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
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 Services › Computer Systems Design and Related Services › Computer 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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