USDA awards $6.87M for EBT anti-fraud system maintenance and enhancements to Science Applications International Corporation

Contract Overview

Contract Amount: $6,873,619 ($6.9M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Agriculture

Start Date: 2025-03-01

End Date: 2027-03-15

Contract Duration: 744 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USDA/FNS OFFICE OF INFORMATION TECHNOLOGY OPERATION AND MAINTENANCE OF ANTI-FRAUD LOCATOR USING ELECTRONIC BENEFITS TRANSFER (EBT) RETAILER TRANSACTIONS (ALERT) SYSTEM. OBJECTIVE IS TO ENSURE CONTINUED SYSTEM OPERATIONS WHILE IMPLEMENTING SYSTEM ENHA

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: USDA/FNS OFFICE OF INFORMATION TECHNOLOGY OPERATION AND MAINTENANCE OF ANTI-FRAUD LOCATOR USING ELECTRONIC BENEFITS TRANSFER (EBT) RETAILER TRANSACTIONS (ALERT) SYSTEM. OBJECTIVE IS TO ENSURE CONTINUED SYSTEM OPERATIONS WHILE IMPLEMENTING SYSTEM ENHA Key points: 1. Contract focuses on maintaining and enhancing an anti-fraud system for Electronic Benefits Transfer (EBT) retailer transactions. 2. The system, ALERT, aims to ensure continued operations and implement new features. 3. Awarded to Science Applications International Corporation (SAIC) under a BPA Call. 4. Contract duration is approximately two years, ending March 2027. 5. The contract type is Firm Fixed Price, indicating predictable costs for the government. 6. This award represents a significant investment in safeguarding federal benefits programs. 7. The objective is to prevent fraud and ensure the integrity of EBT transactions.

Value Assessment

Rating: good

The contract value of $6.87 million over approximately two years for IT operations and maintenance, including enhancements, appears reasonable for a system of this nature. Benchmarking against similar government IT support contracts for fraud detection systems suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty. However, a more granular breakdown of costs for maintenance versus enhancements would allow for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing value, the relatively low number of bids might warrant further investigation into market dynamics or potential barriers to entry for other qualified vendors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it generally drives down prices through market forces. Even with two bidders, the competitive process helps ensure the government secures a fair price for the services rendered.

Public Impact

Benefits recipients of federal nutrition assistance programs by ensuring the integrity of the EBT system. Protects taxpayer funds by reducing fraud in EBT retailer transactions. Supports the operational continuity of critical financial systems for the USDA. Enhances the capabilities of the ALERT system to detect and prevent fraudulent activities. Impacts the IT sector by providing work for a major government contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if enhancement requirements are not clearly defined and managed.
Dependence on a single contractor for critical system operations and maintenance.
Risk of vendor lock-in if transition to a new vendor is complex or costly.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Awarded under full and open competition, suggesting a competitive bidding process.
Focus on anti-fraud measures aligns with government priorities for fiscal responsibility.
System enhancements aim to improve the effectiveness of fraud detection.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a crucial segment of the IT industry supporting government operations. The market for IT services supporting federal agencies is substantial, with significant spending on system maintenance, operations, and modernization. This specific contract addresses a niche but vital area of fraud prevention within financial systems, complementing broader efforts in cybersecurity and data integrity. Comparable spending benchmarks for similar IT support contracts often range from several million to tens of millions of dollars annually, depending on system complexity and scope.

Small Business Impact

This contract was not set aside for small businesses and was awarded to Science Applications International Corporation, a large business. There is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, although SAIC may engage small businesses as subcontractors in its broader operations.

Oversight & Accountability

The contract is managed by the USDA's Office of the Chief Financial Officer, which provides a level of financial oversight. The firm-fixed-price nature of the contract offers some cost control. Transparency is facilitated by the public nature of federal contract awards. Further oversight would typically involve regular performance reviews, milestone tracking, and potentially audits by the USDA's Office of Inspector General, depending on the scale and nature of any identified risks or issues.

Related Government Programs

USDA EBT System Operations
Federal Anti-Fraud Initiatives
IT Operations and Maintenance Contracts
Computer Systems Design Services
Electronic Benefits Transfer Systems

Risk Flags

Potential for vendor lock-in
Scope creep in enhancement requirements
Dependence on contractor for critical system operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. USDA/FNS OFFICE OF INFORMATION TECHNOLOGY OPERATION AND MAINTENANCE OF ANTI-FRAUD LOCATOR USING ELECTRONIC BENEFITS TRANSFER (EBT) RETAILER TRANSACTIONS (ALERT) SYSTEM. OBJECTIVE IS TO ENSURE CONTINUED SYSTEM OPERATIONS WHILE IMPLEMENTING SYSTEM ENHA

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $6.9 million.

What is the period of performance?

Start: 2025-03-01. End: 2027-03-15.

What is the historical spending pattern for the ALERT system or similar anti-fraud systems within USDA?

Historical spending data for the ALERT system or comparable anti-fraud systems within the USDA is not detailed in the provided information. However, understanding past expenditures on system maintenance, upgrades, and operational support is crucial for evaluating the current $6.87 million award. Typically, agencies maintain records of previous contract values, durations, and awarded vendors for similar services. Analyzing this historical data would allow for a trend analysis, identifying whether current spending represents an increase, decrease, or stable investment in fraud prevention technology. Without this context, it is difficult to definitively assess if the current award is cost-effective over the long term or if it aligns with historical budget allocations for such critical systems.

How does the per-unit cost or cost per function of the ALERT system compare to industry benchmarks for similar fraud detection software?

A precise per-unit cost or cost per function benchmark for the ALERT system is not calculable from the provided data. The contract value of $6.87 million covers a broad scope of operations and maintenance, along with system enhancements, over approximately two years. To perform a meaningful comparison, detailed metrics on the system's functionalities (e.g., number of transactions processed, types of fraud detected, user base) and associated costs would be required. Industry benchmarks for fraud detection software vary widely based on complexity, scale, and vendor. Government IT contracts often include performance metrics and cost breakdowns that can be used for benchmarking, but this level of detail is absent here. A thorough analysis would involve comparing the cost per detected fraud incident or cost per transaction monitored against industry averages for similar solutions.

What is Science Applications International Corporation's (SAIC) track record with USDA or similar federal agencies for IT operations and maintenance contracts?

Science Applications International Corporation (SAIC) is a large, established government contractor with a significant track record across various federal agencies, including the Department of Agriculture. SAIC has extensive experience in providing IT services, including system operations, maintenance, and modernization. Their past performance with USDA and other departments would likely include a range of contracts, from infrastructure support to complex software development and integration. A review of SAIC's contract history, past performance evaluations (e.g., CPARS reports), and any documented issues or successes on similar projects would provide insight into their reliability, technical capabilities, and ability to deliver on complex IT requirements. Given their size and scope, it is probable they have successfully managed numerous similar contracts.

What specific enhancements are planned for the ALERT system under this contract, and what is their expected impact on fraud detection effectiveness?

The provided data indicates that the contract aims to implement 'system enhancements' for the ALERT system, but it does not specify the nature or scope of these enhancements. To assess their impact, detailed information regarding the planned upgrades is necessary. These enhancements could range from improving algorithms for anomaly detection, expanding the system's data processing capabilities, integrating new data sources, or enhancing user interfaces for analysts. The expected impact on fraud detection effectiveness would depend directly on the nature of these improvements. For instance, enhanced algorithms might lead to a higher detection rate of sophisticated fraud schemes, while expanded data processing could allow for real-time analysis of larger transaction volumes. A clear articulation of the enhancement objectives and their anticipated outcomes is crucial for evaluating the contract's value proposition.

Are there any known risks or challenges associated with the ALERT system's current architecture or performance that this contract aims to address?

The provided summary does not explicitly detail known risks or challenges associated with the ALERT system's current architecture or performance. However, the objective to 'ensure continued system operations while implementing system enhancements' suggests a proactive approach to maintaining system health and potentially addressing areas of concern. Common risks in such systems include aging infrastructure, scalability limitations, cybersecurity vulnerabilities, or outdated software components. The enhancements funded by this contract are likely intended to mitigate such risks by modernizing components, improving security protocols, or increasing system resilience. A deeper dive into system performance reports, previous risk assessments, or agency documentation would be needed to identify specific challenges the contract is designed to overcome.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314425Q0033

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,423,162

Exercised Options: $6,873,619

Current Obligation: $6,873,619

Actual Outlays: $2,828,064

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12760420A0005

IDV Type: BPA

Timeline