Treasury's $12.1M IT Security Services Contract with SAIC Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $12,185,642 ($12.2M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of the Treasury
Start Date: 2007-01-15
End Date: 2014-07-31
Contract Duration: 2,754 days
Daily Burn Rate: $4.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: LABOR HOURS
Sector: IT
Official Description: IT SECURITY PROGRAM SERVICES.
Place of Performance
Location: HYATTSVILLE, PRINCE GEORGE'S County, MARYLAND, 20782
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $12.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IT SECURITY PROGRAM SERVICES. Key points: 1. The contract awarded to Science Applications International Corporation (SAIC) for IT Security Program Services represents a significant investment. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. However, the duration and cost warrant a closer look at value for money. 4. The sector is IT Security, a critical area for government operations.
Value Assessment
Rating: fair
The total award value of $12.1 million over approximately 7.5 years suggests an average annual spend of around $1.6 million. Without specific deliverables or performance metrics, assessing the value for money is challenging. Benchmarking against similar IT security service contracts is necessary.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can drive competitive pricing. The impact on price discovery is generally positive in such scenarios.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible price and quality through market forces.
Public Impact
Taxpayers are funding essential IT security services to protect government data. The long contract duration could indicate a need for sustained, specialized expertise. The specific outcomes and effectiveness of these security services are not detailed, impacting public understanding of the investment's return.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (7.5 years)
- Lack of specific performance metrics in provided data
- High total award value
Positive Signals
- Full and open competition utilized
- Awarded to a known large contractor
Sector Analysis
This contract falls within the IT Security sector, a crucial area for federal agencies. Spending in this sector has been steadily increasing due to evolving cyber threats. Benchmarks for similar services vary widely based on scope and complexity.
Small Business Impact
The data does not indicate any specific set-asides or participation goals for small businesses in this contract. Large contracts like this often involve prime contractors who may then subcontract to smaller firms, but direct analysis of SMB involvement is not possible from the provided information.
Oversight & Accountability
Oversight would typically involve regular performance reviews, audits, and contract management by the Bureau of the Fiscal Service to ensure SAIC is meeting its obligations and delivering value. The effectiveness of this oversight is not detailed here.
Related Government Programs
- Wired Telecommunications Carriers
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Potential for overpayment or underperformance given long duration and lack of detailed metrics.
- Limited insight into the specific value delivered by the services.
- Contract duration may exceed the pace of technological change in IT security.
- No clear indication of small business participation.
Tags
wired-telecommunications-carriers, department-of-the-treasury, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $12.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IT SECURITY PROGRAM SERVICES.
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $12.2 million.
What is the period of performance?
Start: 2007-01-15. End: 2014-07-31.
What specific IT security services were provided under this contract, and how did their performance align with the agency's needs and industry best practices?
The provided data lacks specifics on the services rendered. A thorough review would require access to the contract's statement of work, performance reports, and any independent assessments of SAIC's service delivery. Understanding the defined objectives and achieved outcomes is crucial for evaluating the contract's true value and effectiveness in meeting the Department of the Treasury's IT security requirements.
Given the $12.1 million award and 7.5-year duration, what was the cost-effectiveness of these IT security services compared to alternative solutions or market rates at the time of award?
Assessing cost-effectiveness requires comparing the contract's pricing structure and service levels against industry benchmarks for similar IT security programs. Factors like the specific technologies deployed, personnel expertise, and threat landscape addressed by SAIC would need to be evaluated. Without this comparative analysis, it's difficult to definitively state if taxpayers received optimal value for the funds expended over the contract's lifecycle.
How did the full and open competition process ensure the best possible outcome for the Bureau of the Fiscal Service in terms of both technical capability and pricing for IT security?
Full and open competition theoretically maximizes the pool of potential offerors, fostering a competitive environment that should drive down prices and encourage innovative solutions. To confirm its effectiveness here, one would need to examine the number and quality of bids received, the evaluation criteria used, and whether the winning proposal from SAIC demonstrably offered superior technical merit and cost-efficiency compared to other qualified bidders.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: LABOR HOURS (Z)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1953 GALLOWS RD., VIENNA, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $49,224,403
Exercised Options: $20,212,782
Current Obligation: $12,185,642
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00T03AHD0009
IDV Type: IDC
Timeline
Start Date: 2007-01-15
Current End Date: 2014-07-31
Potential End Date: 2014-07-31 00:00:00
Last Modified: 2014-08-04
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