NASA's $20.3M IT Services Contract Awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $20,296,593 ($20.3M)
Contractor: Science Applications International Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2007-02-16
End Date: 2011-08-24
Contract Duration: 1,650 days
Daily Burn Rate: $12.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: FINANCIAL&ADMINISTRATIVE SYSTEMS SERVICES (FASS) CONTRACT
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $20.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: FINANCIAL&ADMINISTRATIVE SYSTEMS SERVICES (FASS) CONTRACT Key points: 1. Contract awarded for IT services, focusing on computer systems design. 2. The contract duration was 1650 days, spanning over 4 years. 3. Awarded as a definitive contract with a Cost Plus Fixed Fee pricing structure. 4. The contract was not competitively procured. 5. The primary place of performance was Texas. 6. This contract falls under the IT sector, specifically computer systems design.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee structure can sometimes lead to higher costs if not managed tightly, as it incentivizes the contractor to incur costs to achieve the fixed fee. However, the fixed fee component provides some cost control. Without more detailed information on the services rendered and their effectiveness, a definitive value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances prevent a full and open competition. The lack of competition means that NASA did not benefit from potential price reductions or innovative solutions that might have emerged from a competitive bidding process.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. The government did not have the opportunity to explore a wider range of pricing and service offerings.
Public Impact
The National Aeronautics and Space Administration (NASA) is the primary beneficiary, receiving IT services. Services delivered include computer systems design and related administrative support. The geographic impact is primarily in Texas, where the place of performance was located. The contract supported IT professionals and potentially other roles within Science Applications International Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may have led to suboptimal pricing.
- Cost Plus Fixed Fee contracts require robust oversight to prevent cost overruns.
- Sole-source awards can limit access to innovative solutions from the broader market.
Positive Signals
- The contract provided essential IT services to a major government agency.
- Science Applications International Corporation is a large, established government contractor.
- The fixed fee component offers some level of cost predictability.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. This is a broad category encompassing the design, development, and integration of computer systems. The market for these services is highly competitive, with numerous large and small businesses offering specialized expertise. NASA, as a major federal agency, frequently procures such services to support its complex operations and research initiatives. Comparable spending benchmarks would typically involve analyzing other large IT service contracts awarded by federal agencies for similar scope and duration.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have significant subcontracting implications for small businesses based on the provided data. The award went to Science Applications International Corporation, a large prime contractor. This means that opportunities for small businesses to directly participate in this specific contract were likely limited, unless they were part of a subcontracting plan not detailed here.
Oversight & Accountability
Oversight for this contract would have been managed by NASA's contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates careful monitoring of incurred costs and the contractor's performance against the fixed fee. Transparency would depend on NASA's internal reporting and any public disclosures made. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- NASA IT Services Contracts
- Computer Systems Design Services
- Definitive Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee pricing structure
- Lack of detailed performance metrics
Tags
it, nasa, texas, definitive-contract, large-contract, sole-source, cost-plus-fixed-fee, computer-systems-design-services, financial-administrative-systems-services
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $20.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. FINANCIAL&ADMINISTRATIVE SYSTEMS SERVICES (FASS) CONTRACT
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $20.3 million.
What is the period of performance?
Start: 2007-02-16. End: 2011-08-24.
What was the specific nature of the 'FINANCIAL & ADMINISTRATIVE SYSTEMS SERVICES (FASS)' provided under this contract?
The provided data indicates the contract was for 'FINANCIAL & ADMINISTRATIVE SYSTEMS SERVICES (FASS)' and falls under the NAICS code 541512 for Computer Systems Design Services. This suggests the services likely involved the design, development, implementation, or maintenance of IT systems that support financial and administrative functions within NASA. This could include software development, system integration, network design, IT consulting, and potentially data management related to financial and administrative operations. The 'Cost Plus Fixed Fee' (CPFF) contract type implies that the contractor was reimbursed for allowable costs plus a predetermined fixed fee representing profit. The lack of detailed service descriptions in the provided data makes it difficult to pinpoint the exact tasks performed, but the focus was on IT systems supporting core administrative functions.
How does the $20.3 million total value compare to similar IT service contracts awarded by NASA during that period?
Comparing the $20.3 million value of this contract to similar IT service contracts awarded by NASA between 2007 and 2011 requires access to historical contract databases and specific filtering criteria. However, for a definitive contract spanning over four years (1650 days), $20.3 million represents an average annual value of approximately $5 million. This is a moderate-sized contract within the IT services domain for a large agency like NASA. Larger, more complex IT procurements, especially those involving major system development or enterprise-wide solutions, could easily reach tens or hundreds of millions of dollars. Conversely, smaller, more specialized IT support tasks might be valued in the low millions or less. Without specific comparable contract data points, it's difficult to definitively state if $20.3 million was high or low, but it falls within a plausible range for IT systems design services for a federal agency of NASA's scale over that timeframe.
What are the potential risks associated with a sole-source, Cost Plus Fixed Fee contract for IT services?
Sole-source contracts carry inherent risks, primarily the lack of competitive pressure which can lead to higher prices and potentially less innovation compared to a competed contract. For taxpayers, this means a higher likelihood of paying more than necessary. The Cost Plus Fixed Fee (CPFF) structure also presents risks. While the 'fixed fee' provides some cost ceiling for the contractor's profit, the 'cost plus' element means the government reimburses all allowable costs incurred by the contractor. This can incentivize the contractor to incur more costs, as their profit is fixed regardless of the total cost. Effective oversight is crucial to ensure costs are reasonable and allowable. If not managed diligently, CPFF contracts can lead to cost overruns and a less efficient use of taxpayer funds. The combination of sole-source and CPFF requires robust government oversight to mitigate these risks.
What was Science Applications International Corporation's track record with NASA prior to or during this contract?
Science Applications International Corporation (SAIC), now part of Leidos, has historically been a major contractor for NASA and other federal agencies. Prior to and during the period of this $20.3 million FASS contract (2007-2011), SAIC held numerous other contracts with NASA across various domains, including IT services, engineering support, and scientific research. Their extensive experience and established presence suggest a significant track record. While this specific contract was sole-source, SAIC's broader engagement with NASA indicates a level of trust and proven capability in delivering services. A deeper analysis would involve reviewing SAIC's performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) on other NASA contracts during that era to gauge their overall performance and reliability.
How did the performance period of 1650 days (approx. 4.5 years) influence the contract's overall value and risk?
A performance period of 1650 days (approximately 4.5 years) for a $20.3 million IT services contract suggests a sustained need for the services provided. Longer contract durations can offer stability and predictability for both the agency and the contractor, potentially fostering a deeper understanding of NASA's requirements and leading to more efficient service delivery over time. However, extended periods also increase the risk of scope creep, technological obsolescence, and potential cost increases if not managed effectively. For a sole-source, CPFF contract, a longer duration amplifies the importance of rigorous oversight to ensure costs remain reasonable and the fixed fee continues to represent fair value throughout the contract's life. It also means that any inefficiencies or mispricing identified early on would have a prolonged impact on the program's budget.
What does the 'Computer Systems Design Services' classification imply about the contract's focus and potential outcomes?
The NAICS code 541512, 'Computer Systems Design Services,' indicates that the primary focus of this contract was on the design, development, integration, and potentially the modification of computer systems. This is a broad category that can encompass a wide range of activities, from planning and analyzing user needs to designing hardware and software solutions, and overseeing their implementation. The outcomes expected from such a contract would typically include improved IT infrastructure, more efficient administrative or financial processes enabled by new or upgraded systems, enhanced data management capabilities, and potentially the development of custom software applications tailored to NASA's specific requirements. The 'FASS' (Financial & Administrative Systems Services) designation further refines this focus to systems supporting these critical business functions within the agency.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,000,000
Exercised Options: $25,000,000
Current Obligation: $20,296,593
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2007-02-16
Current End Date: 2011-08-24
Potential End Date: 2011-08-24 00:00:00
Last Modified: 2020-02-27
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