DHS awarded $67.2M for IT facilities management, with a single delivery order under a competitive contract

Contract Overview

Contract Amount: $67,225,368 ($67.2M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Homeland Security

Start Date: 2008-05-06

End Date: 2013-09-30

Contract Duration: 1,973 days

Daily Burn Rate: $34.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: IT

Official Description: IT SOFTWARE

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $67.2 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IT SOFTWARE Key points: 1. The contract focused on IT facilities management, a critical but often overlooked area of government operations. 2. While the award was competitive, it was executed via a single delivery order, limiting immediate price comparison. 3. The duration of the contract (over 5 years) suggests a need for stable, long-term support. 4. The specific NAICS code (541513) points to a focus on managing computer infrastructure. 5. The relatively high total award value indicates a significant scope of services required. 6. The contract was awarded to Peraton Enterprise Solutions LLC, a known entity in the federal IT space.

Value Assessment

Rating: fair

Benchmarking the value of this $67.2 million contract is challenging without more detailed service breakdowns. However, the award was a delivery order under a larger contract, suggesting some level of pre-negotiated pricing. The duration of nearly five years implies a need for consistent service delivery. Further analysis would require comparing the specific services rendered against industry standards for IT facilities management and similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The fact that it was a delivery order under a broader contract suggests that the initial contract vehicle itself underwent a competitive process. The specific details of the competition for this particular delivery order, such as the number of bidders, are not provided, but the 'full-and-open' designation implies a robust bidding environment.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and encouraging vendors to offer competitive pricing to secure the business.

Public Impact

This contract directly supports U.S. Immigration and Customs Enforcement (ICE) operations by ensuring the functionality of their IT infrastructure. The services provided are essential for the day-to-day operations of a major federal law enforcement and security agency. The geographic impact is primarily within Virginia, where the contract was performed. The contract likely supported a workforce skilled in IT facilities management, including technicians and system administrators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and efficiency of services delivered.
The total award amount is substantial, increasing the financial risk if performance issues arise.
Limited insight into the specific IT facilities management tasks performed hinders a comprehensive risk assessment.

Positive Signals

Awarded under a competitive contract, suggesting a baseline level of vetting and pricing negotiation.
The contract duration of nearly five years indicates a stable and ongoing need for these services, implying successful past performance.
The vendor, Peraton Enterprise Solutions LLC, is an established government contractor, suggesting familiarity with federal requirements.

Sector Analysis

The IT facilities management sector within the federal government is a significant market, encompassing the maintenance, operation, and support of critical computing infrastructure. This contract falls within the broader IT services category, which consistently ranks among the largest federal spending areas. Comparable spending benchmarks for similar IT facilities management contracts can vary widely based on scope, duration, and specific services, but this award represents a substantial investment in maintaining essential government IT operations.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Peraton Enterprise Solutions LLC, is likely a large business. There is no direct information on subcontracting plans for small businesses within this specific delivery order. The absence of a small business set-aside suggests that the competition was open to all eligible offerors, and the primary focus was on meeting the technical and performance requirements of ICE.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. As a delivery order under a larger contract, it likely adheres to the oversight mechanisms established for the parent contract. Transparency is generally provided through federal procurement databases like FPDS. Accountability measures would be tied to the performance standards and terms outlined in the delivery order. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

IT Infrastructure Management
Data Center Operations
Cloud Computing Services
Network Administration
Cybersecurity Services

Risk Flags

Contract Duration
Single Delivery Order
Limited Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $67.2 million to PERATON ENTERPRISE SOLUTIONS LLC. IT SOFTWARE

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 $67.2 million.

What is the period of performance?

Start: 2008-05-06. End: 2013-09-30.

What specific IT facilities management services were included in this $67.2 million delivery order?

The provided data indicates the contract falls under NAICS code 541513 (Computer Facilities Management Services) and was awarded to Peraton Enterprise Solutions LLC by U.S. Immigration and Customs Enforcement (ICE). However, the specific breakdown of services within this $67.2 million delivery order is not detailed. Generally, computer facilities management encompasses a range of activities such as operating and managing computer systems, data centers, and related infrastructure. This could include services like system monitoring, maintenance, hardware and software installation, troubleshooting, disaster recovery planning, and ensuring the physical security and environmental controls of data centers. Without further documentation, the precise scope remains generalized.

How does the $67.2 million award compare to other federal spending on IT facilities management?

Comparing this $67.2 million award requires context regarding the contract's duration and the specific services rendered. The contract spanned from May 6, 2008, to September 30, 2013, a period of approximately 5 years and 5 months. This averages to roughly $12.4 million per year. Federal spending on IT facilities management is substantial, with numerous contracts awarded annually across various agencies. While $67.2 million over five years is a significant sum, it is not exceptionally high in the context of large-scale federal IT infrastructure support. For instance, major agencies like the Department of Defense or the General Services Administration often manage IT contracts in the hundreds of millions or even billions of dollars. This award appears to be a substantial, but not outlier, investment for ICE's specific needs during that period.

What is the track record of Peraton Enterprise Solutions LLC in delivering IT facilities management services to the federal government?

Peraton Enterprise Solutions LLC, and its parent company Peraton, have a significant track record as a federal contractor, including extensive experience in IT services and facilities management. They have been awarded numerous contracts across various government agencies, often involving complex IT infrastructure, cybersecurity, and mission-critical support. Their history includes managing large-scale IT operations, data centers, and network infrastructure. While specific performance details for this particular ICE contract are not readily available in the provided data, Peraton's overall presence and continued awards in the federal IT sector suggest a capacity to meet government requirements. Prospective analysis would involve reviewing past performance evaluations and contract close-out reports for this and similar contracts undertaken by the company.

What are the potential risks associated with a single delivery order under a competitive contract for IT facilities management?

A primary risk associated with a single delivery order, even under a competitive contract, is the potential for limited price competition for that specific order. While the overarching contract vehicle may have been competitively awarded, the terms and pricing for individual delivery orders might be less scrutinized or subject to less direct competition if only one vendor is fulfilling it. This could lead to suboptimal pricing if not carefully managed. Another risk relates to vendor lock-in; if the services are highly specialized or integrated, switching vendors for future needs could be complex and costly. Furthermore, if the delivery order represents a significant portion of the contract's value, performance issues with that single order could have a disproportionate impact on the overall program.

How did the competition level for this contract potentially impact price discovery and taxpayer value?

The contract was designated as 'full-and-open' competition, which is generally favorable for price discovery. This means that all eligible responsible sources were permitted to submit a bid. The fact that it was a delivery order under a broader contract implies that the initial contract vehicle itself was likely competed. However, the specific number of bidders for this particular delivery order is not provided. If multiple vendors submitted bids for this specific delivery order, it would have driven price competition, likely resulting in a more favorable price for the government and taxpayers. If, however, only a few vendors were capable or interested, or if it was a sole-source delivery order under a competitive IDIQ, the price discovery might have been less robust, potentially leading to higher costs than if broader competition had been feasible for the specific task.

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-00002

Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)

Address: 13600 EDS DR, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $72,830,924

Exercised Options: $72,606,556

Current Obligation: $67,225,368

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00032

IDV Type: IDC

Timeline