NOAA Awards $8.79M Cloud Hosting Contract to SAIC for Software Development and Hosting Systems

Contract Overview

Contract Amount: $8,786,893 ($8.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Commerce

Start Date: 2025-03-01

End Date: 2027-02-28

Contract Duration: 729 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS EFFORT WILL PROVIDE ENTERPRISE-LEVEL CLOUD HOSTING IN THE SUPPORT OF THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION (NOAA), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO), SOFTWARE DEVELOPMENT AND HOSTING SYSTEMS BRANCH (SDHS), WEB OPERATIO

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $8.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THIS EFFORT WILL PROVIDE ENTERPRISE-LEVEL CLOUD HOSTING IN THE SUPPORT OF THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION (NOAA), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO), SOFTWARE DEVELOPMENT AND HOSTING SYSTEMS BRANCH (SDHS), WEB OPERATIO Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for enterprise-level cloud hosting. 2. The effort supports NOAA's Office of the Chief Information Officer (OCIO) Software Development and Hosting Systems Branch. 3. This contract falls under the Custom Computer Programming Services NAICS code (541511). 4. The contract has a firm fixed price and a duration of 729 days.

Value Assessment

Rating: good

The contract value of $8.79 million for a 729-day period appears reasonable for enterprise-level cloud hosting services. Benchmarking against similar government cloud hosting contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for essential NOAA IT infrastructure.

Public Impact

Ensures continued operation of NOAA's critical software development and hosting systems. Supports NOAA's mission by providing reliable cloud infrastructure for web operations. Enhances the stability and performance of NOAA's digital services for the public and internal users.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and cloud hosting. Government spending in this area is substantial, with benchmarks varying widely based on scope and service level agreements.

Small Business Impact

The data indicates that neither small business nor socio-economic set-asides were utilized for this specific award. Further analysis would be needed to determine if opportunities were missed for small businesses in this procurement.

Oversight & Accountability

The contract was awarded by the Department of Commerce to NOAA, indicating established agency oversight. The firm fixed price structure provides a degree of financial accountability.

Related Government Programs

Risk Flags

Tags

custom-computer-programming-services, department-of-commerce, md, bpa-call, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $8.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THIS EFFORT WILL PROVIDE ENTERPRISE-LEVEL CLOUD HOSTING IN THE SUPPORT OF THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION (NOAA), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO), SOFTWARE DEVELOPMENT AND HOSTING SYSTEMS BRANCH (SDHS), WEB OPERATIO

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 $8.8 million.

What is the period of performance?

Start: 2025-03-01. End: 2027-02-28.

What specific cloud services are included in this contract, and how do they align with NOAA's long-term IT strategy?

The contract specifies enterprise-level cloud hosting to support NOAA's software development and hosting systems, particularly for web operations. While the exact services aren't detailed, the focus on hosting suggests infrastructure-as-a-service (IaaS) or platform-as-a-service (PaaS) components. Alignment with NOAA's long-term IT strategy would depend on whether this contract supports modernization efforts, migration to cloud-native architectures, or simply sustains existing operations.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this cloud hosting contract to ensure effectiveness?

While not explicitly stated in the provided data, effective cloud hosting contracts typically include robust KPIs and SLAs. These would likely cover aspects such as uptime guarantees (e.g., 99.99%), response times for incidents, performance metrics (latency, throughput), security compliance adherence, and disaster recovery capabilities. Monitoring these metrics is crucial for ensuring the contractor meets performance expectations and taxpayer value.

What is the risk of vendor lock-in with SAIC for NOAA's cloud hosting, and what mitigation strategies are in place?

The primary risk of vendor lock-in arises from proprietary technologies or complex integrations that make switching providers difficult and costly. Mitigation strategies could include ensuring adherence to open standards, maintaining data portability, regularly reviewing contract terms for exit clauses, and fostering multi-cloud or hybrid cloud strategies where feasible. NOAA should actively manage this relationship to prevent excessive dependence.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - STORAGE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1305M425Q0037

Pricing Type: FIRM FIXED PRICE (J)

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: $9,645,118

Exercised Options: $9,645,118

Current Obligation: $8,786,893

Actual Outlays: $4,619,079

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $8,624,565

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1305L419ANAAJ0008

IDV Type: BPA

Timeline

Start Date: 2025-03-01

Current End Date: 2027-02-28

Potential End Date: 2027-02-28 00:00:00

Last Modified: 2026-03-30

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