GSA awards $68M IT contract to Science Applications International Corp. for data processing and storage

Contract Overview

Contract Amount: $68,264,522 ($68.3M)

Contractor: Science Applications International Corporation

Awarding Agency: General Services Administration

Start Date: 2013-04-01

End Date: 2018-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $34.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL::IGF NATIONAL CENTER FOR CRITICAL INFORMATION PROCESSING AND STORAGE

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529

State: Mississippi Government Spending

Plain-Language Summary

General Services Administration obligated $68.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::CL::IGF NATIONAL CENTER FOR CRITICAL INFORMATION PROCESSING AND STORAGE Key points: 1. Contract value represents a significant investment in critical IT infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. Performance period spans over five years, indicating a long-term need. 5. Contractor's experience in IT services is a key factor in performance. 6. Geographic location in Mississippi may have local economic implications.

Value Assessment

Rating: good

The contract value of $68.3 million over five years averages to approximately $13.6 million annually. Benchmarking this against similar large-scale IT infrastructure contracts is challenging without more specific service details. However, the fixed-price nature suggests an attempt to control costs. Further analysis would require comparing the scope of services to industry standards and the contractor's proposed pricing against market rates for comparable systems design and data storage solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple vendors.

Public Impact

Federal agencies requiring advanced data processing and storage capabilities will benefit from the services provided. The contract supports the operational needs of the General Services Administration's Federal Acquisition Service. The services are delivered from Mississippi, potentially impacting the local IT workforce and economy. Ensures the availability of secure and reliable data management for government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the solution is highly proprietary.
Risk of cost overruns if the fixed-price contract does not adequately account for unforeseen technical challenges.
Dependence on a single contractor for critical data infrastructure.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Fixed-price contract type provides cost predictability.
Contractor has a strong track record in IT services.
Long-term contract duration suggests a stable and ongoing need for these services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The market for data processing and storage solutions is highly competitive, with numerous large and small firms offering specialized capabilities. Government spending in this area is substantial, driven by the increasing need for secure, scalable, and efficient data management. This contract represents a portion of that overall federal IT expenditure, supporting critical government functions.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have a small business subcontracting requirement noted (sb: false, ss: false). This suggests that the primary award went to a large business. While large contracts can sometimes offer subcontracting opportunities for small businesses, the absence of explicit set-aside or subcontracting goals means their participation is not guaranteed and would depend on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the General Services Administration. Performance monitoring, adherence to contract terms, and quality assurance are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Infrastructure Modernization
Cloud Computing Services
Data Center Operations
Information Technology Services
Computer Systems Design Services

Risk Flags

Potential for vendor lock-in
Cybersecurity risks
Performance variability
Cost overruns (mitigated by FFP)

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $68.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::CL::IGF NATIONAL CENTER FOR CRITICAL INFORMATION PROCESSING AND STORAGE

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 $68.3 million.

What is the period of performance?

Start: 2013-04-01. End: 2018-09-30.

What is Science Applications International Corporation's track record with similar government IT contracts?

Science Applications International Corporation (SAIC) has a substantial history of performing IT services for the federal government. They have been awarded numerous contracts across various agencies, including significant work in areas like cloud computing, cybersecurity, data analytics, and systems integration. Their experience often involves large-scale, complex projects requiring robust technical expertise and project management capabilities. Reviewing their past performance on similar contracts, particularly those involving data processing, storage, and critical infrastructure, would provide insight into their ability to meet the requirements of this specific GSA award. Past performance evaluations and any reported issues or successes on prior contracts are key indicators of their reliability and capability.

How does the awarded value compare to similar federal IT infrastructure contracts?

The awarded value of $68.3 million over a five-year period, averaging approximately $13.6 million annually, places this contract in the mid-to-large tier for federal IT infrastructure projects. To benchmark effectively, one would need to compare it against contracts for similar services, such as data center consolidation, managed IT services, or large-scale data storage solutions, awarded by agencies like GSA, DOD, or DHS. Factors like contract type (firm-fixed-price), scope of work, and specific technical requirements heavily influence pricing. Without a detailed scope of work and specific service level agreements, a precise comparison is difficult, but the value appears consistent with significant IT infrastructure investments.

What are the primary risks associated with this contract for the government?

Key risks for the government include potential cost overruns if the fixed-price contract doesn't fully account for unforeseen technical challenges or scope creep, although the fixed-price nature aims to mitigate this. There's also a risk of vendor lock-in, where the government becomes heavily reliant on SAIC's specific technology or processes, making future transitions difficult or costly. Performance risk is another concern; failure to meet service level agreements or deliver the required uptime and security for critical data processing and storage could disrupt government operations. Finally, cybersecurity risks are inherent in any IT contract, requiring robust security measures from the contractor to protect sensitive government data.

How effective is the 'full and open competition' approach for this type of IT service?

The 'full and open competition' approach is generally considered the most effective method for procuring IT services like data processing and storage, as it maximizes the pool of potential offerors. This broad competition encourages multiple vendors to submit proposals, fostering price discovery and innovation. For complex IT solutions, it allows the government to solicit best-of-breed capabilities from a wide range of companies, potentially leading to better technical solutions and more competitive pricing. The fact that four bids were received suggests this approach was successful in attracting sufficient interest, which is a positive indicator for achieving value for taxpayer money.

What are the historical spending patterns for similar IT services at GSA?

The General Services Administration (GSA) is a major procurer of IT services, consistently spending billions annually across various categories including IT infrastructure, cloud services, and software development. Historical spending data for GSA shows a significant and growing trend towards outsourcing IT functions and investing in modern data management and processing capabilities. Contracts for computer systems design services, like this one, are a substantial part of their IT portfolio. Analyzing GSA's past five to ten years of IT spending would reveal trends in contract values, types of services procured, and the dominant contractors in the space, providing context for the $68.3 million award.

What are the implications of the firm-fixed-price contract type on value and risk?

A firm-fixed-price (FFP) contract type aims to provide the government with cost certainty, as the contractor assumes most of the risk for cost overruns. This is generally advantageous for the government when requirements are well-defined and unlikely to change significantly. For IT services like data processing and storage, an FFP contract can incentivize the contractor to be efficient and manage costs effectively. However, if the scope is not precisely defined or if unforeseen technical complexities arise, the contractor might cut corners on quality, or the government might miss out on potential cost savings if market prices decrease during the contract period. The value is locked in, but flexibility to adapt to evolving needs might be limited without contract modifications.

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

Solicitation ID: ID04120102

Offers Received: 4

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: $72,173,038

Exercised Options: $72,173,038

Current Obligation: $68,264,522

Actual Outlays: $-530

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $5,217,575

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0048

IDV Type: GWAC

Timeline