Transportation awards $120M IT support contract to Science Applications International Corp

Contract Overview

Contract Amount: $119,788,052 ($119.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Transportation

Start Date: 2014-12-31

End Date: 2021-06-11

Contract Duration: 2,354 days

Daily Burn Rate: $50.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF FOR CRITICAL FUNCTIONS FOR IT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $119.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS FOR IT SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract duration of over 6 years indicates a long-term need for these IT services. 3. Fixed-price contract type may limit cost overruns but could disincentivize innovation. 4. The awardee, Science Applications International Corporation, is a large, established government contractor. 5. The contract value is substantial, reflecting significant IT support requirements for the agency. 6. The geographic location is Washington D.C., a common hub for federal agencies.

Value Assessment

Rating: good

The contract value of approximately $120 million over roughly six years suggests an average annual spend of $20 million for IT support services. Benchmarking this requires detailed comparison to similar IT support contracts within the Department of Transportation and across other federal agencies. Given the fixed-price nature, the value hinges on the defined scope of work and the contractor's efficiency. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 6 bidders suggests a healthy level of competition for this significant IT support requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies competed to offer the best value. This process helps prevent inflated pricing that might occur in less competitive scenarios.

Public Impact

Federal employees within the Federal Motor Carrier Safety Administration will benefit from reliable IT support. Essential IT infrastructure and systems supporting the agency's mission will be maintained and enhanced. The services delivered are critical for the day-to-day operations and data management of the agency. The primary geographic impact is within the District of Columbia, where the agency is located. The contract supports jobs within the IT services sector, primarily at the prime contractor and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the long duration.
Reliance on a single large contractor for critical IT functions.
Risk of vendor lock-in if transition to a new provider is complex.
Ensuring continued innovation and adaptation to new technologies over the contract life.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Fixed-price contract type provides cost certainty for the government.
The contractor, SAIC, has a significant track record in government IT services.
Long contract duration suggests a stable and ongoing need, allowing for strategic IT planning.
The contract is for essential IT support, crucial for agency operations.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The federal IT services market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a significant portion of spending for IT support within the Federal Motor Carrier Safety Administration, a sub-agency of the Department of Transportation. Comparable spending benchmarks would involve looking at other large IT support contracts awarded to system integrators and managed service providers across various federal agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements of the IT support services. Without explicit subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large contracts often involve a tiered subcontracting structure.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Federal Motor Carrier Safety Administration. Performance monitoring, adherence to the statement of work, and invoice approvals are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS-NG. The Inspector General for the Department of Transportation would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Support Services
Computer Systems Design Services
Federal IT Modernization Programs
Department of Transportation IT Contracts
Science Applications International Corporation Contracts

Risk Flags

Long contract duration may pose risks for technology obsolescence.
Fixed-price contract could limit contractor incentive for innovation.
Potential for vendor lock-in with a single large provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $119.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::CT::IGF FOR CRITICAL FUNCTIONS FOR IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Motor Carrier Safety Administration).

What is the total obligated amount?

The obligated amount is $119.8 million.

What is the period of performance?

Start: 2014-12-31. End: 2021-06-11.

What is the track record of Science Applications International Corporation (SAIC) with the Department of Transportation and similar IT support contracts?

Science Applications International Corporation (SAIC) is a major government contractor with a substantial history of providing IT services across various federal agencies, including the Department of Transportation. SAIC has a broad portfolio encompassing IT modernization, cybersecurity, cloud migration, and managed services. Their experience with DOT likely includes supporting complex systems and infrastructure. Analyzing their past performance on similar-sized IT support contracts, particularly within transportation or logistics-focused agencies, would provide context on their capabilities, delivery history, and potential risks. Past performance reviews and any documented issues or commendations from previous DOT contracts would be crucial for a comprehensive assessment of their suitability for this award.

How does the $120 million contract value compare to similar IT support contracts awarded by the Department of Transportation or other agencies of similar size?

The $120 million contract value over approximately six years, averaging around $20 million annually, places this contract in the mid-to-large tier for IT support services within the federal government. To benchmark this, one would compare it against other IT support and systems integration contracts awarded by agencies like the General Services Administration (GSA), Department of Homeland Security (DHS), or other large cabinet-level departments. Factors such as the scope of services (e.g., help desk, network management, cybersecurity, application development), the number of users supported, and the complexity of the agency's IT environment are critical for a meaningful comparison. A higher annual average spend might indicate more comprehensive or complex services, while a lower spend could suggest a more focused or efficiently managed contract.

What are the primary risks associated with a long-term, fixed-price IT support contract of this magnitude?

Long-term, fixed-price IT support contracts, like this $120 million award, carry several inherent risks. Firstly, the fixed-price nature can disincentivize innovation if the contractor focuses solely on meeting the minimum requirements to maintain profitability, potentially leading to outdated technology solutions over the contract's lifespan. Secondly, scope creep, where the government's needs evolve beyond the original contract definition, can lead to disputes or require costly modifications if not managed meticulously. Thirdly, there's a risk of vendor lock-in; the agency becomes heavily reliant on SAIC's expertise and infrastructure, making a future transition to a different provider potentially complex and expensive. Finally, if the initial pricing was too aggressive or unforeseen technical challenges arise, the contractor might face financial strain, potentially impacting service delivery quality or leading to contract disputes.

What are the implications of this contract being awarded under 'full and open competition' with 6 bidders?

The award under 'full and open competition' with six bidders is a positive indicator for the government. It signifies that the solicitation was broadly advertised, allowing any qualified vendor to compete, thereby maximizing the pool of potential offerors. The presence of six bidders suggests a robust and competitive market for these IT support services, which typically drives down prices and encourages higher quality offerings as companies strive to differentiate themselves. This level of competition helps ensure that the government is receiving fair market value for its investment and reduces the risk of awarding a contract at an inflated price, which might occur in a sole-source or limited-competition scenario. It also provides the agency with a wider range of technical solutions and approaches to choose from.

How has federal spending on IT support services, particularly within the Department of Transportation, trended over the past 5-10 years?

Federal spending on IT support services, including those within the Department of Transportation (DOT), has generally trended upwards over the past 5-10 years, driven by the increasing digitization of government operations, the need for enhanced cybersecurity, and the push for IT modernization. Agencies like DOT rely heavily on IT for managing transportation networks, safety regulations, and data analysis. Spending often fluctuates based on specific modernization initiatives, cybersecurity threats, and budget allocations. While overall IT spending has increased, there's also a growing emphasis on cloud adoption, data analytics, and agile development, which may shift the nature of IT support contracts. Analyzing historical DOT IT spending patterns would reveal whether this $120 million contract aligns with or deviates from previous investment levels and priorities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

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: $133,346,739

Exercised Options: $132,784,119

Current Obligation: $119,788,052

Actual Outlays: $33,115,249

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $2,280,121

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0048

IDV Type: GWAC

Timeline