State Department awards $2.09B IT consolidation support contract to Science Applications International Corp

Contract Overview

Contract Amount: $2,087,211,598 ($2.1B)

Contractor: Science Applications International Corporation

Awarding Agency: Department of State

Start Date: 2011-01-01

End Date: 2021-08-08

Contract Duration: 3,872 days

Daily Burn Rate: $539.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TASK ORDER TO PROVIDE PROJECT MANAGEMENT SUPPORT, TRANSITION SUPPORT, ENGINEERING AND DESIGN SUPPORT, SECURING THE INFRASTRUCTURE SUPPORT AND O&M SUPPORT FOR THE DEPARTMENT'S IT CONSOLIDATION PROGRAM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $2.09 billion to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TASK ORDER TO PROVIDE PROJECT MANAGEMENT SUPPORT, TRANSITION SUPPORT, ENGINEERING AND DESIGN SUPPORT, SECURING THE INFRASTRUCTURE SUPPORT AND O&M SUPPORT FOR THE DEPARTMENT'S IT CONSOLIDATION PROGRAM. Key points: 1. Significant investment in IT infrastructure modernization. 2. Long contract duration (2011-2021) suggests ongoing need. 3. Large contract value indicates substantial project scope. 4. Services include project management, engineering, and O&M. 5. No small business participation noted.

Value Assessment

Rating: good

The contract value of $2.09 billion over approximately 7.6 years averages to about $275 million annually. This is a substantial amount, but without specific benchmarks for IT consolidation programs of this scale, a precise value assessment is difficult. However, the firm-fixed-price structure suggests an attempt to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive indicator for price discovery and achieving a fair market price. This method allows all eligible contractors to bid, fostering a competitive environment.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring competitive pricing and access to the best available solutions.

Public Impact

Modernization of critical IT systems for the Department of State. Ensures continuity of operations and infrastructure security. Supports the department's overall mission through improved technology. Long-term engagement implies significant impact on IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration could lead to cost overruns if not managed effectively.
  • Lack of small business participation may limit innovation and broader economic impact.

Positive Signals

  • Awarded under full and open competition.
  • Firm-fixed-price contract type helps control costs.
  • Supports critical IT infrastructure.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a broad category encompassing IT support, integration, and management. Spending in this sector is consistently high across government agencies for modernization and operational needs. Benchmarks vary widely based on program complexity and scope.

Small Business Impact

The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. This suggests that the prime contractor, Science Applications International Corporation, did not subcontract to small businesses for this specific award, potentially missing opportunities for small business engagement.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a structured procurement process. However, the long duration and significant value necessitate ongoing oversight to ensure performance, cost control, and adherence to the contract's objectives.

Related Government Programs

  • Computer Systems Design Services
  • Department of State Contracting
  • Department of State Programs

Risk Flags

  • Long contract duration (over 7 years).
  • High contract value ($2.09 billion).
  • No small business participation noted.
  • Potential for scope creep over the contract's life.

Tags

computer-systems-design-services, department-of-state, dc, delivery-order, billion-dollar

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.09 billion to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TASK ORDER TO PROVIDE PROJECT MANAGEMENT SUPPORT, TRANSITION SUPPORT, ENGINEERING AND DESIGN SUPPORT, SECURING THE INFRASTRUCTURE SUPPORT AND O&M SUPPORT FOR THE DEPARTMENT'S IT CONSOLIDATION PROGRAM.

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $2.09 billion.

What is the period of performance?

Start: 2011-01-01. End: 2021-08-08.

What specific metrics were used to evaluate the success of the IT consolidation program under this contract?

The provided data does not detail the specific performance metrics or key performance indicators (KPIs) used to evaluate the success of the IT consolidation program. Typically, such metrics would include system uptime, security incident reduction, user satisfaction, cost savings achieved through consolidation, and project milestone completion rates. Further review of the contract's statement of work and performance reports would be necessary to ascertain these details.

How did the firm-fixed-price structure mitigate risks associated with the long duration of this IT consolidation contract?

The firm-fixed-price (FFP) structure aims to mitigate cost overrun risks by establishing a set price for the defined scope of work. For a long-duration contract like this, an FFP contract shifts the risk of unforeseen cost increases to the contractor. However, effective management and clear scope definition are crucial to prevent contractor claims for changes or scope creep, which could still impact the overall value realized by the government.

What was the primary driver for the Department of State's IT consolidation program that necessitated such a large, long-term contract?

The primary driver for the Department of State's IT consolidation program was likely the need to modernize aging and disparate IT systems, improve cybersecurity posture, enhance operational efficiency, and reduce overall IT infrastructure costs. Consolidating systems often leads to better data management, streamlined support, and a more agile technological environment, which are critical for an agency operating globally.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12010 SUNSET HILLS RD, 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: $3,169,374,856

Exercised Options: $2,087,442,307

Current Obligation: $2,087,211,598

Actual Outlays: $18,424,623

Subaward Activity

Number of Subawards: 782

Total Subaward Amount: $802,653,295

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0048

IDV Type: GWAC

Timeline

Start Date: 2011-01-01

Current End Date: 2021-08-08

Potential End Date: 2021-08-08 00:00:00

Last Modified: 2024-12-16

More Contracts from Science Applications International Corporation

View all Science Applications International Corporation federal contracts →

Other Department of State Contracts

View all Department of State contracts →

Explore Related Government Spending