DHS awards $56.9M for TARS O&M services to Peraton Inc. under a sole-source contract
Contract Overview
Contract Amount: $56,921,981 ($56.9M)
Contractor: Peraton Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2021-06-30
End Date: 2022-12-29
Contract Duration: 547 days
Daily Burn Rate: $104.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONTRACT AWARD FOR TARS O&M SERVICES
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $56.9 million to PERATON INC. for work described as: CONTRACT AWARD FOR TARS O&M SERVICES Key points: 1. Contract awarded for critical Transportation and Border Security (TARS) Operations and Maintenance (O&M) services. 2. Sole-source award raises questions about competition and potential for cost savings. 3. Contract duration of 547 days suggests a need for ongoing operational support. 4. Firm Fixed Price contract type provides cost certainty for the government. 5. Virginia-based Peraton Inc. is the sole awardee, indicating potential concentration risk. 6. The award falls under Engineering Services (NAICS 541330), suggesting a technical focus.
Value Assessment
Rating: questionable
Benchmarking the value of this $56.9 million contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to ascertain if the pricing reflects market rates or if a more advantageous price could have been secured through open competition. The firm fixed-price structure offers predictability, but the absence of competitive pressure may have led to a higher-than-optimal cost. Further analysis would require access to detailed cost breakdowns and comparisons with similar O&M contracts for large-scale transportation and security systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, or in situations where urgency or specific circumstances preclude a competitive process. The lack of competition means that price discovery through market forces was bypassed, potentially impacting the final cost to the government.
Taxpayer Impact: Sole-source awards can limit opportunities for taxpayers to benefit from competitive pricing, potentially leading to higher overall expenditures compared to a competed contract.
Public Impact
Benefits the Department of Homeland Security (DHS) by ensuring the continued operation of the TARS system. Services delivered are critical for maintaining border security and transportation oversight. Geographic impact is likely national, given the scope of border security operations. Workforce implications may include the need for specialized technical personnel to maintain the TARS system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings for taxpayers.
- Lack of competition may reduce incentives for the contractor to innovate or improve efficiency.
- Concentration of critical O&M services with a single provider could pose a risk if performance issues arise.
Positive Signals
- Firm Fixed Price contract provides budget certainty for the government.
- Award to an established contractor like Peraton Inc. may indicate a focus on reliability and proven performance.
- Contract duration suggests a commitment to sustained operational support for a vital system.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to the operation and maintenance of complex systems. The market for such services is often characterized by specialized expertise and long-term relationships. While specific market size data for TARS O&M is not readily available, similar large-scale government contracts for system maintenance and support can run into hundreds of millions or billions of dollars annually, reflecting the critical nature of these services.
Small Business Impact
The contract data indicates that small business participation was not a stated requirement or outcome for this award (sb: false). As a sole-source contract, there were likely no formal subcontracting plans mandated for small businesses. This means that opportunities for small businesses to participate in this specific contract are limited, and the primary focus was on securing the required services from the selected vendor.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency regarding the justification for the sole-source award and performance metrics would be key areas for accountability. Inspector General jurisdiction would apply to any investigations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Homeland Security Operations and Maintenance Contracts
- Transportation Security Administration (TSA) Technology Support
- U.S. Customs and Border Protection (CBP) System Support
- Federal IT and Engineering Services Procurement
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Contractor performance risk
Tags
engineering-services, department-of-homeland-security, u-s-customs-and-border-protection, definitive-contract, firm-fixed-price, sole-source, operations-and-maintenance, transportation-security, border-security, virginia, peraton-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $56.9 million to PERATON INC.. CONTRACT AWARD FOR TARS O&M SERVICES
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 $56.9 million.
What is the period of performance?
Start: 2021-06-30. End: 2022-12-29.
What is the specific nature of the TARS system and its criticality to DHS operations?
The Transportation and Border Security (TARS) system is a critical component of the Department of Homeland Security's (DHS) infrastructure, likely encompassing a range of technologies and processes designed to facilitate and secure the movement of people and goods across borders and within transportation networks. Its criticality stems from its role in enabling efficient border crossings, enhancing national security by identifying potential threats, and ensuring the smooth functioning of transportation systems. Disruptions or failures in TARS could lead to significant delays, security vulnerabilities, and operational inefficiencies for agencies like U.S. Customs and Border Protection (CBP) and potentially the Transportation Security Administration (TSA). The O&M services awarded to Peraton Inc. are therefore essential for maintaining the availability, reliability, and security of this vital national asset.
What is Peraton Inc.'s track record with similar large-scale government O&M contracts?
Peraton Inc. has a significant track record in providing a wide array of services to the U.S. government, including IT, mission support, and engineering services. They have been awarded numerous large contracts across various federal agencies, including defense, intelligence, and civilian departments. Their experience often involves managing complex systems, ensuring operational continuity, and providing technical expertise for critical infrastructure. While specific details on their performance for every contract are not publicly detailed, their continued success in securing substantial government awards suggests a generally positive performance history and capability to handle large-scale, mission-critical operations. Their portfolio includes work on secure communications, space systems, and cyber operations, indicating a broad technical base relevant to O&M services.
What are the potential risks associated with a sole-source award for critical O&M services?
Sole-source awards for critical Operations and Maintenance (O&M) services present several potential risks. Firstly, the absence of competition can lead to higher costs for the government, as the contractor may not be incentivized to offer the most competitive pricing. Secondly, it can reduce flexibility; if the contractor's performance declines or their capabilities become outdated, the government has limited options for switching providers without significant disruption and cost. Thirdly, there's a risk of vendor lock-in, where the government becomes overly reliant on a single provider, potentially hindering innovation and the adoption of new technologies. Finally, the justification for a sole-source award must be robust to ensure it is truly necessary and not a result of poor planning or an unwillingness to engage in competitive procurement processes.
How does the firm fixed-price contract type benefit the government in this scenario?
The Firm Fixed Price (FFP) contract type offers significant benefits to the government, particularly for O&M services where operational needs are relatively stable. Under an FFP contract, the contractor agrees to a set price for the defined scope of work, regardless of the actual costs incurred. This provides the government with cost certainty and predictability, making budgeting easier and protecting against cost overruns. It shifts the risk of cost increases to the contractor. For the TARS O&M services, this means the Department of Homeland Security knows the total expenditure for the contract period, assuming the scope of work remains unchanged. This structure encourages the contractor to manage their costs efficiently to maximize their profit margin.
What is the historical spending pattern for TARS O&M services, and how does this award compare?
Historical spending data specifically for TARS O&M services is not publicly detailed in the provided information. However, the award amount of $56.9 million for a duration of 547 days (approximately 1.5 years) suggests a significant annual expenditure. To compare, one would need to look at previous contract awards for TARS O&M or similar systems managed by DHS or CBP. If previous contracts were competed and awarded at lower total costs or with more favorable terms, this sole-source award might represent a deviation. Conversely, if previous O&M costs were higher or if the scope of services has expanded, this award could be in line with or even an improvement over historical spending. Without comparative data, it's difficult to definitively assess if this award represents an increase or decrease in spending trends.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $56,921,981
Exercised Options: $56,921,981
Current Obligation: $56,921,981
Actual Outlays: $20,859,017
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-06-30
Current End Date: 2022-12-29
Potential End Date: 2022-12-29 14:24:25
Last Modified: 2024-12-12
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