Treasury's $38.8M TCloud Contract Awarded to SAIC for Cloud Services

Contract Overview

Contract Amount: $38,817,020 ($38.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of the Treasury

Start Date: 2024-09-03

End Date: 2025-12-31

Contract Duration: 484 days

Daily Burn Rate: $80.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS ORDER PROVIDES CLOUD SERVICES FOR THE DEPARTMENT OF TREASURY (TCLOUD)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $38.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THIS ORDER PROVIDES CLOUD SERVICES FOR THE DEPARTMENT OF TREASURY (TCLOUD) Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for cloud services. 2. Significant value of $38.8 million highlights the importance of cloud infrastructure. 3. Competition method was 'Full and Open', suggesting a competitive bidding process. 4. Sector is IT, specifically Computer Systems Design Services.

Value Assessment

Rating: good

The contract value of $38.8M for cloud services appears reasonable given the duration and the nature of IT services. Benchmarking against similar large-scale cloud service contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a 'Full and Open Competition' BPA Call, indicating a competitive process. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for essential cloud services.

Public Impact

Ensures continued cloud service operation for the IRS, a critical government function. Supports the Department of the Treasury's digital infrastructure modernization efforts. Potential for improved data security and accessibility through cloud solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across government agencies as they migrate to cloud-based solutions for efficiency and scalability.

Small Business Impact

The data indicates that small businesses were not directly involved in this specific award (sb: false). Future contracts or subcontracts may offer opportunities for small business participation.

Oversight & Accountability

The award was made under a BPA Call, which implies a pre-competed agreement. Oversight would focus on performance against the BPA terms and the specific call order requirements.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-the-treasury, va, bpa-call, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $38.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THIS ORDER PROVIDES CLOUD SERVICES FOR THE DEPARTMENT OF TREASURY (TCLOUD)

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 (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $38.8 million.

What is the period of performance?

Start: 2024-09-03. End: 2025-12-31.

What is the projected cost savings or efficiency gain anticipated from this cloud service contract compared to previous solutions?

The provided data does not detail projected cost savings or efficiency gains. Further analysis would require access to the agency's justification for the contract and any associated performance metrics or business case documents. Understanding the baseline costs and expected improvements is crucial for assessing true value.

What are the key performance indicators (KPIs) for this cloud service contract, and how will SAIC's performance be measured?

Specific KPIs are not detailed in the provided data. Typically, cloud service contracts include metrics for uptime, latency, security compliance, and response times. The IRS and Treasury would establish these KPIs and monitor SAIC's adherence through regular performance reviews and reporting mechanisms.

Are there any potential risks associated with vendor lock-in or data migration challenges with this cloud services contract?

Vendor lock-in and data migration are common risks in cloud contracts. The 'Full and Open Competition' suggests an effort to mitigate lock-in by allowing multiple vendors to compete. However, the specific contract terms would need to be reviewed to understand data portability clauses and exit strategies.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - END USER

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: $91,266,766

Exercised Options: $39,697,873

Current Obligation: $38,817,020

Actual Outlays: $38,402,824

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $33,200,264

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2032H523A00010

IDV Type: BPA

Timeline

Start Date: 2024-09-03

Current End Date: 2025-12-31

Potential End Date: 2026-01-22 00:00:00

Last Modified: 2026-04-13

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