FDA Data Center Support Services Contract Awarded to Peraton for Over $131 Million

Contract Overview

Contract Amount: $131,108,988 ($131.1M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-27

End Date: 2022-09-29

Contract Duration: 1,098 days

Daily Burn Rate: $119.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FDA DATA CENTER SUPPORT SERVICES CONTRACT

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20903

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $131.1 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: FDA DATA CENTER SUPPORT SERVICES CONTRACT Key points: 1. Contract value exceeds $131 million, indicating significant investment in IT infrastructure. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. Firm-fixed-price contract type aims to control costs and manage financial risk. 4. Duration of nearly three years provides a stable period for service delivery. 5. Services fall under Computer Systems Design, a critical area for federal IT operations. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of over $131 million for data center support services is substantial. Benchmarking against similar large-scale IT support contracts within the federal government is necessary for a precise value-for-money assessment. However, the firm-fixed-price structure is a positive indicator for cost control. The contract's duration of approximately three years allows for sustained service delivery, which can be more cost-effective than frequent short-term contracts. Further analysis would involve comparing the specific services and deliverables to industry standards and other government contracts for similar scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a more competitive environment, potentially resulting in better pricing and service offerings for the government. The fact that it was competed openly suggests that multiple vendors likely participated, although the exact number of bidders is not provided in this data. A competitive process is generally favorable for price discovery and ensuring the government receives optimal value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors vie for the best price and performance, leading to more efficient use of public funds.

Public Impact

The Food and Drug Administration (FDA) benefits from enhanced data center support, crucial for its operations. Services delivered likely include IT infrastructure management, system maintenance, and potentially cloud services. The geographic impact is primarily within Maryland, where the FDA's operations are concentrated. Workforce implications may include the need for specialized IT personnel to manage and maintain the data center infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of competitive intensity.
The 'delivery order' nature suggests this might be one of many task orders under a larger IDIQ, making it harder to assess the overall value and competition of the parent contract.
Without a detailed scope of work, it's difficult to ascertain if the fixed price adequately covers all potential service needs.
The contract's duration, while providing stability, could also mean a missed opportunity to re-evaluate market offerings if technology evolves rapidly.

Positive Signals

Awarded through full and open competition, indicating a fair and broad opportunity for vendors.
Firm-fixed-price contract type helps mitigate cost overruns and provides budget certainty.
The substantial contract value suggests a significant commitment to critical IT infrastructure for the FDA.
The contract duration of nearly three years allows for consistent and reliable service delivery.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending allocated to maintaining and modernizing data centers and IT infrastructure. Contracts like this support the core digital operations of agencies like the FDA. The NAICS code 541512 (Computer Systems Design Services) encompasses a broad range of IT support, from hardware and software integration to network management and data center operations. Spending in this sector is driven by the increasing reliance on digital services, data analytics, and cybersecurity, making it a critical area for government efficiency and effectiveness.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is Peraton Enterprise Solutions LLC, a large business, there is no explicit information regarding subcontracting plans for small businesses. The absence of a small business set-aside or specific subcontracting goals means the direct impact on the small business ecosystem is not immediately apparent from this data alone. Further investigation into subcontracting reports would be needed to assess opportunities for small businesses.

Oversight & Accountability

The contract is a delivery order, likely issued under an existing IDIQ contract. Oversight would typically be managed by the contracting officer and the FDA's program officials responsible for IT services. Transparency is generally facilitated through contract databases like FPDS.gov, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or identified.

Related Government Programs

HHS IT Support Services
FDA IT Modernization Efforts
Federal Data Center Consolidation Initiative
IT Services for Health Agencies
Computer Systems Design Services Contracts

Risk Flags

Potential for scope creep in long-term IT contracts.
Reliance on a single contractor for critical data center infrastructure.
Risk of technological obsolescence if contract terms are not flexible.
Dependence on contractor's ability to meet stringent performance standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $131.1 million to PERATON ENTERPRISE SOLUTIONS LLC. FDA DATA CENTER SUPPORT SERVICES CONTRACT

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 (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $131.1 million.

What is the period of performance?

Start: 2019-09-27. End: 2022-09-29.

What is the specific scope of services covered by this $131 million contract?

The provided data indicates the contract is for 'FDA DATA CENTER SUPPORT SERVICES' and falls under NAICS code 541512 (Computer Systems Design Services). While the exact scope is not detailed, this typically includes a range of IT support functions essential for operating and maintaining data centers. These services often encompass hardware and software management, network infrastructure support, system administration, cybersecurity measures, data storage and backup solutions, and potentially cloud integration or migration services. The firm-fixed-price nature suggests a defined set of deliverables and service levels are expected. A comprehensive understanding would require reviewing the Statement of Work (SOW) associated with the delivery order.

How does the $131 million contract value compare to historical FDA spending on data center support?

To accurately compare this $131 million contract value to historical FDA spending, one would need access to historical contract data for similar services. Without that specific historical context, it's challenging to definitively state whether this represents an increase, decrease, or stable level of investment. However, the magnitude of the award suggests a significant and ongoing commitment to robust data center operations. Federal IT spending, in general, has been increasing due to modernization efforts and the growing demand for digital services. This contract likely reflects the FDA's needs for reliable and scalable data infrastructure to support its mission-critical functions, such as drug approval, food safety, and public health initiatives.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract of this nature and value, particularly one supporting critical FDA data center operations, robust KPIs and SLAs are almost certainly defined in the Statement of Work (SOW). These would typically include metrics related to system uptime and availability, response times for issue resolution, data security compliance, performance benchmarks for network and system operations, and potentially customer satisfaction ratings. The firm-fixed-price structure implies that meeting these defined performance standards is crucial for the contractor to fulfill the contract terms successfully.

What is Peraton Enterprise Solutions LLC's track record with similar federal IT support contracts?

Peraton Enterprise Solutions LLC has a significant track record in providing IT and technology services to the federal government. While specific details for this FDA contract are limited, Peraton has been awarded numerous large contracts across various agencies, including defense, intelligence, and civilian sectors, often involving complex IT infrastructure, cybersecurity, and mission support. Their experience typically includes managing large-scale data centers, network operations, and providing systems integration services. A thorough assessment of their track record for similar contracts would involve examining past performance evaluations, contract history for data center support, and their success in meeting performance requirements on previous government engagements.

What are the potential risks associated with a nearly three-year firm-fixed-price contract for data center support?

A primary risk with a firm-fixed-price contract of this duration is the potential for scope creep or unforeseen technological advancements that could make the contracted services less efficient or outdated by the end of the term. If the SOW is not precisely defined, the contractor might face challenges in delivering all necessary services within the fixed price, or conversely, the government might overpay if the scope is less demanding than anticipated. Another risk is contractor performance; if Peraton fails to meet performance standards, the FDA might experience disruptions in data center operations. However, the firm-fixed-price structure also incentivizes the contractor to manage costs effectively and deliver services efficiently to maintain profitability.

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

Solicitation ID: NIHJT2010001

Offers Received: 1

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: $131,108,988

Exercised Options: $131,108,988

Current Obligation: $131,108,988

Actual Outlays: $50,973,050

Subaward Activity

Number of Subawards: 164

Total Subaward Amount: $8,423,115

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200026W

IDV Type: GWAC

Timeline