Dod Awards $65.7M IT Cyber Ops Task Order to SAIC for Ustranscom

Contract Overview

Contract Amount: $65,746,873 ($65.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2026-09-30

Contract Duration: 912 days

Daily Burn Rate: $72.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: MANAGED INFORMATION TECHNOLOGY SERVICES CYBER OPERATIONS TASK ORDER

Place of Performance

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

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $65.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: MANAGED INFORMATION TECHNOLOGY SERVICES CYBER OPERATIONS TASK ORDER Key points: 1. Significant award for IT cyber operations, highlighting defense sector spending. 2. SAIC is a major defense contractor, indicating established competition. 3. Potential for cost overruns or scope creep in long-term IT services. 4. Focus on computer facilities management services within the IT sector.

Value Assessment

Rating: good

The award value of $65.7M over approximately 2.5 years suggests a substantial but not excessive investment for comprehensive cyber operations. Benchmarking against similar large-scale IT service contracts would provide further context on its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical cyber operations.

Public Impact

Ensures continued cybersecurity for USTRANSCOM operations. Supports critical military logistics and transportation infrastructure. Provides advanced IT and cyber defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for vendor lock-in if not managed carefully.
  • Reliance on a single contractor for critical cyber functions.
  • Scope creep in task orders could increase costs.

Positive Signals

  • Awarded through full and open competition.
  • Addresses a critical defense need.
  • Long-term contract provides stability.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on managed IT services for cyber operations. Defense IT spending is a significant portion of federal IT budgets, often driven by complex and evolving threats.

Small Business Impact

The data indicates this contract was not set aside for small businesses, suggesting large prime contractors are likely involved. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award.

Oversight & Accountability

Oversight will be crucial to ensure SAIC meets performance requirements and manages costs effectively throughout the contract duration. Regular performance reviews and audits are standard for contracts of this magnitude.

Related Government Programs

  • Computer Facilities Management Services
  • Department of Defense Contracting
  • USTRANSCOM Programs

Risk Flags

  • Potential for cost overruns due to labor hour pricing.
  • Reliance on a single vendor for critical cyber functions.
  • Scope creep risk in long-term IT services.
  • Cybersecurity threats are constantly evolving, requiring continuous adaptation.

Tags

computer-facilities-management-services, department-of-defense, il, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. MANAGED INFORMATION TECHNOLOGY SERVICES CYBER OPERATIONS TASK ORDER

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 $65.7 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-09-30.

What is the specific breakdown of services included in these cyber operations, and how do they align with USTRANSCOM's current threat landscape?

The task order specifies 'Computer Facilities Management Services' (NAICS 541513), which broadly covers IT infrastructure support. A detailed analysis would require examining the Performance Work Statement (PWS) to understand the specific cyber defense, threat detection, incident response, and system maintenance activities covered. Alignment with USTRANSCOM's threat landscape would be assessed by comparing the PWS requirements against known cyber threats targeting military logistics and transportation networks.

How does the awarded price compare to industry benchmarks for similar managed IT cyber operations contracts, considering the labor hour pricing structure?

Benchmarking requires comparing the blended labor rates and estimated hours against government databases (like the Federal Procurement Data System) and commercial IT service provider pricing for comparable skill sets and service levels. The labor hour (pt: LABOR HOURS) pricing structure means the final cost depends on actual hours worked, making a direct comparison challenging without detailed usage data. However, the total award value of $65.7M provides a ceiling for this comparison.

What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to measure SAIC's effectiveness in delivering these cyber operations?

Effective oversight necessitates clearly defined KPIs and SLAs within the contract's PWS. These would likely include metrics related to system uptime, response times to security incidents, vulnerability remediation rates, and successful completion of security audits. The government's ability to track and enforce these metrics will be critical in ensuring SAIC's performance meets the required standards for USTRANSCOM's cyber defense.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT 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: $91,735,849

Exercised Options: $65,746,873

Current Obligation: $65,746,873

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $16,879,968

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DD001

IDV Type: IDC

Timeline

Start Date: 2024-04-01

Current End Date: 2026-09-30

Potential End Date: 2027-09-30 00:00:00

Last Modified: 2025-11-25

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