HHS awards $36.2M for CDC computer systems design, with Peraton Inc. as contractor
Contract Overview
Contract Amount: $36,211,256 ($36.2M)
Contractor: Peraton Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2021-08-12
End Date: 2026-07-29
Contract Duration: 1,812 days
Daily Burn Rate: $20.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: IT
Official Description: DATA USE CLUSTER
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $36.2 million to PERATON INC. for work described as: DATA USE CLUSTER Key points: 1. Contract value of $36.2M over its period of performance suggests a significant investment in IT infrastructure. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The duration of 1812 days (approximately 5 years) points to a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541512 signifies a focus on computer systems design. 5. The contract type is 'Delivery Order', suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The award was made to Peraton Inc., a known entity in the government contracting space. 7. The 'GA' (Georgia) and 'ST' (State) codes indicate the primary performance location or state of the contractor.
Value Assessment
Rating: fair
Benchmarking the value of this $36.2M contract requires more granular data on the specific services provided under NAICS 541512. Without details on the scope of 'Computer Systems Design Services', it's difficult to compare directly to similar contracts. The contract's duration of nearly five years suggests a substantial, ongoing need, but the overall value-for-money assessment is pending further information on deliverables and performance metrics. The absence of a specific base or ceiling dollar amount for the delivery order makes a precise pricing assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition', which theoretically allows all responsible sources to submit a bid. This typically leads to a more robust price discovery process and potentially better pricing for the government. However, the number of bids received is not specified, which is crucial for understanding the actual level of competition. A high number of bidders would strengthen the competitive aspect, while a low number might indicate market concentration or specific technical requirements that limited participation.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers, fostering a competitive environment that can drive down costs.
Public Impact
The Centers for Disease Control and Prevention (CDC) benefits from enhanced computer systems design services, crucial for its public health mission. These services likely support the development, implementation, and maintenance of IT systems used for data analysis, disease surveillance, and public health initiatives. The geographic impact is primarily associated with the performance location in Georgia, but the IT systems supported likely have a national or global reach for public health data. Workforce implications may include IT professionals and system designers employed by the contractor, Peraton Inc., and potentially within the CDC to manage and integrate these systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
- The 'Delivery Order' type suggests this might be a task order under a larger contract, making it harder to evaluate the overall contract's value and competition in isolation.
- Limited information on the specific 'Computer Systems Design Services' could obscure potential risks related to scope creep or unmet technical requirements.
Positive Signals
- Awarded under 'full and open competition', indicating a broad search for qualified contractors.
- The contract's substantial duration suggests a stable, long-term requirement, potentially leading to efficiencies through contractor familiarity.
- Peraton Inc. is an established government contractor, implying a degree of experience and capability in delivering IT services.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with significant spending allocated to system design, development, integration, and maintenance. Contracts like this are essential for agencies like the CDC to manage complex data and operational needs. Comparable spending benchmarks would typically be found within IT services categories, looking at the average cost of system design projects of similar complexity and duration.
Small Business Impact
The 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 small business set-aside. The primary contractor, Peraton Inc., is a large business. Analysis of subcontracting opportunities would require further investigation into the prime contract's terms and conditions regarding small business participation goals, which are not detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program officials within the Centers for Disease Control and Prevention (CDC) and the Department of Health and Human Services (HHS). Accountability measures are usually tied to the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases like FPDS-NG, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.
Related Government Programs
- HHS IT Modernization Initiatives
- CDC Data Modernization Efforts
- Federal Civilian IT Services
- Computer Systems Design and Related Services
- Health Information Technology Contracts
Risk Flags
- Potential for scope creep due to the nature of system design services.
- Dependence on contractor performance for critical IT infrastructure.
- Risk of integration issues with existing or future systems.
- Need for robust oversight to ensure value for taxpayer money over the contract's duration.
Tags
it-services, computer-systems-design, hhs, cdc, peraton-inc, full-and-open-competition, delivery-order, georgia, large-contract, multi-year
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $36.2 million to PERATON INC.. DATA USE CLUSTER
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 $36.2 million.
What is the period of performance?
Start: 2021-08-12. End: 2026-07-29.
What is the specific scope of 'Computer Systems Design Services' covered under this contract?
The provided data identifies the contract under NAICS code 541512, 'Computer Systems Design Services'. This broad category typically encompasses designing, developing, and integrating hardware and software systems. Services can include analyzing user needs, designing system architecture, developing software, implementing hardware, and providing IT consulting. However, the specific deliverables, technologies, and objectives for this particular CDC contract are not detailed in the summary data. Further review of the contract's Performance Work Statement (PWS) or Statement of Work (SOW) would be necessary to understand the precise scope, such as whether it involves cloud migration, data analytics platform development, cybersecurity enhancements, or modernization of legacy systems. Without this detail, it's challenging to fully assess the contract's value and risks.
How does the $36.2 million award compare to typical spending for similar CDC IT system design contracts?
Comparing the $36.2 million award requires context on the typical scale and duration of CDC IT system design contracts. Given the contract's nearly five-year duration (1812 days), the annual average spending is approximately $7.24 million ($36.2M / 5 years). This figure falls within a moderate range for federal IT system design projects. However, the complexity and criticality of the systems being designed are key factors. If this contract supports core public health data infrastructure or large-scale surveillance systems, the value might be considered standard or even conservative. Conversely, if it pertains to less critical or smaller-scale systems, it might represent a higher investment. Benchmarking against historical CDC contracts under NAICS 541512, or similar agencies like NIH or FDA, would provide a more precise comparison, but such data is not readily available in the provided summary.
What are the key performance indicators (KPIs) or success metrics for this contract?
The provided summary data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, IT system design contracts outline measurable objectives related to system functionality, performance, reliability, security, user satisfaction, and adherence to timelines and budget. For a contract supporting the CDC, KPIs might include uptime percentages for critical systems, data processing speeds, successful integration of new modules, reduction in system errors, or timely delivery of design documentation. The absence of explicit KPIs in the summary makes it difficult to assess contractor performance and the overall effectiveness of the services rendered. These details would normally be found within the contract's Performance Work Statement (PWS).
What is Peraton Inc.'s track record with the CDC and HHS for similar IT services?
Peraton Inc. is a significant government contractor with a history of providing IT and technology services across various federal agencies, including the Department of Health and Human Services (HHS) and its sub-agencies like the Centers for Disease Control and Prevention (CDC). While the summary data confirms Peraton Inc. as the awardee for this specific $36.2 million contract, a comprehensive assessment of their track record would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the number and types of previous contracts held with the CDC/HHS, and the successful completion of similar system design projects. Generally, Peraton has experience in areas like enterprise IT, cybersecurity, and data management, which aligns with the nature of this contract. However, specific details on their performance on prior CDC system design contracts would require deeper research into contract databases and performance records.
Are there any identified risks associated with this contract, such as cost overruns or schedule delays?
The provided summary data does not explicitly list identified risks such as potential cost overruns or schedule delays for this contract. However, risks are inherent in IT system design projects, especially those with a multi-year duration. Potential risks could include evolving technological requirements, integration challenges with existing systems, cybersecurity threats, contractor performance issues, or unforeseen scope changes. The contract type ('Delivery Order') might imply flexibility but also requires careful management to prevent scope creep. The 'fair' rating for value assessment suggests that without more detailed information on performance metrics and specific deliverables, a definitive risk assessment is challenging. A thorough review of the contract's PWS, risk mitigation plans, and historical performance data would be necessary for a comprehensive risk evaluation.
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: 75D301-21-R-71860
Offers Received: 2
Pricing Type: LABOR HOURS (Z)
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: $36,211,256
Exercised Options: $36,211,256
Current Obligation: $36,211,256
Actual Outlays: $29,389,263
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $7,695,196
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200036W
IDV Type: GWAC
Timeline
Start Date: 2021-08-12
Current End Date: 2026-07-29
Potential End Date: 2026-07-29 00:00:00
Last Modified: 2025-07-15
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