SUPPORT DIVISION (CCSD) SUPPORT COVID-19
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $52.9 million.
What is the period of performance?
Start: 2020-09-30. End: 2026-03-29.
What is the specific scope of 'Contact Center Support' and how does it align with IRS operational needs?
Contact Center Support likely encompasses a range of services including managing inbound/outbound calls, technical assistance for taxpayers, appointment scheduling, and potentially digital communication channels. This aligns with the IRS's need to provide taxpayer assistance, process information, and manage inquiries efficiently, especially during peak tax seasons or public health events like COVID-19.
What are the key performance indicators (KPIs) for this contract and how is Peraton Inc. being measured?
Key performance indicators would typically include call answer rates, average handling time, taxpayer satisfaction scores, and resolution rates for inquiries. The IRS would monitor these metrics to ensure Peraton Inc. is meeting service level agreements and providing effective support. Performance data is crucial for assessing value and identifying any potential issues early on.
How does the pricing structure (labor hours) compare to industry benchmarks for similar contact center support services?
Pricing based on labor hours allows for flexibility but requires careful management to control costs. Benchmarking against industry standards for IT support and contact center operations, considering factors like skill levels and geographic location, is essential. Without specific labor rates, a direct comparison is difficult, but the overall contract value suggests a significant volume of work.
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: 2032H5-19-Q-00075
Offers Received: 2
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
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: $66,242,507
Exercised Options: $60,903,476
Current Obligation: $52,879,547
Actual Outlays: $49,356,649
Subaward Activity
Number of Subawards: 51
Total Subaward Amount: $38,848,510
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2020-09-30
Current End Date: 2026-03-29
Potential End Date: 2026-03-29 14:40:34
Last Modified: 2025-09-18
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