NASA's $1.4B UNITES IT Contract Awarded to SAIC Under Full and Open Competition
Contract Overview
Contract Amount: $1,408,527,083 ($1.4B)
Contractor: Science Applications International Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2004-01-01
End Date: 2012-02-21
Contract Duration: 2,973 days
Daily Burn Rate: $473.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: UNIFIED NASA INFORMATION TECHNOLOGY SERVICES (UNITES)
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35812
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.41 billion to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: UNIFIED NASA INFORMATION TECHNOLOGY SERVICES (UNITES) Key points: 1. The UNITES contract represents a significant IT services investment by NASA. 2. SAIC secured this large contract, indicating strong competitive positioning. 3. The Cost Plus Award Fee structure introduces performance-based incentives. 4. The contract falls under Computer Facilities Management Services, a key IT sector.
Value Assessment
Rating: good
The contract's Cost Plus Award Fee structure allows for flexibility and performance incentives. While specific pricing details are not provided, the award amount suggests a substantial investment in IT services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: The competitive award process likely ensured a reasonable price for taxpayers, maximizing value for the IT services procured.
Public Impact
NASA's reliance on SAIC for IT services impacts agency-wide operations and data management. The duration of the contract (over 8 years) suggests a long-term strategic partnership. The focus on Computer Facilities Management implies critical infrastructure support for NASA's missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Award Fee structure if not managed tightly.
- Long contract duration may lead to vendor lock-in or missed opportunities for newer technologies.
Positive Signals
- Full and open competition likely yielded competitive pricing.
- Performance incentives in the contract structure can drive efficiency.
- SAIC's experience suggests a capable provider for complex IT needs.
Sector Analysis
This contract falls within the IT sector, specifically Computer Facilities Management Services. Spending benchmarks for similar large-scale IT service contracts can vary widely based on scope and duration, but $1.4 billion over nearly 8 years indicates a substantial commitment.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as SAIC is a large corporation. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract's structure and duration necessitate ongoing oversight from NASA to ensure performance standards are met and costs remain controlled. Award fees provide a mechanism for performance-based accountability.
Related Government Programs
- Computer Facilities Management Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Cost Plus Award Fee (CPAF) can lead to cost overruns if not managed properly.
- Long contract duration (nearly 8 years) may limit flexibility and adoption of newer technologies.
- Lack of small business participation noted in the award data.
- Dependence on a single large contractor for critical IT infrastructure.
Tags
computer-facilities-management-services, national-aeronautics-and-space-administr, al, dca, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $1.41 billion to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. UNIFIED NASA INFORMATION TECHNOLOGY SERVICES (UNITES)
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 $1.41 billion.
What is the period of performance?
Start: 2004-01-01. End: 2012-02-21.
What specific IT services are included under the UNITES contract, and how do they align with NASA's current and future mission needs?
The UNITES contract primarily covers Computer Facilities Management Services (NAICS 541513). This typically includes managing data centers, network infrastructure, hardware, and software support. The alignment with NASA's needs would depend on the specific tasks outlined in the contract statement of work, focusing on maintaining and operating the IT infrastructure essential for research, development, and operational missions.
How effectively did the Cost Plus Award Fee (CPAF) structure incentivize SAIC to deliver high-quality services within budget constraints?
The CPAF structure incentivizes performance by allowing for award fees based on meeting or exceeding defined criteria. NASA's oversight would be crucial in setting realistic targets and evaluating performance objectively. The effectiveness hinges on clear performance metrics and diligent monitoring to ensure SAIC is motivated to optimize both quality and cost-efficiency, rather than simply maximizing fees.
What was the competitive landscape for the UNITES contract, and did the full and open competition result in significant cost savings compared to other contracting methods?
The contract was awarded under 'full and open competition,' suggesting multiple bidders likely vied for the contract. This process generally fosters a competitive environment, driving down prices and encouraging innovation. While specific cost savings figures aren't provided, this method is typically preferred for maximizing value for taxpayer money when feasible.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 03HAW001
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1710 SAIC DR, MCLEAN, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,445,682,866
Exercised Options: $1,421,511,966
Current Obligation: $1,408,527,083
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 2004-01-01
Current End Date: 2012-02-21
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2015-01-20
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