DHS awarded $67.7M for IT services, with Science Applications International Corporation securing the contract

Contract Overview

Contract Amount: $67,673,819 ($67.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2015-09-12

End Date: 2017-01-26

Contract Duration: 502 days

Daily Burn Rate: $134.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF SETI BRIDGE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $67.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF SETI BRIDGE Key points: 1. The contract value of $67.7 million for computer systems design services represents a significant investment in IT infrastructure. 2. Competition dynamics indicate a full and open competition, suggesting a robust market for these services. 3. The Time and Materials pricing structure warrants scrutiny for potential cost overruns. 4. Performance context is limited without specific deliverables or performance metrics. 5. This contract falls within the IT sector, specifically computer systems design. 6. The award to a large, established contractor like SAIC suggests a focus on proven capabilities.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific service details. However, the $67.7 million award for computer systems design services over a 502-day period suggests a substantial investment. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs if not managed closely, especially compared to fixed-price contracts. Further analysis would require comparing the specific tasks and deliverables against industry standards and similar government contracts.

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 a bid. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings. The fact that it was a single award (no=1) suggests that one bidder, Science Applications International Corporation, was deemed the most advantageous to the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential bidders, increasing the likelihood of receiving competitive pricing and innovative solutions.

Public Impact

This contract primarily benefits the U.S. Citizenship and Immigration Services (USCIS) by providing essential computer systems design services. The services delivered are critical for the operational efficiency and technological advancement of USCIS IT infrastructure. The geographic impact is likely concentrated around USCIS facilities, primarily in Virginia where the contract was awarded. Workforce implications may include the direct employment of IT professionals by SAIC and potential indirect impacts on government IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing structure can lead to cost overruns if not carefully monitored and controlled.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance objectively.
The duration of the contract (502 days) is relatively short, which might limit the scope of long-term system improvements.

Positive Signals

The award was made under full and open competition, suggesting a robust and competitive bidding process.
The contractor, Science Applications International Corporation (SAIC), is a large and established entity with a significant track record in government contracting.
The contract supports a critical government function within the Department of Homeland Security.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. This is a broad category encompassing the design, development, and integration of computer systems. The market for such services is highly competitive, with numerous large and small businesses offering specialized expertise. Government spending in this area is substantial, driven by the need to modernize legacy systems, enhance cybersecurity, and improve data management capabilities across various agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb=false) and there is no explicit mention of subcontracting plans. This suggests that the primary award went to a large business, Science Applications International Corporation. Consequently, the direct impact on the small business ecosystem through this specific award may be limited, unless SAIC engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The Inspector General's office may also conduct audits or investigations into contract performance and financial management. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. However, detailed oversight reports or specific accountability measures are not provided in this data.

Related Government Programs

Department of Homeland Security IT Modernization Programs
USCIS Case Management Systems
Federal Civilian IT Services Contracts
Computer Systems Design and Related Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Lack of specific performance metrics makes objective assessment difficult.
Contract duration is relatively short, potentially limiting long-term impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $67.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF SETI BRIDGE

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. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $67.7 million.

What is the period of performance?

Start: 2015-09-12. End: 2017-01-26.

What is the track record of Science Applications International Corporation (SAIC) with the Department of Homeland Security?

Science Applications International Corporation (SAIC) has a substantial track record with the Department of Homeland Security (DHS), having been awarded numerous contracts across various sub-agencies and service areas. Their work often involves complex IT solutions, systems integration, cybersecurity, and mission support. SAIC is a major federal contractor, and their history with DHS includes supporting critical functions related to national security, border security, and immigration services. Analyzing specific past performance on similar contracts, including any past performance evaluations or disputes, would provide a clearer picture of their reliability and effectiveness in fulfilling DHS requirements. Their extensive experience suggests a deep understanding of DHS's operational needs and procurement processes.

How does the $67.7 million award compare to similar IT services contracts awarded by USCIS?

The $67.7 million award for computer systems design services by USCIS to SAIC is a significant sum, indicative of a substantial project. To benchmark this value, one would need to compare it against other USCIS contracts for similar IT services, such as system development, integration, or maintenance, awarded within a comparable timeframe. Factors like contract duration, specific technical requirements, and the level of competition would influence the price. For instance, if similar contracts for comparable scope and duration were awarded at a lower total value or with more favorable pricing structures (e.g., fixed-price vs. Time and Materials), it might suggest this award is on the higher end. Conversely, if it aligns with or is lower than comparable awards, it could indicate competitive pricing for the services rendered.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk associated with a Time and Materials (T&M) contract of this magnitude ($67.7 million) is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. If the scope of work is not clearly defined, or if project management is weak, the contractor may incur more hours or use more expensive materials than initially anticipated, driving up the total cost. For USCIS, this means the final cost could exceed the initial estimate, impacting budget predictability. Effective oversight, including detailed monitoring of labor hours, material costs, and task completion, is crucial to mitigate these risks and ensure value for money. The government must actively manage the contract to prevent scope creep and ensure efficient resource utilization.

How effective is 'full and open competition' in ensuring competitive pricing for IT services at DHS?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for IT services at DHS, as it maximizes the number of potential bidders. By allowing all responsible sources to compete, DHS can leverage the broadest possible market, increasing the likelihood of receiving proposals that offer competitive rates and innovative solutions. This process fosters price discovery and encourages contractors to submit their best offers to win the contract. However, the effectiveness can be influenced by factors such as the complexity of the requirement, the availability of qualified vendors, and the clarity of the solicitation. In highly specialized IT niches, the pool of qualified bidders might be smaller, potentially limiting the degree of price competition despite an open solicitation.

What is the historical spending pattern for computer systems design services at USCIS?

Historical spending patterns for computer systems design services at USCIS reveal a consistent and significant investment in IT infrastructure and modernization. Over the years, USCIS has awarded numerous contracts in this category to support its complex mission, which includes managing immigration and citizenship applications. Spending often fluctuates based on specific modernization initiatives, system upgrades, or the need to address evolving technological requirements and security mandates. Analyzing past contract awards, including the number of contracts, their values, and the primary contractors involved, would show trends in IT service procurement. This data point, a $67.7 million award, fits within the broader pattern of substantial IT investments by USCIS to maintain and enhance its operational capabilities.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

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: $67,854,196

Exercised Options: $67,673,819

Current Obligation: $67,673,819

Subaward Activity

Number of Subawards: 70

Total Subaward Amount: $60,554,818

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC14DE2024

IDV Type: IDC

Timeline