IT Help Desk Support for Naval Medical Center Portsmouth awarded to Science Applications International Corporation for over $13M

Contract Overview

Contract Amount: $13,039,815 ($13.0M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2008-10-01

End Date: 2024-01-25

Contract Duration: 5,594 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT HELP DESK SUPPORT FOR NAVAL MEDICAL CENTER PORTSMOUTH (NMCP)

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IT HELP DESK SUPPORT FOR NAVAL MEDICAL CENTER PORTSMOUTH (NMCP) Key points: 1. Contract value of $13M over its period of performance suggests a significant investment in IT support services. 2. The contract was awarded using full and open competition, indicating a potentially competitive bidding process. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially leading to more predictable expenses. 4. The long duration of the contract (over 4 years) implies a need for sustained and reliable IT support. 5. The award to a large, established contractor like SAIC suggests a focus on proven capabilities and experience. 6. The absence of small business set-aside flags indicates this contract was not specifically targeted for small business participation.

Value Assessment

Rating: good

The contract value of $13,039,815 over approximately 4.6 years for IT help desk support appears reasonable given the scope of supporting a naval medical center. Benchmarking against similar IT support contracts for large federal facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government in managing costs, assuming the contractor's pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The fact that it resulted in a single delivery order implies that the competition likely occurred at the task order level under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, or that this was a standalone competitive procurement. The level of competition is generally positive for price discovery.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by encouraging multiple vendors to offer their best prices to win the contract.

Public Impact

Provides essential IT help desk support to the Naval Medical Center Portsmouth (NMCP), ensuring the smooth operation of critical healthcare IT systems. Benefits military medical personnel and potentially civilian staff by resolving technical issues promptly, thereby supporting patient care delivery. The geographic impact is concentrated at the Naval Medical Center Portsmouth, Virginia. Supports a workforce that relies heavily on functional IT infrastructure for administrative, clinical, and operational tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Reliance on a single contractor for critical IT support could pose risks if the contractor experiences performance issues or financial instability.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
Firm-fixed-price contract type helps control costs for the government.
Long contract duration indicates a stable, ongoing need for these services, suggesting the contractor has met requirements to date.
Contractor is a large, established company with significant experience in government contracting.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on IT help desk and support functions. The IT services market for the federal government is substantial, with significant spending allocated to maintaining and upgrading complex systems. This contract represents a portion of the broader defense IT spending, supporting the operational readiness of a key medical facility. Comparable spending benchmarks would involve analyzing IT support contracts for other large federal agencies or military installations.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses explicitly stated in the provided data. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if the prime contractor chooses to engage them, or in future competitive procurements.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the contracting officer's representative (COR) at the Naval Medical Center Portsmouth. Accountability measures are embedded in the firm-fixed-price contract terms, with performance standards likely defined in the statement of work. Transparency is facilitated through contract databases like FPDS, though detailed performance metrics are often internal.

Related Government Programs

DoD IT Support Services
Naval Medical IT Infrastructure
Healthcare IT Services
Federal Help Desk Contracts
Defense Health Agency IT

Risk Flags

Long contract duration may lead to price inflexibility.
Reliance on a single vendor for critical IT support.
Potential for scope creep in firm-fixed-price contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IT HELP DESK SUPPORT FOR NAVAL MEDICAL CENTER PORTSMOUTH (NMCP)

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2008-10-01. End: 2024-01-25.

What is the track record of Science Applications International Corporation (SAIC) in providing IT support services to the Department of Defense, particularly within healthcare settings?

Science Applications International Corporation (SAIC) is a major government contractor with extensive experience supporting the Department of Defense (DoD) across various IT domains. They have a long history of providing a wide range of services, including IT infrastructure management, cybersecurity, software development, and technical support. Within the healthcare sector, SAIC has supported numerous military health systems and agencies, including the Defense Health Agency (DHA) and various military treatment facilities. Their experience often involves managing complex networks, ensuring data security for sensitive health information (PHI), and providing end-user support to medical personnel. This specific contract for NMCP builds upon that established expertise, leveraging their understanding of the unique requirements and regulatory environment of military healthcare IT.

How does the awarded amount of $13,039,815 compare to similar IT help desk support contracts for large federal medical facilities?

The awarded amount of approximately $13 million over roughly 4.6 years for IT help desk support at a naval medical center is within a range that could be considered typical for large federal facilities. However, a precise comparison requires detailed analysis of contract scope, service level agreements (SLAs), geographic location, and the specific technologies supported. Contracts for major military bases or large Veterans Affairs (VA) hospitals often run into tens of millions of dollars over similar periods. Factors like the number of users supported, the complexity of the IT environment (e.g., integration of specialized medical equipment IT), and the required response times significantly influence pricing. Without direct comparable contract data with identical parameters, it's difficult to definitively benchmark value, but the scale aligns with substantial IT support needs for a facility like NMCP.

What are the primary risks associated with a firm-fixed-price contract of this duration for IT support services?

The primary risks associated with a firm-fixed-price (FFP) contract of this duration (over 4 years) for IT support services revolve around potential scope creep and the contractor's ability to maintain service quality while managing costs. For the government, the risk is that the fixed price may become uncompetitive if market rates decrease or if the scope of work expands significantly beyond what was initially envisioned, leading to a less favorable value proposition over time. For the contractor, the risk is underestimating the effort required or facing unforeseen technical challenges, which could erode profit margins. Additionally, a long-duration FFP contract can sometimes disincentivize innovation if the contractor focuses solely on meeting minimum requirements to control costs, rather than proactively improving services.

What does the 'full and open competition' designation imply about the potential for cost savings for the government on this contract?

The 'full and open competition' designation implies that the government solicited proposals from all responsible sources and that multiple bidders were likely involved in the procurement process. This competitive environment generally drives down prices as contractors strive to offer their most competitive bids to win the contract. It suggests that the government had the opportunity to evaluate various technical approaches and pricing structures, theoretically leading to the selection of the best value offer. While the firm-fixed-price structure locks in the cost, the initial competition is crucial for ensuring that this locked-in price is reasonable and reflects market conditions, thereby maximizing cost savings for the government compared to a sole-source or limited competition award.

How has IT spending for naval medical facilities evolved over the past decade, and where does this contract fit in?

IT spending for naval medical facilities, like other branches of the military and federal healthcare, has seen a significant upward trend over the past decade, driven by digitization of health records (EHRs), increasing reliance on networked medical devices, cybersecurity imperatives, and the need for robust communication systems. This contract, valued at over $13 million for IT help desk support, represents a crucial component of that spending. It addresses the fundamental need for reliable end-user support, which is essential for the effective functioning of all other advanced IT systems. As the Navy modernizes its healthcare IT infrastructure and adopts new technologies, the demand for comprehensive support services like those provided under this contract is likely to remain strong, reflecting a sustained investment in operational readiness and patient care technology.

What are the potential implications of this contract being awarded as a Delivery Order (DO) under a larger contract vehicle?

Being awarded as a Delivery Order (DO) typically means this specific task is being fulfilled under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract, often awarded through a prior full and open competition. This structure allows the government to procure specific goods or services as needed, up to a certain ceiling amount. For this contract, it implies that the initial competition likely occurred when the parent IDIQ contract was awarded, and this DO represents a specific call for services at NMCP. The implications include potentially faster procurement cycles for subsequent needs under the same IDIQ, and the possibility that the competition for the overall IDIQ was broader than for this single delivery order. It also means the total value of all DOs under the parent contract could be significantly higher than this individual award.

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: N0002408R3292

Offers Received: 2

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: $13,039,815

Exercised Options: $13,039,815

Current Obligation: $13,039,815

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4119

IDV Type: IDC

Timeline