DHS awards $536M IT contract to Science Applications International Corp for software applications

Contract Overview

Contract Amount: $535,869,447 ($535.9M)

Contractor: Science Applications International Corp

Awarding Agency: Department of Homeland Security

Start Date: 2012-09-15

End Date: 2017-09-14

Contract Duration: 1,825 days

Daily Burn Rate: $293.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IT OPERATIONS AND MAINTENANCE, UPDATES, UPGRADES OF SOFTWARE APPLICATIONS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $535.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORP for work described as: IT OPERATIONS AND MAINTENANCE, UPDATES, UPGRADES OF SOFTWARE APPLICATIONS Key points: 1. Significant contract value of $535.9 million over five years. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate due to the long duration and cost-plus contract type. 4. IT sector spending is substantial, with this contract representing a portion of agency needs.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. The awarded amount of $535.9M over five years suggests a substantial investment in IT operations and maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, which typically drives better price discovery and value for the government. The award was a delivery order under a larger contract.

Taxpayer Impact: Taxpayer funds are being used for essential IT operations and maintenance, with the goal of ensuring system functionality and security.

Public Impact

Ensures continued operation and modernization of critical software applications for U.S. Customs and Border Protection. Supports national security by maintaining the IT infrastructure of a key border security agency. Potential for job creation within the IT sector through the prime contractor and subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Long contract duration (5 years) increases risk of scope creep and cost escalation.
No specific small business participation noted.

Positive Signals

Full and open competition likely resulted in a competitive price.
Contract supports critical national security functions.
Delivery order structure allows for flexibility in tasking.

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. Government spending in this area is consistently high, driven by the need for modern, secure, and efficient IT systems across all agencies.

Small Business Impact

The data indicates that small business participation was not a stated requirement or achievement for this specific contract. Further analysis would be needed to determine if any subcontracting opportunities were provided to small businesses.

Oversight & Accountability

The Department of Homeland Security, specifically U.S. Customs and Border Protection, is responsible for overseeing this contract. Standard government oversight mechanisms for IT contracts would apply, including performance monitoring and financial reviews.

Related Government Programs

Computer Systems Design Services
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (5 years).
No explicit small business set-aside or participation noted.
Potential for scope creep in IT modernization projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $535.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORP. IT OPERATIONS AND MAINTENANCE, UPDATES, UPGRADES OF SOFTWARE APPLICATIONS

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $535.9 million.

What is the period of performance?

Start: 2012-09-15. End: 2017-09-14.

What is the benchmark for IT operations and maintenance contracts of this size and scope?

Benchmarking IT operations and maintenance contracts of this magnitude ($535.9M over 5 years) requires detailed comparison against similar contracts awarded by agencies like DHS or CBP. Factors such as contract type (CPFF), specific services (software applications, updates, upgrades), and duration are crucial. Without access to a comprehensive database of comparable contracts, a precise benchmark is difficult, but this award appears substantial and typical for large-scale federal IT support.

What are the primary risks associated with a Cost Plus Fixed Fee contract for IT services?

The primary risks with a CPFF contract for IT services include potential for cost overruns if the fixed fee is not adequately calculated or if unforeseen complexities arise. The contractor has less incentive to control costs compared to fixed-price contracts, as their fee is based on the actual costs incurred. Effective government oversight is critical to manage scope and ensure costs remain reasonable and justified.

How effectively does this contract support the mission of U.S. Customs and Border Protection?

This contract directly supports the mission of U.S. Customs and Border Protection by ensuring the operational readiness and modernization of essential software applications. These applications are likely critical for border security operations, data processing, and inter-agency communication. The five-year duration suggests a long-term commitment to maintaining and improving these vital IT systems, contributing to the agency's overall effectiveness.

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: HSBP1012R0037

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation

Address: 11720 PLAZA AMERICA DR, 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: $575,897,519

Exercised Options: $558,523,525

Current Obligation: $535,869,447

Actual Outlays: $87,034

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0060

IDV Type: GWAC

Timeline