DoD awards $44.7M for computer systems design, with SAIC as prime contractor
Contract Overview
Contract Amount: $44,750,762 ($44.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2020-06-18
End Date: 2026-03-31
Contract Duration: 2,112 days
Daily Burn Rate: $21.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: LABOR HOURS
Sector: IT
Official Description: SUPPORT FOR PWS TASK 5
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $44.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SUPPORT FOR PWS TASK 5 Key points: 1. Value for money appears fair given the 7 bidders and 5-year duration. 2. Competition dynamics indicate a healthy market for these services. 3. Risk indicators are moderate, with performance context to be monitored. 4. This contract positions SAIC strongly within the IT services sector for defense. 5. The contract type (labor hours) allows for flexibility but requires careful oversight.
Value Assessment
Rating: fair
The contract's total value of $44.7 million over approximately 5 years suggests a moderate annual spend. Benchmarking against similar IT services contracts within the Department of Defense is necessary for a precise value assessment. However, the presence of 7 bidders in a full and open competition implies a degree of market-driven pricing. The labor hours contract type can lead to cost efficiencies if managed well, but also carries a risk of cost overruns if not closely monitored.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with 7 bids received. This level of competition is generally positive, suggesting that multiple vendors were interested and capable of performing the required services. A robust competitive process helps ensure that the government receives competitive pricing and that the most capable contractor is selected. The number of bidders indicates a healthy market for computer systems design services within the defense sector.
Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down prices and ensured the government secured a capable provider at a reasonable cost.
Public Impact
The Department of Defense benefits from enhanced computer systems design services. This contract supports critical IT infrastructure and operational capabilities for USTRANSCOM. The geographic impact is primarily within Illinois, where the contractor is located. Workforce implications include employment opportunities for IT professionals within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Labor hours contract type requires diligent monitoring to prevent cost overruns.
- Performance metrics and quality assurance will be crucial for successful delivery.
- Ensuring adequate cybersecurity measures are in place for sensitive DoD systems.
Positive Signals
- Awarded through full and open competition, indicating a competitive marketplace.
- Long-term contract (over 5 years) provides stability for service delivery.
- Experienced contractor (SAIC) likely brings significant expertise to the task.
Sector Analysis
The IT services sector, particularly within defense, is a significant market. This contract for computer systems design services falls under the broader category of IT support and development. The market for such services is competitive, with numerous large and small businesses vying for government contracts. The annual spend, while substantial, is within the typical range for complex IT systems design and integration projects for major federal agencies like the Department of Defense.
Small Business Impact
This contract was not set aside for small businesses, and the prime contractor, Science Applications International Corporation (SAIC), is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small business participation is mandated or encouraged through subcontracting opportunities within this contract.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant program management office within the Department of Defense. Accountability measures are typically embedded in the contract's performance work statement (PWS) and delivery terms. Transparency is generally facilitated through contract award databases and reporting requirements, though specific details of performance and financials may be less public.
Related Government Programs
- Department of Defense IT Services
- Computer Systems Design Services
- USTRANSCOM Contracts
- Science Applications International Corporation Contracts
Risk Flags
- Potential for cost overruns due to labor hours contract type.
- Cybersecurity risks associated with DoD systems.
- Dependency on contractor for critical IT systems.
Tags
it-services, computer-systems-design, department-of-defense, ustranscom, science-applications-international-corporation, full-and-open-competition, delivery-order, labor-hours, illinois, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SUPPORT FOR PWS TASK 5
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 (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $44.8 million.
What is the period of performance?
Start: 2020-06-18. End: 2026-03-31.
What is the historical spending pattern for similar computer systems design services by USTRANSCOM?
Analyzing historical spending for computer systems design services by USTRANSCOM requires access to detailed contract databases. Generally, federal agencies like USTRANSCOM procure these services regularly to maintain and upgrade their IT infrastructure. Spending patterns can fluctuate based on modernization initiatives, cybersecurity needs, and operational demands. Without specific historical data for USTRANSCOM's IT services procurement, it's difficult to provide a precise comparison. However, the current $44.7 million award over five years suggests a consistent, moderate level of investment in this area, aligning with the agency's role in managing complex logistics and transportation systems.
How does the awarded amount compare to the average contract value for computer systems design services within the DoD?
The awarded amount of $44.7 million over approximately five years, averaging around $8.9 million annually, is a significant but not extraordinary figure for computer systems design services within the Department of Defense. The DoD is the largest federal agency and procures a vast array of IT services. Contracts for systems design can range from a few million to hundreds of millions of dollars, depending on the scope, complexity, and duration. Given that this contract supports USTRANSCOM and involves critical systems, the value appears reasonable within the broader context of DoD IT spending. A more precise comparison would involve benchmarking against contracts with similar scope and duration awarded to other DoD components.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for computer systems design services, typical KPIs would likely include system uptime, response times, successful implementation of new features or upgrades, adherence to project timelines, and user satisfaction. Performance measurement is usually conducted through regular progress reports, site visits, quality assurance surveillance plans (QASPs), and feedback from end-users. The contracting officer's representative (COR) plays a crucial role in monitoring contractor performance against the requirements outlined in the Performance Work Statement (PWS).
What is Science Applications International Corporation's (SAIC) track record with similar DoD contracts?
Science Applications International Corporation (SAIC) has a substantial track record of performing IT and systems engineering services for the Department of Defense and other federal agencies. They are a well-established prime contractor with extensive experience in areas such as C4ISR systems, enterprise IT, cloud migration, cybersecurity, and data analytics. SAIC has held numerous large-scale contracts with various DoD components, including the Army, Navy, Air Force, and combatant commands like USTRANSCOM. Their history suggests a capacity to manage complex projects and deliver on demanding requirements, though like any large contractor, specific contract performance can vary.
Are there any identified risks associated with this specific contract or the services being provided?
Potential risks associated with this contract include technical challenges in designing and implementing complex computer systems, potential cost overruns due to the labor hours contract type if not managed effectively, cybersecurity vulnerabilities, and schedule delays. Dependence on a single contractor for critical systems design also presents a risk. Furthermore, changes in technology or DoD requirements could necessitate contract modifications, potentially impacting cost and schedule. Effective risk management by both the contractor and the government contracting team is essential to mitigate these potential issues.
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: HTC71120QD008
Offers Received: 7
Pricing Type: LABOR HOURS (Z)
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: $44,750,762
Exercised Options: $44,750,762
Current Obligation: $44,750,762
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $16,729,617
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F486BA
IDV Type: FSS
Timeline
Start Date: 2020-06-18
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-12-03
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