DHS Exercises Option Period 3 for Engineering Services, Adding $74.3M to Peraton Inc. Contract
Contract Overview
Contract Amount: $74,335,639 ($74.3M)
Contractor: Peraton Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2018-05-24
End Date: 2019-12-29
Contract Duration: 584 days
Daily Burn Rate: $127.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF BASE AWARD/P00025 IS TO ISSUE A NEW PIID NUMBER FOR HSBP101600042. A GLITCH IN THE CONTRACT WRITING SYSTEM REQUIRED THE CREATION OF A NEW CONTRACT NUMBER. OPTION PERIOD 3 IS EXERCISED.
Place of Performance
Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23606
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $74.3 million to PERATON INC. for work described as: THE PURPOSE OF BASE AWARD/P00025 IS TO ISSUE A NEW PIID NUMBER FOR HSBP101600042. A GLITCH IN THE CONTRACT WRITING SYSTEM REQUIRED THE CREATION OF A NEW CONTRACT NUMBER. OPTION PERIOD 3 IS EXERCISED. Key points: 1. Contract value increased by $74.3M with the exercise of Option Period 3. 2. Peraton Inc. is the incumbent contractor for these engineering services. 3. The contract was not competed due to a system glitch requiring a new PIID. 4. This award falls under the Engineering Services sector.
Value Assessment
Rating: fair
The contract value of $74.3M for 584 days of service appears reasonable for specialized engineering support. Benchmarking is difficult without more detailed scope of work, but the firm-fixed-price structure suggests a defined deliverable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed due to a system glitch necessitating a new PIID. This lack of competition limits price discovery and potentially leads to higher costs than a competitive process would yield.
Taxpayer Impact: Taxpayers may have paid more than necessary due to the absence of competitive bidding.
Public Impact
Continued provision of essential engineering services to U.S. Customs and Border Protection. Potential for increased costs to taxpayers due to sole-source award. Ensures continuity of operations for critical CBP functions reliant on these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- System glitch cited as reason for sole-source award
Positive Signals
- Contract continuity for essential services
- Firm-fixed-price contract structure
Sector Analysis
This contract for engineering services (NAICS 541330) supports U.S. Customs and Border Protection. Spending in this sector can vary widely based on project complexity and duration, but typically involves specialized technical expertise.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The justification for a sole-source award due to a system glitch warrants scrutiny. Oversight should ensure this is an isolated incident and not a pattern of circumventing competitive procurement processes.
Related Government Programs
- Engineering Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Sole-source award justification
- Potential for inflated pricing
- Lack of transparency in procurement
- System glitch as a procurement loophole
Tags
engineering-services, department-of-homeland-security, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $74.3 million to PERATON INC.. THE PURPOSE OF BASE AWARD/P00025 IS TO ISSUE A NEW PIID NUMBER FOR HSBP101600042. A GLITCH IN THE CONTRACT WRITING SYSTEM REQUIRED THE CREATION OF A NEW CONTRACT NUMBER. OPTION PERIOD 3 IS EXERCISED.
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $74.3 million.
What is the period of performance?
Start: 2018-05-24. End: 2019-12-29.
What is the specific nature of the engineering services provided, and how do they contribute to the mission of U.S. Customs and Border Protection?
The provided data lacks specifics on the engineering services. However, given the agency, these services likely involve technical support, system design, infrastructure maintenance, or specialized equipment engineering crucial for border security operations, data management, or surveillance systems.
What is the risk associated with exercising an option period due to a system glitch rather than a competitive process?
The primary risk is the potential for overpayment. Without competition, the government may not achieve the best possible price. Additionally, it raises concerns about procurement process integrity and could set a precedent for non-competitive awards if not properly managed and justified.
How effective is the firm-fixed-price contract structure in ensuring value for money in this sole-source scenario?
The firm-fixed-price structure is generally effective in controlling costs by shifting risk to the contractor. However, in a sole-source context, its effectiveness in ensuring overall value for money is diminished as the baseline price is not validated through competition. Value is still dependent on the initial negotiation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HSBP1015R0051
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 12975 WORLDGATE 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: $153,226,252
Exercised Options: $74,870,195
Current Obligation: $74,335,639
Actual Outlays: $257,652
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-05-24
Current End Date: 2019-12-29
Potential End Date: 2019-12-29 12:49:21
Last Modified: 2023-08-17
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