Commerce Awards $28.8M for Enterprise Infrastructure Platform to Science Applications International Corp
Contract Overview
Contract Amount: $28,813,509 ($28.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Commerce
Start Date: 2023-04-04
End Date: 2027-01-03
Contract Duration: 1,370 days
Daily Burn Rate: $21.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: ENTERPRISE INFRASTRUCTURE PRODUCT LINE RAPID PHASED PRODUCTION - PLATFORM
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Commerce obligated $28.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENTERPRISE INFRASTRUCTURE PRODUCT LINE RAPID PHASED PRODUCTION - PLATFORM Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for enterprise infrastructure platform. 2. The contract is for Computer Systems Design Services, a common sector for IT support. 3. The award is a definitive contract with a significant duration, indicating a long-term need. 4. The lack of competition raises questions about potential price discovery and value for taxpayers.
Value Assessment
Rating: questionable
The contract is structured as labor hours, which can be less predictable in cost than fixed-price contracts. Without a competitive bidding process, it's difficult to benchmark the pricing against similar services to ensure optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This limits the opportunity for price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services, as there was no market pressure to drive down costs.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long-term nature of the contract suggests a critical need for these services within the USPTO. The reliance on a single vendor for essential IT infrastructure could pose a risk if performance issues arise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Labor hour contract type
- Potential for cost overruns
Positive Signals
- Long-term contract duration
- Award to established vendor
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government agencies, with significant variation based on complexity and scope.
Small Business Impact
The contract was not competed and the awardee is a large business. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The lack of competition warrants further oversight to ensure the government is receiving fair value. Accountability for performance and cost management will be crucial throughout the contract's duration.
Related Government Programs
- Computer Systems Design Services
- Department of Commerce Contracting
- U.S. Patent and Trademark Office Programs
Risk Flags
- Sole-source award
- Labor hour contract type
- Potential for cost overruns
- Lack of transparency in pricing
Tags
computer-systems-design-services, department-of-commerce, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $28.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ENTERPRISE INFRASTRUCTURE PRODUCT LINE RAPID PHASED PRODUCTION - PLATFORM
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 (U.S. Patent and Trademark Office).
What is the total obligated amount?
The obligated amount is $28.8 million.
What is the period of performance?
Start: 2023-04-04. End: 2027-01-03.
What specific factors justified the sole-source award for this critical enterprise infrastructure platform?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without further documentation, it's unclear if these criteria were met. Understanding the specific technical requirements and market research conducted is essential to assess the validity of the sole-source determination and ensure it served the government's best interest.
How will the Department of Commerce ensure cost control and value for money given the labor hour contract type and lack of competition?
Effective oversight, including detailed performance monitoring, regular cost reviews, and robust contract management, will be critical. The agency should establish clear performance metrics and milestones, and actively manage the labor hours utilized. Benchmarking against industry standards for similar services, even without direct competition, can help identify potential cost efficiencies and ensure value.
What are the potential risks associated with a long-term, sole-source contract for enterprise infrastructure, and how are they being mitigated?
Risks include vendor lock-in, potential for complacency, and difficulty adapting to evolving technological needs. Mitigation strategies may involve incorporating flexibility clauses, regular performance reviews, and contingency planning for vendor transition. The agency should also maintain open communication with the vendor to ensure alignment with future requirements and explore opportunities for innovation.
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 - PLATFORM
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 1333BJ23R00280001
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
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: $43,756,079
Exercised Options: $28,813,509
Current Obligation: $28,813,509
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-04-04
Current End Date: 2027-01-03
Potential End Date: 2028-04-03 00:00:00
Last Modified: 2026-01-16
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