HHS Awards $172.7M for IT Services to Peraton Enterprise Solutions LLC Under Full and Open Competition
Contract Overview
Contract Amount: $172,711,147 ($172.7M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2013-04-01
End Date: 2018-06-30
Contract Duration: 1,916 days
Daily Burn Rate: $90.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF IT AND TELECOM - OTHER
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $172.7 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::CT::IGF IT AND TELECOM - OTHER Key points: 1. The contract value of $172.7 million over approximately 5 years indicates a significant investment in IT infrastructure. 2. Peraton Enterprise Solutions LLC secured this award through full and open competition, suggesting a competitive bidding process. 3. The risk appears moderate given the firm fixed-price contract type, which shifts some cost risk to the contractor. 4. The sector is IT and Telecom, specifically focusing on Computing Infrastructure, Data Processing, and Web Hosting services.
Value Assessment
Rating: good
The contract value of $172.7 million for 5 years suggests a substantial but potentially competitive price for comprehensive IT infrastructure services. Benchmarking against similar large-scale government IT contracts would provide a clearer picture of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award is expected to result in a fair price for taxpayers, avoiding excessive costs associated with sole-source or limited competition contracts.
Public Impact
Ensures continued operation of critical healthcare IT systems for Medicare and Medicaid. Supports data processing and web hosting essential for public health services. Provides a stable IT infrastructure for a major federal agency. Potential for innovation in computing infrastructure through contractor performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration and value may lead to vendor lock-in concerns.
- Reliance on a single vendor for critical IT infrastructure.
- Potential for scope creep if not managed effectively.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract type.
- Experienced contractor likely to deliver reliable services.
Sector Analysis
This contract falls within the IT and Telecom sector, specifically focusing on computing infrastructure, data processing, and web hosting. Government spending in this area is consistently high due to the essential nature of these services for agency operations.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to Peraton Enterprise Solutions LLC. There is no explicit information on small business subcontracting participation in this data.
Oversight & Accountability
The contract was awarded by the Centers for Medicare and Medicaid Services (CMS), a major agency within HHS. Oversight would typically involve contract management teams within CMS to ensure performance and adherence to terms.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for vendor lock-in.
- Reliance on a single provider for critical infrastructure.
- Scope creep risk.
- Cybersecurity vulnerabilities.
- Contract performance monitoring challenges.
Tags
computing-infrastructure-providers-data-, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $172.7 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::CT::IGF IT AND TELECOM - OTHER
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 $172.7 million.
What is the period of performance?
Start: 2013-04-01. End: 2018-06-30.
What is the specific breakdown of services provided under this contract and how do they align with CMS's strategic IT goals?
The contract covers computing infrastructure, data processing, and web hosting. These services are fundamental to CMS's mission of administering Medicare and Medicaid. Alignment with strategic goals would depend on CMS's specific IT modernization plans, such as cloud migration, data analytics enhancements, or cybersecurity improvements, which are not detailed in the provided data.
How does the per-unit cost of services compare to industry benchmarks, considering the scale and scope of this contract?
Without specific unit cost data or detailed service breakdowns, a direct comparison to industry benchmarks is challenging. However, the $172.7 million value over five years for comprehensive IT infrastructure suggests a significant investment. Government contracts often have different pricing structures than commercial ones due to regulatory requirements and service level agreements.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure effectiveness and value for money?
The provided data does not specify the KPIs or SLAs. Typically, for IT infrastructure contracts of this magnitude, KPIs would focus on uptime, response times, security compliance, and data integrity. Robust SLAs are crucial for ensuring the contractor meets performance expectations and delivers value to taxpayers.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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: RFPCMS20120007
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
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: $172,711,147
Exercised Options: $172,711,147
Current Obligation: $172,711,147
Actual Outlays: $41,046
Subaward Activity
Number of Subawards: 59
Total Subaward Amount: $14,859,293
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201300014I
IDV Type: IDC
Timeline
Start Date: 2013-04-01
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2024-08-12
More Contracts from Peraton Enterprise Solutions LLC
- Federal Contract — $1.2B (Department of Health and Human Services)
- Other ADP & Telecommunications Services — $771.5M (Department of Defense)
- THE Agency Consolidated End-User Services (aces)contract Will Provide and Manage Nasa's Personal Computing Hardware, Agency Standard Software, Mobile IT Services, Peripherals and Accessories, Associated End-User Services, and Supporting Infrastructure — $769.2M (National Aeronautics and Space Administration)
- THE Above Solicitation Number IS a Continuation of Solicitation Numbers Hshqdc-07-Q-00050a and Hshqdc-07-Q-00050b. This Number IS for the Down Select Process and Shall Start With Base Notice Even Though ALL Amendments ARE Attached From Phase ONE — $749.5M (Department of Homeland Security)
- Other ADP & Telecommunications Services — $674.7M (Department of Defense)
View all Peraton Enterprise Solutions LLC federal contracts →
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →