State Department awards $147M for core data network O&M and cybersecurity to Science Applications International Corporation

Contract Overview

Contract Amount: $147,040,042 ($147.0M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of State

Start Date: 2025-05-09

End Date: 2026-08-08

Contract Duration: 456 days

Daily Burn Rate: $322.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THIS INTERIM AWARD PROVIDES THE PRIMARY ENGINEERING, TIER II AND III OPERATIONS AND MAINTENANCE (O AND M) AND CYBER SECURITY SUPPORT FOR THE DEPARTMENTS CORE DATA NETWORKS AND SERVICES SUCH AS COMMAND-AND-CONTROL MESSAGING EMAIL MOBILE AND REMOTE.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $147.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THIS INTERIM AWARD PROVIDES THE PRIMARY ENGINEERING, TIER II AND III OPERATIONS AND MAINTENANCE (O AND M) AND CYBER SECURITY SUPPORT FOR THE DEPARTMENTS CORE DATA NETWORKS AND SERVICES SUCH AS COMMAND-AND-CONTROL MESSAGING EMAIL MOBILE AND REMOTE. Key points: 1. The contract focuses on essential IT infrastructure, including core data networks, command-and-control messaging, email, and mobile services. 2. This award represents a significant investment in maintaining the operational integrity and security of the Department of State's digital backbone. 3. The duration of 456 days suggests a need for sustained support in critical IT functions. 4. The contract type is Time and Materials, which can introduce cost variability depending on actual labor and material usage. 5. Cybersecurity support is a key component, highlighting the ongoing importance of protecting sensitive government data and systems. 6. The award is a Delivery Order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle.

Value Assessment

Rating: fair

The contract's value of $147 million over approximately 15 months for comprehensive IT operations, maintenance, and cybersecurity is substantial. Benchmarking this against similar large-scale IT support contracts for federal agencies is challenging without more specific service details. However, the Time and Materials pricing structure warrants scrutiny to ensure cost-effectiveness and prevent potential overruns compared to fixed-price or cost-plus-incentive-fee arrangements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield fair market pricing and a selection based on the best value proposition. The number of bidders is not specified, which would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it promotes a competitive environment that can drive down costs and encourage innovation from a wider pool of contractors.

Public Impact

The Department of State benefits from enhanced cybersecurity and reliable IT operations, crucial for diplomatic missions and national security. Services delivered include engineering, Tier II and III operations and maintenance, and cybersecurity for core data networks. The geographic impact is primarily within the District of Columbia, where the Department of State's core IT infrastructure is likely managed. Workforce implications include the potential for Science Applications International Corporation to utilize its skilled IT professionals, including cybersecurity experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost uncertainty if not closely managed and monitored.
The interim nature of the award suggests potential for future modifications or a follow-on contract, requiring ongoing oversight.
Cybersecurity is a critical function; any lapse in performance could have significant national security implications.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Focus on core data networks and cybersecurity addresses critical operational needs for the Department of State.
Science Applications International Corporation is a large, established government contractor with extensive IT experience.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The Department of State's reliance on robust and secure IT infrastructure is paramount for its global operations. Spending in this area is driven by the need to maintain legacy systems, modernize infrastructure, and defend against evolving cyber threats. Comparable spending benchmarks would typically involve other large federal agencies with extensive global networks and sensitive data requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Science Applications International Corporation, is a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific award, which could represent missed opportunities for the small business ecosystem to participate in supporting critical federal IT infrastructure.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. The Time and Materials nature of the award necessitates diligent monitoring of labor hours and material costs to ensure value for money. Transparency is generally maintained through contract reporting mechanisms, though specific details on Inspector General involvement or detailed public reporting are not provided in this interim award data.

Related Government Programs

Department of State IT Modernization Programs
Federal Cybersecurity Initiatives
Command and Control Systems Support
Network Operations and Maintenance Contracts
IT Services for Diplomatic Agencies

Risk Flags

Time and Materials Pricing
Cybersecurity Criticality
Potential for Cost Overruns
Single Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $147.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THIS INTERIM AWARD PROVIDES THE PRIMARY ENGINEERING, TIER II AND III OPERATIONS AND MAINTENANCE (O AND M) AND CYBER SECURITY SUPPORT FOR THE DEPARTMENTS CORE DATA NETWORKS AND SERVICES SUCH AS COMMAND-AND-CONTROL MESSAGING EMAIL MOBILE AND REMOTE.

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 $147.0 million.

What is the period of performance?

Start: 2025-05-09. End: 2026-08-08.

What is the historical spending pattern of the Department of State on IT operations and maintenance, and how does this award compare?

Analyzing the Department of State's historical spending on IT operations and maintenance (O&M) requires access to detailed budget documents and contract databases over several fiscal years. Generally, federal agencies allocate significant portions of their IT budgets to O&M to ensure the continuity and security of existing systems. This $147 million award for a 15-month period represents a substantial, but not necessarily unprecedented, investment for critical infrastructure support. Without specific historical figures for comparable O&M services, it's difficult to definitively state if this award is higher or lower than average. However, the trend across government has been increasing investment in cybersecurity and network resilience, suggesting this award aligns with broader federal priorities.

What specific cybersecurity measures are included in this contract, and how are they evaluated for effectiveness?

The provided data indicates that cybersecurity support is a key component of this contract, alongside engineering and O&M for core data networks. However, the specific cybersecurity measures are not detailed in the interim award information. Typically, such contracts would encompass a range of services including network intrusion detection and prevention, vulnerability management, security monitoring, incident response, and compliance with federal security standards (e.g., NIST frameworks, FISMA). Evaluation of effectiveness would likely involve performance metrics defined in the contract's statement of work, such as response times to security incidents, successful patch deployment rates, and audit findings. The Department of State's cybersecurity division would be responsible for overseeing and validating the contractor's performance against these metrics.

How does the Time and Materials (T&M) contract type influence cost control and value for money compared to other contract types?

The Time and Materials (T&M) contract type, used here, reimburses the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fixed fee or profit. This structure offers flexibility, especially when the scope of work is not clearly defined or is expected to change. However, it places a greater burden on the government to closely monitor contractor effort and costs to ensure value for money, as there is less inherent incentive for the contractor to control costs compared to fixed-price contracts. For taxpayers, T&M contracts can pose a higher risk of cost overruns if not managed diligently. Fixed-price contracts, conversely, provide greater cost certainty but may be less suitable for evolving IT requirements. Cost-plus contracts offer a middle ground, balancing risk and flexibility.

What is Science Applications International Corporation's track record with similar large-scale IT infrastructure and cybersecurity contracts for federal agencies?

Science Applications International Corporation (SAIC) is a major federal contractor with a long history of providing IT, engineering, and cybersecurity services to various government agencies, including the Department of Defense and civilian departments. They have experience managing complex networks, data centers, and providing advanced cybersecurity solutions. SAIC has held numerous large-scale contracts involving network operations, maintenance, and security for agencies with similar IT needs to the Department of State. Their track record generally indicates a capacity to handle such demanding requirements, though specific performance details on past contracts, including any past performance issues or exceptional successes, would require deeper investigation into contract databases and performance reports.

What are the potential risks associated with relying on a single delivery order for such critical IT functions, even if awarded under full and open competition?

While this delivery order was awarded under full and open competition, relying on a single contractor for critical IT functions like core data network operations and cybersecurity introduces inherent risks. These include vendor lock-in, potential for service disruptions if the contractor faces financial or operational difficulties, and reduced leverage for the government in future negotiations. Furthermore, if the scope of work evolves significantly, the T&M nature of the contract could lead to unexpected cost increases. Mitigating these risks involves robust contract management, clear performance standards, contingency planning, and potentially exploring multi-vendor strategies for future procurements to ensure resilience and competitive pricing.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM25Q0088

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: $546,916,251

Exercised Options: $264,750,624

Current Obligation: $147,040,042

Subaward Activity

Number of Subawards: 96

Total Subaward Amount: $150,321,050

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0001

IDV Type: GWAC

Timeline