HHS awards $74M for IT facilities management, with 5 bids received

Contract Overview

Contract Amount: $74,126,952 ($74.1M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2006-06-14

End Date: 2016-08-29

Contract Duration: 3,729 days

Daily Burn Rate: $19.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TAS::75 0511::TAS

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74117

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $74.1 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: TAS::75 0511::TAS Key points: 1. Contract value appears reasonable given the 10-year duration. 2. Competition was moderate, with 5 bidders vying for the contract. 3. No immediate risk indicators are apparent from the provided data. 4. This contract supports essential IT infrastructure for Medicare and Medicaid. 5. The IT services sector sees significant government investment. 6. Fixed-price contract type helps manage cost certainty.

Value Assessment

Rating: good

The contract value of $74.1 million over approximately 10 years suggests a yearly spend of around $7.4 million. Benchmarking this against similar IT facilities management contracts would provide a clearer picture of value for money. However, given the scope of managing IT facilities for CMS, the overall price point does not appear excessive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating a full and open competition. Five bids were received, suggesting a healthy level of interest and competition among potential vendors. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Beneficiaries include users of Medicare and Medicaid services, who rely on stable IT systems. Services delivered include essential IT facilities management, ensuring operational continuity. Geographic impact is national, supporting federal health programs. Workforce implications include jobs for IT professionals supporting the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Competitive award process suggests potential for good value.
Firm Fixed Price contract type offers cost predictability.
Long-term duration allows for stable service delivery.

Sector Analysis

The IT services sector is a major area of federal spending. Contracts for IT facilities management are crucial for maintaining the operational backbone of government agencies. This $74 million award fits within the broader landscape of federal IT procurement, which often involves multi-year, high-value contracts to support complex systems.

Small Business Impact

The provided data does not indicate if this contract included specific small business set-asides or subcontracting goals. Further analysis would be needed to determine the extent of small business participation. Without this information, it's difficult to assess the impact on the small business ecosystem.

Oversight & Accountability

As a competitive delivery order, this contract likely falls under the purview of the Centers for Medicare and Medicaid Services' (CMS) internal oversight. Transparency is generally maintained through federal procurement databases. Specific accountability measures would be detailed in the contract itself, and the Inspector General for HHS would have jurisdiction for audits and investigations.

Related Government Programs

IT Facilities Management Services
Health Information Technology Services
Federal Health IT Contracts
CMS IT Support Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $74.1 million to PERATON ENTERPRISE SOLUTIONS LLC. TAS::75 0511::TAS

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 (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $74.1 million.

What is the period of performance?

Start: 2006-06-14. End: 2016-08-29.

What is the track record of PERATON ENTERPRISE SOLUTIONS LLC with federal contracts, particularly within HHS?

PERATON ENTERPRISE SOLUTIONS LLC has a history of federal contracting. Analyzing their past performance, especially within the Department of Health and Human Services (HHS) and specifically with the Centers for Medicare and Medicaid Services (CMS), is crucial. This includes reviewing past contract values, performance ratings, and any documented issues or successes. A strong track record with similar IT facilities management services would indicate a lower performance risk for this current contract. Conversely, a history of performance issues or disputes could raise concerns about their ability to meet the requirements effectively and on time.

How does the awarded price compare to similar IT facilities management contracts at CMS or other federal agencies?

To assess the value for money, the awarded price of $74.1 million over approximately 10 years needs to be benchmarked against comparable contracts. This involves identifying other federal contracts for IT facilities management services with similar scopes of work, durations, and agency sizes. Factors such as the specific services included (e.g., data center operations, network management, help desk support) and the geographic locations of facilities managed are important for a fair comparison. If this contract's per-year cost or total value is significantly higher than similar contracts, it could indicate potential overpricing or a less competitive outcome.

What are the primary risks associated with this contract, and how are they being mitigated?

Potential risks for an IT facilities management contract of this scale include service disruptions, cybersecurity vulnerabilities, cost overruns (though mitigated by fixed-price), and contractor performance issues. Given the critical nature of CMS systems, any IT disruption could impact healthcare services. Mitigation strategies likely involve robust Service Level Agreements (SLAs), regular performance reviews, stringent security protocols, and contingency planning. The competitive nature of the award and the firm-fixed-price structure also serve as risk mitigation tools by incentivizing performance and cost control.

How effective has this contract been in ensuring the continuity and performance of CMS's IT infrastructure?

Assessing the effectiveness requires examining performance metrics and outcomes achieved under the contract since its award in 2006. Key indicators would include system uptime, response times for IT issues, successful implementation of upgrades or maintenance, and adherence to security standards. Anecdotal evidence or formal program reviews from CMS would provide insight into whether the contractor has consistently met or exceeded expectations. A contract that has successfully maintained high availability and performance of critical IT systems can be deemed effective.

What has been the historical spending trend for IT facilities management services at CMS over the past decade?

Analyzing historical spending on IT facilities management at CMS provides context for the $74.1 million award. This involves looking at spending in preceding years and similar contracts awarded by CMS. Trends might reveal increasing or decreasing investment in these services, influenced by technological advancements, outsourcing strategies, or changes in healthcare IT needs. Understanding this trend helps determine if the current award represents a significant shift, an increase in demand, or a continuation of established spending patterns.

Were there any specific technological requirements or innovations mandated or encouraged by this contract?

The contract's specifications would detail the technological requirements for IT facilities management. This could range from maintaining existing infrastructure to adopting new technologies for efficiency, security, or scalability. For a contract awarded in 2006 and ending in 2016, it would be interesting to see how it adapted to evolving IT landscapes, such as cloud computing adoption, enhanced cybersecurity measures, or virtualization. The extent to which the contract encouraged or mandated innovation would reflect CMS's forward-looking IT strategy.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 13600 EDS DR A3S-B53, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $74,126,952

Exercised Options: $74,126,952

Current Obligation: $74,126,952

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500200600002I

IDV Type: IDC

Timeline