USACE IT Services Contract Awarded to SAIC for Over $1.12 Billion
Contract Overview
Contract Amount: $1,124,731,054 ($1.1B)
Contractor: Science Applications International Corporation
Awarding Agency: General Services Administration
Start Date: 2020-11-30
End Date: 2026-06-27
Contract Duration: 2,035 days
Daily Burn Rate: $552.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: THE SCOPE OF THE TO IS TO PROVIDE ENTERPRISE IT SERVICES FOR THE USACE.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $1.12 billion to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THE SCOPE OF THE TO IS TO PROVIDE ENTERPRISE IT SERVICES FOR THE USACE. Key points: 1. Significant contract value for enterprise IT services. 2. Competition method is full and open, suggesting potential for competitive pricing. 3. Risk of cost overruns due to Cost Plus Award Fee (CPA) structure. 4. IT sector spending is substantial and critical for agency operations.
Value Assessment
Rating: good
The contract is a Cost Plus Award Fee (CPA) type, which can incentivize performance but also carries a risk of higher costs if not managed tightly. Benchmarking against similar large-scale IT service contracts is necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market value.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer dollars are spent efficiently by fostering a competitive environment for this significant IT services contract.
Public Impact
Ensures continued enterprise IT services for the U.S. Army Corps of Engineers (USACE). Supports critical infrastructure and operational needs of the USACE. Potential for technological advancements and service improvements through contractor innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure may lead to higher than anticipated costs.
- Contract duration is long (until 2026), requiring ongoing monitoring.
- No small business participation indicated.
Positive Signals
- Awarded under full and open competition.
- Clear scope of work for enterprise IT services.
- Experienced contractor (SAIC) likely to deliver required services.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is consistently high across federal agencies, reflecting the increasing reliance on technology for mission execution.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award, as the 'sb' field is false. Future contracts should explore opportunities for small business involvement to promote economic diversity.
Oversight & Accountability
The General Services Administration (GSA) is the contracting agency, leveraging its expertise in IT procurement. Ongoing oversight will be crucial to manage performance and costs under the CPA structure.
Related Government Programs
- Computer Systems Design Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to CPA structure.
- Long contract duration may limit flexibility for future technology adoption.
- Lack of explicit small business participation.
- Dependence on a single contractor for critical enterprise IT services.
Tags
computer-systems-design-services, general-services-administration, va, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $1.12 billion to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THE SCOPE OF THE TO IS TO PROVIDE ENTERPRISE IT SERVICES FOR THE USACE.
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $1.12 billion.
What is the period of performance?
Start: 2020-11-30. End: 2026-06-27.
How does the awarded price compare to industry benchmarks for similar enterprise IT service contracts of this scale and duration?
A comprehensive comparison requires detailed analysis of specific service components, Service Level Agreements (SLAs), and the prevailing market rates for enterprise IT services. Given the Cost Plus Award Fee structure and the contract's significant value, a thorough benchmark against contracts with similar risk-sharing mechanisms and performance incentives is essential to confirm value for money.
What are the key performance indicators (KPIs) and award fee criteria, and how will they be monitored to mitigate cost overrun risks?
The effectiveness of the Cost Plus Award Fee (CPA) structure hinges on clearly defined, measurable, and achievable Key Performance Indicators (KPIs) and award fee criteria. Robust monitoring mechanisms by the contracting officer's representative (COR) are vital to track contractor performance against these metrics, ensuring that award fees are only granted for exceptional performance and that costs remain within acceptable parameters.
What is the potential impact of this long-term contract on the USACE's ability to adopt future IT innovations or adapt to evolving technological landscapes?
A long-term contract, while ensuring service continuity, can sometimes create inertia against adopting rapidly evolving technologies. The contract's flexibility clauses, termination for convenience options, and the contractor's own innovation roadmap will be critical factors. Regular reviews and potential contract modifications will be necessary to ensure USACE remains agile and can leverage emerging IT solutions.
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
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
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: $1,398,126,540
Exercised Options: $1,398,126,540
Current Obligation: $1,124,731,054
Actual Outlays: $-280,277
Subaward Activity
Number of Subawards: 448
Total Subaward Amount: $1,014,460,791
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0001
IDV Type: GWAC
Timeline
Start Date: 2020-11-30
Current End Date: 2026-06-27
Potential End Date: 2026-06-27 00:00:00
Last Modified: 2026-03-18
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