DoD's $19.6M IT support contract awarded to SAIC shows fair value, but limited competition data raises questions

Contract Overview

Contract Amount: $19,591,761 ($19.6M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2023-04-01

End Date: 2024-03-31

Contract Duration: 365 days

Daily Burn Rate: $53.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: MANAGED INFORMATION TECHNOLOGY SERVICES - END USER SUPPORT

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $19.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: MANAGED INFORMATION TECHNOLOGY SERVICES - END USER SUPPORT Key points: 1. Contract value appears reasonable given the scope of end-user IT support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Performance period is standard for this type of managed IT service. 4. The contract is categorized under Computer Facilities Management Services. 5. Geographic focus is within Illinois, potentially impacting regional IT support capabilities. 6. No small business set-aside was applied, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract's value of approximately $19.6 million for a one-year period for managed IT end-user support appears to be within a reasonable range for the services provided. Benchmarking against similar contracts for IT help desk and infrastructure management services suggests that the pricing is competitive, especially considering the complexity of supporting a large federal agency like USTRANSCOM. The award to Science Applications International Corporation (SAIC), a major federal contractor, also suggests a level of established capability and potentially negotiated rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves a broad solicitation to all eligible responsible sources. While the specific number of bidders is not provided, this method generally fosters a competitive environment, encouraging multiple companies to submit proposals. This approach is intended to ensure that the government receives the best value by considering a wide range of capabilities and pricing. The lack of further details on the bidding process limits a deeper analysis of the competitive intensity.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to drive down costs through robust bidding and maximize the potential for innovative solutions.

Public Impact

End-users within the Department of Defense, specifically USTRANSCOM, will benefit from enhanced IT support services. Services include help desk support, hardware/software troubleshooting, and potentially network maintenance. The geographic impact is primarily focused on personnel located in Illinois. This contract supports IT professionals and potentially impacts the efficiency of military logistics operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or KPIs makes it difficult to assess service quality.
Limited insight into the number of bidders and the specific competitive landscape.
No indication of potential for future contract growth or follow-on work.

Positive Signals

Awarded under full and open competition, suggesting a fair and broad solicitation process.
Contract awarded to a large, established federal contractor (SAIC) with a track record.
Clear definition of service period (one year) provides predictability.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on managed IT services and end-user support. The market for these services is highly competitive, with numerous large and small businesses offering solutions to government agencies. Federal spending in IT services is substantial, driven by the need for modern infrastructure, cybersecurity, and efficient operations. This contract represents a portion of the broader government spending on IT outsourcing and support, aiming to leverage private sector expertise for critical functions.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by the 'sb' field being false. This suggests that the primary contract was not specifically targeted towards small businesses. While there is no direct subcontracting requirement explicitly stated, large prime contractors like SAIC often engage small businesses for specialized support or to meet broader socioeconomic goals. The absence of a set-aside means that opportunities for small businesses are likely indirect, through subcontracting, rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within USTRANSCOM. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally facilitated through contract award databases and public reporting, although detailed performance data may be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Help Desk Services
Managed IT Services
Computer Facilities Management
End User Support Contracts
Defense Information Technology Services

Risk Flags

Potential for vendor lock-in due to reliance on a single large provider.
Lack of publicly available performance metrics hinders objective assessment.
Limited insight into the competitive landscape beyond 'full and open'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. MANAGED INFORMATION TECHNOLOGY SERVICES - END USER SUPPORT

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 $19.6 million.

What is the period of performance?

Start: 2023-04-01. End: 2024-03-31.

What is the historical spending pattern for end-user IT support services at USTRANSCOM?

Analyzing historical spending for end-user IT support at USTRANSCOM would involve reviewing contract awards over several fiscal years. This would help identify trends in contract values, incumbent contractors, and the types of services procured. For instance, if USTRANSCOM has consistently awarded similar contracts to SAIC or other large IT service providers, it might indicate a stable, long-term reliance on external support. Conversely, significant fluctuations could suggest changes in internal capabilities, strategic shifts, or evolving technology needs. Understanding this history provides context for the current $19.6 million award, allowing for an assessment of whether it represents an increase, decrease, or stable level of investment in these critical IT services.

How does the awarded price compare to the government's Independent Government Cost Estimate (IGCE)?

The Independent Government Cost Estimate (IGCE) is a crucial benchmark for assessing the reasonableness of a contract award price. While the IGCE for this specific contract is not publicly available, a comparison would involve evaluating the awarded price ($19.6 million) against the government's internal projection of the expected cost for the defined scope of work. If the awarded price is significantly lower than the IGCE, it suggests strong competition or efficient contractor pricing. Conversely, if it's higher, it might indicate issues with the bidding process, the accuracy of the IGCE, or potentially overpricing by the contractor. Without the IGCE, a definitive value-for-money assessment is limited, but the award to a reputable contractor under full and open competition suggests an effort to align with cost expectations.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) are essential for objectively measuring the contractor's performance and ensuring the government receives the expected value. For an end-user IT support contract, typical KPIs might include: average response time for help desk tickets, first-call resolution rate, system uptime percentages, user satisfaction scores, and turnaround time for hardware repairs or replacements. The specific KPIs for this SAIC contract are not detailed in the provided data. The absence of readily available performance metrics makes it challenging to independently verify the effectiveness and efficiency of the IT support being delivered. Robust KPIs are critical for accountability and for identifying areas where performance may need improvement.

What is SAIC's track record with similar managed IT services contracts for the Department of Defense?

Science Applications International Corporation (SAIC) has a significant track record of providing a wide range of IT services, including managed IT support, to the Department of Defense (DoD) and other federal agencies. They are a large, established prime contractor known for handling complex and large-scale IT programs. Their experience often includes help desk operations, network management, cybersecurity services, and system integration. Reviewing SAIC's past performance on similar DoD contracts would involve examining contract histories, past performance evaluations (if available), and any reported issues or successes. Generally, SAIC's extensive experience suggests a high likelihood of possessing the necessary capabilities and infrastructure to fulfill the requirements of this USTRANSCOM contract effectively.

Are there any specific risks associated with relying on a single large contractor like SAIC for end-user IT support?

Relying on a single large contractor like SAIC for end-user IT support presents several potential risks. One primary concern is vendor lock-in, where the government becomes heavily dependent on the contractor's systems, processes, and personnel, making it difficult and costly to switch providers. Another risk is complacency; if competition is perceived as low or future contract renewals are assumed, the contractor might have less incentive to innovate or maintain peak performance. Furthermore, a single point of failure exists – if SAIC experiences significant operational issues, financial instability, or a major security breach, it could severely disrupt critical IT services for USTRANSCOM. Mitigating these risks often involves strong contract management, clear performance expectations, and contingency planning.

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 › IT AND TELECOM - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HTC71122RD002

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: $19,591,761

Exercised Options: $19,591,761

Current Obligation: $19,591,761

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $10,707,436

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DD001

IDV Type: IDC

Timeline