Commerce Awards $44.6M for Cloud Utility Services to Science Applications International Corp
Contract Overview
Contract Amount: $44,641,320 ($44.6M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Commerce
Start Date: 2022-07-01
End Date: 2025-06-30
Contract Duration: 1,095 days
Daily Burn Rate: $40.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: CLOUD UTILITY SERVICES
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $44.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: CLOUD UTILITY SERVICES Key points: 1. Contract awarded to a single large business, Science Applications International Corporation. 2. The contract is for cloud utility services, a critical component for modern government operations. 3. Potential risk associated with a single vendor for essential cloud services. 4. Spending falls within the IT sector, specifically custom computer programming services.
Value Assessment
Rating: fair
The award amount of $44.6M over three years for cloud utility services appears moderate. Benchmarking against similar large-scale cloud service contracts is difficult without more specific service level agreements and usage data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. The award type is a BPA Call, indicating it's a call against an existing Blanket Purchase Agreement.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple bids and driving down costs.
Public Impact
Ensures NOAA has access to necessary cloud computing resources for data processing and analysis. Supports scientific research and operational needs of the National Oceanic and Atmospheric Administration. Potential for cost savings through efficient cloud resource utilization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor for critical cloud infrastructure.
- Potential for cost overruns if usage exceeds projections.
- Vendor lock-in concerns.
Positive Signals
- Awarded through full and open competition.
- Supports essential NOAA operations.
- Long-term contract provides stability.
Sector Analysis
This contract falls under the Information Technology sector, specifically custom computer programming services. Cloud utility services are a growing area of government spending, with significant investment in scalable and flexible computing solutions.
Small Business Impact
The contract was awarded to a large business (Science Applications International Corporation) and does not indicate any specific set-asides or participation goals for small businesses.
Oversight & Accountability
The award is a BPA Call, which implies oversight through the parent BPA. Further oversight would involve monitoring service delivery, performance metrics, and adherence to contract terms by NOAA.
Related Government Programs
- Custom Computer Programming Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Potential for vendor lock-in.
- Lack of specific per-unit cost data for benchmarking.
- Reliance on a single large business vendor.
- Contract duration of three years.
Tags
custom-computer-programming-services, department-of-commerce, md, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $44.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. CLOUD UTILITY SERVICES
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $44.6 million.
What is the period of performance?
Start: 2022-07-01. End: 2025-06-30.
What is the projected cost per unit of cloud service, and how does it compare to industry benchmarks?
The provided data does not specify a per-unit cost for cloud services, making direct comparison to industry benchmarks challenging. The total award value is $44.6 million over 1095 days. To assess value, a breakdown of services (e.g., compute, storage, network) and their associated costs would be necessary, alongside an analysis of usage patterns and negotiated rates against market averages for similar government cloud contracts.
What are the primary risks associated with relying on Science Applications International Corporation for these cloud services?
The primary risks include potential vendor lock-in, where switching providers becomes difficult and costly. There's also a risk of service disruptions if the vendor experiences technical issues or financial instability. Furthermore, if the contract terms are not carefully managed, there's a risk of cost overruns if actual usage significantly exceeds initial projections or if pricing escalates unfavorably.
How effectively does this contract support NOAA's mission-critical data processing and analysis needs?
This contract is designed to provide NOAA with essential cloud utility services, which are fundamental for modern data processing and analysis. Assuming the services meet performance requirements and scalability needs, it should effectively support NOAA's mission. However, the true effectiveness will depend on the quality of service, uptime, security, and the ability of the cloud resources to handle the volume and complexity of NOAA's data.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DATA CENTER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 1305L422QNEEG0013
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 12010, SUNSET HILLS ROAD, 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: $49,531,468
Exercised Options: $49,531,468
Current Obligation: $44,641,320
Actual Outlays: $36,842,103
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $59,006,815
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 1305L419ANAAJ0008
IDV Type: BPA
Timeline
Start Date: 2022-07-01
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2026-02-24
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