HUD's $60.5M IT contract with Peraton Enterprise Solutions awarded in 2003, spanning a decade

Contract Overview

Contract Amount: $60,520,580 ($60.5M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2003-08-14

End Date: 2013-09-30

Contract Duration: 3,700 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HITS DEFINITIVE CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $60.5 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: HITS DEFINITIVE CONTRACT Key points: 1. Contract awarded under full and open competition, suggesting a broad market search. 2. The contract's duration of 10 years is substantial, indicating a long-term need for services. 3. Fixed-price contract type suggests cost certainty for the government, shifting risk to the contractor. 4. The NAICS code 541519 points to 'Other Computer Related Services,' a broad category. 5. Awarded to Peraton Enterprise Solutions LLC, a single entity for the entire contract duration. 6. The contract was awarded by the Department of Housing and Urban Development (HUD).

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its age and the broad nature of the services. The fixed-price structure is generally favorable for cost control. However, without specific performance metrics or comparison to similar IT service contracts from the same period, a definitive value assessment is difficult. The long duration could indicate either excellent value or a potential for cost overruns if needs evolved significantly.

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 offers. This approach typically fosters a competitive environment, potentially leading to better pricing and service offerings. The fact that it was competed broadly suggests that HUD sought the best available solution in the market at the time of award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of vendors to bid, which can drive down prices and improve the quality of services received.

Public Impact

Beneficiaries include HUD staff who rely on IT infrastructure and services for daily operations. Services delivered likely encompass a range of IT support, maintenance, and potentially development. Geographic impact is primarily within the District of Columbia, where HUD's headquarters are located. Workforce implications include the potential for direct employment by Peraton and indirect support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) may lead to vendor lock-in or outdated technology if not managed proactively.
Broad service category (Other Computer Related Services) could mask specific cost drivers or performance issues.
Lack of detailed performance data makes it difficult to assess ongoing value and contractor performance.
Fixed-price contracts can sometimes lead to scope creep if not carefully managed, increasing costs.
Limited information on specific deliverables makes it hard to gauge the true impact and necessity of the contract.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
Fixed-price contract type provides cost certainty for the government, assuming scope is well-defined.
Long-term award indicates a stable, ongoing need for these IT services within HUD.
The contract was awarded to a single entity, potentially simplifying management and accountability.
The contract was awarded by a major federal agency (HUD), implying adherence to standard procurement processes.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The IT services market is vast and highly competitive, with numerous vendors offering a wide array of solutions. Contracts of this nature are common across federal agencies to support their digital infrastructure and operations. Benchmarking requires comparison to similar IT support and services contracts awarded during the same period, considering factors like scope, duration, and agency size.

Small Business Impact

There is no indication that this contract included small business set-asides, as the 'ss' field is false. Furthermore, the 'sb' field is also false, suggesting no specific subcontracting goals for small businesses were mandated. This means that opportunities for small businesses to participate in this contract were likely limited to subcontracting opportunities that Peraton Enterprise Solutions LLC may have pursued independently.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Department of Housing and Urban Development's contracting officers and program managers. Accountability measures would be tied to the terms and conditions of the firm-fixed-price contract, including delivery schedules and service level agreements, if specified. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HUD IT Modernization Efforts
Federal Civilian Agency IT Support Contracts
Enterprise IT Services Procurement
IT Services for Housing Agencies

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Broad service category lacks specificity for detailed performance analysis.
Limited public data on performance metrics hinders value assessment.
Fixed-price contracts can be inflexible to evolving needs without modifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $60.5 million to PERATON ENTERPRISE SOLUTIONS LLC. HITS DEFINITIVE 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 Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $60.5 million.

What is the period of performance?

Start: 2003-08-14. End: 2013-09-30.

What specific IT services were covered under this contract, and how did they evolve over its 10-year duration?

The contract falls under NAICS code 541519, 'Other Computer Related Services,' which is a broad category. Specific services likely included IT infrastructure management, help desk support, network maintenance, software support, and potentially hardware lifecycle management. Over its 10-year duration (2003-2013), the scope may have evolved to incorporate newer technologies or address changing IT needs within HUD. However, without detailed statements of work or contract modifications, the precise evolution of services remains unclear. The long duration suggests a need for adaptable services, but also carries the risk of technological obsolescence if not managed effectively.

How did the total contract value of $60.5 million compare to similar IT service contracts awarded by HUD or other federal agencies during the same period?

Comparing the $60.5 million total value over 10 years (averaging $6.05 million annually) requires context. For a federal agency like HUD, this amount for comprehensive IT services is within a plausible range, especially considering the complexity of managing IT infrastructure for a large organization. However, without specific benchmarks for comparable contracts (e.g., similar scope, duration, and agency size) from 2003-2013, it's difficult to definitively state if it was high or low. The full and open competition suggests an attempt to secure competitive pricing, but the long duration could also indicate a negotiated value over an extended period.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how was contractor performance measured?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. As a firm-fixed-price contract, performance measurement would typically focus on adherence to the defined scope of work, delivery timelines, and potentially quality standards outlined in the contract. HUD's contracting officers and program managers would be responsible for monitoring Peraton's performance. Without access to performance reports or contract close-out documentation, it's impossible to assess how effectively the contractor met its obligations or if any penalties or incentives were applied.

What was the rationale for awarding such a long-term (10-year) contract for IT services, and what were the potential risks and benefits?

The rationale for a 10-year IT services contract likely stemmed from HUD's need for stable, long-term support for its critical IT infrastructure and systems. Long-term contracts can offer benefits such as continuity of operations, reduced administrative burden associated with frequent re-procurement, and potential for deeper contractor expertise. However, risks include technological obsolescence, potential for vendor lock-in, and the possibility that the fixed price may become uncompetitive over time if market rates change significantly. Managing such long-term contracts requires proactive oversight to ensure the services remain relevant and cost-effective.

Were there any significant contract modifications, overruns, or disputes associated with this contract during its lifecycle?

The provided data summary does not contain information regarding contract modifications, overruns, or disputes. A comprehensive review of the contract's history, including any amendments or change orders, would be necessary to determine if such events occurred. For a 10-year contract, it is not uncommon to have modifications to adjust scope, pricing, or timelines. The absence of readily available information on disputes could suggest a relatively smooth execution, or it could simply mean that such details are not publicly accessible through standard contract databases.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: HP, Inc. (UEI: 009122532)

Address: 13600 EDS DR, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $60,520,588

Exercised Options: $60,520,580

Current Obligation: $60,520,580

Timeline