HHS awards $90.8M for Integrated Data Repository O&M to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $90,879,143 ($90.9M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-15

End Date: 2022-09-14

Contract Duration: 1,825 days

Daily Burn Rate: $49.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IGF::OT::IGF INTEGRATED DATA REPOSITORY (IDR) OPERATIONS&MAINTENANCE (O&M)

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $90.9 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF INTEGRATED DATA REPOSITORY (IDR) OPERATIONS&MAINTENANCE (O&M) Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 3. Duration of 5 years (1825 days) indicates a long-term need for these services. 4. The base contract value is approximately $90.8 million. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or framework.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Award Fee (CPAF) structure means the final cost can vary based on performance, making direct price comparisons difficult. However, the duration and scope suggest a significant investment in maintaining critical data infrastructure for CMS.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The presence of 5 bidders (no) suggests a competitive environment, which typically aids in price discovery and potentially leads to more favorable pricing for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the level of competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially millions of healthcare beneficiaries whose data is managed through the IDR. Services delivered include operations and maintenance for the Integrated Data Repository (IDR), crucial for managing healthcare program data. Geographic impact is national, supporting CMS operations across the United States. Workforce implications may include IT professionals and support staff involved in data management and system maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts require diligent oversight to ensure costs are reasonable and award fees are justified by performance.
The long duration of the contract (5 years) necessitates ongoing monitoring to ensure continued value and alignment with evolving agency needs.
The specific nature of 'Computer Systems Design Services' can involve complex technical challenges and potential for cost overruns if not managed effectively.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace for these services.
The Cost Plus Award Fee structure, if managed well, can incentivize high performance and efficiency from the contractor.
The contract supports critical IT infrastructure for CMS, essential for healthcare program operations.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under computer systems design services, a segment focused on the development, deployment, and maintenance of complex IT systems. Comparable spending benchmarks would typically involve other large-scale data repository operations and maintenance contracts within federal agencies, especially those managing sensitive or large volumes of data like CMS.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Peraton Enterprise Solutions LLC, may engage small businesses as subcontractors depending on their own subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract would primarily fall under the Centers for Medicare and Medicaid Services (CMS). The CPAF structure necessitates performance monitoring against defined criteria to justify award fees. Transparency would be enhanced through regular reporting requirements and potential audits by agency oversight bodies or the HHS Inspector General, depending on the contract's value and specific clauses.

Related Government Programs

CMS IT Modernization
Federal Health Data Management
Healthcare Information Systems
Data Repository Operations
IT Infrastructure Support

Risk Flags

Cost Plus Award Fee contract type requires diligent oversight.
Long contract duration necessitates ongoing performance monitoring.
Complexity of IT systems may pose inherent risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $90.9 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF INTEGRATED DATA REPOSITORY (IDR) OPERATIONS&MAINTENANCE (O&M)

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 $90.9 million.

What is the period of performance?

Start: 2017-09-15. End: 2022-09-14.

What is the historical spending trend for the Integrated Data Repository (IDR) Operations & Maintenance (O&M) under Peraton Enterprise Solutions LLC?

The provided data reflects a single contract award of $90,879,143.09 to Peraton Enterprise Solutions LLC for IDR O&M, spanning from September 15, 2017, to September 14, 2022, with a duration of 1825 days. This data point represents the total value of this specific contract over its five-year period. To understand historical spending trends, one would need to examine prior contracts for IDR O&M, potentially awarded to different contractors, or analyze the cumulative spending on this specific contract over its life if it were part of a larger IDIQ vehicle with multiple task orders. Without access to historical contract databases or detailed financial reports for the IDR program, a comprehensive trend analysis is not possible based solely on this single award notice.

How does the awarded amount compare to similar government contracts for data repository operations and maintenance?

Comparing this $90.8 million contract value requires context regarding the scope, complexity, and duration of similar contracts. Contracts for large-scale data repositories, especially within healthcare (like CMS), often involve significant costs due to data volume, security requirements, uptime guarantees, and integration with other systems. For instance, other federal agencies managing vast datasets (e.g., IRS, Social Security Administration) might have comparable or higher spending on their core data infrastructure. However, without specific details on the number of users, data processed, or service level agreements (SLAs) for this IDR contract, a precise benchmark is difficult. The Cost Plus Award Fee (CPAF) structure also means the final expenditure could differ from the initial award value, further complicating direct comparisons.

What are the key performance indicators (KPIs) used to evaluate Peraton Enterprise Solutions LLC's performance under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a Cost Plus Award Fee (CPAF) contract supporting critical IT operations and maintenance like the Integrated Data Repository (IDR), typical KPIs would likely revolve around system availability (uptime), response times for incidents, data integrity and security, successful implementation of updates or patches, and adherence to service level agreements (SLAs). The 'Award Fee' component suggests that performance against these KPIs directly influences the contractor's compensation beyond the cost reimbursement. A thorough review of the contract's Statement of Work (SOW) and Performance Work Statement (PWS) would be necessary to identify the precise metrics and targets.

What is the potential risk associated with the Cost Plus Award Fee (CPAF) contract type for this service?

The primary risk associated with a Cost Plus Award Fee (CPAF) contract type is the potential for costs to escalate beyond initial projections, as the government reimburses the contractor's allowable costs. While the 'Award Fee' portion incentivizes performance, it requires robust government oversight to ensure that costs are reasonable and that the awarded fees are truly earned based on exceptional performance. If oversight is weak, there's a risk of paying inflated prices or fees for mediocre results. For critical IT services like the IDR O&M, ensuring the contractor maintains high performance while managing costs effectively is paramount. The government must meticulously track expenditures and evaluate performance against pre-defined criteria to mitigate these risks.

How does the Integrated Data Repository (IDR) support the mission of the Centers for Medicare and Medicaid Services (CMS)?

The Integrated Data Repository (IDR) is a foundational component of the Centers for Medicare and Medicaid Services' (CMS) IT infrastructure. Its primary function is to consolidate and manage vast amounts of data related to Medicare, Medicaid, and other healthcare programs. This includes beneficiary information, provider data, claims data, and financial information. By providing a centralized, reliable source of data, the IDR supports CMS's core missions, such as processing payments accurately, detecting fraud and abuse, monitoring program performance, conducting research and analysis, and ensuring the overall integrity and efficiency of the nation's healthcare system. Operations and maintenance of the IDR are therefore critical to CMS's ability to fulfill its responsibilities to beneficiaries and taxpayers.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NIHJT2010001

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $92,559,938

Exercised Options: $90,879,143

Current Obligation: $90,879,143

Actual Outlays: $22,756,608

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $869,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200026W

IDV Type: GWAC

Timeline