Commerce awards $7.3M for cloud infrastructure services to Science Applications International Corporation
Contract Overview
Contract Amount: $7,317,127 ($7.3M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Commerce
Start Date: 2025-08-15
End Date: 2027-01-22
Contract Duration: 525 days
Daily Burn Rate: $13.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TRAFFIC COORDINATION FOR SYSTEM FOR SPACE (TRACSS) CLOUD INFRASTRUCTURE SERVICES
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $7.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TRAFFIC COORDINATION FOR SYSTEM FOR SPACE (TRACSS) CLOUD INFRASTRUCTURE SERVICES Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-competed framework. 2. Services include traffic coordination for cloud infrastructure, a critical component for NOAA's operations. 3. The contract duration of 525 days suggests a focused, project-specific need rather than long-term support. 4. The contractor, Science Applications International Corporation, is a large, established entity in the federal IT space. 5. Pricing is Time and Materials, which can pose risks if not closely managed. 6. No small business set-aside was utilized, suggesting the primary competition was open to all responsible sources.
Value Assessment
Rating: fair
The contract value of $7.3 million over approximately 1.75 years appears moderate for cloud infrastructure services. Benchmarking against similar contracts for traffic coordination or cloud management services would be necessary for a definitive value assessment. The Time and Materials pricing model, while flexible, requires diligent oversight to prevent cost overruns and ensure value for money. Without specific performance metrics or comparison data, it's difficult to definitively assess the value proposition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a Full and Open Competition via a BPA Call. This indicates that the underlying BPA was likely competed previously, and this call-off was made available to all eligible vendors on that BPA. The specific number of bidders for this BPA Call is not provided, but the 'full and open' designation suggests a broad competitive field was intended.
Taxpayer Impact: A full and open competition generally promotes price discovery and can lead to more competitive pricing for taxpayers. However, the effectiveness depends on the number of actual bids received for this specific BPA Call.
Public Impact
Benefits NOAA's National Oceanic and Atmospheric Administration by ensuring efficient traffic coordination for its cloud infrastructure. Supports the delivery of critical weather, climate, and oceanic data services to the public and scientific community. The geographic impact is primarily within the contractor's operational base, likely supporting federal IT infrastructure nationwide. Workforce implications include skilled IT professionals for cloud management and network traffic coordination.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to uncontrolled costs if not managed rigorously.
- Lack of specific performance metrics in the provided data makes it difficult to assess contractor efficiency.
- The BPA Call mechanism, while efficient, relies on the quality of the initial BPA competition.
Positive Signals
- Awarded under Full and Open Competition, suggesting a competitive process.
- Contractor (SAIC) is a large, experienced federal IT services provider.
- BPA Call mechanism can streamline procurement for recurring needs.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on cloud infrastructure management and network traffic coordination. The market for cloud services and related IT support is substantial and highly competitive, with numerous large and small businesses vying for federal contracts. NOAA's reliance on cloud computing for data processing and dissemination places this contract within a critical area of federal IT spending. Comparable spending benchmarks would typically involve analyzing other NOAA or agency contracts for similar cloud management or network operations support.
Small Business Impact
The contract was not awarded as a small business set-aside. Given the nature of cloud infrastructure services and the prime contractor's size, it is possible that subcontracting opportunities for small businesses may exist, particularly for specialized support roles. However, without specific subcontracting plans or goals outlined, the direct impact on the small business ecosystem is not immediately clear.
Oversight & Accountability
Oversight for this contract would typically fall under NOAA's contracting officers and program managers. As a BPA Call, the underlying BPA likely has its own oversight framework. The Time and Materials pricing structure necessitates close monitoring of labor hours and rates to ensure compliance and prevent overcharging. Inspector General involvement would be contingent on any reported issues or audits related to contract performance or financial accountability.
Related Government Programs
- NOAA Cloud Services
- IT Infrastructure Management
- Network Traffic Management
- Science Applications International Corporation Contracts
- Department of Commerce IT Services
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Need for robust oversight to ensure value for money.
- Dependence on the quality of the underlying BPA competition.
Tags
it-services, cloud-computing, network-traffic-coordination, department-of-commerce, noaa, science-applications-international-corporation, time-and-materials, full-and-open-competition, bpa-call, maryland, moderate-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $7.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TRAFFIC COORDINATION FOR SYSTEM FOR SPACE (TRACSS) CLOUD INFRASTRUCTURE 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 $7.3 million.
What is the period of performance?
Start: 2025-08-15. End: 2027-01-22.
What is the track record of Science Applications International Corporation (SAIC) in delivering similar cloud infrastructure services to the federal government?
Science Applications International Corporation (SAIC) has a significant track record in providing IT services, including cloud solutions, to various federal agencies. They are a large government contractor with extensive experience in areas such as cloud migration, managed services, cybersecurity, and IT modernization. SAIC has held numerous prime contracts for complex IT projects across defense, civilian, and intelligence communities. Their past performance often includes managing large-scale IT infrastructure, supporting mission-critical systems, and implementing cloud strategies for agencies like the Department of Defense, NASA, and the Department of Energy. Specific to cloud infrastructure services, SAIC has been involved in helping agencies transition to cloud environments (AWS, Azure, GCP), optimize cloud spending, and ensure the security and compliance of cloud-based data and applications. Their experience suggests a capability to handle the traffic coordination aspects of cloud infrastructure as required by NOAA.
How does the awarded value of $7.3 million compare to similar cloud traffic coordination contracts?
Comparing the awarded value of $7.3 million for NOAA's TRACSS cloud infrastructure services requires context regarding the scope, duration, and specific services. Cloud traffic coordination can be a component of broader cloud management or network operations contracts. A contract of this value, spanning approximately 1.75 years (525 days), suggests a focused effort rather than a comprehensive, multi-year cloud transformation. Similar contracts for network operations centers (NOCs) or specialized cloud traffic management might range from a few million to tens of millions of dollars annually, depending on the complexity, scale of infrastructure managed (e.g., number of users, data volume, systems supported), and the level of service required (e.g., 24/7 monitoring vs. project-based support). Without detailed scope-of-work comparisons, it's challenging to definitively benchmark this specific award, but it appears to be a moderate-sized award for specialized IT support within the cloud domain.
What are the primary risks associated with a Time and Materials (T&M) contract for cloud services?
The primary risk associated with a Time and Materials (T&M) contract for cloud services, like the one awarded to SAIC for TRACSS, is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure can incentivize longer project durations or increased labor hours if not managed with stringent oversight. For cloud services, this could mean higher-than-expected costs for monitoring, maintenance, or traffic coordination if the scope is not well-defined or if efficiencies are not actively pursued. To mitigate this risk, the government must implement robust oversight, including detailed tracking of hours, verification of work performed, and regular reviews of labor rates and material costs. Clear performance metrics and milestones are also crucial to ensure the contractor remains focused on efficient delivery.
How effective is a BPA Call mechanism for procuring specialized cloud infrastructure services like traffic coordination?
A Blanket Purchase Agreement (BPA) Call mechanism can be highly effective for procuring specialized cloud infrastructure services when the underlying BPA has been properly established through full and open competition. BPAs allow agencies to pre-negotiate terms, conditions, and pricing with multiple vendors for recurring needs, streamlining the ordering process. A BPA Call then allows the agency to quickly issue an order against that BPA for a specific requirement. For services like cloud traffic coordination, where needs might arise with some predictability but require rapid deployment, a BPA Call offers efficiency and can leverage the pre-competed pricing. The effectiveness hinges on the quality of the initial BPA competition, the clarity of the BPA's scope, and the specific terms negotiated. If the BPA was well-competed and its terms are suitable for the TRACSS requirement, the BPA Call should facilitate a timely and potentially cost-effective procurement.
What is the historical spending pattern for cloud infrastructure services at NOAA or the Department of Commerce?
Historical spending patterns for cloud infrastructure services at NOAA and the broader Department of Commerce have shown a consistent increase over the past decade as agencies migrate more workloads to cloud environments. While specific figures for 'traffic coordination' are granular, overall IT spending on cloud computing, managed services, and related infrastructure support has grown significantly. Agencies like NOAA rely heavily on cloud platforms for data processing, storage, and dissemination of critical environmental information. This trend is driven by the need for scalability, flexibility, and cost-efficiency compared to traditional on-premises data centers. Federal IT budgets reflect this shift, with substantial allocations towards cloud modernization initiatives. Analyzing NOAA's specific contract history for IT services, particularly those related to network operations, data management, and cloud hosting, would reveal the trajectory of their investment in these areas.
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: 1305M425Q0014
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: $7,317,127
Exercised Options: $7,317,127
Current Obligation: $7,317,127
Actual Outlays: $5,443,336
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $5,338,088
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 1305L419ANAAJ0008
IDV Type: BPA
Timeline
Start Date: 2025-08-15
Current End Date: 2027-01-22
Potential End Date: 2027-01-22 00:00:00
Last Modified: 2026-03-10
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