HHS Awards $34.2M for Data Center Continuity, Peraton to Provide IT Services
Contract Overview
Contract Amount: $34,245,118 ($34.2M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2025-09-30
End Date: 2026-06-29
Contract Duration: 272 days
Daily Burn Rate: $125.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: DATA CENTER BRIDGE VI ORDER FOR CONTINUITY OF OPERATIONS
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $34.2 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: DATA CENTER BRIDGE VI ORDER FOR CONTINUITY OF OPERATIONS Key points: 1. Significant investment in critical data center infrastructure for operational continuity. 2. Competition method indicates a potentially competitive bidding process. 3. Risk of vendor lock-in or cost overruns exists with Time and Materials contracts. 4. IT sector spending is substantial, requiring careful benchmarking.
Value Assessment
Rating: fair
The contract is Time and Materials, which can lead to cost uncertainty if not managed closely. Benchmarking against similar data center services contracts is crucial to ensure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Time and Materials pricing structure requires diligent oversight to prevent cost escalation.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure, aiming for operational resilience. Effective management of the T&M contract is key to maximizing value for money.
Public Impact
Ensures continuity of essential government operations, particularly for the FDA. Supports critical data management and IT infrastructure resilience. Potential for cost overruns due to Time and Materials contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of specific performance metrics in provided data
- Potential for scope creep
Positive Signals
- Full and open competition
- Focus on critical infrastructure continuity
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is high, and benchmarks for data center operations and maintenance are essential for evaluating cost-effectiveness.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The Time and Materials contract type necessitates strong government oversight to monitor labor hours, material costs, and prevent scope creep. Regular audits and performance reviews are critical for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Food and Drug Administration Programs
Risk Flags
- Time and Materials pricing structure
- Potential for cost overruns
- Limited visibility into specific performance metrics
- Contract duration and potential for follow-on needs
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $34.2 million to PERATON ENTERPRISE SOLUTIONS LLC. DATA CENTER BRIDGE VI ORDER FOR CONTINUITY OF OPERATIONS
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 $34.2 million.
What is the period of performance?
Start: 2025-09-30. End: 2026-06-29.
How does the awarded price compare to industry benchmarks for similar data center continuity services?
Benchmarking is essential. Without specific details on the scope of work, labor categories, and rates, a precise comparison is difficult. However, the $34.2M value over approximately 2 years suggests a significant investment. Comparing the blended hourly rates and overheads against GSA schedules or other government IT contracts for similar services would be the next step.
What are the primary risks associated with the Time and Materials contract type for this project?
The primary risks include cost overruns due to undefined labor hours and material needs, potential for scope creep without strict change control, and reduced incentive for the contractor to be efficient. The government must actively manage the contract, closely monitoring all expenditures and ensuring deliverables align with the original intent.
How effectively will this contract ensure the continuity of operations for the FDA's data center?
The contract aims to ensure continuity by providing necessary services for the data center. Its effectiveness hinges on the contractor's ability to deliver reliable support, the clarity of the service level agreements (SLAs), and the government's proactive management and oversight of the T&M contract to ensure all critical functions are maintained without interruption.
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 - DATA CENTER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 75F40125Q00440
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
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: $69,095,148
Exercised Options: $34,245,118
Current Obligation: $34,245,118
Actual Outlays: $14,771,418
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200026W
IDV Type: GWAC
Timeline
Start Date: 2025-09-30
Current End Date: 2026-06-29
Potential End Date: 2027-03-30 00:00:00
Last Modified: 2025-09-30
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 →