GSA's $80M HSPD-12 contract for federal employee ID issuance awarded to Peraton Enterprise Solutions

Contract Overview

Contract Amount: $80,000,000 ($80.0M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2007-04-23

End Date: 2012-03-31

Contract Duration: 1,804 days

Daily Burn Rate: $44.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HSPD-12 SHARED SERVICES PROVIDER II CONTRACT TO SUPPORT ISSUANCE AND ADJUDICATION OF NEW IDENTIFICATION ACCOUNTS FOR ALL FEDERAL EMPLOYEES AND FEDERAL CONTRACTOR EMPLOYEES.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $80.0 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: HSPD-12 SHARED SERVICES PROVIDER II CONTRACT TO SUPPORT ISSUANCE AND ADJUDICATION OF NEW IDENTIFICATION ACCOUNTS FOR ALL FEDERAL EMPLOYEES AND FEDERAL CONTRACTOR EMPLOYEES. Key points: 1. Contract aims to standardize and secure identification for federal employees and contractors. 2. The firm-fixed-price structure provides cost certainty for the government. 3. A competitive delivery order suggests a degree of market vetting. 4. The contract duration of approximately 5 years indicates a significant, ongoing need. 5. Focus on identification management aligns with national security priorities. 6. The scale of the contract suggests a substantial impact on federal workforce identity.

Value Assessment

Rating: good

The contract's value of $80 million over roughly five years for a critical national service like identity management appears reasonable. Benchmarking against similar large-scale identity solutions is challenging due to the specific nature of federal requirements. However, the firm-fixed-price contract type helps control costs. The government's ability to secure competitive bids for such a foundational service suggests a healthy market for these capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely competed for the task order under a broader contract vehicle. While the specific number of bidders for this particular order isn't detailed, the 'competitive' designation suggests more than one offer was received. This level of competition is generally positive for price discovery and ensures the government receives a fair market price.

Taxpayer Impact: Competitive bidding on this contract helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging innovation among potential service providers.

Public Impact

Federal employees and federal contractor employees across all agencies will benefit from standardized and secure identification. The contract delivers services related to the issuance and adjudication of identification accounts. The geographic impact is nationwide, covering all federal facilities and personnel. Workforce implications include the need for skilled personnel to manage and operate the identity issuance systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system becomes highly specialized.
Ensuring data privacy and security for millions of federal employee records is a significant challenge.
Dependence on a single provider for a critical national security function carries inherent risks.

Positive Signals

Standardization of identity management improves security posture across the federal government.
A single, unified system can streamline onboarding and access control processes.
The competitive award process suggests a robust market for identity solutions.

Sector Analysis

The federal identity management sector is a critical component of national security and operational efficiency. This contract falls within the broader IT services and cybersecurity market, which is substantial and growing. The government's investment in HSPD-12 compliance reflects a long-term commitment to secure and interoperable identification systems. Comparable spending benchmarks are difficult to pinpoint precisely due to the unique federal mandate, but large enterprise identity solutions in the private sector can run into hundreds of millions of dollars.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific delivery order was not provided. However, large federal contracts often include provisions for small business participation, either directly or through subcontracting. The scale of this contract might make direct set-asides challenging, but opportunities could exist for specialized small businesses in areas like system integration or support services.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA) and potentially the Office of Management and Budget (OMB) as it relates to HSPD-12 implementation. Accountability measures would be embedded in the contract's performance work statement and service level agreements. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be sensitive.

Related Government Programs

Homeland Security Presidential Directive 12 (HSPD-12)
Federal Identity, Credential, and Access Management (FICAM)
General Services Administration (GSA) IT Services
Biometric Identification Systems
Public Key Infrastructure (PKI)

Risk Flags

Data Security and Privacy Risk
System Integration Complexity
Vendor Lock-in Potential
Compliance with Evolving Standards
Dependence on Critical Infrastructure

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $80.0 million to PERATON ENTERPRISE SOLUTIONS LLC. HSPD-12 SHARED SERVICES PROVIDER II CONTRACT TO SUPPORT ISSUANCE AND ADJUDICATION OF NEW IDENTIFICATION ACCOUNTS FOR ALL FEDERAL EMPLOYEES AND FEDERAL CONTRACTOR EMPLOYEES.

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $80.0 million.

What is the period of performance?

Start: 2007-04-23. End: 2012-03-31.

What is the track record of Peraton Enterprise Solutions LLC in managing large-scale federal identity management contracts?

Peraton Enterprise Solutions LLC, and its predecessor entities, have a history of supporting federal IT and identity management initiatives. While specific details on their performance for this particular HSPD-12 contract require deeper analysis of past performance reviews and contract modifications, the company has been a significant player in the government contracting space, often handling complex technology and security-related programs. Their experience would likely encompass system integration, secure credential issuance, and lifecycle management of identity data. Assessing their specific track record would involve reviewing contract performance reports, any past disputes or awards, and their overall reputation within the federal IT community for reliability and security.

How does the $80 million cost compare to similar federal identity management solutions?

Directly comparing the $80 million cost of this specific HSPD-12 Shared Services Provider II contract is complex due to the unique scope and federal mandate. HSPD-12 requires a standardized, interoperable identification system for all federal employees and contractors, a scale not typically mirrored in the private sector. However, considering the duration (approx. 5 years) and the comprehensive nature of identity issuance, adjudication, and management, the cost per year averages around $16 million. This figure needs to be evaluated against the number of individuals supported (potentially millions) and the security infrastructure required. While seemingly large, it may represent good value when considering the national security implications and the cost of fragmented or insecure identity systems.

What are the primary risks associated with this contract and its execution?

The primary risks associated with this contract revolve around data security and privacy, system integration complexity, and potential vendor lock-in. Handling sensitive personal information for millions of federal employees and contractors necessitates robust cybersecurity measures to prevent breaches. Integrating the HSPD-12 system with various agency legacy systems presents significant technical challenges. Furthermore, if the system becomes highly customized or proprietary, it could lead to vendor lock-in, making future transitions difficult and potentially costly. Ensuring continuous compliance with evolving federal regulations and standards also poses an ongoing risk.

How effective has the HSPD-12 program been in achieving its stated goals of enhanced security and interoperability?

The HSPD-12 program has made significant strides in enhancing federal security and interoperability by mandating a common identification standard. Before HSPD-12, federal agencies often used disparate and less secure identification methods. The program has led to the widespread adoption of PIV (Personal Identity Verification) cards, which incorporate security features like biometrics and digital signatures, improving access control and reducing insider threats. Interoperability has also improved, allowing for smoother access across different federal systems and agencies. However, challenges remain in full implementation across all legacy systems and ensuring consistent adherence to standards by all personnel and contractors.

What has been the historical spending trend for HSPD-12 related services prior to this contract?

Historical spending on HSPD-12 related services has been substantial and generally increasing as the program matured and expanded across federal agencies. Initial spending focused on establishing the foundational infrastructure, developing standards, and piloting systems. Subsequent years saw increased investment in card issuance, system integration, background investigations, and ongoing operational support. While this specific contract represents a significant single award, it is part of a larger, sustained federal investment in identity management. Tracking precise historical spending requires aggregating data across multiple agencies and contract vehicles, but the overall trend indicates a consistent and growing commitment to securing federal identities.

What are the implications of using a 'Firm Fixed Price' contract type for this service?

The use of a 'Firm Fixed Price' (FFP) contract type for this HSPD-12 service offers significant advantages in terms of cost predictability for the government. Under an FFP contract, the contractor assumes most of the risk for cost overruns, and the price is set and not subject to upward adjustment unless there are changes to the contract's scope. This provides budget certainty for the General Services Administration (GSA) and taxpayers. For the contractor, it incentivizes efficiency and cost control. However, it also means that if unforeseen technical challenges or increased material costs arise, the contractor must absorb them, potentially impacting their profit margin or willingness to undertake future FFP contracts if risks are underestimated.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: TQ-PLB-07-0002

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 13600 EDS DR, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $80,000,000

Exercised Options: $80,000,000

Current Obligation: $80,000,000

Parent Contract

Parent Award PIID: GS35F0323J

IDV Type: FSS

Timeline