DoD Awards $39.3M for Army IT Services to Apogee-SAIC, Ending Aug 2025
Contract Overview
Contract Amount: $39,320,458 ($39.3M)
Contractor: Apogee-Saic Capabilities Integrator, LLC
Awarding Agency: Department of Defense
Start Date: 2019-08-28
End Date: 2025-08-29
Contract Duration: 2,193 days
Daily Burn Rate: $17.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OPS ~ CLIN 1 LABOR
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80920
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $39.3 million to APOGEE-SAIC CAPABILITIES INTEGRATOR, LLC for work described as: OPS ~ CLIN 1 LABOR Key points: 1. Significant contract value for IT services. 2. Apogee-SAIC is a major defense contractor. 3. Potential for cost overruns given the long duration. 4. Services fall under 'Other Computer Related Services' NAICS code.
Value Assessment
Rating: fair
The contract value of $39.3M over 6 years suggests a moderate annual spend. Benchmarking against similar IT service contracts would be necessary to determine if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific price discovery mechanisms and the number of bids received are not detailed here.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers, but the ultimate impact depends on the effectiveness of the bidding process and contract management.
Public Impact
Supports critical Army IT infrastructure and operations. Ensures continuity of essential computer-related services. Impacts personnel relying on these IT systems daily.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (6 years) increases risk of scope creep and price escalation.
- Lack of specific performance metrics makes it hard to assess value.
- Potential for vendor lock-in if not managed carefully.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Clear end date for service delivery.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government, with benchmarks varying widely based on service type and complexity.
Small Business Impact
The contract does not indicate any specific set-asides or participation goals for small businesses, suggesting it was awarded to a large prime contractor without direct small business subcontracting requirements mentioned.
Oversight & Accountability
Oversight would typically involve program managers monitoring performance against contract requirements and ensuring adherence to terms. The effectiveness of this oversight is not detailed in the provided data.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration
- Lack of detailed performance metrics
- Potential for price escalation over time
- Ambiguity in service classification (NAICS 541519)
Tags
other-computer-related-services, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.3 million to APOGEE-SAIC CAPABILITIES INTEGRATOR, LLC. OPS ~ CLIN 1 LABOR
Who is the contractor on this award?
The obligated recipient is APOGEE-SAIC CAPABILITIES INTEGRATOR, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $39.3 million.
What is the period of performance?
Start: 2019-08-28. End: 2025-08-29.
What specific IT services are included under CLIN 1 Labor, and how do they align with current Army modernization goals?
CLIN 1 Labor likely encompasses personnel costs for IT support, maintenance, and potentially development activities. Understanding the precise nature of these services is crucial to assess their strategic alignment with the Army's evolving technological needs and modernization objectives, ensuring the investment contributes to future readiness.
How was the 'Other Computer Related Services' (NAICS 541519) category justified, and are there concerns about potential misclassification of services?
The justification for NAICS 541519 needs to be reviewed to ensure it accurately reflects the primary nature of the services provided. Misclassification could lead to inaccurate benchmarking and potentially less competitive pricing if the chosen category doesn't align with market rates for the actual work performed.
What mechanisms are in place to ensure the firm fixed price remains competitive and fair throughout the 6-year contract duration?
While Firm Fixed Price offers cost certainty, mechanisms like periodic price reviews, comparison to market data, or economic price adjustments should be evaluated. Without these, the government risks paying above-market rates if costs escalate significantly over the contract's long term.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8610 EXPLORER DR STE 305, COLORADO SPRINGS, CO, 80920
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $45,135,228
Exercised Options: $41,388,891
Current Obligation: $39,320,458
Actual Outlays: $1,783,244
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J18DA047
IDV Type: IDC
Timeline
Start Date: 2019-08-28
Current End Date: 2025-08-29
Potential End Date: 2025-08-29 00:00:00
Last Modified: 2025-12-31
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