NCEH WEB SERVICES contract awarded to Peraton Inc. for $4.6M over 5 years

Contract Overview

Contract Amount: $4,601,958 ($4.6M)

Contractor: Peraton Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-02-16

End Date: 2026-07-31

Contract Duration: 1,991 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: NCEH WEB SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.6 million to PERATON INC. for work described as: NCEH WEB SERVICES Key points: 1. Value for money appears reasonable given the 5-year duration and scope of IT services. 2. Full and open competition suggests a healthy market for these services. 3. The contract's duration and scope present moderate performance risks. 4. This contract supports critical public health web services for the CDC. 5. Positioned within the IT services sector, specifically computer related services.

Value Assessment

Rating: good

The contract's total value of $4.6 million over approximately five years suggests a moderate annual spend. Benchmarking against similar IT service contracts for web development and maintenance would provide a clearer picture of value. However, the pricing structure (labor hours) allows for flexibility, which can be cost-effective if managed efficiently. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging, but the competitive nature of the award implies a degree of price consciousness.

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. The presence of 3 bidders suggests a competitive environment, which typically drives down prices and encourages innovation. This level of competition is generally favorable for the government, as it allows for a wider selection of qualified contractors and better price discovery.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to result in a more cost-effective solution for essential web services. The multiple bids likely ensured that the selected contractor, Peraton Inc., offered a competitive price and a strong technical approach.

Public Impact

The public benefits from enhanced access to critical public health information and services delivered through the CDC's web platforms. Essential web services, including website maintenance, development, and support, are delivered. The geographic impact is national, serving all individuals and organizations accessing CDC resources online. The contract supports IT professionals within Peraton Inc., contributing to the tech workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer-related services. The market for such services is vast and highly competitive, with numerous companies offering web development, maintenance, and support. Government spending in this area is substantial, driven by the need for secure, reliable, and user-friendly digital platforms for disseminating information and delivering services. Comparable spending benchmarks would involve analyzing other federal contracts for similar IT support services awarded to companies of comparable size and scope.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Peraton Inc., may engage small businesses as subcontractors, depending on their own subcontracting plans and the availability of specialized services. The overall impact on the small business ecosystem is neutral in terms of direct set-aside benefits.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Disease Control and Prevention (CDC) contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving deliverables. Transparency is facilitated through contract award databases like FPDS. While specific Inspector General (IG) jurisdiction isn't detailed, the HHS IG typically has oversight over contracts within the department, including the CDC, to investigate fraud, waste, and abuse.

Related Government Programs

Risk Flags

Tags

it-services, web-services, health-it, centers-for-disease-control-and-prevention, department-of-health-and-human-services, full-and-open-competition, delivery-order, labor-hours, peraton-inc, georgia, computer-related-services

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.6 million to PERATON INC.. NCEH WEB SERVICES

Who is the contractor on this award?

The obligated recipient is PERATON INC..

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 $4.6 million.

What is the period of performance?

Start: 2021-02-16. End: 2026-07-31.

What is Peraton Inc.'s track record with the federal government, particularly in delivering IT services for health agencies?

Peraton Inc. has a significant track record as a federal contractor, often involved in complex IT and mission support services. While specific details on their past performance with the CDC for web services require deeper investigation into contract histories, Peraton has historically secured large contracts across various agencies, including defense and intelligence. Their experience often spans areas like cybersecurity, cloud migration, and enterprise IT. Evaluating their performance on similar health-related IT contracts, including any past issues or commendations, would be crucial for a comprehensive risk assessment. Publicly available contract databases and past performance reviews can offer insights into their reliability and expertise in delivering services comparable to those required for NCEH web services.

How does the $4.6 million contract value compare to similar web service contracts awarded by the CDC or other health agencies?

The $4.6 million contract value for NCEH web services over approximately five years translates to an average annual spend of roughly $920,000. To benchmark this, one would need to compare it against other federal contracts for similar scope and duration, specifically those involving website development, maintenance, and support for public health organizations. For instance, contracts for managing large-scale public-facing websites, content management systems, and associated IT infrastructure for agencies like the NIH or FDA could serve as comparators. Factors such as the complexity of the web services, the number of users supported, and the specific technical requirements (e.g., data security, integration needs) would influence the comparability. Without direct comparisons, it's difficult to definitively state if this represents excellent or questionable value, but the competitive award suggests it's within a reasonable market range.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract include potential performance issues from the contractor (Peraton Inc.), technological obsolescence of the web services over the 5-year period, and cybersecurity threats. Performance risks are typically mitigated through robust contract oversight, clearly defined performance standards (Service Level Agreements - SLAs), and regular performance reviews by the CDC. Technological obsolescence can be addressed by incorporating flexibility in the contract for updates and upgrades, and by ensuring the chosen architecture is adaptable. Cybersecurity risks are managed through stringent security requirements, compliance with federal data protection regulations (e.g., FISMA), and regular security audits. The contract's full and open competition also mitigates the risk of relying on a single, potentially underperforming vendor.

How effective has the CDC been in managing its web service contracts historically, and what does this imply for NCEH?

The effectiveness of the CDC in managing its web service contracts historically can be assessed by examining past contract performance data, any reported issues or successes, and the overall stability and functionality of its web presence. Agencies like the CDC, dealing with critical public health information, often have complex IT needs. Their success in managing such contracts depends on factors like adequate funding, skilled contracting officers, clear requirements definition, and proactive vendor management. While specific historical data for NCEH web services isn't provided, the CDC generally operates within a framework designed for effective contract management. Any past challenges in managing IT contracts could indicate a need for heightened vigilance and robust oversight mechanisms for this current NCEH contract to ensure optimal outcomes and taxpayer value.

What are the historical spending patterns for NCEH web services or similar IT support contracts within the CDC?

Analyzing historical spending patterns for NCEH web services or comparable IT support contracts within the CDC is crucial for understanding trends, identifying potential cost efficiencies, and assessing the long-term investment in these services. This would involve examining expenditure data over several fiscal years to see if spending has been consistent, increasing, or decreasing. Significant year-over-year increases might warrant investigation into the drivers, such as expanded scope or inflation. Conversely, a consistent or decreasing spend could indicate cost control or efficiency gains. Benchmarking this contract's total value ($4.6M over ~5 years) against historical averages for similar CDC IT services would provide context on whether this award represents a typical investment or a deviation, potentially signaling changes in service needs or market pricing.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related 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: 75D301-21-Q-72726

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 12975 WORLDGATE DR, 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: $4,601,958

Exercised Options: $4,601,958

Current Obligation: $4,601,958

Actual Outlays: $3,319,934

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,046,270

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0165Y

IDV Type: FSS

Timeline

Start Date: 2021-02-16

Current End Date: 2026-07-31

Potential End Date: 2026-07-31 00:00:00

Last Modified: 2026-01-30

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