DHS Awards $52.5M Task Order for Computer Facilities Management Services to Peraton
Contract Overview
Contract Amount: $52,492,411 ($52.5M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Homeland Security
Start Date: 2008-03-06
End Date: 2012-05-31
Contract Duration: 1,547 days
Daily Burn Rate: $33.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: THE FOLLOWING IS THE TASK ORDER AWARD, HSCETC-08-J-00010, UNDER ELECTRONIC DATA SYSTEM'S EAGLE CONTRACT HSHQDC-06-D-00032.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $52.5 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: THE FOLLOWING IS THE TASK ORDER AWARD, HSCETC-08-J-00010, UNDER ELECTRONIC DATA SYSTEM'S EAGLE CONTRACT HSHQDC-06-D-00032. Key points: 1. Significant award value of $52.5 million over 4 years. 2. Awarded under the competitive EAGLE contract, indicating a structured procurement process. 3. Potential for cost overruns given the Cost Plus Fixed Fee contract type. 4. Focus on IT services, specifically Computer Facilities Management, a critical government function.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can incentivize contractor efficiency but also carries a risk of cost overruns if not managed closely. Benchmarking CPFF contracts for similar IT services is difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded as a competitive delivery order under the EAGLE contract, suggesting multiple vendors had the opportunity to bid. The competitive nature should drive price discovery, but the CPFF structure requires careful oversight to ensure value.
Taxpayer Impact: Taxpayer funds are being utilized for essential IT infrastructure management. The competitive award aims for efficiency, but CPFF requires vigilance to prevent unnecessary spending.
Public Impact
Ensures continued operation of critical IT infrastructure for U.S. Immigration and Customs Enforcement. Supports national security and law enforcement functions through reliable technology. Potential impact on government's ability to manage and secure sensitive data.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires close monitoring to control costs.
- Long duration of the task order (over 4 years) necessitates ongoing performance evaluation.
Positive Signals
- Awarded under a competitive contract vehicle.
- Task order addresses a critical IT service need for a major agency.
Sector Analysis
This award falls within the Information Technology sector, specifically focusing on IT facilities management. Government spending in this area is substantial, driven by the need to maintain complex and aging systems while adopting new technologies.
Small Business Impact
The data indicates the awardee, Peraton Enterprise Solutions LLC, is not a small business. Further analysis would be needed to determine if small business subcontracting opportunities were included or met.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of Homeland Security to ensure costs are reasonable and the fixed fee is earned. Performance metrics and regular audits are crucial for accountability.
Related Government Programs
- Computer Facilities Management Services
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Long contract duration requires sustained oversight and performance management.
- Potential for vendor lock-in if transition planning is inadequate.
- Dependence on a single contractor for critical IT infrastructure.
Tags
computer-facilities-management-services, department-of-homeland-security, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $52.5 million to PERATON ENTERPRISE SOLUTIONS LLC. THE FOLLOWING IS THE TASK ORDER AWARD, HSCETC-08-J-00010, UNDER ELECTRONIC DATA SYSTEM'S EAGLE CONTRACT HSHQDC-06-D-00032.
Who is the contractor on this award?
The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).
What is the total obligated amount?
The obligated amount is $52.5 million.
What is the period of performance?
Start: 2008-03-06. End: 2012-05-31.
How effectively will the Cost Plus Fixed Fee structure be managed to ensure cost efficiency and prevent overruns for this $52.5 million contract?
Effective management of a CPFF contract hinges on stringent oversight, detailed cost tracking, and clear performance metrics. The agency must actively monitor all incurred costs, scrutinize the contractor's fee calculations, and ensure that the fixed fee is tied to achieving specific, measurable performance objectives. Regular audits and progress reviews are essential to identify potential cost escalations early and implement corrective actions.
What are the key performance indicators (KPIs) for this Computer Facilities Management Services task order, and how will they be measured to ensure service effectiveness?
Key performance indicators likely include system uptime percentages, response times for incident resolution, data security compliance rates, and successful completion of scheduled maintenance. Effectiveness will be measured through regular reporting by the contractor, validated by agency personnel, and potentially through independent audits. Performance against these KPIs should directly influence the contractor's ability to earn their fixed fee.
Given the competitive nature of the EAGLE contract, what specific advantages did Peraton Enterprise Solutions LLC offer that led to this award for critical ICE IT services?
While the specific advantages are not detailed, Peraton likely demonstrated superior technical capabilities, a proven track record in managing similar large-scale IT facilities, competitive pricing within the CPFF structure, and a strong understanding of ICE's unique operational requirements. Their proposed approach to managing complex IT infrastructure and ensuring high availability and security would have been critical evaluation factors.
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
Solicitation ID: HSCETC-08-Q-00001
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: HP, Inc. (UEI: 009122532)
Address: 13600 EDS DR, HERNDON, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $58,200,376
Exercised Options: $58,200,376
Current Obligation: $52,492,411
Parent Contract
Parent Award PIID: HSHQDC06D00032
IDV Type: IDC
Timeline
Start Date: 2008-03-06
Current End Date: 2012-05-31
Potential End Date: 2012-05-31 00:00:00
Last Modified: 2011-09-27
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