DoD's $13.6M IT Services Contract Awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $13,610,137 ($13.6M)
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: $14.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MANAGED INFORMATION TECHNOLOGY SERVICES MANAGED SERVICES TASK ORDER
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $13.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: MANAGED INFORMATION TECHNOLOGY SERVICES MANAGED SERVICES TASK ORDER Key points: 1. Contract awarded for IT managed services, indicating a need for specialized support in computer facilities management. 2. The firm-fixed-price contract type suggests a clear scope and predictable costs for the government. 3. Science Applications International Corporation, a large defense contractor, is the recipient, implying established capabilities. 4. The contract duration of 912 days (approximately 2.5 years) provides a stable period for service delivery. 5. Awarded by USTRANSCOM, this contract supports critical logistics and transportation IT infrastructure. 6. The North American Industry Classification System (NAICS) code 541513 points to a focus on computer facilities management.
Value Assessment
Rating: good
Benchmarking the value of this $13.6 million contract requires detailed comparison to similar IT managed services contracts. However, the firm-fixed-price structure is generally favorable for cost control. Given the duration and scope, the per-year cost appears reasonable for specialized IT support, assuming the services delivered meet performance expectations. Further analysis would involve comparing specific service deliverables and their associated costs against industry benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a competitive bidding process is expected to drive favorable pricing and service quality. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government receives competitive pricing and the best value for its investment in IT services.
Public Impact
The Department of Defense, specifically USTRANSCOM, benefits from enhanced IT infrastructure and managed services. Services delivered include computer facilities management, crucial for the operation of military logistics and transportation systems. The geographic impact is primarily within the operational domain of USTRANSCOM, likely supporting its Illinois-based operations and potentially wider network. Workforce implications may include the utilization of skilled IT professionals by the contractor to fulfill the managed services requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if transition to a new provider is complex or costly.
- Dependence on a single contractor for critical IT infrastructure could pose risks if performance falters.
- Scope creep could lead to cost overruns if not managed tightly within the firm-fixed-price structure.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a competitive environment that should yield good value.
- Award to a large, established contractor like SAIC implies a higher likelihood of successful execution and technical capability.
Sector Analysis
The IT managed services sector is a significant component of federal IT spending, with agencies increasingly outsourcing complex functions to specialized providers. This contract falls within the Computer Facilities Management Services sub-sector, which is critical for maintaining the operational readiness of government IT systems. The market for these services is competitive, with numerous large and small businesses offering solutions. Federal spending in this area often benchmarks against commercial IT service provider rates, adjusted for government security and compliance requirements.
Small Business Impact
This contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor, Science Applications International Corporation, may engage small businesses as subcontractors, which would indirectly benefit them.
Oversight & Accountability
Oversight for this contract would typically be managed by contracting officers and program managers within USTRANSCOM. Performance monitoring, adherence to service level agreements, and financial accountability are key oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- IT Managed Services
- Computer Facilities Management
- Defense Information Technology
- USTRANSCOM IT Support
Risk Flags
- Potential for performance issues impacting critical logistics operations.
- Risk of vendor lock-in for essential IT services.
- Need for vigilant oversight to prevent scope creep.
Tags
it-managed-services, computer-facilities-management, department-of-defense, ustranscom, science-applications-international-corporation, firm-fixed-price, full-and-open-competition, delivery-order, illinois, defense-it
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. MANAGED INFORMATION TECHNOLOGY SERVICES MANAGED SERVICES 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 $13.6 million.
What is the period of performance?
Start: 2024-04-01. End: 2026-09-30.
What is the track record of Science Applications International Corporation (SAIC) in delivering similar IT managed services contracts to the Department of Defense?
Science Applications International Corporation (SAIC) has a substantial track record with the Department of Defense (DoD) and other federal agencies, frequently securing large contracts for IT services, including managed services, systems integration, and cybersecurity. Their experience spans decades, and they are a recognized prime contractor for complex defense IT programs. SAIC's past performance often includes managing large-scale IT infrastructure, providing help desk support, network operations, and data center management. While specific performance metrics for individual contracts are not publicly detailed, their consistent award of significant contracts suggests a generally positive performance history and capability to meet the demanding requirements of the DoD. However, like any large contractor, they may have faced past performance challenges or disputes on specific projects, which would be detailed in more in-depth contract performance reviews.
How does the awarded amount of $13.6 million compare to similar IT managed services contracts for the duration of approximately 2.5 years?
The awarded amount of $13.6 million for approximately 2.5 years (912 days) translates to an average annual value of roughly $5.44 million. This figure needs to be benchmarked against similar IT managed services contracts, particularly those involving computer facilities management for large organizations like USTRANSCOM. Factors influencing comparability include the scope of services (e.g., number of users supported, complexity of infrastructure, specific technologies managed), geographic location, and the level of security clearance required. Generally, for specialized IT managed services supporting critical government functions, this annual rate appears within a reasonable range, especially considering the firm-fixed-price nature which shifts risk to the contractor. However, a precise value-for-money assessment would require detailed comparison of service level agreements and deliverables against market rates and other government contracts of comparable scope and complexity.
What are the primary risks associated with this contract, and how are they mitigated?
Primary risks associated with this IT managed services contract include potential performance shortfalls by the contractor, leading to disruptions in critical USTRANSCOM operations. Another risk is vendor lock-in, where the government becomes overly dependent on SAIC, making future transitions difficult or costly. Scope creep, if not managed effectively, could lead to budget overruns despite the firm-fixed-price structure. Mitigation strategies typically involve robust performance monitoring through Service Level Agreements (SLAs), regular performance reviews, and clear contract management processes. The firm-fixed-price contract itself mitigates financial risk for the government by capping costs. Competition for future contracts also incentivizes SAIC to perform well. Clear communication channels and defined change management processes are crucial for managing scope.
What is the expected program effectiveness and impact on USTRANSCOM's mission?
The expected program effectiveness hinges on SAIC's ability to deliver reliable and efficient IT managed services, specifically in computer facilities management. Successful execution should lead to enhanced stability and performance of USTRANSCOM's IT infrastructure, directly supporting its mission of managing global military logistics and transportation. This includes ensuring the availability and integrity of systems that track assets, manage supply chains, and facilitate communication. Improved IT operations can lead to greater operational agility, reduced downtime, and more effective decision-making within USTRANSCOM. Ultimately, the contract's effectiveness will be measured by its contribution to the seamless functioning of the command's critical operations.
How does historical spending on IT managed services by USTRANSCOM compare to this award?
Analyzing historical spending patterns for IT managed services by USTRANSCOM is crucial for context. Without specific historical data for this exact task order, we can infer that USTRANSCOM, as a major component of the DoD, likely has ongoing requirements for IT support. Previous contracts for similar services would provide a baseline for evaluating the current award's value and scale. If historical spending shows a consistent need for managed IT services and similar contract values, this award may represent a continuation or modernization of existing support. Conversely, a significant deviation in value or scope from historical patterns might warrant further investigation into the reasons for the change, such as evolving mission requirements or market shifts.
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: FIRM FIXED PRICE (J)
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: $17,734,374
Exercised Options: $13,610,137
Current Obligation: $13,610,137
Actual Outlays: $44,168
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $2,975,944
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: 2025-10-06
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