DoD's $22.4M IT support contract awarded to SAIC, with 5 years of performance
Contract Overview
Contract Amount: $22,432,082 ($22.4M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2026-04-29
Contract Duration: 1,672 days
Daily Burn Rate: $13.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RES PRISM OSD CAPE INFORMATION TECHNOLOGY (IT), DEVELOPMENT, WEB DEVELOPMENT, ENGINEERING, CUSTOMER COMPUTER DESIGN, ANALYTICAL SUPPORT SERVICES.
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: RES PRISM OSD CAPE INFORMATION TECHNOLOGY (IT), DEVELOPMENT, WEB DEVELOPMENT, ENGINEERING, CUSTOMER COMPUTER DESIGN, ANALYTICAL SUPPORT SERVICES. Key points: 1. Contract provides essential IT, web development, and engineering support services. 2. SAIC, a large defense contractor, holds this award. 3. The contract is structured as a firm-fixed-price delivery order. 4. Performance period spans over five years, indicating long-term need. 5. Services are critical for the Department of Defense's operational capabilities. 6. The contract falls under the Computer Systems Design Services NAICS code.
Value Assessment
Rating: good
The contract value of $22.4 million over approximately five years suggests a moderate annual spend for IT support services. Benchmarking against similar large-scale IT support contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the firm-fixed-price structure generally provides cost certainty for the government, assuming the scope of work is well-defined and stable. The award to a large, established contractor like SAIC often implies a certain level of expected performance and quality, but also potentially higher price points compared to smaller, more specialized firms.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, driving better pricing and innovation. This approach allows the government to select the offer that best meets its requirements in terms of technical approach, past performance, and price.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through robust price discovery and encourages a wider range of contractors to compete, potentially leading to more favorable terms.
Public Impact
The Department of Defense benefits from enhanced IT infrastructure and support services. Services include web development, engineering, and analytical support, crucial for mission success. The contract supports IT operations primarily within the Washington Headquarters Services. Workforce implications include the potential for direct and indirect employment by SAIC and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not tightly managed over the five-year period.
- Reliance on a single large contractor may limit flexibility in adapting to rapidly changing IT needs.
- Ensuring continued competitive pricing throughout the contract lifecycle requires careful oversight.
Positive Signals
- Award to a reputable contractor with a track record in IT services.
- Firm-fixed-price contract provides cost predictability for the government.
- Long-term performance period allows for stable support and knowledge retention.
- Full and open competition suggests a strong initial pricing environment.
Sector Analysis
This contract falls within the broader Information Technology (IT) sector, specifically focusing on computer systems design and related services. The IT services market within the federal government is substantial, with significant spending allocated to software development, system integration, and IT support. Contracts like this are essential for maintaining and modernizing the technological infrastructure of federal agencies, including defense. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded by DoD or other federal agencies for similar services and durations.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, there may be opportunities for small businesses to participate as subcontractors to SAIC. However, the primary awardee is a large business, and the direct impact on the small business ecosystem is likely limited unless significant subcontracting plans are in place and executed.
Oversight & Accountability
Oversight for this contract would typically be managed by the Washington Headquarters Services (WHS) contracting office within the Department of Defense. Accountability measures are embedded in the firm-fixed-price contract terms, requiring SAIC to deliver specified services within agreed-upon costs. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- DoD IT Modernization Programs
- Washington Headquarters Services IT Support Contracts
- Defense Information Systems Agency (DISA) Contracts
- Federal Civilian IT Services Contracts
Risk Flags
- Potential for cost overruns if scope is not well-defined.
- Risk of vendor lock-in with a single large provider.
- Ensuring continued competitive pricing and service quality over the contract term.
Tags
it, department-of-defense, washington-headquarters-services, delivery-order, large-business, full-and-open-competition, firm-fixed-price, computer-systems-design-services, information-technology, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. RES PRISM OSD CAPE INFORMATION TECHNOLOGY (IT), DEVELOPMENT, WEB DEVELOPMENT, ENGINEERING, CUSTOMER COMPUTER DESIGN, ANALYTICAL SUPPORT SERVICES.
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 (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $22.4 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-04-29.
What is Science Applications International Corporation's (SAIC) track record with the Department of Defense for similar IT support services?
SAIC has a long-standing and extensive track record of providing a wide array of IT, engineering, and professional services to the Department of Defense and other federal agencies. They are a major defense contractor with significant experience in areas such as systems engineering, software development, cybersecurity, and enterprise IT support. Their past performance with DoD includes numerous large-scale contracts, often involving complex technical requirements and mission-critical systems. This experience suggests a strong capability to meet the demands of the current contract, although specific performance metrics and client satisfaction levels for individual contracts would require deeper investigation into past performance evaluations and contract close-out reports.
How does the annual spending on this contract compare to similar IT support contracts within the DoD?
The approximate annual spend for this contract, estimated at around $4.5 million ($22.4M / ~5 years), falls within a moderate range for IT support services within the Department of Defense. Large-scale IT modernization, system integration, and sustainment contracts can range from tens of millions to billions of dollars annually. This particular contract appears to focus on specific IT development, web development, engineering, and analytical support. To provide a precise comparison, one would need to benchmark against contracts with similar scope, duration, and service categories (e.g., NAICS 541512 - Computer Systems Design Services) awarded to other large system integrators or IT service providers within DoD over the past few fiscal years. Factors like geographic location of service delivery and specific technical requirements also influence comparability.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks include potential scope creep, where requirements may expand beyond the initial definition, leading to cost overruns or schedule delays, especially given the five-year duration. Another risk is the potential for vendor lock-in or a decline in service quality over time if not actively managed. Mitigation strategies likely involve robust contract management by the Washington Headquarters Services, including detailed performance work statements, regular progress reviews, and strict change control processes. The firm-fixed-price nature of the contract incentivizes SAIC to manage costs effectively. Furthermore, the full and open competition at the outset suggests a competitive environment that can be leveraged through ongoing performance monitoring and potential future re-competition to ensure continued value and service quality.
How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for these IT services?
The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and unlikely to change significantly. It shifts the cost risk to the contractor (SAIC in this case), incentivizing them to control costs and perform efficiently to maximize profit. For IT services like web development and engineering, where requirements can sometimes evolve, FFP works best when coupled with a clear and stable Performance Work Statement (PWS). If the PWS is comprehensive and the government effectively manages any necessary changes through formal modification processes, FFP can provide significant cost certainty and predictability for the government, thereby enhancing value. However, if requirements are highly fluid or poorly defined, FFP can lead to disputes or costly change orders.
What are the historical spending patterns for IT support services under Washington Headquarters Services (WHS)?
Historical spending patterns for IT support services under Washington Headquarters Services (WHS) would likely show a consistent and significant investment in maintaining and enhancing the IT infrastructure that supports the Office of the Secretary of Defense and other Pentagon entities. WHS manages a vast array of facilities and services, including critical IT operations. Spending in this area typically reflects the ongoing need for system maintenance, cybersecurity, network operations, software development, and user support. Analyzing past WHS IT budgets and contract awards would reveal trends in technology adoption, vendor relationships, and the overall scale of IT service requirements. This specific contract, awarded in late 2021 for performance through 2026, fits within this pattern of sustained investment in essential IT capabilities for a high-demand, mission-critical environment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: HQ003421R0157
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12010, SUNSET HILLS ROAD, 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: $28,025,583
Exercised Options: $22,432,082
Current Obligation: $22,432,082
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $9,680,430
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F486BA
IDV Type: FSS
Timeline
Start Date: 2021-09-30
Current End Date: 2026-04-29
Potential End Date: 2026-04-29 00:00:00
Last Modified: 2025-07-02
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