DoD's $20.6M contract to SAIC for USCYBERCOM support aims to centralize cyberspace operations

Contract Overview

Contract Amount: $20,670,687 ($20.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2026-03-26

Contract Duration: 545 days

Daily Burn Rate: $37.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SUPPORT THE USCYBERCOM J3 DIRECTORATE JOC AND SPECIAL PROGRAMS SERVICES IN EFFORTS TO COLLABORATE WITH EXISTING CYBERSPACE RESOURCES, CREATE SYNERGY THAT DOES NOT CURRENTLY EXIST, CENTRALIZE COMMAND OF CYBERSPACE OPERATIONS.

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SUPPORT THE USCYBERCOM J3 DIRECTORATE JOC AND SPECIAL PROGRAMS SERVICES IN EFFORTS TO COLLABORATE WITH EXISTING CYBERSPACE RESOURCES, CREATE SYNERGY THAT DOES NOT CURRENTLY EXIST, CENTRALIZE COMMAND OF CYBERSPACE OPERATIONS. Key points: 1. Contract focuses on enhancing collaboration and synergy within existing cyberspace resources. 2. Aims to centralize command and control of cyberspace operations for improved efficiency. 3. Performance period of 545 days indicates a medium-term engagement for critical support. 4. The contractor, Science Applications International Corporation (SAIC), has a significant presence in defense contracting. 5. This contract falls under Research and Development in Physical, Engineering, and Life Sciences. 6. The definitive contract type suggests a clear scope of work for the duration. 7. The Cost Plus Fixed Fee pricing structure requires careful monitoring of costs against the fixed fee.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed diligently, potentially impacting overall value. While the dollar amount is substantial, its effectiveness hinges on the successful achievement of stated goals like centralization and synergy, which are difficult to quantify upfront. The fixed fee component provides some cost control, but the variable cost component requires close oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a direct award. The lack of competition means that pricing and service levels were not tested against market alternatives, potentially leading to less favorable terms for the government compared to a competed procurement.

Taxpayer Impact: Taxpayers may not receive the best possible price or value due to the absence of competitive bidding, as the government did not leverage market forces to drive down costs.

Public Impact

USCYBERCOM's J3 Directorate will directly benefit from enhanced operational capabilities and improved command structures. Services delivered will focus on collaboration, synergy, and centralization of cyberspace operations. The primary geographic impact is within the Department of Defense and its operational theaters. Workforce implications include potential integration of contractor personnel with military and civilian staff within USCYBERCOM.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases cost to taxpayers.
CPFF contract type requires robust government oversight to manage cost escalations.
Defining and measuring 'synergy' and 'centralization' can be subjective, posing performance assessment challenges.

Positive Signals

Contract awarded to a known entity (SAIC) with established experience in defense and cyber.
Clear objectives are stated, aiming to improve critical national security functions.
Definitive contract structure provides a defined period and scope for the services.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on IT and cybersecurity capabilities. The market for cybersecurity services supporting defense agencies is large and highly specialized, with significant government investment. This contract aligns with broader trends of increasing federal spending on cyber defense and operational enhancement, aiming to consolidate and improve existing command structures within a critical military branch.

Small Business Impact

The contract indicates that small business participation is not a primary focus, as it is not set aside for small businesses and the prime contractor is a large entity. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely minimal unless SAIC actively seeks small business partners for specialized support.

Oversight & Accountability

Oversight will likely be managed by the U.S. Cyber Command contracting officer's representative (COR) and contracting officer (CO). Accountability measures will be tied to the performance objectives outlined in the contract. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Cyber Operations Support
USCYBERCOM Directorate Support
Cyberspace Resource Integration
Command and Control Modernization

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Ambiguous performance metrics (synergy, centralization)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SUPPORT THE USCYBERCOM J3 DIRECTORATE JOC AND SPECIAL PROGRAMS SERVICES IN EFFORTS TO COLLABORATE WITH EXISTING CYBERSPACE RESOURCES, CREATE SYNERGY THAT DOES NOT CURRENTLY EXIST, CENTRALIZE COMMAND OF CYBERSPACE OPERATIONS.

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 (U.S. Cyber Command).

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-03-26.

What is SAIC's track record with similar USCYBERCOM or DoD cyber support contracts?

Science Applications International Corporation (SAIC) has a substantial history of supporting the Department of Defense and various intelligence agencies, including significant work in cybersecurity and command and control systems. While specific contract details for USCYBERCOM J3 Directorate support are not publicly itemized here, SAIC has previously been awarded contracts for services such as network operations, cyber defense, intelligence analysis, and systems engineering for military branches. Their extensive experience suggests a familiarity with the operational environment and requirements of agencies like USCYBERCOM. However, the success and value derived from past contracts can vary, and a detailed review of past performance evaluations, where available, would be necessary for a comprehensive assessment.

How does the $20.6M value compare to similar cyber support contracts for command and control functions?

The $20.6 million value for this 545-day (approximately 18-month) contract for USCYBERCOM support is within a typical range for specialized IT and R&D services supporting major defense commands. Comparable contracts for enhancing command and control (C2) capabilities, cybersecurity operations, and strategic planning within large military organizations can range from tens to hundreds of millions of dollars over several years. Factors influencing cost include the complexity of the mission, the level of expertise required, the number of personnel involved, and the specific technologies or research involved. Given that this contract aims to centralize command and create synergy, it addresses high-level strategic objectives, justifying a significant investment. However, without detailed scope and deliverables, direct comparison is difficult.

What are the primary risks associated with this sole-source, Cost Plus Fixed Fee contract?

The primary risks associated with this sole-source, Cost Plus Fixed Fee (CPFF) contract are twofold. Firstly, the sole-source nature means the government did not benefit from competitive bidding, potentially leading to a higher price than could have been achieved through a competitive process. This lack of market validation is a significant risk to achieving optimal value for taxpayer money. Secondly, the CPFF structure, while providing flexibility, carries inherent risks of cost escalation. The contractor is reimbursed for allowable costs plus a fixed fee, creating less incentive to control costs compared to fixed-price contracts. If the government's oversight is insufficient, costs could exceed initial estimates, impacting the overall budget and value proposition. Additionally, defining and measuring success for abstract goals like 'synergy' and 'centralization' poses performance risk.

How effective is the stated goal of 'centralizing command of cyberspace operations' likely to be?

The effectiveness of 'centralizing command of cyberspace operations' is highly dependent on the specific implementation strategy, the existing command structure's fragmentation, and the buy-in from various stakeholders within the DoD. Centralization can offer benefits such as improved coordination, reduced redundancy, and clearer lines of authority, which are crucial in the fast-paced cyber domain. However, it can also introduce bureaucratic hurdles, slow down decision-making if not managed properly, and potentially stifle innovation that thrives in more decentralized environments. The success of this contract in achieving this goal will hinge on SAIC's ability to facilitate collaboration, integrate diverse systems, and influence organizational change within USCYBERCOM and potentially across related DoD entities. Clear metrics and robust oversight will be essential to gauge progress.

What historical spending patterns exist for USCYBERCOM support services?

Historical spending patterns for USCYBERCOM support services indicate a consistent and growing investment in cybersecurity capabilities and operational support. Agencies like USCYBERCOM require continuous technological advancement and expert personnel to maintain a strategic advantage in cyberspace. Spending typically encompasses areas such as intelligence analysis, network defense, offensive cyber operations support, research and development, and advanced training. Contracts often involve large, established defense contractors like SAIC, reflecting the specialized and high-stakes nature of the work. The trend has been towards increased funding for cyber-related activities across the DoD, driven by evolving threats and the increasing reliance on digital infrastructure for military operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HB000124R0015

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12010 SUNSET HILLS RD FL 4, 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: $28,203,682

Exercised Options: $28,203,682

Current Obligation: $20,670,687

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $13,545,504

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline