DHS awards $17.5M for IT maintenance, raising questions on value and competition
Contract Overview
Contract Amount: $17,478,459 ($17.5M)
Contractor: Peraton Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2020-12-30
End Date: 2026-01-29
Contract Duration: 1,856 days
Daily Burn Rate: $9.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SAROPS TASK ORDER 01 - PREVENTATIVE AND CORRECTIVE MAINTENANCE
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $17.5 million to PERATON INC. for work described as: SAROPS TASK ORDER 01 - PREVENTATIVE AND CORRECTIVE MAINTENANCE Key points: 1. Contract value appears reasonable given the duration and scope of IT maintenance services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risks include contractor performance over the extended period and evolving IT needs. 4. This contract supports critical IT infrastructure for the U.S. Coast Guard. 5. The services fall within the broader IT services sector, with numerous comparable contracts. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.
Value Assessment
Rating: fair
The contract's total value of $17.5 million over approximately six years suggests an average annual spend of around $2.9 million. This figure needs to be benchmarked against similar IT maintenance contracts for federal agencies of comparable size and complexity. Without specific data on the scope of services (e.g., number of users supported, systems maintained), a precise value-for-money assessment is challenging. However, the firm-fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust price discovery process as multiple vendors compete. The number of bidders is not specified, but the competitive nature suggests the government likely received multiple proposals, which should have driven down costs compared to a sole-source award.
Taxpayer Impact: A competitive award process generally benefits taxpayers by ensuring that the government obtains services at a fair market price, avoiding potential overpayment associated with less competitive solicitations.
Public Impact
The U.S. Coast Guard benefits from the continuity of essential IT systems and infrastructure. Services include preventative and corrective maintenance for computer systems, ensuring operational readiness. The contract's geographic impact is primarily within the operational areas of the U.S. Coast Guard. The contract supports the IT workforce responsible for maintaining these critical systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if maintenance needs expand beyond initial estimates.
- Risk of vendor lock-in if transition to a new vendor is complex or costly.
- Dependence on contractor expertise for critical IT system upkeep.
- Ensuring consistent service quality over the multi-year contract duration.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Full and open competition suggests a competitive market was leveraged.
- Long-term contract allows for sustained support and relationship building.
- Awarded to a known entity (PERATON INC.) with potential for established performance history.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. Spending in this area is driven by the need for agencies to maintain, upgrade, and secure their complex IT infrastructures. Comparable contracts often involve system integration, maintenance, and support for various hardware and software platforms. The total federal spending on IT services is in the tens of billions annually, making this contract a relatively small portion of the overall market.
Small Business Impact
The contract was not awarded as a small business set-aside, and the data indicates no explicit subcontracting goals for small businesses were mandated. This means opportunities for small businesses to participate in this specific contract may be limited to subcontracting roles, if any, offered by the prime contractor. The absence of set-aside provisions could mean that larger, established firms were better positioned to compete for this award.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officer and program managers. Performance reviews, regular reporting from the contractor, and adherence to the firm-fixed-price terms are key accountability measures. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. The Inspector General for the Department of Homeland Security may conduct audits or investigations if performance issues or potential fraud are identified.
Related Government Programs
- IT Infrastructure Modernization Programs
- Federal Civilian IT Services
- Department of Homeland Security IT Support Contracts
- U.S. Coast Guard Operations Support
- Computer Systems Design and Related Services
Risk Flags
- Long contract duration may outpace technological advancements.
- Potential for performance degradation over extended period.
- Lack of specified small business subcontracting goals.
Tags
it-services, maintenance, computer-systems-design, department-of-homeland-security, u.s.-coast-guard, firm-fixed-price, full-and-open-competition, delivery-order, virginia, it-operations
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $17.5 million to PERATON INC.. SAROPS TASK ORDER 01 - PREVENTATIVE AND CORRECTIVE MAINTENANCE
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. Coast Guard).
What is the total obligated amount?
The obligated amount is $17.5 million.
What is the period of performance?
Start: 2020-12-30. End: 2026-01-29.
What is the specific scope of 'preventative and corrective maintenance' covered under this contract?
The provided data does not detail the specific scope of 'preventative and corrective maintenance.' Typically, this would encompass routine checks, updates, patching, and troubleshooting for computer hardware, software, and network infrastructure. Preventative maintenance aims to avert issues before they arise, while corrective maintenance addresses problems that have already occurred. For this contract, the exact systems, number of users, and service level agreements (SLAs) would define the scope. A deeper dive into the contract's Statement of Work (SOW) would be necessary to understand the granular details of the services provided, including response times, repair procedures, and system coverage.
How does the $17.5 million contract value compare to similar IT maintenance contracts awarded by the U.S. Coast Guard or DHS?
Benchmarking the $17.5 million contract value requires comparing it to similar IT maintenance contracts awarded by the U.S. Coast Guard or the broader Department of Homeland Security (DHS) over the same period (2020-2026). Factors such as the number of systems supported, user base size, complexity of the IT environment, and specific services included (e.g., hardware, software, network, cybersecurity) are crucial for a fair comparison. Without access to a database of comparable contracts with detailed scope information, it's difficult to definitively state if this contract represents excellent, fair, or questionable value. However, the duration of nearly six years suggests a substantial scope, making the average annual spend of approximately $2.9 million a reasonable starting point for comparison.
What is the track record of PERATON INC. in performing similar federal IT maintenance contracts?
PERATON INC. has a history of performing various IT and technology services for government clients. To assess their track record specifically for preventative and corrective maintenance of computer systems, one would need to examine their past performance on similar federal contracts. This includes reviewing past performance evaluations, contract completion history, and any documented instances of outstanding performance or deficiencies. Information on their experience with the U.S. Coast Guard or DHS specifically would be particularly relevant. A thorough review of their contract history, including contract values, durations, and the types of services rendered, is essential to gauge their reliability and capability in fulfilling this current award.
What are the potential risks associated with a six-year contract for IT maintenance services?
A six-year contract for IT maintenance presents several potential risks. Firstly, technology evolves rapidly; systems and software that are current at the start of the contract may become outdated by the end, potentially requiring costly upgrades or modifications not fully anticipated in the original scope. Secondly, there's a risk of vendor complacency or declining performance over a long duration, necessitating robust oversight and performance management. Thirdly, the fixed-price nature, while offering cost certainty, could become disadvantageous if unforeseen technical challenges or increased labor costs arise. Finally, transitioning maintenance services to a new vendor after six years can be complex and disruptive, potentially leading to service gaps if not managed meticulously.
How does the 'full and open competition' award mechanism impact the overall cost-effectiveness for taxpayers?
The 'full and open competition' award mechanism is generally designed to enhance cost-effectiveness for taxpayers. By allowing any responsible source to submit a bid, it fosters a competitive environment where multiple vendors vie for the contract. This competition typically drives down prices as bidders seek to offer the most attractive terms. Furthermore, it increases the likelihood that the government secures services at or near fair market value, reducing the risk of overpayment often associated with sole-source or limited-competition awards. While the specific number of bidders isn't provided, the process itself is a strong indicator that taxpayer dollars were likely used efficiently in securing these IT maintenance services.
What are the implications of this contract not being a small business set-aside for the small business ecosystem?
The implications of this contract not being a small business set-aside are significant for the small business ecosystem. It means that the primary contract was not specifically reserved for small businesses, potentially limiting direct opportunities for them to secure this large award. While small businesses might still participate as subcontractors to the prime contractor (PERATON INC.), the extent of this subcontracting is not specified. Agencies are often encouraged to meet small business utilization goals through set-asides or by ensuring prime contractors subcontract a certain percentage to small businesses. The absence of a set-aside here suggests that larger businesses were the primary focus of the competition, potentially reducing the direct infusion of contract funds into the small business sector for this specific procurement.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $18,782,859
Exercised Options: $18,782,859
Current Obligation: $17,478,459
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $11,650,353
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 70Z04421D21000200
IDV Type: IDC
Timeline
Start Date: 2020-12-30
Current End Date: 2026-01-29
Potential End Date: 2026-06-29 00:00:00
Last Modified: 2025-12-03
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