GSA Awards $402M Contract for System Software Lifecycle Engineering to Science Applications International Corp
Contract Overview
Contract Amount: $401,969,634 ($402.0M)
Contractor: Science Applications International Corporation
Awarding Agency: General Services Administration
Start Date: 2025-03-13
End Date: 2026-09-14
Contract Duration: 550 days
Daily Burn Rate: $730.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: SYSTEM SOFTWARE LIFECYCLE ENGINEERING SSLE
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
General Services Administration obligated $402.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SYSTEM SOFTWARE LIFECYCLE ENGINEERING SSLE Key points: 1. Significant contract value of $402 million for SSLE services. 2. Science Applications International Corporation (SAIC) is the sole awardee. 3. Potential risks associated with single-award contracts and cost-plus pricing. 4. Engineering Services sector, NAICS 541330, indicates specialized technical support.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. Benchmarking against similar CPAF contracts for engineering services is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, it is a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where competition may have occurred previously.
Taxpayer Impact: The total value of $402 million represents a substantial taxpayer investment in system software lifecycle engineering services.
Public Impact
Ensures continued support for critical system software lifecycle engineering. SAIC's role in government IT infrastructure development and maintenance. Impact on federal agencies relying on these specialized engineering services. Potential for innovation and efficiency improvements in software lifecycle management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee (CPAF) pricing structure.
- Single awardee for a large contract.
- Potential for scope creep in engineering services.
Positive Signals
- Awarded under full and open competition.
- Long-term contract duration (550 days).
- Focus on critical system software lifecycle engineering.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on system software lifecycle engineering. Spending in this area is crucial for maintaining and modernizing federal IT systems, with benchmarks varying widely based on complexity and scope.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, SAIC, is a large business, suggesting limited direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
Oversight will be critical to ensure the Cost Plus Award Fee structure incentivizes efficiency and cost control. The General Services Administration (GSA) Federal Acquisition Service is responsible for managing this contract.
Related Government Programs
- Engineering Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Cost Plus Award Fee (CPAF) can incentivize cost overruns if not managed properly.
- Sole awardee increases dependency and limits competitive pressure during the contract term.
- Potential for scope creep in complex engineering services.
- Lack of small business participation as prime contractor.
- Contract duration may not align with rapidly evolving technology needs.
Tags
engineering-services, general-services-administration, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $402.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SYSTEM SOFTWARE LIFECYCLE ENGINEERING SSLE
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 $402.0 million.
What is the period of performance?
Start: 2025-03-13. End: 2026-09-14.
How does the awarded price compare to industry benchmarks for similar system software lifecycle engineering services under a Cost Plus Award Fee contract?
Benchmarking requires detailed analysis of contract scope, deliverables, and specific award fee criteria against comparable government and commercial contracts. Without this granular data, a precise comparison is difficult. However, the significant value suggests a complex and extensive scope of work, potentially aligning with high-end market rates for specialized engineering expertise.
What are the primary risks associated with a single award for this substantial contract, and how are they being mitigated?
A single award increases reliance on one contractor, posing risks if performance falters or if unforeseen issues arise. Mitigation strategies typically include robust performance monitoring, clear contract terms, defined award fee criteria tied to performance, and contingency planning. The government may also leverage other existing contracts or resources if severe performance issues emerge.
To what extent does this contract contribute to the government's overall IT modernization goals and ensure effective software lifecycle management?
This contract directly supports IT modernization by ensuring the proper engineering and maintenance of system software lifecycles. Effective lifecycle management is fundamental to maintaining system integrity, security, and adaptability. The duration and value suggest a significant contribution to ongoing or upcoming modernization efforts, aiming for improved efficiency and reduced technical debt.
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: 47QFCA24R0021
Offers Received: 1
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: $1,766,225,181
Exercised Options: $494,218,662
Current Obligation: $401,969,634
Subaward Activity
Number of Subawards: 104
Total Subaward Amount: $609,511,660
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: 2025-03-13
Current End Date: 2026-09-14
Potential End Date: 2030-03-12 00:00:00
Last Modified: 2026-03-27
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