State Dept. Awards $805M IT Lead Integrator Task Order to SAIC Under Full and Open Competition

Contract Overview

Contract Amount: $805,559,931 ($805.6M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of State

Start Date: 2021-07-30

End Date: 2025-05-08

Contract Duration: 1,378 days

Daily Burn Rate: $584.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE TASK ORDER IS FOR INFORMATION TECHNOLOGY ENGINEERING AND ARCHITECTURE (LEAD INTEGRATOR).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20522

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $805.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THE TASK ORDER IS FOR INFORMATION TECHNOLOGY ENGINEERING AND ARCHITECTURE (LEAD INTEGRATOR). Key points: 1. Significant award for IT engineering and architecture services. 2. SAIC is a major player in government IT contracting. 3. Potential for cost overruns with Time and Materials contract type. 4. Focus on IT services aligns with broad government modernization efforts.

Value Assessment

Rating: good

The award value of $805.5M over approximately 3.8 years is substantial. Benchmarking against similar large-scale IT lead integrator contracts is difficult without more granular data, but the price appears within a reasonable range for the scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing compared to limited or sole-source procurements.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical IT services.

Public Impact

Ensures continuity and modernization of critical State Department IT systems. Supports national security and diplomatic operations through robust IT infrastructure. Potential for job creation within the IT sector, particularly in the DC area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Time and Materials contract type can lead to cost overruns if not closely managed.
  • Dependence on a single integrator for critical IT functions.

Positive Signals

  • Awarded under full and open competition.
  • Long-term contract provides stability for IT services.
  • SAIC is an experienced government contractor.

Sector Analysis

This award falls within the Computer Systems Design Services sector (NAICS 541512), a significant area of federal IT spending. Government benchmarks for lead integrator services vary widely based on complexity and duration.

Small Business Impact

The data indicates the prime contractor is Science Applications International Corporation (SAIC), a large business. There is no explicit information on small business subcontracting participation in this data snippet.

Oversight & Accountability

The Department of State is responsible for oversight. The Time and Materials contract type necessitates diligent monitoring of labor hours and costs to ensure value for money and prevent potential waste.

Related Government Programs

  • Computer Systems Design Services
  • Department of State Contracting
  • Department of State Programs

Risk Flags

  • Time and Materials contract type.
  • Potential for cost overruns.
  • Single integrator dependency.
  • Lack of small business subcontracting detail.

Tags

computer-systems-design-services, department-of-state, dc, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $805.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THE TASK ORDER IS FOR INFORMATION TECHNOLOGY ENGINEERING AND ARCHITECTURE (LEAD INTEGRATOR).

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $805.6 million.

What is the period of performance?

Start: 2021-07-30. End: 2025-05-08.

What specific IT engineering and architecture functions will SAIC perform as the lead integrator?

As the lead integrator, SAIC is expected to manage, design, develop, and maintain complex IT systems for the Department of State. This likely includes network infrastructure, cybersecurity, application development, cloud integration, and overall IT strategy alignment with agency goals. The exact scope will be detailed in the task order's statement of work.

What are the primary risks associated with a Time and Materials contract for this scale of IT services?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for actual labor hours and materials used. Without strict oversight, scope creep, inefficient performance, or inflated labor rates can significantly increase the total cost beyond initial estimates. This necessitates robust monitoring by the contracting officer's representative (COR).

How does this award contribute to the Department of State's overall IT modernization goals?

This task order is crucial for the Department of State's IT modernization by providing a dedicated lead integrator to manage complex system upgrades and new implementations. It allows the agency to leverage specialized expertise for critical infrastructure, aiming to improve efficiency, security, and the ability to support evolving diplomatic and national security missions in a digital age.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM21Q0109

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12010 SUNSET HILLS RD FL 4, 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: $1,258,722,439

Exercised Options: $1,258,722,439

Current Obligation: $805,559,931

Actual Outlays: $377,261,829

Subaward Activity

Number of Subawards: 398

Total Subaward Amount: $946,024,915

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0001

IDV Type: GWAC

Timeline

Start Date: 2021-07-30

Current End Date: 2025-05-08

Potential End Date: 2025-05-08 00:00:00

Last Modified: 2026-03-02

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