CBP's $596M IT O&M Contract Awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $596,474,054 ($596.5M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2021-09-15
End Date: 2026-09-14
Contract Duration: 1,825 days
Daily Burn Rate: $326.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: U.S. CUSTOMS AND BORDER PROTECTION (CBP) OFFICE OF INFORMATION TECHNOLOGY, (OIT) TARGETING AND ANALYSIS SYSTEMS PROGRAM DIRECTORATE (TASPD)'S OPERATIONS AND MAINTENANCE (O&M), UPGRADES, UPDATES, MODIFICATIONS AND ENHANCEMENTS CONTRACT
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22315
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $596.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: U.S. CUSTOMS AND BORDER PROTECTION (CBP) OFFICE OF INFORMATION TECHNOLOGY, (OIT) TARGETING AND ANALYSIS SYSTEMS PROGRAM DIRECTORATE (TASPD)'S OPERATIONS AND MAINTENANCE (O&M), UPGRADES, UPDATES, MODIFICATIONS AND ENHANCEMENTS CONTRACT Key points: 1. This contract focuses on IT operations, maintenance, and enhancements for CBP's targeting and analysis systems. 2. The primary contractor is Science Applications International Corporation (SAIC). 3. The contract duration is 5 years, with a total value of approximately $596.5 million. 4. The NAICS code 541512 indicates Computer Systems Design Services. 5. This is a Time and Materials contract type.
Value Assessment
Rating: fair
The contract's Time and Materials (T&M) pricing structure can lead to cost overruns if not closely managed. Benchmarking T&M contracts for similar IT O&M services is challenging due to variable labor and material costs, but the overall value suggests a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Time and Materials pricing model requires diligent oversight to ensure fair pricing and prevent excessive costs.
Taxpayer Impact: Taxpayer funds are being used for essential IT operations and system enhancements for border security. The full and open competition aims to secure value, but T&M pricing necessitates vigilance against cost creep.
Public Impact
Enhances critical targeting and analysis systems for U.S. Customs and Border Protection. Supports national security by improving border surveillance and data processing capabilities. Potential for improved efficiency in trade facilitation and law enforcement operations. The contract's success hinges on effective project management and cost control.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost uncertainty.
- Contract duration of 5 years requires ongoing performance monitoring.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security functions.
- Long-term contract provides stability for system development.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer systems design and related services for government operations. Spending benchmarks for similar large-scale IT O&M contracts can vary widely based on system complexity and scope, but $596 million over five years indicates a substantial investment in critical infrastructure.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses and that the prime contractor, Science Applications International Corporation, is a large business. There is no information on subcontracting plans for small businesses.
Oversight & Accountability
Oversight will be crucial given the Time and Materials pricing structure. The Department of Homeland Security and CBP's Office of Information Technology will need robust mechanisms to track labor hours, material costs, and project progress to ensure accountability and prevent cost overruns.
Related Government Programs
- Computer Systems Design Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Reliance on a single large contractor.
- Lack of explicit small business subcontracting goals.
- Complexity of IT systems requires continuous monitoring.
- Cybersecurity risks inherent in government IT systems.
Tags
computer-systems-design-services, department-of-homeland-security, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $596.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. U.S. CUSTOMS AND BORDER PROTECTION (CBP) OFFICE OF INFORMATION TECHNOLOGY, (OIT) TARGETING AND ANALYSIS SYSTEMS PROGRAM DIRECTORATE (TASPD)'S OPERATIONS AND MAINTENANCE (O&M), UPGRADES, UPDATES, MODIFICATIONS AND ENHANCEMENTS CONTRACT
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $596.5 million.
What is the period of performance?
Start: 2021-09-15. End: 2026-09-14.
How will the Time and Materials pricing model be managed to ensure cost-effectiveness and prevent scope creep over the 5-year contract period?
Effective management of the Time and Materials (T&M) pricing model will require stringent oversight, including detailed tracking of labor hours, material costs, and regular performance reviews. CBP should implement clear task order definitions, establish labor rate ceilings, and conduct audits to ensure costs align with the work performed and prevent unnecessary expenditures. Proactive communication and change control processes are also vital.
What specific performance metrics will be used to evaluate SAIC's success in maintaining and enhancing the targeting and analysis systems?
Performance metrics should focus on system availability, response times, data accuracy, and the successful implementation of upgrades and enhancements. Key Performance Indicators (KPIs) could include uptime percentages, reduction in system errors, successful data processing rates, and timely delivery of new functionalities. Regular performance reviews against these metrics will be essential for assessing SAIC's effectiveness.
Given the critical nature of targeting and analysis systems, what contingency plans are in place to mitigate risks associated with system failures or cyber threats?
Contingency plans should include robust disaster recovery and business continuity protocols, regular security audits, and prompt patching of vulnerabilities. SAIC must adhere to strict cybersecurity standards, including data encryption and access controls. CBP should also maintain independent monitoring capabilities and have established protocols for incident response and system restoration to minimize downtime and data loss.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
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: $701,472,174
Exercised Options: $596,474,054
Current Obligation: $596,474,054
Actual Outlays: $351,181,298
Subaward Activity
Number of Subawards: 77
Total Subaward Amount: $643,590,802
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0001
IDV Type: GWAC
Timeline
Start Date: 2021-09-15
Current End Date: 2026-09-14
Potential End Date: 2026-09-14 09:40:05
Last Modified: 2026-03-04
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