GSA's $162M consulting contract with SAIC shows long-term engagement for productivity and tech transfer services

Contract Overview

Contract Amount: $162,014,810 ($162.0M)

Contractor: Science Applications International Corporation

Awarding Agency: General Services Administration

Start Date: 2009-07-31

End Date: 2019-08-31

Contract Duration: 3,683 days

Daily Burn Rate: $44.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: THIS PWS ELEMENT SHOULD DESCRIBE ALL ELEMENTS OF MANAGEMENT (E.G. TECHNICAL, BUSINESS, PROJECT, OPERATIONS, PROCESS, PERSONNEL, ETC.) THAT YOU PROPOSE TO PROVIDE. THE PRINCIPLE OBJECTIVE OF THIS PWS IS TO ENSURE PROACTIVE AND SUSTAINED EXCELLENCE IN PROVIDING ACCURATE, SAFE, SECURE, TIMELY, EFFICIENT AND EFFECTIVE USER PRODUCTIVITY ENHANCEMENT, TECHNOLOGY TRANSFER AND TRAINING SERVICES TO MEET THE GOVERNMENT S OBJECTIVES.

Place of Performance

Location: LORTON, FAIRFAX County, VIRGINIA, 22079

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $162.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THIS PWS ELEMENT SHOULD DESCRIBE ALL ELEMENTS OF MANAGEMENT (E.G. TECHNICAL, BUSINESS, PROJECT, OPERATIONS, PROCESS, PERSONNEL, ETC.) THAT YOU PROPOSE TO PROVIDE. THE PRINCIPLE OBJECTIVE OF THIS PWS IS TO ENSURE PROACTIVE AND SUSTAINED EXCELLENCE IN PROVIDING ACCURATE, SAFE, SECU… Key points: 1. The contract's duration of over 10 years suggests a sustained need for the services provided. 2. Focus on 'proactive and sustained excellence' indicates a performance-driven approach to consulting. 3. The 'Cost Plus Award Fee' structure incentivizes contractor performance beyond basic requirements. 4. The broad scope covering technical, business, and operational management implies significant contractor involvement. 5. This contract represents a substantial investment in enhancing government user productivity and technology adoption. 6. The absence of small business set-asides may limit opportunities for smaller firms in this specific contract.

Value Assessment

Rating: good

The total award value of $162 million over approximately 10 years indicates a significant but potentially reasonable investment for comprehensive consulting services. Benchmarking against similar large-scale, long-term IT and management consulting contracts with agencies like GSA would be necessary for a precise value-for-money assessment. The 'Cost Plus Award Fee' (CPAF) structure, while allowing for contractor flexibility and incentivizing performance, can sometimes lead to higher costs if award fees are consistently maximized without clear, quantifiable performance gains.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that multiple qualified bidders had the opportunity to compete. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages a wider range of solutions. The use of a definitive contract implies a well-defined scope of work that allowed for robust competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is designed to drive down costs through market forces and ensure the government receives the best value by considering a broad pool of potential contractors.

Public Impact

Federal employees across various agencies benefit from enhanced productivity and access to advanced technology. Services delivered include user productivity enhancement, technology transfer, and training. The geographic impact is likely nationwide, supporting federal operations across different locations. Workforce implications include improved efficiency and potentially new skill development through technology adoption and training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long contract duration (over 10 years) could indicate a lack of agile adaptation to evolving technological needs or a potential for vendor lock-in.
The 'Cost Plus Award Fee' structure, while incentivizing, can be complex to manage and may lead to cost overruns if not carefully monitored.
The broad scope of services could lead to challenges in performance measurement and accountability across diverse management areas.
Lack of specific details on competition (number of bidders) makes it difficult to fully assess the competitive pressure on pricing.
The absence of small business participation noted in the data could be a missed opportunity for innovation and cost savings from smaller, specialized firms.

Positive Signals

The 'full and open competition' award method suggests a robust bidding process, likely resulting in competitive pricing.
The 'Cost Plus Award Fee' structure incentivizes contractor performance and excellence, potentially leading to higher quality service delivery.
The long-term nature of the contract indicates a consistent and valued service delivery by the contractor, Science Applications International Corporation (SAIC).
The focus on 'proactive and sustained excellence' points to a commitment to high standards in service provision.
The contract's objective to enhance user productivity and facilitate technology transfer aligns with key government modernization goals.

Sector Analysis

This contract falls within the 'Other Scientific and Technical Consulting Services' (NAICS 541690) sector, which is a broad category encompassing a wide range of specialized advisory and assistance services. The market for such services is substantial within the federal government, supporting various agency missions from IT modernization to operational efficiency. Comparable spending benchmarks would typically involve analyzing other large, multi-year consulting contracts awarded by agencies like GSA, DOD, or civilian departments for similar scope and duration.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (sb: false). Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that opportunities for small businesses to participate in this specific contract may be limited, potentially through prime contracting or subcontracting roles. Further investigation into subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service (FAS). As a definitive contract with a Cost Plus Award Fee structure, it likely involves regular performance reviews, financial audits, and milestone tracking to ensure contractor adherence to the Performance Work Statement (PWS). The PWS itself emphasizes 'proactive and sustained excellence,' implying a focus on continuous monitoring and quality assurance. Transparency would be facilitated through contract reporting mechanisms and potentially public contract databases, though specific oversight reports are not detailed here.

Related Government Programs

IT Consulting Services
Management and Business Support Services
Technology Transfer Programs
Government Productivity Enhancement Initiatives
Federal IT Modernization Contracts

Risk Flags

Long contract duration may limit flexibility
CPAF structure requires careful cost oversight
Broad PWS scope necessitates clear performance metrics
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $162.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THIS PWS ELEMENT SHOULD DESCRIBE ALL ELEMENTS OF MANAGEMENT (E.G. TECHNICAL, BUSINESS, PROJECT, OPERATIONS, PROCESS, PERSONNEL, ETC.) THAT YOU PROPOSE TO PROVIDE. THE PRINCIPLE OBJECTIVE OF THIS PWS IS TO ENSURE PROACTIVE AND SUSTAINED EXCELLENCE IN PROVIDING ACCURATE, SAFE, SECURE, TIMELY, EFFICIENT AND EFFECTIVE USER PRODUCTIVITY ENHANCEMENT, TECHNOLOGY TRANSFER AND TRAINING SERVICES TO MEET THE GOVERNMENT S OBJECTIVES.

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 $162.0 million.

What is the period of performance?

Start: 2009-07-31. End: 2019-08-31.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar large-scale federal consulting services?

Science Applications International Corporation (SAIC) has a long history of providing a wide array of technical, engineering, and IT services to the U.S. federal government. They are a major defense contractor and also serve civilian agencies. Their experience spans areas such as cybersecurity, cloud computing, data analytics, enterprise IT, and mission systems engineering. For large-scale consulting contracts like this GSA award, SAIC typically demonstrates capabilities in program management, systems integration, and strategic advisory. Their track record includes numerous prime contracts across various agencies, often involving complex, long-term engagements. Performance on these contracts is generally assessed through contract performance reports and agency feedback, which can be found in federal procurement databases. While specific performance metrics for this particular contract are not detailed here, SAIC's overall presence suggests a capacity to handle substantial government requirements.

How does the $162 million award value compare to similar GSA consulting contracts over a 10-year period?

The $162 million award value for this GSA contract, spanning approximately 10 years (3683 days), translates to an average annual value of roughly $16.2 million. Comparing this to similar GSA consulting contracts requires access to detailed contract databases and filtering by service type (e.g., IT consulting, management consulting), agency (GSA), and contract duration. However, for a large, comprehensive consulting engagement over a decade, this value appears within a reasonable range for major federal IT and management support contracts. Many large IT modernization or enterprise support contracts awarded by GSA and other federal agencies can range from tens to hundreds of millions of dollars over similar timeframes. The 'Cost Plus Award Fee' (CPAF) structure also means the final cost could fluctuate based on performance, making direct comparisons to fixed-price contracts less straightforward.

What are the primary risks associated with a 'Cost Plus Award Fee' (CPAF) contract of this magnitude and duration?

The primary risks associated with a 'Cost Plus Award Fee' (CPAF) contract of this magnitude ($162 million) and duration (over 10 years) revolve around cost control and performance verification. For the government, there's a risk that costs could escalate beyond initial projections if the contractor's incurred costs are high and award fees are consistently maximized, potentially leading to a higher overall price than a fixed-price contract. Ensuring that the 'award' criteria are objective, measurable, and directly tied to mission-critical outcomes is crucial to prevent inflated fees for marginal performance. For the contractor, the risk lies in not meeting the performance targets required to earn the award fee, impacting their profit margin. Effective oversight, robust performance metrics, and diligent auditing are essential to mitigate these risks and ensure value for taxpayer money.

How effectively does the PWS description ensure 'proactive and sustained excellence' in service delivery?

The PWS description aims to ensure 'proactive and sustained excellence' by explicitly stating the desired outcomes: 'accurate, safe, secure, timely, efficient and effective user productivity enhancement, technology transfer and training services.' The emphasis on 'proactive' suggests a requirement for the contractor to anticipate needs and potential issues rather than merely reacting to them. 'Sustained excellence' implies a commitment to maintaining high performance levels throughout the contract's long duration. To achieve this, the PWS likely needs to be supported by a strong contract management plan, including regular performance reviews, clear key performance indicators (KPIs), and mechanisms for feedback and continuous improvement. The CPAF structure also incentivizes the contractor to strive for excellence to earn higher fees. However, the effectiveness hinges on the government's ability to define and measure these qualities rigorously.

What are the implications of the 'Other Scientific and Technical Consulting Services' NAICS code for the types of services rendered?

The North American Industry Classification System (NAICS) code 541690, 'Other Scientific and Technical Consulting Services,' is a broad category that encompasses a wide range of specialized consulting activities not classified elsewhere. This includes services related to physical sciences, engineering, environmental sciences, and other technical fields. For this contract, it suggests that the services provided by SAIC go beyond general management or IT consulting and likely involve deep technical expertise. The PWS description, focusing on 'user productivity enhancement, technology transfer and training,' aligns with this code by implying the application of scientific and technical knowledge to improve government operations and facilitate the adoption of new technologies. This broad classification allows for flexibility but also necessitates clear definition within the PWS to ensure the government procures the specific expertise it requires.

What does the contract duration of over 10 years (3683 days) signify regarding government needs and contractor relationship?

A contract duration exceeding 10 years signifies a long-term, strategic need for the services provided by the contractor. It suggests that the requirements are stable, ongoing, and deeply integrated into the government's operational framework. For the government, such a long duration can offer continuity of service, potentially lower administrative burden compared to frequent re-competitions, and the ability to foster deep institutional knowledge within the contractor. For the contractor, it represents a significant, stable revenue stream and an opportunity to build a strong, long-term relationship with the agency. However, it also carries risks, such as potential vendor lock-in, reduced flexibility to adapt to rapidly changing technologies or requirements, and the possibility of complacency if not managed with rigorous oversight and performance management.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 4QCQ97091401

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

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: $173,079,495

Exercised Options: $172,872,566

Current Obligation: $162,014,810

Actual Outlays: $39,047

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline