SAIC awarded $46.7M contract for administrative management consulting services by the Department of the Interior

Contract Overview

Contract Amount: $46,737,692 ($46.7M)

Contractor: Leidos, Inc.

Awarding Agency: Department of the Interior

Start Date: 2004-06-23

End Date: 2009-12-31

Contract Duration: 2,017 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SAIC

Plain-Language Summary

Department of the Interior obligated $46.7 million to LEIDOS, INC. for work described as: SAIC Key points: 1. Contract awarded to SAIC for administrative management and general management consulting services. 2. The contract duration spans over 5 years, indicating a long-term need for these services. 3. Awarded under full and open competition, suggesting a robust bidding process. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. SAIC has a significant presence in the federal contracting space. 6. The services provided fall under the Administrative Management and General Management Consulting Services NAICS code.

Value Assessment

Rating: fair

The contract value of $46.7 million over approximately 5 years suggests a substantial investment in consulting services. Benchmarking this against similar contracts for administrative management consulting requires access to a broader dataset of comparable awards. However, the Time and Materials pricing structure, while flexible, can lead to cost overruns if not managed diligently. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the duration and value indicate a significant commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best value available in the market for these consulting services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is intended to drive down costs through market forces and ensure the government receives competitive pricing.

Public Impact

The Department of the Interior benefits from expert administrative and management consulting. These services likely support the agency's operational efficiency and strategic planning. The geographic impact is likely national, supporting the Department's widespread operations. The contract supports a segment of the professional services workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Time and Materials contract type can lead to cost uncertainty if not closely monitored.
  • Lack of specific performance metrics makes it difficult to assess the full impact of the consulting services.
  • The long duration of the contract requires ongoing oversight to ensure continued relevance and value.

Positive Signals

  • Awarded through full and open competition, suggesting a competitive process.
  • The contract addresses a clear need for administrative and management consulting within the agency.
  • The substantial value indicates a significant level of trust and reliance on the contractor's expertise.

Sector Analysis

The federal consulting services market is substantial, with agencies frequently procuring expertise in administrative management and general management. This contract falls within the professional services sector, specifically focusing on management consulting. Comparable spending benchmarks would typically involve analyzing the total federal spend on NAICS code 541611, which encompasses administrative management and general management consulting services, to understand the scale of this award within the broader market.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it is unlikely that subcontracting opportunities for small businesses were mandated as part of a set-aside. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Interior. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

  • Management and Consulting Services
  • Professional Services Contracts
  • Department of the Interior Contracts

Risk Flags

  • Cost Overruns Risk (T&M Contract)
  • Scope Creep Potential
  • Performance Measurement Difficulty

Tags

administrative-management-consulting, professional-services, department-of-the-interior, time-and-materials, full-and-open-competition, saic, management-consulting, federal-contract, consulting-services, departmental-offices

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $46.7 million to LEIDOS, INC.. SAIC

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $46.7 million.

What is the period of performance?

Start: 2004-06-23. End: 2009-12-31.

What is SAIC's track record with the Department of the Interior and similar federal agencies?

SAIC (Science Applications International Corporation) is a major federal contractor with a long history of serving various government agencies, including the Department of the Interior. Their track record typically involves providing a wide range of services, including IT, engineering, and professional services. For the Department of the Interior specifically, SAIC has secured numerous contracts over the years, often in areas related to IT modernization, systems engineering, and program management support. Their performance on past contracts, as reflected in federal procurement databases and past performance reviews, generally indicates a capacity to handle large-scale, complex projects. However, like any large contractor, there may be instances of performance issues or disputes on specific contracts, which would require a deeper dive into individual contract histories and CPARS (Contractor Performance Assessment Reporting System) data for a comprehensive assessment.

How does the $46.7 million value compare to other administrative management consulting contracts awarded by the federal government?

The $46.7 million value for this 5-year contract (approximately $9.34 million per year) is a significant but not extraordinary amount for federal administrative management and general management consulting services. The federal government procures billions of dollars in consulting services annually across various NAICS codes. Contracts of this magnitude are common for supporting major departmental functions or specific large-scale initiatives. To provide a precise comparison, one would need to analyze the distribution of contract values for NAICS code 541611 over a similar period, looking at the median, average, and upper quartiles of contract awards. However, it is safe to say this contract represents a substantial investment, placing it in the mid-to-upper range for individual consulting awards of this nature.

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

The primary risk with a Time and Materials (T&M) contract, especially one valued at $46.7 million over five years, is cost escalation. T&M contracts pay the contractor for the actual labor hours and materials used, plus a fixed fee or percentage for profit and overhead. If the scope of work is not tightly defined, or if project management is weak on either the government or contractor side, labor hours can increase unexpectedly, driving up the total cost beyond initial estimates. This lack of a fixed ceiling can make budget forecasting difficult for the agency. Additionally, there's a risk that the contractor may be incentivized to extend the project duration or use more resources than strictly necessary to maximize their earnings. Robust government oversight, detailed tracking of hours and materials, and clear task orders are crucial to mitigate these risks.

What is the expected impact of these consulting services on the Department of the Interior's operational effectiveness?

The expected impact of these administrative management and general management consulting services on the Department of the Interior's operational effectiveness is likely to be multifaceted. These services typically aim to improve organizational efficiency, streamline processes, enhance strategic planning capabilities, and optimize resource allocation. For instance, consultants might analyze workflows to identify bottlenecks, recommend technology solutions for administrative tasks, assist in developing new policies or procedures, or provide expertise in change management during organizational shifts. The ultimate goal is to enable the Department to achieve its mission more effectively and efficiently. The specific impact will depend on the precise focus areas defined in the contract's Statement of Work and the quality of the consulting provided by SAIC.

How has federal spending on administrative management consulting services evolved over the past decade?

Federal spending on administrative management and general management consulting services (NAICS 541611) has generally seen a steady increase over the past decade, reflecting a consistent demand for external expertise to support government operations. Agencies across the federal government utilize these services for a variety of purposes, including organizational restructuring, process improvement, strategic planning, and IT strategy development. While specific year-over-year fluctuations can occur due to budget cycles and shifting agency priorities, the overall trend indicates a sustained reliance on the private sector for specialized management advice. Factors contributing to this trend include the increasing complexity of government programs, the need for specialized skills not always available in-house, and efforts to improve efficiency and accountability within federal agencies. This contract with SAIC aligns with that broader trend of federal investment in management consulting.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

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

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 1710 SAIC DRIVE, ROOM #8031, MCLEAN, VA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $46,737,692

Exercised Options: $46,737,692

Current Obligation: $46,737,692

Parent Contract

Parent Award PIID: GS23F8006H

IDV Type: FSS

Timeline

Start Date: 2004-06-23

Current End Date: 2009-12-31

Potential End Date: 2009-12-31 00:00:00

Last Modified: 2014-06-11

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