DHS awards $749M for IT services to Peraton, continuing prior contracts
Contract Overview
Contract Amount: $749,466,260 ($749.5M)
Contractor: Peraton Enterprise Solutions LLC
Awarding Agency: Department of Homeland Security
Start Date: 2007-08-31
End Date: 2015-06-26
Contract Duration: 2,856 days
Daily Burn Rate: $262.4K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 7
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: 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.
Place of Performance
Location: CLARKSVILLE, MECKLENBURG County, VIRGINIA, 23927
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $749.5 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: 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. Key points: 1. Significant contract value of $749M over 8 years. 2. Competitive delivery order indicates some price discovery. 3. Long duration may pose risks for technology obsolescence. 4. IT services sector is highly dynamic and competitive.
Value Assessment
Rating: fair
The total award amount of $749M over nearly 8 years suggests a substantial investment. Benchmarking against similar large-scale IT service contracts is difficult without more granular data on specific services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was a competitive delivery order, indicating that multiple vendors likely competed. The 'down select process' suggests a structured approach to selecting the best value, which should aid in price discovery.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, suggesting efforts to secure reasonable pricing for extensive IT services.
Public Impact
Ensures continued IT support for Department of Homeland Security operations. Long-term commitment may impact agency's ability to adopt newer technologies. Potential for vendor lock-in over the contract's extended period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (8 years)
- Time and Materials pricing
- Continuation of prior contracts
Positive Signals
- Competitive award
- Significant value indicates critical need
Sector Analysis
This contract falls within the IT services sector, specifically Computer Facilities Management. Spending in this area is substantial across government, with benchmarks varying widely based on service scope and complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of small business participation or subcontracting goals.
Oversight & Accountability
As a continuation of prior solicitations, oversight may be established. However, the long duration and time-and-materials structure warrant careful monitoring of performance and costs.
Related Government Programs
- Computer Facilities Management Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Potential for technology obsolescence due to long duration.
- Risk of cost overruns with Time and Materials pricing.
- Lack of small business participation.
- Limited transparency on specific services provided.
- Vendor lock-in potential over extended period.
Tags
computer-facilities-management-services, department-of-homeland-security, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $749.5 million to PERATON ENTERPRISE SOLUTIONS LLC. 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.
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 (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $749.5 million.
What is the period of performance?
Start: 2007-08-31. End: 2015-06-26.
What specific IT services are included under this "Computer Facilities Management Services" contract, and how do they align with current DHS needs?
The provided data lacks specifics on the exact services. "Computer Facilities Management Services" is broad and could encompass hardware maintenance, network operations, data center management, or IT support. Understanding the precise scope is crucial to assess if the services remain relevant and effective given the 8-year duration and rapid technological advancements in IT.
How was the Time and Materials pricing structure managed to ensure cost-effectiveness over the contract's long duration?
Time and Materials (T&M) contracts can be prone to cost overruns if not managed diligently. For this $749M contract spanning nearly 8 years, effective oversight would involve rigorous tracking of labor hours, rates, and material costs, along with clear ceilings and performance metrics to prevent uncontrolled spending and ensure value for taxpayer money.
What mechanisms were in place to ensure the competitive down-select process yielded the best value for the government?
A competitive down-select process implies a structured evaluation of multiple proposals against defined criteria. To ensure best value, the government likely assessed technical approach, past performance, and price. The effectiveness hinges on the clarity of evaluation factors, the rigor of the assessment, and the fairness of the comparison to achieve optimal outcomes for the $749M investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 13600 EDS DR, HERNDON, VA, 20171
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,365,251,610
Exercised Options: $749,626,719
Current Obligation: $749,466,260
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSHQDC06D00032
IDV Type: IDC
Timeline
Start Date: 2007-08-31
Current End Date: 2015-06-26
Potential End Date: 2019-05-08 00:00:00
Last Modified: 2022-09-16
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