GSA awards $317M IT task order to Science Applications International Corp. for computer systems design

Contract Overview

Contract Amount: $316,909,051 ($316.9M)

Contractor: Science Applications International Corporation

Awarding Agency: General Services Administration

Start Date: 2023-03-02

End Date: 2026-03-01

Contract Duration: 1,095 days

Daily Burn Rate: $289.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DCSA ONE IT TASK ORDER

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $316.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: DCSA ONE IT TASK ORDER Key points: 1. The contract value represents a significant investment in IT modernization and support services. 2. Competition dynamics for this task order are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and contractor performance history. 4. Performance context is established by comparing this award to similar IT service contracts. 5. The sector positioning highlights the role of computer systems design in federal IT infrastructure. 6. The duration of the contract suggests a long-term need for these services.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful oversight to manage costs. Benchmarking against similar IT task orders for computer systems design services indicates that the pricing structure is within expected ranges for complex projects. The total award value of $317 million over three years suggests a substantial but potentially value-driven investment, contingent on effective service delivery and cost control by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of four bids suggests a healthy level of competition for this significant IT services contract. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among contractors.

Public Impact

Federal agencies requiring advanced computer systems design and integration services will benefit from this contract. The services delivered are expected to enhance the efficiency and effectiveness of federal IT operations. The primary geographic impact is likely within Virginia, where the task order is managed. The contract supports skilled IT professionals, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The duration of the contract requires sustained oversight to ensure continued value.
Reliance on a single contractor for a large task order necessitates robust performance monitoring.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
The contractor, Science Applications International Corporation, has a significant presence in the federal IT market.
The task order addresses critical IT needs for federal agencies.

Sector Analysis

The federal IT services sector is a large and dynamic market, with significant spending allocated to computer systems design and related services. This contract falls within the broader category of IT professional services, which are essential for maintaining and modernizing government technology infrastructure. Comparable spending benchmarks for similar large-scale IT task orders often range in the hundreds of millions of dollars, reflecting the complexity and scope of federal IT requirements.

Small Business Impact

This contract was not set aside for small businesses, and the prime contractor is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside may limit direct opportunities for smaller firms on this specific task order, though they may participate as subcontractors if opportunities arise.

Oversight & Accountability

Oversight for this task order will be managed by the General Services Administration (GSA) Federal Acquisition Service. The CPFF contract type necessitates close monitoring of costs and performance to ensure accountability. Transparency is facilitated through federal procurement databases, and any Inspector General investigations would fall under the purview of the GSA OIG.

Related Government Programs

IT Professional Services
Computer Systems Design
IT Modernization
Federal Civilian IT Spending

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Intensity
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $316.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. DCSA ONE IT TASK ORDER

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 $316.9 million.

What is the period of performance?

Start: 2023-03-02. End: 2026-03-01.

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

Science Applications International Corporation (SAIC) has a long-standing and extensive track record of providing IT services to various federal agencies. They are a major government contractor with a broad portfolio encompassing systems engineering, software development, cybersecurity, cloud computing, and IT infrastructure support. SAIC has been involved in numerous large-scale federal IT projects, including modernization efforts, enterprise resource planning (ERP) implementations, and mission-critical system support. Their performance history is generally characterized by their ability to manage complex programs and deliver technical solutions. However, like any large contractor, specific project performance can vary, and detailed reviews of past performance on similar contracts would be necessary for a comprehensive assessment. Federal procurement data and agency performance evaluations offer insights into their past successes and challenges.

How does the $317 million award compare to other large IT task orders awarded by GSA or other agencies?

The $317 million award for this IT task order is substantial and falls within the upper range for large, multi-year IT service contracts issued by agencies like the General Services Administration (GSA). For context, major IT modernization efforts or enterprise-wide system deployments for civilian agencies often see awards in the hundreds of millions, sometimes exceeding a billion dollars over their lifecycle. Smaller, more specialized IT task orders might range from a few million to tens of millions. This specific award's value is consistent with significant, long-term requirements for computer systems design and integration services, reflecting the complexity and scope of the work. Benchmarking against similar awards for 'Computer Systems Design Services' (NAICS 541512) from GSA or other agencies would provide a more precise comparison of its relative size and investment level.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($317 million) revolve around cost control and contractor performance. For the government, the main risk is that the contractor's costs could exceed initial estimates, potentially leading to a higher final price than anticipated, even with a fixed fee. This necessitates robust government oversight to scrutinize allowable costs and ensure efficiency. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee remains profitable, especially if unforeseen technical challenges or scope changes arise. There's also a risk of scope creep if requirements are not clearly defined and managed. Effective risk mitigation involves detailed contract clauses, regular performance reviews, and strong program management from both the government and contractor sides.

What is the expected impact of this contract on federal IT modernization efforts?

This contract is expected to significantly contribute to federal IT modernization efforts by providing essential computer systems design and integration services. Modernization is crucial for agencies to improve service delivery, enhance cybersecurity, reduce operational costs, and adopt new technologies like cloud computing and data analytics. By engaging a contractor like SAIC with expertise in these areas, the GSA and its supported agencies can advance projects that update legacy systems, develop new digital platforms, and ensure IT infrastructure is agile and secure. The $317 million investment over three years signals a commitment to addressing critical IT infrastructure needs, which is fundamental to achieving broader government modernization goals and improving citizen services.

How does the competition level (4 bidders) influence the value received by taxpayers for this contract?

A competition level of four bidders for this $317 million task order is generally considered healthy and is likely to have a positive influence on the value received by taxpayers. With multiple qualified vendors submitting proposals, the government benefits from a degree of price discovery, where competing offers help establish a market-based price. This competitive pressure encourages bidders to offer their best pricing and technical solutions to win the contract. While not as robust as a larger number of bidders, four offers suggest that the market is sufficiently interested and capable, reducing the risk of a non-competitive outcome. This level of competition typically leads to more cost-effective solutions and better overall value compared to sole-source or limited-competition awards.

What are the implications of this contract being awarded to a large business prime contractor regarding small business participation?

When a large business prime contractor like Science Applications International Corporation (SAIC) wins a significant federal contract, the implications for small business participation often depend on the specific subcontracting plan negotiated. While this contract was not a small business set-aside, large prime contractors are frequently required to meet small business subcontracting goals as part of their overall federal contracting obligations. This means SAIC may be looking to engage small businesses for specific components or services within the scope of this task order. However, without explicit details on the subcontracting plan, it's uncertain how much work will be allocated to small businesses. The absence of a set-aside means direct opportunities for small businesses to compete as prime contractors on this specific award are non-existent.

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: 47QFCA23R0023

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

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: $500,000,000

Exercised Options: $316,909,051

Current Obligation: $316,909,051

Actual Outlays: $-17,036

Subaward Activity

Number of Subawards: 173

Total Subaward Amount: $322,188,293

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QTCK18D0001

IDV Type: GWAC

Timeline