PBGC Awards $69.6M for IT Services to Science Applications International Corporation
Contract Overview
Contract Amount: $69,629,868 ($69.6M)
Contractor: Science Applications International Corporation
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2015-02-01
End Date: 2018-07-31
Contract Duration: 1,276 days
Daily Burn Rate: $54.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IGF::CL::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $69.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::CL::IGF Key points: 1. Contract awarded to a large, established IT services provider. 2. Significant contract value suggests a critical need for IT support. 3. Potential for cost overruns given the Cost Plus Award Fee structure. 4. Limited information on specific IT services provided. 5. Sector analysis needed to benchmark against similar IT contracts.
Value Assessment
Rating: fair
The contract value of $69.6M over approximately 3.5 years is substantial. Without specific service details or comparable contract data, assessing pricing against similar contracts is difficult. The Cost Plus Award Fee structure introduces variability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT services.
Public Impact
Ensures continued IT support for the Pension Benefit Guaranty Corporation's operations. Potential impact on PBGC's ability to manage pension plans effectively. Highlights reliance on external contractors for critical government functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to higher costs.
- Lack of specific service details hinders detailed analysis.
- Contract duration is significant, requiring ongoing oversight.
Positive Signals
- Awarded through full and open competition.
- Contract value indicates a significant need met.
- Established contractor with a track record.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Benchmarking requires comparison with similar IT support contracts awarded by federal agencies, considering the complexity and scope of services.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. The prime contractor, Science Applications International Corporation, is a large corporation, suggesting limited direct opportunities for small businesses unless through subcontracting.
Oversight & Accountability
Oversight is crucial for Cost Plus Award Fee contracts to ensure performance meets objectives and costs remain reasonable. The Pension Benefit Guaranty Corporation's contracting office is responsible for monitoring contractor performance and expenditures.
Related Government Programs
- Other Computer Related Services
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Cost Plus Award Fee structure.
- Lack of detailed service description.
- Long contract duration.
- Potential for contractor performance issues impacting agency operations.
Tags
other-computer-related-services, pension-benefit-guaranty-corporation, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $69.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::CL::IGF
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Pension Benefit Guaranty Corporation (Pension Benefit Guaranty Corporation).
What is the total obligated amount?
The obligated amount is $69.6 million.
What is the period of performance?
Start: 2015-02-01. End: 2018-07-31.
What specific IT services were procured under this contract, and how do they align with PBGC's mission objectives?
The contract specifies 'Other Computer Related Services' (NAICS 541519). While the exact services are not detailed, they likely encompass IT support, maintenance, and potentially development crucial for PBGC's operations, such as managing pension data and systems. Understanding the specific deliverables is key to assessing their alignment with the agency's core functions.
What are the potential risks associated with the Cost Plus Award Fee (CPAF) structure for this contract?
The CPAF structure carries inherent risks of cost escalation, as the contractor is reimbursed for allowable costs plus a fee that can be adjusted based on performance. This can incentivize higher spending to achieve performance targets. Robust oversight is needed to ensure costs are reasonable and the award fee is justified by exceptional performance, not just cost incurrence.
How effectively did the 'full and open competition' process ensure value for money given the CPAF structure?
Full and open competition is a strong indicator of potential value. However, the CPAF structure introduces complexity in assessing value. While competition likely drove initial pricing, the CPAF's incentive structure requires ongoing monitoring to ensure the final cost reflects true value and performance, not just cost accumulation. The agency's ability to define clear performance metrics is critical.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
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: $100,431,175
Exercised Options: $100,431,175
Current Obligation: $69,629,868
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: PBGC01D150001
IDV Type: IDC
Timeline
Start Date: 2015-02-01
Current End Date: 2018-07-31
Potential End Date: 2018-07-31 00:00:00
Last Modified: 2024-09-10
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