GSA awards $70.5M contract to SAIC for PRISM DRRS sustainment, raising questions on value and competition

Contract Overview

Contract Amount: $70,475,338 ($70.5M)

Contractor: Science Applications International Corporation

Awarding Agency: General Services Administration

Start Date: 2024-09-24

End Date: 2027-02-23

Contract Duration: 882 days

Daily Burn Rate: $79.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PRISM DRRS SUSTAINMENT SEED TASK ORDER AWARD.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $70.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: PRISM DRRS SUSTAINMENT SEED TASK ORDER AWARD. Key points: 1. The contract's cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns. 2. Limited public data on performance metrics makes it difficult to assess true value for money. 3. The award was made under full and open competition, suggesting a potentially competitive process. 4. The duration of the task order (882 days) indicates a significant, long-term sustainment effort. 5. The contract falls within administrative management and general management consulting services, a broad category. 6. The reliance on a single task order for sustainment may indicate a fragmented approach to program management.

Value Assessment

Rating: fair

The contract value of $70.5 million over approximately 2.4 years for sustainment services appears substantial. Benchmarking against similar IT sustainment contracts is challenging without more specific service details. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, can lead to higher costs if not tightly managed, making direct value-for-money assessment difficult without detailed performance data and cost breakdowns. The awarded amount is a significant investment in maintaining the PRISM DRRS system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the number of bids received is not specified, which is crucial for a thorough assessment of the competitive landscape. A robust competition typically drives down prices and encourages innovation. The fact that it was competed fully is a positive sign, but the actual level of competition needs further investigation to understand its impact on pricing and service quality.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market that drives competitive pricing and encourages efficient service delivery. This approach aims to ensure the government receives the best possible value by allowing all qualified vendors to participate.

Public Impact

The primary beneficiaries are likely government agencies utilizing the PRISM DRRS system, which supports critical defense or operational functions. The services delivered are focused on sustaining and maintaining the PRISM DRRS platform, ensuring its continued availability and functionality. The geographic impact is primarily within the District of Columbia, where the contract is managed and potentially where services are rendered or overseen. Workforce implications may include the need for specialized IT and management consulting professionals to support the sustainment effort.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize profit, requiring stringent oversight.
Lack of detailed performance metrics makes it difficult to ascertain if the full value of the contract is being realized.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not precisely defined.
Dependence on a single task order for a critical system's sustainment might indicate a lack of strategic long-term planning.
The specific system 'PRISM DRRS' is not widely known, making external benchmarking of its sustainment needs challenging.

Positive Signals

Awarded under full and open competition, suggesting a potentially competitive bidding process.
The contract is for sustainment, indicating a focus on maintaining existing critical capabilities rather than developing new ones.
The contractor, Science Applications International Corporation (SAIC), is a large, established defense and technology company with significant experience.
The task order has a defined end date, providing a clear timeframe for the services and associated costs.

Sector Analysis

This contract falls within the broader Information Technology (IT) and professional services sector, specifically focusing on management consulting and system sustainment. The market for such services is large and competitive, with numerous firms offering expertise in system maintenance, support, and administrative management. Benchmarking this specific contract's value is difficult without knowing the exact nature of the PRISM DRRS system and its criticality, but it represents a significant investment in maintaining a government operational capability.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, SAIC, is a large business, and any subcontracting would likely be at their discretion, potentially involving other large or small businesses depending on the specific needs for sustainment services.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a cost-plus-fixed-fee contract, rigorous financial oversight and performance monitoring are essential to ensure cost control and adherence to the scope of work. Transparency is dependent on GSA's reporting practices and any Inspector General (IG) involvement, which is standard for federal contracts of this magnitude.

Related Government Programs

Defense IT Modernization Programs
Government IT Support Services
System Sustainment Contracts
Management Consulting Services for Government
PRISM System Support
DRRS (Defense Readiness Reporting System) Support

Risk Flags

Cost-plus-fixed-fee contract type may lead to higher costs.
Lack of detailed performance metrics hinders value assessment.
Limited public information on the specific system (PRISM DRRS) complicates benchmarking.
Potential for scope creep in broad consulting service categories.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $70.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. PRISM DRRS SUSTAINMENT SEED TASK ORDER AWARD.

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 $70.5 million.

What is the period of performance?

Start: 2024-09-24. End: 2027-02-23.

What is the PRISM DRRS system, and what critical functions does it support?

The PRISM DRRS system is not explicitly defined in publicly available information, but 'DRRS' typically refers to the Defense Readiness Reporting System. This system is crucial for collecting, processing, and reporting readiness information across various military branches and units. It provides commanders and policymakers with near real-time data on personnel, equipment, training, and logistics status, enabling informed decision-making regarding resource allocation, deployment, and operational planning. The 'PRISM' component might refer to a specific module, interface, or overarching program related to DRRS. The sustainment contract awarded to SAIC is therefore vital for ensuring the continued operational integrity and availability of this critical readiness reporting capability.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for IT sustainment, and what are the implications for value?

Cost-plus-fixed-fee (CPFF) contracts are often used when the scope of work is not precisely defined or involves a high degree of uncertainty, such as research and development or complex system sustainment. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure can incentivize contractors to incur costs, as the fee is fixed regardless of the total cost. For IT sustainment, this can be less cost-effective than fixed-price contracts if performance is well-defined and predictable. The primary implication for value is the potential for cost overruns if not managed with stringent oversight. Taxpayers bear the risk of higher-than-expected costs, while the government benefits from flexibility in adapting to evolving sustainment needs. Benchmarking value requires comparing the total cost against achieved performance metrics and comparing it to similar CPFF contracts for comparable systems.

What is the typical performance expectation for 'Administrative Management and General Management Consulting Services' in a sustainment context?

In the context of IT system sustainment, 'Administrative Management and General Management Consulting Services' typically encompass a range of activities aimed at ensuring the efficient and effective operation of the system. This can include project management, strategic planning for system evolution, resource management, process improvement, policy development, and ensuring compliance with regulations. For a system like PRISM DRRS, these services would likely focus on maintaining the system's operational readiness, managing its lifecycle, coordinating support efforts, and providing analytical insights to optimize its use. Performance expectations would revolve around system uptime, response times for support requests, successful implementation of updates or patches, and the quality of management advice provided to the government.

Given SAIC's size and experience, what does this suggest about the complexity or criticality of the PRISM DRRS sustainment?

Awarding a significant task order for PRISM DRRS sustainment to a large, experienced contractor like Science Applications International Corporation (SAIC) suggests that the system is likely complex, critical, and requires specialized expertise. SAIC has a long history of supporting government IT systems, including defense and intelligence platforms, indicating they possess the technical capabilities, security clearances, and project management maturity necessary for such a role. The criticality is implied by the need for dedicated sustainment services, suggesting the system is integral to ongoing government operations, potentially in areas like defense readiness reporting. The scale of the contract ($70.5 million) further underscores the substantial nature of the sustainment effort required.

How does the duration of the task order (882 days) impact the assessment of this contract?

The duration of 882 days, approximately 2.4 years, indicates a medium-to-long-term commitment for the sustainment of the PRISM DRRS system. This duration suggests that the government views the system as having a stable, ongoing need for support rather than a short-term requirement. For taxpayers, a longer duration can offer stability and predictability in spending for this particular function. From an analytical perspective, it allows for a more comprehensive assessment of the contractor's performance over time and provides a basis for evaluating the overall value delivered. It also implies that the system is not slated for immediate replacement, making its continued effective operation a priority.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: 47QFHA24R0021

Offers Received: 3

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: $186,936,896

Exercised Options: $97,284,391

Current Obligation: $70,475,338

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $35,813,015

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFHA24D0001

IDV Type: IDC

Timeline