DoD's $25M Custom Software Contract with SAIC Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $25,060,565 ($25.1M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2018-03-29
End Date: 2026-04-01
Contract Duration: 2,925 days
Daily Burn Rate: $8.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SOFTWARE DEVELOPMENT&MODERNIZATION
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $25.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SOFTWARE DEVELOPMENT&MODERNIZATION Key points: 1. Significant contract value of $25.06 million awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and value for taxpayer money. 3. Contract duration extends to April 2026, indicating a long-term commitment. 4. The sector is IT services, specifically custom computer programming.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a lack of competition, makes a definitive pricing assessment difficult. Without competitive bids, it's hard to benchmark against similar services to ensure optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these custom computer programming services.
Public Impact
Taxpayers may be overpaying for software development due to the lack of competitive bidding. The long contract duration means potential overspending could continue for several years. Limited transparency into the cost justification for this sole-source award. Dependence on a single contractor for critical software services could pose a risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Contract awarded to a known entity (SAIC)
- Specific NAICS code indicates specialized service
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. The benchmark for such services can vary widely based on complexity and contractor expertise, but competitive bidding is crucial for establishing fair market prices.
Small Business Impact
The contract data indicates that small business participation was not a stated factor (ss: false, sb: false). This suggests that opportunities for small businesses to participate in this specific contract were likely limited or non-existent.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure the contractor is delivering services efficiently and that costs are reasonable. Robust auditing and performance monitoring are essential for accountability.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- CPFF contract type can lead to cost uncertainty.
- Long contract duration increases long-term financial risk.
- Potential for vendor lock-in.
- Limited transparency on cost justification.
Tags
custom-computer-programming-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SOFTWARE DEVELOPMENT&MODERNIZATION
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $25.1 million.
What is the period of performance?
Start: 2018-03-29. End: 2026-04-01.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. Without competitive bids, the government must rely on rigorous cost analysis and negotiation to ensure fair pricing. The absence of this information raises concerns about the procurement process and potential value for money.
What are the specific risks associated with a long-term, sole-source contract for custom software development?
Risks include vendor lock-in, potential for cost overruns due to lack of competitive pressure, and reduced incentive for innovation. If the contractor's performance or pricing becomes unsatisfactory, switching providers for custom-developed software can be extremely difficult and costly.
How effectively is the Department of the Navy ensuring value and accountability for this $25 million contract given the limited competition?
Effectiveness hinges on robust contract management, including detailed performance metrics, regular cost reviews, and independent verification of deliverables. The CPFF structure requires diligent oversight to prevent scope creep and ensure costs align with the fixed fee and overall value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12010 SUNSET HILLS RD FL 4, 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: $28,929,842
Exercised Options: $28,929,842
Current Obligation: $25,060,565
Actual Outlays: $119,969
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $2,780,041
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-03-29
Current End Date: 2026-04-01
Potential End Date: 2026-04-01 00:00:00
Last Modified: 2025-12-12
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