HUD's $151M HITS-CS contract for critical IT infrastructure awarded to Peraton Enterprise Solutions LLC
Contract Overview
Contract Amount: $150,861,858 ($150.9M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Housing and Urban Development
Start Date: 2023-02-01
End Date: 2025-05-31
Contract Duration: 850 days
Daily Burn Rate: $177.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HITS-CS IS A MISSION CRITICAL REQUIREMENT PROVIDING THE PROVISIONING, MANAGEMENT, STORAGE, MAINTENANCE, BACKUP, AND OPERATION OF ALL INFRASTRUCTURE HARDWARE, SOFTWARE, AND SUPPORT SERVICES NEEDED FOR HUD'S ENTERPRISE INFRASTRUCTURE CORE FUNCTION
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $150.9 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: HITS-CS IS A MISSION CRITICAL REQUIREMENT PROVIDING THE PROVISIONING, MANAGEMENT, STORAGE, MAINTENANCE, BACKUP, AND OPERATION OF ALL INFRASTRUCTURE HARDWARE, SOFTWARE, AND SUPPORT SERVICES NEEDED FOR HUD'S ENTERPRISE INFRASTRUCTURE CORE FUNCTION Key points: 1. This contract is crucial for HUD's core IT infrastructure, covering provisioning, management, storage, maintenance, backup, and operation of hardware, software, and support services. 2. The sole awardee, Peraton Enterprise Solutions LLC, will manage these essential services. 3. The contract is a definitive contract with a firm fixed price, indicating a clear cost structure. 4. The NAICS code 518210 points to Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services, a vital sector for government operations.
Value Assessment
Rating: fair
The contract value of $150.8M over its period of performance appears substantial. Benchmarking against similar large-scale IT infrastructure contracts would be necessary to definitively assess its value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces competitive pressure, which could impact overall cost-effectiveness.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium compared to a fully competed contract.
Public Impact
Ensures the continuous operation of HUD's essential IT infrastructure, supporting its mission delivery. Provides a single point of accountability for critical IT services, potentially streamlining management. The sole-source nature raises questions about whether the government secured the best possible price and terms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to sole-source award
Positive Signals
- Mission-critical requirement addressed
- Clear contract type (firm fixed price)
Sector Analysis
This contract falls within the IT sector, specifically focusing on computing infrastructure and data processing. Spending in this area is consistently high across federal agencies due to the increasing reliance on digital services and data management.
Small Business Impact
There is no indication of small business participation in this sole-source award. Future opportunities should explore avenues for small business involvement in subcontracting or through competitive set-asides if applicable.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is meeting all performance requirements and that the pricing remains fair and reasonable throughout the contract term.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for cost overruns without competitive pressure.
- Dependency on a single provider for critical infrastructure.
- Lack of transparency in the initial procurement process.
Tags
computing-infrastructure-providers-data-, department-of-housing-and-urban-developm, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $150.9 million to PERATON ENTERPRISE SOLUTIONS LLC. HITS-CS IS A MISSION CRITICAL REQUIREMENT PROVIDING THE PROVISIONING, MANAGEMENT, STORAGE, MAINTENANCE, BACKUP, AND OPERATION OF ALL INFRASTRUCTURE HARDWARE, SOFTWARE, AND SUPPORT SERVICES NEEDED FOR HUD'S ENTERPRISE INFRASTRUCTURE CORE FUNCTION
Who is the contractor on this award?
The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).
What is the total obligated amount?
The obligated amount is $150.9 million.
What is the period of performance?
Start: 2023-02-01. End: 2025-05-31.
What was the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without specific documentation, it's difficult to ascertain the exact reasons. However, agencies are generally required to explore competitive options first. The absence of competition here suggests that either Peraton was deemed the only capable provider or that the procurement process did not adequately solicit other potential bidders.
How does the per-unit cost of services compare to industry benchmarks for similar IT infrastructure management contracts?
A detailed analysis of the contract's line items and the specific services provided is needed to establish per-unit costs. Without this granular data and access to proprietary industry benchmarks, a direct comparison is challenging. However, given the sole-source nature, there's a heightened risk that these costs might be higher than what could be achieved through a competitive bidding process.
What mechanisms are in place to ensure the effectiveness and efficiency of the IT services provided under this contract?
Effectiveness and efficiency are typically ensured through performance work statements (PWS), service level agreements (SLAs), and regular performance reviews. The contract likely includes specific metrics and reporting requirements that HUD will use to monitor Peraton's performance. However, the lack of competition might reduce the incentive for proactive efficiency improvements beyond contractual minimums.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DATA CENTER
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 86615423R00002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 15050 CONFERENCE CENTER DRIVE, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $150,861,858
Exercised Options: $150,861,858
Current Obligation: $150,861,858
Actual Outlays: $150,861,858
Subaward Activity
Number of Subawards: 115
Total Subaward Amount: $44,370,914
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-02-01
Current End Date: 2025-05-31
Potential End Date: 2025-05-31 00:00:00
Last Modified: 2025-06-30
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