DoD's $12.9M IT support contract for automated movement and identification solutions awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $12,892,655 ($12.9M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2018-12-01

End Date: 2022-09-30

Contract Duration: 1,399 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AUTOMATED MOVEMENT AND IDENTIFICATION SOLUTIONS (AMIS) MANAGEMENT SUPPORT SERVICES - II (AMSS II) PROVIDES FOLLOW-ON PROGRAM MANAGEMENT SUPPORT SERVICES TO ASSIST THE PRODUCT LEAD(PL) AMIS IN THE EXECUTION AND COORDINATION OF AUTOMATED TRANSPORTATION, LOGISTICS TRACKING, AND PRESENT AS WELL AS EMERGING IDENTIFICATION INFORMATION TECHNOLOGY (IT) SOLUTIONS. SUPPORTING THIS REQUIREMENT WILL BE SUBJECT MATTER EXPERTS (SME), TECHNICAL&ADMINISTRATIVE STAFF IN THE AREAS OF LOGISTICS, RFID ENGINEERING, AND INTEGRATION WITH DOD AUTOMATED INFORMATION SYSTEMS (AIS), ENTERPRISE ARCHITECTURE, ITEM UNIQUE IDENTIFICATION (IUID), RFID SYSTEMS INTEGRATION AND ITS ASSOCIATED TECHNOLOGY AND INFRASTRUCTURE.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: AUTOMATED MOVEMENT AND IDENTIFICATION SOLUTIONS (AMIS) MANAGEMENT SUPPORT SERVICES - II (AMSS II) PROVIDES FOLLOW-ON PROGRAM MANAGEMENT SUPPORT SERVICES TO ASSIST THE PRODUCT LEAD(PL) AMIS IN THE EXECUTION AND COORDINATION OF AUTOMATED TRANSPORTATION, LOGISTICS TRACKING, AND PRES… Key points: 1. Contract provides essential program management support for automated transportation and logistics tracking IT solutions. 2. Services include subject matter expertise in logistics, RFID engineering, and integration with DoD automated information systems. 3. The contract supports the Product Lead (PL) AMIS in executing and coordinating IT solutions for identification and tracking. 4. Follow-on nature of the contract suggests continuity and established performance requirements. 5. The contract value of $12.9M over approximately 4 years indicates a significant investment in IT infrastructure management. 6. Focus on RFID and Item Unique Identification (IUID) highlights modernization efforts within DoD logistics.

Value Assessment

Rating: good

The contract value of $12.9M for nearly 4 years of program management support appears reasonable given the specialized IT and logistics expertise required. While direct comparisons are difficult without more granular data on similar follow-on contracts, the scope involving RFID, IUID, and integration with enterprise architecture suggests a complex and critical function. The firm-fixed-price structure generally provides cost certainty for the government, assuming the contractor can manage their costs effectively within the agreed-upon price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The presence of two bids suggests a competitive environment, which is generally favorable for price discovery and value for the government. The specific number of bidders (2) is on the lower side for full and open competition, but the fact that it was competed at all is a positive sign.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally leads to better pricing and value for taxpayers compared to sole-source or limited competition scenarios.

Public Impact

The Department of Defense benefits from enhanced program management for its automated movement and identification systems. Services delivered include expertise in logistics, RFID engineering, and integration of IT solutions. Geographic impact is likely global, supporting DoD operations worldwide. Workforce implications include the need for specialized IT and logistics professionals within the contractor organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical program management functions.
Risk of vendor lock-in if knowledge transfer is insufficient.
Ensuring continued alignment with evolving DoD IT and logistics strategies.

Positive Signals

Follow-on contract indicates successful past performance and established relationship.
Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive award process.
Focus on critical IT infrastructure for logistics and tracking.
Involvement of subject matter experts ensures specialized knowledge application.

Sector Analysis

This contract falls within the Information Technology (IT) and Management Consulting Services sector, specifically focusing on administrative management and general management consulting. The IT services component is significant, dealing with automated transportation, logistics tracking, and identification solutions, including RFID and IUID technologies. The market for such specialized IT support services within the defense sector is substantial, driven by the need for efficient and secure supply chain management and operational visibility. Comparable spending benchmarks would typically involve other large IT support contracts for defense agencies requiring similar levels of technical expertise and program management.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as it was not set aside for small businesses and the prime contractor is Science Applications International Corporation, a large business. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, unless SAIC has robust subcontracting initiatives not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers responsible for the AMIS program. The firm-fixed-price contract structure provides a degree of accountability by linking payment to deliverables. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency (DLA) IT Support Services
Army Logistics Modernization Programs
DoD Supply Chain Management IT Solutions
RFID and IUID Implementation Contracts
Automated Information Systems (AIS) Support

Risk Flags

Potential for vendor lock-in
Cybersecurity risks associated with IT systems
Dependence on contractor performance for critical logistics functions
Scope creep management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. AUTOMATED MOVEMENT AND IDENTIFICATION SOLUTIONS (AMIS) MANAGEMENT SUPPORT SERVICES - II (AMSS II) PROVIDES FOLLOW-ON PROGRAM MANAGEMENT SUPPORT SERVICES TO ASSIST THE PRODUCT LEAD(PL) AMIS IN THE EXECUTION AND COORDINATION OF AUTOMATED TRANSPORTATION, LOGISTICS TRACKING, AND PRESENT AS WELL AS EMERGING IDENTIFICATION INFORMATION TECHNOLOGY (IT) SOLUTIONS. SUPPORTING THIS REQUIREMENT WILL BE SUBJECT MATTER EXPERTS (SME), TECHNICAL&ADMINISTRATIVE STAFF IN THE AREAS OF LOGISTICS, RFID ENGINEERING,

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2018-12-01. End: 2022-09-30.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar IT program management support services to the Department of Defense?

Science Applications International Corporation (SAIC) has a long and extensive history of providing IT and technical support services to the Department of Defense and other federal agencies. They are a major defense contractor with significant experience in areas such as logistics, enterprise IT, cybersecurity, and systems engineering. For the AMIS program specifically, this contract is a follow-on, suggesting SAIC has a demonstrated track record of successful performance on the predecessor contract (AMSS II). Their broader portfolio includes numerous large-scale IT integration and management contracts, indicating a capacity to handle complex requirements and manage significant budgets. Government contract databases and past performance reviews would offer more granular detail on their specific successes and any challenges encountered on similar programs.

How does the awarded value of $12.9 million compare to similar IT program management support contracts for logistics and identification solutions within the DoD?

Comparing the $12.9 million value requires context regarding the duration and scope. This contract spans approximately 4 years (December 2018 to September 2022), making the annual value around $3.2 million. This figure is moderate for large-scale IT program management support within the DoD, which can range from a few million to hundreds of millions annually for major system development or sustainment. Contracts focused on specialized areas like RFID, IUID, and automated logistics tracking, especially those requiring integration with enterprise architectures and subject matter expertise, often command significant investment. Without specific benchmark data for identical follow-on contracts, it's reasonable to assess this value as commensurate with the specialized technical and management support required for a critical DoD IT program.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks include potential scope creep if requirements evolve without proper change control, contractor performance issues impacting critical logistics functions, and cybersecurity vulnerabilities within the IT systems managed. Dependence on a single contractor for program management also poses a risk if the contractor faces financial instability or significant operational disruptions. Mitigation strategies likely involve robust contract oversight by the government, clearly defined performance metrics and Service Level Agreements (SLAs), regular performance reviews, and stringent cybersecurity protocols. The firm-fixed-price nature incentivizes the contractor to manage costs and scope effectively. The follow-on nature suggests that past performance issues, if any, were likely addressed or deemed acceptable for continuation.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this specific IT support requirement?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for IT support services when the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, incentivizing them to manage their resources efficiently. For program management support services like those provided under AMSS II, where the core functions are relatively stable, FFP provides cost predictability for the government. However, if unforeseen technical challenges or significant changes in requirements arise, the FFP structure might lead to change order negotiations that could increase the overall cost. The success of FFP in delivering value here depends on the clarity of the SOW and the contractor's ability to execute within the agreed-upon price.

What are the implications of this contract being a follow-on to a previous award for the Department of Defense?

A follow-on contract implies that the government has already established a relationship with the contractor and has likely evaluated their past performance on the predecessor contract. This can lead to several benefits: reduced acquisition lead time, lower initial startup costs as the contractor is already familiar with the program, and potentially better pricing due to established efficiencies. It also suggests a degree of satisfaction with the contractor's ability to meet requirements. However, it can also present risks, such as potential complacency from the contractor or reduced competitive pressure if the follow-on is not competed robustly. For AMSS II, the follow-on nature indicates continuity in critical IT support for automated movement and identification solutions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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

Solicitation ID: W52P1J18R0020

Offers Received: 2

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: $14,203,448

Exercised Options: $12,892,655

Current Obligation: $12,892,655

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,930,706

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J14D0019

IDV Type: IDC

Timeline