HHS CDC Awards $72.9M Data Center Migration Contract to Peraton Enterprise Solutions
Contract Overview
Contract Amount: $72,887,900 ($72.9M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2020-09-30
End Date: 2026-06-30
Contract Duration: 2,099 days
Daily Burn Rate: $34.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OCIO DATA CENTER MANAGED SERVICE MIGRATION - MANAGED SERVICE PROVIDER
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $72.9 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: OCIO DATA CENTER MANAGED SERVICE MIGRATION - MANAGED SERVICE PROVIDER Key points: 1. Contract awarded for critical data center managed services migration. 2. Peraton Enterprise Solutions LLC is the prime contractor. 3. The contract spans nearly seven years, indicating a significant long-term investment. 4. The sector is IT services, specifically computer systems design. 5. The award was made under full and open competition.
Value Assessment
Rating: good
The contract value of $72.9M over approximately 7 years suggests a substantial investment in IT infrastructure. Benchmarking against similar large-scale data center migration projects is necessary for a precise value assessment, but the scale implies significant resource allocation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and allows for a wide range of qualified vendors to bid. This method is expected to yield fair market value.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer dollars are spent efficiently by leveraging market forces to achieve competitive pricing for essential IT services.
Public Impact
Ensures continuity of critical health data services for the CDC. Modernizes vital IT infrastructure for enhanced public health response. Supports the operational capabilities of a key federal health agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope expands beyond initial estimates.
- Vendor lock-in risk if transition to new services is complex.
- Dependence on a single vendor for critical infrastructure.
Positive Signals
- Awarded via full and open competition, suggesting competitive pricing.
- Long-term contract provides stability for critical IT services.
- Focus on data center migration indicates modernization efforts.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer systems design and managed services for data centers. Spending in this area is crucial for government modernization and operational efficiency, with benchmarks varying widely based on project scope and complexity.
Small Business Impact
The data indicates that this contract was not awarded to small businesses, as the 'ss' field is false. Further analysis would be needed to determine if small business subcontracting opportunities exist within this prime contract.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services (HHS) to the Centers for Disease Control and Prevention (CDC). Oversight would involve monitoring contract performance, adherence to service level agreements, and financial expenditures to ensure accountability and value for taxpayer money.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Long contract duration (nearly 7 years) increases risk of vendor lock-in.
- Potential for scope creep leading to cost overruns.
- Dependence on a single provider for critical IT infrastructure.
- Lack of explicit detail on performance metrics and cybersecurity measures.
Tags
computer-systems-design-services, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $72.9 million to PERATON ENTERPRISE SOLUTIONS LLC. OCIO DATA CENTER MANAGED SERVICE MIGRATION - MANAGED SERVICE PROVIDER
Who is the contractor on this award?
The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $72.9 million.
What is the period of performance?
Start: 2020-09-30. End: 2026-06-30.
What is the projected return on investment for this data center migration in terms of improved efficiency and cost savings?
The projected ROI for this data center migration is not explicitly detailed in the provided data. However, the migration to managed services is typically intended to improve operational efficiency, reduce infrastructure management overhead, and potentially lower long-term costs compared to maintaining on-premises data centers. A detailed cost-benefit analysis would be required to quantify these savings and assess the overall return on investment.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to measure the effectiveness of Peraton's managed services?
The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Effective oversight would require clearly defined SLAs related to uptime, response times, security, and data integrity. Regular performance reviews against these metrics are crucial to ensure the vendor is meeting contractual obligations and delivering the expected level of service for the CDC's critical data.
What is the risk mitigation strategy for potential cybersecurity threats during and after the data center migration?
The data does not detail specific risk mitigation strategies for cybersecurity threats. However, for a critical federal agency like the CDC, robust cybersecurity protocols are paramount. This would typically involve stringent security requirements in the contract, regular vulnerability assessments, incident response plans, and adherence to federal cybersecurity standards (e.g., NIST). The chosen managed service provider must demonstrate a strong security posture and compliance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 75D301-20-R-67993
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $72,887,900
Exercised Options: $72,887,900
Current Obligation: $72,887,900
Actual Outlays: $62,537,208
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $355,427
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200026W
IDV Type: GWAC
Timeline
Start Date: 2020-09-30
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-03-30
More Contracts from Peraton Enterprise Solutions LLC
- Federal Contract — $1.2B (Department of Health and Human Services)
- Other ADP & Telecommunications Services — $771.5M (Department of Defense)
- THE Agency Consolidated End-User Services (aces)contract Will Provide and Manage Nasa's Personal Computing Hardware, Agency Standard Software, Mobile IT Services, Peripherals and Accessories, Associated End-User Services, and Supporting Infrastructure — $769.2M (National Aeronautics and Space Administration)
- THE Above Solicitation Number IS a Continuation of Solicitation Numbers Hshqdc-07-Q-00050a and Hshqdc-07-Q-00050b. This Number IS for the Down Select Process and Shall Start With Base Notice Even Though ALL Amendments ARE Attached From Phase ONE — $749.5M (Department of Homeland Security)
- Other ADP & Telecommunications Services — $674.7M (Department of Defense)
View all Peraton Enterprise Solutions LLC federal contracts →
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →