DHS Awards $32M T&M Contract to Peraton Inc. for Computer Systems Design Services
Contract Overview
Contract Amount: $32,153,067 ($32.2M)
Contractor: Peraton Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2020-05-12
End Date: 2020-09-30
Contract Duration: 141 days
Daily Burn Rate: $228.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: THIS IS A T&M BRIDGE TO CONTINUE SERVICES UNTIL THE RECOMPETE IS AWARDED
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $32.2 million to PERATON INC. for work described as: THIS IS A T&M BRIDGE TO CONTINUE SERVICES UNTIL THE RECOMPETE IS AWARDED Key points: 1. Contract awarded to Peraton Inc. for $32.15 million. 2. Services are for Computer Systems Design, NAICS 541512. 3. Contract type is Time and Materials (T&M). 4. This is a bridge contract until a recompete is awarded. 5. Awarded by U.S. Customs and Border Protection (CBP).
Value Assessment
Rating: questionable
Time and Materials contracts can lead to cost overruns if not closely managed. The benchmark of $228,036 for this contract duration is difficult to assess without more detail on the scope of services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive process. However, the T&M nature and bridge contract status may limit price discovery and potentially lead to higher costs than a fixed-price contract.
Taxpayer Impact: Taxpayer funds are being used for services essential to CBP operations, but the T&M structure introduces a risk of inefficient spending if not properly monitored.
Public Impact
Ensures continuity of critical IT services for U.S. Customs and Border Protection. Supports national security and border enforcement operations. Potential for increased costs due to Time and Materials pricing structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- Bridge contract for continuity
- Lack of detailed scope for cost comparison
Positive Signals
- Full and open competition
- Essential service continuity
Sector Analysis
This contract falls under IT services, specifically computer systems design. The IT services sector is vast, and spending benchmarks vary significantly based on the complexity and criticality of the systems supported.
Small Business Impact
The awardee, Peraton Inc., is a large business. There is no indication that small businesses were involved in this specific award, which is common for large, complex IT service contracts.
Oversight & Accountability
Oversight is crucial for T&M contracts to ensure costs remain reasonable and services are delivered efficiently. The agency's contract management practices will determine the effectiveness of accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Potential for cost overruns due to T&M structure
- Limited visibility into specific services provided
- Bridge contract may not reflect long-term strategic needs
- Lack of small business participation noted
Tags
computer-systems-design-services, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $32.2 million to PERATON INC.. THIS IS A T&M BRIDGE TO CONTINUE SERVICES UNTIL THE RECOMPETE IS AWARDED
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 $32.2 million.
What is the period of performance?
Start: 2020-05-12. End: 2020-09-30.
What specific computer systems design services are being provided under this T&M contract, and how is their necessity being validated?
The contract details are limited, but it's described as a bridge to continue services until a recompete. Specific services would likely include system design, integration, maintenance, or support for CBP's IT infrastructure. Validation of necessity would typically involve agency program managers confirming that these services are critical for ongoing operations and cannot be deferred or handled internally.
What measures are in place to mitigate the cost risks associated with a Time and Materials contract, especially given its bridge nature?
Mitigation strategies often include establishing strong contract surveillance, setting clear labor categories and rates, implementing spending limits or ceiling prices, and requiring detailed reporting of hours and materials. For a bridge contract, the focus is on maintaining essential functions, so the agency must balance cost control with the urgent need for service continuity.
How will the effectiveness of these computer systems design services be measured to ensure value for taxpayer money, particularly before the recompete award?
Effectiveness is typically measured through performance metrics defined in the contract, such as system uptime, response times, or successful completion of design tasks. For a T&M bridge contract, the primary measure of effectiveness is the uninterrupted delivery of critical services. Post-award reviews and user feedback would also contribute to assessing value.
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
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
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: $32,163,067
Exercised Options: $32,153,067
Current Obligation: $32,153,067
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $3,467,846
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HSHQDC14DE2035
IDV Type: IDC
Timeline
Start Date: 2020-05-12
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 15:25:36
Last Modified: 2022-09-15
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