GSA Awards $49.9M Digital Transformation Contract to SAIC for Engineering Services
Contract Overview
Contract Amount: $49,914,032 ($49.9M)
Contractor: Science Applications International Corporation
Awarding Agency: General Services Administration
Start Date: 2024-02-06
End Date: 2027-04-10
Contract Duration: 1,159 days
Daily Burn Rate: $43.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: DIGITAL TRANSFORMATION ACQUISITION MODERNIZATION AND MODIFICATION DTAMM
Place of Performance
Location: PATRICK AFB, BREVARD County, FLORIDA, 32925
State: Florida Government Spending
Plain-Language Summary
General Services Administration obligated $49.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: DIGITAL TRANSFORMATION ACQUISITION MODERNIZATION AND MODIFICATION DTAMM Key points: 1. SAIC secured a significant contract valued at $49.9 million. 2. The contract was awarded under full and open competition. 3. Potential risks include cost overruns given the Cost Plus Award Fee structure. 4. The sector is Engineering Services, with a PSC of 541330.
Value Assessment
Rating: good
The contract's Cost Plus Award Fee structure allows for flexibility but requires careful monitoring to ensure value for money. Benchmarking against similar large-scale digital transformation engineering contracts is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition generally leads to competitive pricing. The award was a delivery order, suggesting it's part of a larger IDIQ, which can offer price discovery over time.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical digital transformation initiatives.
Public Impact
Modernization of government digital infrastructure is crucial for efficiency and service delivery. SAIC's role in this transformation could impact various federal agencies' operational capabilities. The long-term implications for government IT modernization and cybersecurity are significant.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to higher costs if not managed tightly.
- Long contract duration (over 3 years) increases exposure to changing technological landscapes.
- No small business participation noted, potentially missing out on specialized innovation.
Positive Signals
- Awarded through full and open competition, indicating a robust market search.
- Focus on digital transformation aligns with government modernization priorities.
- SAIC is a large, established contractor with significant experience.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on digital transformation. Spending in this area is high as agencies modernize legacy systems and adopt new technologies.
Small Business Impact
The data indicates no specific small business set-aside or participation. While SAIC is a large business, opportunities for subcontracting to small businesses should be explored to foster broader economic impact.
Oversight & Accountability
The General Services Administration (GSA) is responsible for overseeing this contract. Robust oversight will be necessary to manage the Cost Plus Award Fee structure and ensure performance objectives are met.
Related Government Programs
- Engineering Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Cost Plus Award Fee (CPAFF) structure can incentivize higher costs.
- Long contract duration may lead to technological obsolescence.
- Lack of explicit small business participation noted.
- Performance metrics and oversight rigor are critical for success.
Tags
engineering-services, general-services-administration, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $49.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. DIGITAL TRANSFORMATION ACQUISITION MODERNIZATION AND MODIFICATION DTAMM
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 $49.9 million.
What is the period of performance?
Start: 2024-02-06. End: 2027-04-10.
How will the Cost Plus Award Fee structure be managed to ensure cost efficiency and prevent potential overruns?
Effective management of the Cost Plus Award Fee (CPAFF) structure requires clear performance metrics and objective award criteria. The GSA contracting officer must establish a robust performance evaluation plan, regularly review contractor expenditures against milestones, and ensure that award fees are tied directly to demonstrable value and efficiency gains. Transparent communication and regular audits will be key to controlling costs and maximizing taxpayer value.
What are the key performance indicators (KPIs) for this digital transformation project, and how will success be measured?
Key performance indicators for digital transformation projects typically include system uptime, user adoption rates, reduction in processing times, enhanced data security, and successful integration of new technologies. Success measurement will likely involve comparing pre-transformation metrics against post-transformation outcomes, user satisfaction surveys, and adherence to project timelines and budget. The GSA will need to define specific, measurable, achievable, relevant, and time-bound (SMART) KPIs.
Given the long contract duration, what mechanisms are in place to ensure the technology remains current and relevant?
To ensure technological relevance over the contract's duration, mechanisms such as phased delivery schedules, regular technology refresh cycles, and built-in flexibility for scope adjustments are crucial. The contract should allow for incorporating emerging technologies and adapting to evolving requirements. Periodic reviews and potential contract modifications based on technological advancements and agency needs will be essential for maintaining the system's effectiveness and future-proofing the investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 47QFCA23R0017
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 12010 SUNSET HILLS RD, 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: $443,242,907
Exercised Options: $149,506,585
Current Obligation: $49,914,032
Subaward Activity
Number of Subawards: 71
Total Subaward Amount: $427,155,194
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QFCA22D0337
IDV Type: IDC
Timeline
Start Date: 2024-02-06
Current End Date: 2027-04-10
Potential End Date: 2029-02-05 00:00:00
Last Modified: 2026-03-18
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