IRS awards $125.5M TCLOUD Task Order 6 to SAIC for cloud services
Contract Overview
Contract Amount: $125,462,171 ($125.5M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of the Treasury
Start Date: 2025-06-26
End Date: 2026-06-19
Contract Duration: 358 days
Daily Burn Rate: $350.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TCLOUD TASK ORDER 6: CLOUD APPLICATION ASSESSMENT, CLOUD IMPLEMENTATIONS, CLOUD OPS AND MAINTENANCE, CLOUD SERVICE PROVIDERS (CSPS), AND CSP TRAINING.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220
Plain-Language Summary
Department of the Treasury obligated $125.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TCLOUD TASK ORDER 6: CLOUD APPLICATION ASSESSMENT, CLOUD IMPLEMENTATIONS, CLOUD OPS AND MAINTENANCE, CLOUD SERVICE PROVIDERS (CSPS), AND CSP TRAINING. Key points: 1. The task order focuses on comprehensive cloud services, including assessment, implementation, operations, maintenance, and training. 2. SAIC, a large defense contractor, secured this award, indicating significant market presence. 3. The contract is a Firm Fixed Price (FFP) type, which shifts cost risk to the contractor. 4. The primary sector is IT services, specifically Computer Systems Design, a common area for federal cloud adoption.
Value Assessment
Rating: good
The $125.5M award for cloud services appears reasonable given the scope. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment, but the FFP structure suggests a defined cost expectation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing all eligible vendors to bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential cloud services.
Public Impact
Improved IT infrastructure and services for the IRS, potentially leading to better taxpayer experience. Modernization of government cloud capabilities, aligning with broader federal digital transformation goals. Potential for enhanced data security and operational efficiency through advanced cloud solutions. Support for critical IRS functions through reliable cloud operations and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not managed carefully.
- Dependence on a single large contractor for critical cloud infrastructure.
- Ensuring adequate performance metrics and oversight for cloud operations.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract shifts cost risk to the contractor.
- Clear scope of work covering multiple cloud service aspects.
- Long-term contract duration allows for stable service delivery.
Sector Analysis
This award falls within the IT services sector, specifically focusing on cloud computing. Federal spending in this area has been steadily increasing as agencies modernize their infrastructure. Benchmarks for similar large-scale cloud service contracts can vary widely based on scope and specific services.
Small Business Impact
While the awardee, SAIC, is a large business, the contract itself was awarded under full and open competition. There is no explicit mention of small business participation in this specific task order, which could be an area for further review to ensure opportunities for smaller innovative firms.
Oversight & Accountability
The task order's duration and scope necessitate robust oversight to ensure performance, cost control, and adherence to security standards. The IRS should have established mechanisms for monitoring SAIC's service delivery and managing the contract effectively.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost overruns if scope creep occurs.
- Risk of security vulnerabilities in cloud environments.
- Dependence on contractor's expertise and performance.
- Ensuring long-term cost-effectiveness of cloud solutions.
- Potential challenges in integrating new cloud services with legacy systems.
Tags
computer-systems-design-services, department-of-the-treasury, dc, bpa-call, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $125.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TCLOUD TASK ORDER 6: CLOUD APPLICATION ASSESSMENT, CLOUD IMPLEMENTATIONS, CLOUD OPS AND MAINTENANCE, CLOUD SERVICE PROVIDERS (CSPS), AND CSP TRAINING.
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 $125.5 million.
What is the period of performance?
Start: 2025-06-26. End: 2026-06-19.
What specific metrics will be used to evaluate SAIC's performance in cloud application assessment, implementation, and operations to ensure value for taxpayer money?
Performance evaluation will likely involve key performance indicators (KPIs) tied to service availability, response times, security compliance, and successful implementation of cloud solutions. The IRS should define clear, measurable metrics in the contract's performance work statement (PWS) and conduct regular reviews to ensure SAIC meets or exceeds these standards, thereby validating the value delivered for the $125.5M investment.
Given the critical nature of IRS data, what specific security protocols and compliance measures are mandated for SAIC's cloud services to mitigate risks?
The contract must adhere to stringent federal cybersecurity mandates, including FedRAMP authorization for cloud services, NIST 800-53 controls, and IRS-specific security policies. SAIC will be required to implement robust data encryption, access controls, continuous monitoring, and regular security audits to protect sensitive taxpayer information from breaches and ensure compliance with all relevant regulations.
How will the IRS ensure that the cloud solutions implemented by SAIC are scalable and adaptable to future technological advancements and evolving agency needs?
The IRS should ensure the contract includes provisions for flexibility and scalability, requiring SAIC to propose solutions based on open standards and modular architectures. Regular technical reviews and strategic planning sessions will be crucial to assess the evolving needs of the IRS and ensure that the implemented cloud services can be readily adapted or expanded to incorporate new technologies and support future mission requirements.
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 - COMPUTE
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: $717,389,355
Exercised Options: $260,957,666
Current Obligation: $125,462,171
Actual Outlays: $68,760,318
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $68,655,182
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 2032H523A00010
IDV Type: BPA
Timeline
Start Date: 2025-06-26
Current End Date: 2026-06-19
Potential End Date: 2028-06-19 00:00:00
Last Modified: 2026-02-26
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