GSA awards $1.4B contract for Software Life Cycle Development to Science Applications International Corporation
Contract Overview
Contract Amount: $1,436,485,084 ($1.4B)
Contractor: Science Applications International Corporation
Awarding Agency: General Services Administration
Start Date: 2020-05-05
End Date: 2025-11-04
Contract Duration: 2,009 days
Daily Burn Rate: $715.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SOFTWARE LIFE CYCLE DEVELOPMENT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
General Services Administration obligated $1.44 billion to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SOFTWARE LIFE CYCLE DEVELOPMENT Key points: 1. Contract awarded to a single large business, indicating limited small business participation. 2. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 3. Significant contract value suggests a high impact on the IT and R&D sectors. 4. Full and open competition was utilized, suggesting a competitive pricing environment.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure cost efficiency. Benchmarking against similar R&D contracts is crucial for validating pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, driving competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered.
Public Impact
Supports critical R&D efforts in physical, engineering, and life sciences. Ensures continued development and maintenance of essential software systems. Potential for technological advancements and innovation stemming from the contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure may incentivize cost overruns if not managed tightly.
- Lack of small business set-aside could limit opportunities for smaller innovative firms.
Positive Signals
- Full and open competition promotes a competitive marketplace.
- Long-term contract duration provides stability for R&D efforts.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is critical for national innovation and competitiveness.
Small Business Impact
The contract was not set aside for small businesses, and the awardee is a large corporation. This suggests limited direct opportunities for small businesses on this specific contract.
Oversight & Accountability
The General Services Administration's Federal Acquisition Service is responsible for oversight. Regular performance reviews and audits will be essential to ensure contract compliance and value.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Limited small business participation.
- Dependency on a single large contractor for critical R&D.
- Complexity of R&D projects can lead to scope creep.
Tags
research-and-development-in-the-physical, general-services-administration, al, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $1.44 billion to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SOFTWARE LIFE CYCLE DEVELOPMENT
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 $1.44 billion.
What is the period of performance?
Start: 2020-05-05. End: 2025-11-04.
How will the Cost Plus Fixed Fee structure be managed to ensure cost efficiency and prevent potential overruns in this R&D contract?
Effective management of a Cost Plus Fixed Fee contract involves rigorous oversight of allowable costs, detailed performance metrics, and regular audits. The contracting officer must establish clear milestones and deliverables, ensuring that the fixed fee remains appropriate for the scope of work. Continuous communication with the contractor and proactive risk identification are key to maintaining cost control throughout the contract lifecycle.
What is the potential impact of awarding this large contract to a single entity on the broader landscape of R&D innovation and competition?
While awarding to a single entity can ensure focused expertise and streamlined execution, it may limit broader innovation by concentrating resources. It could potentially stifle competition in the long run if smaller, agile firms are excluded from significant government R&D funding. Agencies should consider strategies to foster competition and knowledge sharing even within large, single-award contracts.
How does the chosen NAICS code (541712) align with the specific 'Software Life Cycle Development' services being procured, and what are the implications for performance measurement?
NAICS code 541712 covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).' While software development is often associated with IT codes, its inclusion here suggests the software is integral to or a product of R&D in these scientific fields. This alignment implies performance will be measured against scientific and engineering outcomes, not just software delivery metrics.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: ID04190086
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12010, SUNSET HILLS ROAD, 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: $2,900,096,115
Exercised Options: $2,900,096,115
Current Obligation: $1,436,485,084
Actual Outlays: $-175,246
Subaward Activity
Number of Subawards: 598
Total Subaward Amount: $980,961,720
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU428
IDV Type: IDC
Timeline
Start Date: 2020-05-05
Current End Date: 2025-11-04
Potential End Date: 2025-11-04 00:00:00
Last Modified: 2026-03-06
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