HHS awarded $63.6M for digital media services to Peraton Inc. under a flexible order contract
Contract Overview
Contract Amount: $63,560,826 ($63.6M)
Contractor: Peraton Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2015-09-01
End Date: 2020-11-30
Contract Duration: 1,917 days
Daily Burn Rate: $33.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS ORDERED OFF OADC FLEXIBLE ORDER 200-2015-F-63509 - DIGITAL MEDIA WORK ORDER 1
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $63.6 million to PERATON INC. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS ORDERED OFF OADC FLEXIBLE ORDER 200-2015-F-63509 - DIGITAL MEDIA WORK ORDER 1 Key points: 1. The contract utilized an existing flexible order vehicle, potentially impacting the cost-effectiveness of the procurement. 2. Competition dynamics for this specific order are not fully detailed, but the parent contract was full and open. 3. Performance duration of nearly five years suggests a need for sustained digital media support. 4. The fixed-price contract type aims to control costs, but the final value reflects actual services rendered. 5. This spending falls within IT services, specifically computer systems design, supporting public health communication. 6. The contract was awarded to a single vendor, Peraton Inc., for the duration of the order.
Value Assessment
Rating: fair
The total award of $63.6 million over approximately five years represents a significant investment in digital media services. Benchmarking this against similar contracts for large-scale digital media production and dissemination is challenging without more specific service details. However, the fixed-price nature of the contract suggests that costs were intended to be predictable. The value proposition hinges on the effectiveness and reach of the digital media campaigns executed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The parent contract (OADC FLEXIBLE ORDER 200-2015-F-63509) was awarded under full and open competition. This specific delivery order was placed against that established contract. While the initial competition for the overarching contract likely ensured a competitive environment, the details of how this particular order was competed or if it was a sole-source task order against the IDIQ are not explicitly stated in the provided data. The presence of multiple orders (4) suggests it was an active contract.
Taxpayer Impact: A full and open competition for the parent contract generally benefits taxpayers by fostering a competitive landscape that can lead to better pricing and innovation. However, the specific competition for this delivery order needs further clarification to fully assess taxpayer value.
Public Impact
The Centers for Disease Control and Prevention (CDC) benefits from enhanced digital media capabilities. Services delivered likely include the creation, management, and dissemination of digital content for public health campaigns. The geographic impact is national, supporting CDC's mission to protect public health across the United States. Workforce implications may involve specialized digital media professionals within Peraton Inc. and potentially contractors supporting them.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the services rendered makes it difficult to assess true value for money.
- The use of a flexible order contract may not always yield the best price compared to direct, competitive procurements for specific needs.
- The duration of the contract (nearly 5 years) could indicate potential for scope creep or evolving requirements that were not fully defined at the outset.
Positive Signals
- The contract was awarded under a full and open competition framework for the parent IDIQ, suggesting a competitive initial process.
- The firm-fixed-price contract type provides cost certainty for the government.
- The contract supports critical public health communication efforts by the CDC.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically under Computer Systems Design Services (NAICS 541512). This category encompasses a wide range of services related to the design, development, integration, and support of IT systems. The market for digital media services is robust, with many firms offering specialized capabilities. The spending of $63.6 million is substantial for a single order but should be viewed within the context of the CDC's overall IT and communication budgets.
Small Business Impact
The data indicates that small business participation (sb) was false, and there was no small business set-aside (ss) for this contract. This suggests that the procurement was not specifically targeted towards small businesses. Consequently, the direct impact on the small business ecosystem for this particular contract is likely minimal, with opportunities primarily going to larger, established firms like Peraton Inc. Subcontracting opportunities for small businesses would depend on Peraton's internal strategy and the specific nature of the digital media services required.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). As a delivery order under an existing contract, oversight would involve monitoring performance against the statement of work, ensuring timely delivery, and managing payments. Transparency is facilitated by contract databases, but detailed performance reports and specific oversight mechanisms are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- IT Services Contracts
- Digital Media Production
- Public Health Communication
- Centers for Disease Control and Prevention IT Spending
- Department of Health and Human Services IT Procurement
- Flexible Order Contracts
Risk Flags
- Contract Duration
- Scope Definition
- Technology Evolution
- Vendor Lock-in Potential
Tags
it, health, hhs, cdc, computer-systems-design-services, digital-media, firm-fixed-price, full-and-open-competition, delivery-order, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $63.6 million to PERATON INC.. IGF::OT::IGF FOR OTHER FUNCTIONS ORDERED OFF OADC FLEXIBLE ORDER 200-2015-F-63509 - DIGITAL MEDIA WORK ORDER 1
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $63.6 million.
What is the period of performance?
Start: 2015-09-01. End: 2020-11-30.
What specific digital media services were procured under this order, and how do they align with the CDC's mission?
The provided data identifies the contract as being for 'Digital Media Work Order' under 'Computer Systems Design Services'. While specific deliverables are not detailed, such services typically encompass a broad range of activities including the creation of websites, social media content, video production, graphic design, data visualization, and the management of digital communication platforms. These services are crucial for the CDC's mission to disseminate public health information, conduct awareness campaigns, share research findings, and engage with the public on critical health issues. The $63.6 million award suggests a significant scope, likely involving large-scale campaigns, ongoing content development, and potentially platform management over the contract's duration.
How does the $63.6 million award compare to historical spending on similar digital media services by the CDC or HHS?
Direct comparison of the $63.6 million award to historical spending requires access to detailed historical procurement data for the CDC and HHS specifically for digital media services. However, this figure represents a substantial investment. For context, federal agencies increasingly rely on digital platforms for communication. Large-scale digital media campaigns, especially those involving extensive content creation, platform development, and multi-channel distribution, can easily run into tens of millions of dollars over several years. Without specific benchmarks for comparable 'digital media work orders' or 'computer systems design services' focused on media, it's difficult to definitively state if this is high or low. However, it indicates a significant commitment to leveraging digital channels for public health outreach.
What is Peraton Inc.'s track record with government contracts, particularly within the health sector?
Peraton Inc. is a significant government contractor with a substantial portfolio across various federal agencies. They have a history of providing IT, technology, and mission support services. Within the health sector, Peraton has been involved in contracts related to health IT, data analytics, and administrative support for agencies like HHS. Their experience often includes managing complex IT infrastructure and developing technological solutions. The award of this $63.6 million digital media contract by the CDC suggests Peraton possesses the capabilities and capacity to handle large-scale, specialized IT-related services, including those focused on communication and media, within the public health domain.
What are the potential risks associated with a nearly five-year contract for digital media services?
A primary risk with a long-term contract like this (1917 days, approx. 5 years) for digital media services is the rapid evolution of technology and communication trends. What constitutes effective digital media today might be outdated in a few years. This could lead to the government paying for less effective or obsolete services if the contract isn't managed proactively. Another risk is scope creep, where requirements expand beyond the original intent, potentially increasing costs or stretching resources. Vendor lock-in is also a concern; if Peraton becomes deeply integrated into the CDC's digital infrastructure, switching providers later could be complex and costly. Finally, ensuring consistent quality and performance over such a long period requires robust oversight and performance management.
How does the 'full and open competition' for the parent contract influence the value received for this specific delivery order?
The 'full and open competition' for the parent contract (OADC FLEXIBLE ORDER 200-2015-F-63509) is a positive indicator for initial value. It means that the government solicited proposals from all responsible sources, theoretically leading to a competitive environment that drives down prices and encourages innovation when the contract was first awarded. However, this specific delivery order was placed against that existing contract. The value received for this particular order depends on how it was structured and whether it was competed among the awardees of the parent contract, or if it was a sole-source task order. If it was a competitive task order, it would further enhance value. If it was a sole-source order against an IDIQ, the value is more dependent on the initial pricing established during the parent contract's competition and the government's negotiation leverage for this specific order.
What are the implications of the 'firm fixed price' contract type on cost control and flexibility?
A 'firm fixed price' (FFP) contract type is generally favored by the government for services where the scope of work is well-defined and unlikely to change significantly. This structure places the risk of cost overruns on the contractor (Peraton Inc. in this case). For the government, it offers the highest degree of cost certainty, as the price is fixed regardless of the contractor's actual costs. This is beneficial for budgeting. However, FFP contracts can reduce flexibility. If requirements change or unforeseen issues arise, modifications to the contract may be necessary, potentially involving negotiation and price adjustments. For digital media services, where trends and needs can evolve, the FFP structure might necessitate careful contract management to balance cost control with the need for adaptability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 2015N17220
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 12975 WORLDGATE DR STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $71,986,492
Exercised Options: $68,978,127
Current Obligation: $63,560,826
Actual Outlays: $2,432,880
Subaward Activity
Number of Subawards: 216
Total Subaward Amount: $118,608,296
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200036W
IDV Type: GWAC
Timeline
Start Date: 2015-09-01
Current End Date: 2020-11-30
Potential End Date: 2020-11-30 00:00:00
Last Modified: 2023-06-26
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