HHS Spends $32.6M on Web Hosting via Peraton, Full Competition Achieved
Contract Overview
Contract Amount: $32,645,499 ($32.6M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2014-07-08
End Date: 2019-03-07
Contract Duration: 1,703 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF WEB HOSTING
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $32.6 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::CT::IGF WEB HOSTING Key points: 1. Total contract value of $32.6M over 5 years. 2. Awarded through full and open competition. 3. Potential for cost savings through competitive bidding. 4. IT sector spending for critical health services.
Value Assessment
Rating: good
The contract value of $32.6M for 5 years of web hosting services appears reasonable given the scope. Benchmarking against similar large-scale government IT infrastructure contracts suggests this falls within expected ranges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, allowing all eligible vendors to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Competitive bidding likely resulted in a fair market price, maximizing taxpayer value for essential web hosting services.
Public Impact
Ensures continuous operation of critical Centers for Medicare and Medicaid Services (CMS) web platforms. Supports public access to vital health information and services. Underpins the digital infrastructure for healthcare administration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Long-term contract provides stability.
Sector Analysis
This contract falls within the IT sector, specifically for computing infrastructure and web hosting. Government spending in this area is substantial, supporting agency operations and public-facing services. Benchmarks for similar services vary widely based on scale and complexity.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, Peraton Enterprise Solutions LLC, is a large business, suggesting limited direct opportunities for small businesses on this specific prime contract.
Oversight & Accountability
The contract was awarded via a delivery order under a larger contract vehicle. Oversight would typically be managed by CMS program officials, with potential for IG reviews on performance and spending.
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 over the contract duration.
- Reliance on a single large prime contractor.
- Lack of specific small business participation noted.
Tags
computing-infrastructure-providers-data-, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $32.6 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::CT::IGF WEB HOSTING
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 $32.6 million.
What is the period of performance?
Start: 2014-07-08. End: 2019-03-07.
What specific web hosting services are included in this contract?
The contract falls under NAICS code 518210 (Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services). This typically includes services like server hosting, data storage, content delivery networks, and potentially managed security services for web applications critical to CMS operations.
How does the firm fixed price structure mitigate cost overruns?
A firm fixed price (FFP) contract establishes a ceiling price that the government will not exceed. This shifts the risk of cost overruns to the contractor, incentivizing efficient performance and cost management. Any deviations would require formal contract modifications.
What is the potential impact of vendor lock-in with a 5-year contract?
While a 5-year contract provides stability, it can lead to vendor lock-in if not managed carefully. CMS should ensure clear exit strategies and data portability clauses are in place to facilitate future transitions and maintain competitive leverage at contract renewal.
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: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Peraton Solutions Inc. (UEI: 081218565)
Address: 13600 EDS DR A3S-B53, HERNDON, VA, 20171
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,645,499
Exercised Options: $32,645,499
Current Obligation: $32,645,499
Subaward Activity
Number of Subawards: 42
Total Subaward Amount: $6,302,559
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201300014I
IDV Type: IDC
Timeline
Start Date: 2014-07-08
Current End Date: 2019-03-07
Potential End Date: 2019-07-07 00:00:00
Last Modified: 2020-04-29
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