Treasury's $16.9M Managed Email Services contract awarded to SAIC under full and open competition

Contract Overview

Contract Amount: $16,923,639 ($16.9M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of the Treasury

Start Date: 2020-11-05

End Date: 2026-05-04

Contract Duration: 2,006 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MANAGED EMAIL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $16.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: MANAGED EMAIL SERVICES Key points: 1. Contract awarded to a large, established IT services provider. 2. Pricing structure is firm-fixed-price, offering cost predictability. 3. Contract duration extends over six years, indicating a long-term need. 4. The service category aligns with standard IT infrastructure support. 5. Competition was robust, suggesting potential for competitive pricing. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty for the government. While specific pricing details are not available, the competitive award process suggests that the pricing is likely aligned with market rates for managed email services. Benchmarking against similar large-scale managed IT service contracts would provide further insight into the value proposition, but the duration and scope indicate a significant investment in essential IT infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the designation suggests a competitive process that allowed for a wide range of potential contractors to participate. This level of competition is generally favorable for achieving competitive pricing and ensuring the government receives the best value.

Taxpayer Impact: Full and open competition typically leads to better price discovery and can result in cost savings for taxpayers by fostering a competitive environment among vendors.

Public Impact

Federal employees within the Office of the Comptroller of the Currency will benefit from reliable and secure managed email services. The contract ensures the delivery of essential IT infrastructure support for a critical financial regulatory agency. Services are primarily delivered within the District of Columbia. The contract supports IT professional roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to long contract duration.
Reliance on a single large contractor for critical email services.
Limited visibility into specific performance metrics without further data.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Awarded through full and open competition, suggesting competitive pricing.
Long-term contract indicates a stable and ongoing requirement for these services.

Sector Analysis

Managed email services fall within the broader IT services sector, specifically custom computer programming and related services. This sector is characterized by a mix of large established players and specialized niche providers. Government spending in this area is substantial, driven by the need for secure, reliable, and scalable IT infrastructure to support agency operations. This contract represents a typical procurement for essential IT support services within the federal government.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Science Applications International Corporation, a large prime contractor, suggests that the focus was on securing a comprehensive solution from a major IT service provider rather than specifically promoting small business participation through this particular vehicle.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm-fixed-price contract, performance is monitored against defined service levels. The Office of the Comptroller of the Currency, as the contracting agency, is responsible for oversight. Transparency is generally maintained through contract award databases, though specific performance data may not be publicly available. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Managed IT Services procurements
Cloud-based email solutions
Custom Computer Programming Services

Risk Flags

Long-term contract duration may increase vendor lock-in risk.
Reliance on a single provider for critical infrastructure.
Lack of specific performance metrics in public data.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $16.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. MANAGED EMAIL SERVICES

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2020-11-05. End: 2026-05-04.

What is the historical spending pattern for managed email services by the Office of the Comptroller of the Currency?

Analyzing historical spending for managed email services by the Office of the Comptroller of the Currency (OCC) is crucial for understanding the agency's IT infrastructure evolution and budget allocation. While this specific contract represents a significant investment of $16.9 million over its six-year term, it's important to contextualize it within the OCC's broader IT budget. Without access to detailed historical procurement data for the OCC's email services prior to this contract, a direct comparison is challenging. However, federal agencies typically transition from in-house managed solutions or older service models to more comprehensive, outsourced managed services over time, often driven by cost-efficiency, security enhancements, and scalability. The duration of this contract suggests a strategic decision to outsource these functions for a considerable period, implying that previous spending may have been on shorter-term contracts, internal resources, or different service providers. Further investigation into the OCC's IT spending reports and prior contract awards would be necessary to establish a precise historical spending trend for managed email services.

How does the awarded price compare to market rates for similar managed email services?

Determining the precise value-for-money requires a detailed comparison of the awarded price against market rates for similar managed email services. The contract's total value is approximately $16.9 million over six years, averaging around $2.8 million annually. This figure needs to be benchmarked against the costs of comparable services provided by other large IT contractors to federal agencies or large commercial enterprises. Factors such as the number of users supported, the specific service level agreements (SLAs), security features included, and the scope of support (e.g., help desk, system maintenance, disaster recovery) significantly influence pricing. Given that the contract was awarded under full and open competition, it suggests that the pricing achieved is likely competitive. However, without specific details on the service scope and user base, a definitive assessment of whether the price is excellent, good, or fair relative to the market is difficult. A thorough benchmark analysis would involve examining publicly available contract data for similar services and consulting industry pricing reports.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this managed email services contract are not detailed in the provided data. However, for a contract of this nature and duration, typical SLAs would likely focus on aspects such as email uptime and availability (e.g., 99.9% or higher), response times for technical support, resolution times for reported issues, data backup and recovery capabilities, and security incident response times. KPIs would be established to measure the contractor's performance against these SLAs. For instance, metrics might include the percentage of emails delivered within a certain timeframe, the number of security incidents detected and resolved, and user satisfaction ratings. The firm-fixed-price nature of the contract implies that adherence to these SLAs is critical for the contractor to meet its obligations without incurring penalties or jeopardizing future business. The Office of the Comptroller of the Currency would be responsible for monitoring these KPIs and SLAs to ensure the government receives the contracted services effectively.

What is the track record of Science Applications International Corporation (SAIC) in delivering managed IT services to federal agencies?

Science Applications International Corporation (SAIC) has a substantial and well-established track record in delivering a wide range of IT services to federal agencies. As a major government contractor, SAIC has consistently secured and performed on numerous large-scale contracts across various departments and agencies, including defense, civilian, and intelligence sectors. Their portfolio typically includes IT modernization, cloud computing, cybersecurity, data analytics, and enterprise IT services, which encompass managed services like email. SAIC is known for its ability to manage complex projects and large workforces. Their experience often involves supporting critical government functions, requiring adherence to stringent security protocols and performance standards. While specific performance details for every contract are not always public, SAIC's continued success in winning competitive bids and maintaining long-term relationships with government clients generally indicates a strong capability and a positive performance history in delivering reliable IT solutions.

What are the potential risks associated with relying on a single contractor for managed email services?

Relying on a single contractor for critical managed email services presents several potential risks. One primary concern is vendor lock-in, where the government becomes heavily dependent on the contractor's proprietary systems or processes, making it difficult and costly to switch providers in the future. This dependence can reduce leverage during contract renegotiations. Another risk is service disruption; if the contractor experiences financial difficulties, operational failures, or cybersecurity breaches, the government's email services could be severely impacted. There's also the risk of complacency, where a contractor, knowing they are the sole provider for a long duration, might reduce efforts to innovate or improve service quality if performance monitoring is not rigorous. Furthermore, a single point of failure in security could be exploited. Mitigating these risks typically involves robust contract management, clear performance metrics, contingency planning, and regular market assessments to ensure continued value and explore alternatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $16,923,639

Exercised Options: $16,923,639

Current Obligation: $16,923,639

Actual Outlays: $16,092,876

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $449,602

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 2031JW19A00001

IDV Type: BPA

Timeline