GSA's $105M IT support contract for USDA awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $105,426,848 ($105.4M)
Contractor: Science Applications International Corporation
Awarding Agency: General Services Administration
Start Date: 2006-07-21
End Date: 2010-07-20
Contract Duration: 1,460 days
Daily Burn Rate: $72.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IT SUPPORT FOR USDA
Place of Performance
Location: KANSAS CITY, JACKSON County, MISSOURI, 64133
State: Missouri Government Spending
Plain-Language Summary
General Services Administration obligated $105.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IT SUPPORT FOR USDA Key points: 1. Contract value of $105.4M over 4 years for IT support services. 2. Awarded as a competitive delivery order under a larger GSA schedule. 3. Services include computer systems design and related services. 4. Contract performance period spans from July 2006 to July 2010. 5. The contract type is Cost Plus Award Fee (CPAF), which incentivizes performance. 6. The contractor, Science Applications International Corporation, is a large, established entity in the federal IT space.
Value Assessment
Rating: good
The contract value of $105.4M over four years averages to approximately $26.35M annually. This is a substantial but not unusually high amount for comprehensive IT support services for a federal agency like the USDA. Benchmarking against similar large-scale IT support contracts within the federal government would be necessary for a precise value-for-money assessment. However, the competitive nature of the award suggests a degree of price discovery and potential for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a competitive delivery order, indicating that it was competed under a broader indefinite-delivery indefinite-quantity (IDIQ) contract or a GSA Schedule. The 'full-and-open' competition implies that all responsible sources were permitted to submit offers. The fact that it was a competitive delivery order suggests that multiple vendors likely vied for this specific task order, which generally leads to better pricing and service options.
Taxpayer Impact: A competitive award process for this significant IT support contract is beneficial for taxpayers as it fosters a competitive environment, driving down costs and encouraging innovation from multiple vendors.
Public Impact
The primary beneficiary of this contract is the U.S. Department of Agriculture (USDA), which receives essential IT support services. Services delivered include computer systems design, integration, and potentially ongoing IT support and maintenance. The geographic impact is likely nationwide, supporting USDA operations across various locations. The contract supports a significant IT services workforce, primarily through the contractor Science Applications International Corporation and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee (CPAF) contracts can sometimes lead to cost overruns if not managed tightly, as the contractor is reimbursed for costs plus a fee based on performance.
- The sheer size of the contract ($105M) presents inherent risks related to scope creep and management complexity.
- Reliance on a single large contractor for critical IT infrastructure could pose a risk if the contractor faces financial instability or performance issues.
Positive Signals
- Awarded through a competitive process, suggesting a degree of market validation for the proposed solution and price.
- The use of a GSA Schedule or similar vehicle often implies pre-negotiated terms and conditions, potentially streamlining the acquisition process.
- Science Applications International Corporation is a well-established federal contractor with a track record in IT services, suggesting a level of reliability.
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. Contracts of this magnitude are common for supporting large federal departments like the USDA, reflecting the ongoing need for robust IT solutions to manage complex operations and data.
Small Business Impact
There is no indication from the provided data that this contract included a small business set-aside. Science Applications International Corporation is a large business. Therefore, the primary impact on small businesses would likely be through subcontracting opportunities, if any were pursued by the prime contractor. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officers and program managers within the General Services Administration (GSA) and the USDA. As a delivery order under a GSA schedule, GSA likely provides a baseline level of oversight. The Cost Plus Award Fee (CPAF) structure necessitates close monitoring of costs and performance to ensure the award fee is justified and that taxpayer funds are used efficiently. Transparency would be facilitated through contract reporting mechanisms.
Related Government Programs
- USDA IT Modernization Programs
- GSA IT Schedule Contracts
- Federal Civilian Agency IT Support Services
- Computer Systems Design and Related Services
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Complexity of managing large-scale IT support services.
- Dependence on a single large contractor.
Tags
it-support, usda, gsa, science-applications-international-corporation, competitive-delivery-order, cost-plus-award-fee, computer-systems-design, federal-acquisition-service, missouri, large-business
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $105.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IT SUPPORT FOR USDA
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 $105.4 million.
What is the period of performance?
Start: 2006-07-21. End: 2010-07-20.
What was the specific performance criteria used to determine the award fee for Science Applications International Corporation?
The provided data does not detail the specific performance criteria used for the Cost Plus Award Fee (CPAF) component of this contract. Typically, CPAF contracts outline measurable performance objectives related to service delivery, system uptime, response times, user satisfaction, and project milestones. The contracting officer would evaluate the contractor's performance against these predefined metrics to determine the amount of award fee, if any, paid. Without access to the contract's Performance Work Statement (PWS) and the associated award fee plan, the exact criteria remain unknown.
How did the pricing of this contract compare to other similar IT support contracts awarded around the same period?
Direct comparison of pricing for this $105.4M contract to other similar IT support contracts awarded around 2006-2010 is challenging without access to detailed pricing structures and service level agreements of those comparable contracts. However, the fact that this was a competitive delivery order suggests that GSA and USDA sought competitive bids, implying an effort to achieve market-competitive pricing. The Cost Plus Award Fee (CPAF) structure means that the final cost is a combination of actual costs incurred plus a negotiated fee, which can vary based on performance. A thorough benchmark analysis would require examining the labor categories, rates, and overhead applied by multiple bidders in response to the solicitation.
What were the primary risks identified during the procurement process for this contract, and how were they mitigated?
While specific risk mitigation strategies are not detailed in the provided data, common risks for large IT support contracts include contractor performance failures, cost overruns, cybersecurity vulnerabilities, and schedule delays. Given the competitive nature of the award, potential bidders would have been required to outline their risk management approaches. Mitigation efforts likely involved robust contract oversight by GSA and USDA, clear performance metrics tied to the award fee, and potentially performance bonds or other financial assurances. The selection of an experienced contractor like Science Applications International Corporation also serves as a risk mitigation factor.
What was the historical spending trend for IT support services at USDA prior to this contract?
The provided data focuses solely on this specific contract (awarded July 2006) and does not include historical spending trends for IT support services at the USDA. To understand historical spending, one would need to analyze previous contract awards for similar services to the USDA over several fiscal years. This would involve searching federal procurement databases for contracts related to IT support, computer systems design, and related services awarded to the USDA before 2006. Such an analysis would reveal whether this $105.4M contract represented an increase, decrease, or consistent level of investment in IT support.
What is the track record of Science Applications International Corporation (SAIC) in delivering IT support services to federal agencies?
Science Applications International Corporation (SAIC) has a long-standing and extensive track record of providing IT support and a wide range of technical services to numerous federal agencies, including the Department of Defense, civilian agencies, and intelligence community. They are known for handling large, complex IT programs. Their history includes significant contracts for systems engineering, integration, cybersecurity, and IT infrastructure management. While specific performance details for every contract are not publicly available, SAIC's continued success in winning and performing on major federal IT contracts indicates a generally strong capability and established reputation in the federal IT services market.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $127,807,191
Exercised Options: $127,807,191
Current Obligation: $105,426,848
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00T99ALD0210
IDV Type: GWAC
Timeline
Start Date: 2006-07-21
Current End Date: 2010-07-20
Potential End Date: 2011-07-20 00:00:00
Last Modified: 2016-09-22
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