DHS's $35.6M IT Enterprise Architecture Contract Awarded to SAIC Shows Long-Term Support for Immigration and Customs Enforcement Operations

Contract Overview

Contract Amount: $35,598,911 ($35.6M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2009-09-30

End Date: 2013-09-30

Contract Duration: 1,461 days

Daily Burn Rate: $24.4K/day

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ITESS RE-COMPETE:SUPPORT OF SC/CIRCA OPERATIONS.MANAGE IT PROJECTS AND PERFORM ENTERPRISE ARCHITECTURE SERVICES.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ITESS RE-COMPETE:SUPPORT OF SC/CIRCA OPERATIONS.MANAGE IT PROJECTS AND PERFORM ENTERPRISE ARCHITECTURE SERVICES. Key points: 1. The contract focuses on critical IT project management and enterprise architecture, essential for supporting the complex operations of U.S. Immigration and Customs Enforcement (ICE). 2. Awarded to Science Applications International Corporation (SAIC), the contract represents a significant investment in maintaining and advancing ICE's technological infrastructure. 3. The duration of the contract, spanning over four years, suggests a need for sustained IT support and a stable partnership. 4. The Cost Plus Fixed Fee (CPFF) pricing structure indicates potential for cost overruns if not managed diligently, but also allows for flexibility in scope. 5. The contract's value, while substantial, needs to be benchmarked against similar IT services contracts to fully assess value for money. 6. The absence of small business set-aside flags suggests this was not specifically targeted to boost small business participation. 7. The contract's performance context is tied to the ongoing mission of ICE, highlighting the critical nature of the IT services provided.

Value Assessment

Rating: fair

The contract's value of approximately $35.6 million over four years for IT enterprise architecture and project management services is a significant investment. Benchmarking this against similar large-scale IT support contracts for federal agencies would be necessary for a comprehensive value assessment. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, requires careful oversight to ensure costs remain controlled and do not exceed the intended value. Without specific performance metrics or comparisons to industry standards for similar services, it is difficult to definitively assess the value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. Understanding whether it was a full and open competition, a limited competition, or a sole-source award is crucial for assessing its impact on pricing and innovation. If it was a competitive process, the number of bidders would indicate the degree of market engagement. A robust competition typically leads to better pricing and service offerings for the government.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Strong competition generally drives down costs and improves service quality, ensuring that taxpayer dollars are used more efficiently. Limited or sole-source awards may result in higher costs and reduced incentive for the contractor to innovate.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) personnel who rely on robust IT systems for their daily operations. The contract delivers essential IT project management and enterprise architecture services, crucial for maintaining and upgrading ICE's technological capabilities. The geographic impact is likely concentrated within the operational areas of ICE, supporting their nationwide mission. The contract supports a workforce of IT professionals, both within the contractor organization and potentially within ICE, who are involved in managing and developing IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not closely monitored, potentially exceeding the initial budget.
Lack of detailed competition information makes it difficult to assess if the government received the best possible pricing.
The long duration of the contract could indicate a lack of agile procurement or potential lock-in with a single vendor.

Positive Signals

The contract provides essential IT services to a critical law enforcement agency, ensuring operational continuity.
SAIC is a large, established government contractor with significant experience in IT services, suggesting a level of reliability.
The contract's focus on enterprise architecture implies a strategic approach to IT infrastructure, potentially leading to long-term efficiencies.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT project management and enterprise architecture. This is a critical area for government agencies, as effective IT infrastructure underpins most modern operations. The market for these services is large and competitive, with numerous firms offering specialized expertise. The value of this contract, approximately $35.6 million over four years, is moderate for a large federal IT services award, but its strategic importance to ICE's mission is high. Comparable spending benchmarks would involve looking at other agencies' investments in similar IT modernization and management contracts.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was likely aimed at larger, more established IT service providers capable of handling the scope and complexity of ICE's enterprise architecture needs. Consequently, there are no direct subcontracting implications for small businesses stemming from a specific set-aside. However, the prime contractor, SAIC, may engage small businesses as subcontractors, but this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to monitor expenditures and ensure compliance with the fixed fee. Transparency would be enhanced through regular reporting requirements from the contractor and potential audits. While not explicitly stated, the Department of Homeland Security's Office of Inspector General (OIG) would likely have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

IT Enterprise Architecture Services
IT Project Management
Department of Homeland Security IT Contracts
Immigration and Customs Enforcement Technology Support
Science Applications International Corporation Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition Visibility
Long-Term Vendor Lock-in Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ITESS RE-COMPETE:SUPPORT OF SC/CIRCA OPERATIONS.MANAGE IT PROJECTS AND PERFORM ENTERPRISE ARCHITECTURE 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 Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $35.6 million.

What is the period of performance?

Start: 2009-09-30. End: 2013-09-30.

What is Science Applications International Corporation's (SAIC) track record with the Department of Homeland Security (DHS) and specifically U.S. Immigration and Customs Enforcement (ICE)?

Science Applications International Corporation (SAIC) has a substantial history of contracting with the Department of Homeland Security (DHS) and its various components, including U.S. Immigration and Customs Enforcement (ICE). SAIC is a major federal IT contractor known for providing a wide range of services, including systems engineering, cybersecurity, cloud computing, and enterprise IT management. Their work with ICE often involves supporting critical mission functions through technology modernization, data management, and operational IT support. Given the duration and nature of this specific contract (IT enterprise architecture and project management), it indicates a long-standing relationship and a demonstrated capability to meet ICE's complex technological requirements. SAIC's extensive experience within DHS suggests a deep understanding of the agency's unique challenges and operational environment, making them a likely candidate for such long-term, mission-critical IT support.

How does the $35.6 million contract value compare to similar IT enterprise architecture and project management contracts awarded by federal agencies?

The $35.6 million contract value awarded to SAIC for IT enterprise architecture and project management services over approximately four years represents a moderate investment for a federal agency of ICE's size and scope. Large federal IT contracts, especially those involving enterprise-wide architecture and comprehensive project management, can range from tens of millions to billions of dollars. For instance, similar contracts for IT modernization, cloud migration, or cybersecurity across agencies like the Department of Defense or the General Services Administration often exceed this figure significantly. However, the specific nature of enterprise architecture, which focuses on the blueprint and structure of IT systems, can sometimes be less costly than large-scale implementation or managed services contracts. To fully assess value, this figure should be compared against contracts with similar service definitions, contract types (like CPFF), and agency missions, considering factors like the number of users supported and the complexity of the IT environment.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services, and how might they apply here?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This can incentivize contractors to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the total cost. For the government, this means the total expenditure could exceed initial estimates if costs are not meticulously managed and controlled. In the context of this IT contract for ICE, risks include scope creep, inefficient resource allocation, or unforeseen technical challenges that drive up costs. Effective oversight, stringent cost accounting standards, and clear performance metrics are crucial to mitigate these risks and ensure the government receives value for its investment. Regular audits and reviews of contractor expenditures are essential.

What does the contract's duration of over four years imply about the nature of the IT services required by ICE?

The contract's duration of over four years (1461 days) strongly suggests that the IT enterprise architecture and project management services required by ICE are complex, strategic, and necessitate long-term continuity. Such extended periods are typically associated with foundational IT initiatives that involve significant planning, development, integration, and ongoing support. This duration implies that the services are not for short-term projects or routine maintenance but rather for establishing and evolving the core IT infrastructure and strategic direction of ICE's technology landscape. It indicates a need for a stable, ongoing partnership with a contractor who can develop deep institutional knowledge and consistently support evolving mission requirements over an extended period, rather than engaging in frequent re-procurements.

How does the North American Industry Classification System (NAICS) code 541513 (Computer Facilities Management Services) align with the contract description?

The NAICS code 541513, 'Computer Facilities Management Services,' aligns well with the contract description stating the need to 'MANAGE IT PROJECTS AND PERFORM ENTERPRISE ARCHITECTURE SERVICES.' Computer Facilities Management Services encompass a broad range of activities related to the operation and maintenance of clients' computer systems and/or data processing facilities. This includes managing IT infrastructure, providing technical support, overseeing IT operations, and ensuring the smooth functioning of computer systems. Enterprise architecture, while a strategic function, is intrinsically linked to the effective management and planning of these facilities. Project management ensures that these IT resources are developed, deployed, and maintained efficiently. Therefore, NAICS 541513 is an appropriate classification for a contract that involves both the strategic planning (enterprise architecture) and operational oversight (project management) of an agency's IT infrastructure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

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

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: $35,764,845

Exercised Options: $35,764,845

Current Obligation: $35,598,911

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00026

IDV Type: IDC

Timeline