Army's $19.6M IT Service Management contract awarded to SAIC for enterprise platform
Contract Overview
Contract Amount: $19,607,317 ($19.6M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2022-09-26
End Date: 2026-09-25
Contract Duration: 1,460 days
Daily Burn Rate: $13.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFORMATION TECHNOLOGY SERVICE MANAGEMENT (ITSM) SOFTWARE AS A SERVICE (SAAS) REQUIREMENTS FOR THE ARMY ENTERPRISE SERVICE MANAGEMENT PLATFORM. THIS TO AWARDS THE MINIMUM GUARANTEE OF ONE LICENSE/SEAT.
Place of Performance
Location: CLEARFIELD, DAVIS County, UTAH, 84015
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $19.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: INFORMATION TECHNOLOGY SERVICE MANAGEMENT (ITSM) SOFTWARE AS A SERVICE (SAAS) REQUIREMENTS FOR THE ARMY ENTERPRISE SERVICE MANAGEMENT PLATFORM. THIS TO AWARDS THE MINIMUM GUARANTEE OF ONE LICENSE/SEAT. Key points: 1. Value for money assessed through competitive bidding and fixed-price structure. 2. Competition dynamics indicate a robust market for ITSM solutions. 3. Risk indicators include contract duration and potential for scope creep. 4. Performance context is the Army's need for a unified enterprise platform. 5. Sector positioning is within the broader IT services and software market.
Value Assessment
Rating: good
The contract's firm fixed-price structure provides cost certainty for the Army. While the initial award is for a minimum guarantee, the total value could increase significantly based on future needs. Benchmarking against similar enterprise ITSM SaaS contracts is challenging without more granular data on features and user counts, but the price appears reasonable for a large-scale federal deployment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This level of competition is generally favorable for price discovery and ensures the government receives competitive offers. The specific number of bidders is not provided, but the 'full and open' designation implies a healthy competitive environment.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive marketplace where vendors strive to offer the most cost-effective solutions.
Public Impact
The primary beneficiary is the Department of the Army, which gains access to an enterprise-wide IT Service Management platform. Services delivered include ITSM software as a service, enabling streamlined IT operations and support. The geographic impact is nationwide, supporting Army personnel across various installations. Workforce implications include potential for improved IT support efficiency for Army personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope expands beyond initial projections.
- Dependency on a single vendor for critical ITSM functionality.
- Risk of vendor lock-in with SaaS solutions.
- Ensuring adequate user adoption and training across the enterprise.
Positive Signals
- Firm fixed-price contract provides budget predictability.
- Awarded through full and open competition, suggesting competitive pricing.
- Modern SaaS solution can offer scalability and reduced infrastructure burden.
- Potential for improved IT service delivery and user satisfaction.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on Software as a Service (SaaS) for IT Service Management (ITSM). The federal market for ITSM solutions is substantial, driven by agencies' needs to modernize IT operations, improve service delivery, and enhance cybersecurity. Comparable spending benchmarks would include other large enterprise software procurements for federal agencies, particularly those focused on service desk, asset management, and IT operations management.
Small Business Impact
The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside. However, the prime contractor, Science Applications International Corporation (SAIC), may engage small businesses as subcontractors, which would contribute to their participation in the federal contracting landscape.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Army Enterprise Service Management Platform
- IT Service Management Software
- Software as a Service (SaaS) Contracts
- Department of Defense IT Modernization Initiatives
Risk Flags
- Potential for scope creep
- Vendor lock-in risk
- Long-term contract duration
- Dependency on SaaS provider
Tags
it-service-management, saas, army, department-of-defense, science-applications-international-corporation, firm-fixed-price, full-and-open-competition, enterprise-software, it-operations, utah
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. INFORMATION TECHNOLOGY SERVICE MANAGEMENT (ITSM) SOFTWARE AS A SERVICE (SAAS) REQUIREMENTS FOR THE ARMY ENTERPRISE SERVICE MANAGEMENT PLATFORM. THIS TO AWARDS THE MINIMUM GUARANTEE OF ONE LICENSE/SEAT.
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 $19.6 million.
What is the period of performance?
Start: 2022-09-26. End: 2026-09-25.
What is the typical cost range for enterprise-level ITSM SaaS solutions for large federal agencies?
The cost range for enterprise-level ITSM SaaS solutions for large federal agencies can vary significantly based on the number of users, modules included, level of support, and specific vendor. However, contracts of this nature, supporting tens of thousands of users across an entire service branch like the Army, can easily range from several million to tens of millions of dollars annually. Factors such as advanced analytics, automation capabilities, and integration with other enterprise systems can further drive up costs. Without specific details on the Army's chosen modules and user count, a precise benchmark is difficult, but the $19.6 million initial award suggests a substantial deployment.
How does SAIC's track record with similar ITSM contracts influence the assessment of this award?
SAIC has a significant track record in providing IT services and solutions to the federal government, including the Department of Defense. Their experience with large-scale enterprise IT programs suggests a capability to manage complex deployments like the Army's ITSM platform. While specific details on past ITSM SaaS contracts are not provided here, SAIC's general performance in delivering IT services, systems integration, and software solutions indicates a level of expertise relevant to this award. Assessing past performance on similar contracts would involve reviewing client feedback, contract modifications, and any documented successes or challenges in delivering comparable services.
What are the key performance indicators (KPIs) likely being used to measure the success of this ITSM platform?
Key performance indicators (KPIs) for an enterprise ITSM SaaS platform typically focus on service delivery efficiency, user satisfaction, and operational effectiveness. Common KPIs include: Mean Time to Resolve (MTTR) for incidents, First Contact Resolution (FCR) rate, ticket backlog volume, user satisfaction scores (e.g., through surveys), availability and uptime of the platform, and adherence to Service Level Agreements (SLAs). For the Army, specific KPIs might also relate to the speed and accuracy of IT asset management, change success rates, and the efficiency of request fulfillment processes across its vast network of users.
What is the potential impact of this contract on the broader IT service management market?
This contract, awarded to SAIC for the Army's enterprise ITSM platform, signifies a significant commitment to modern, cloud-based IT service management solutions within a major federal agency. It reinforces the trend towards SaaS adoption for critical IT functions and highlights the demand for integrated platforms that can manage diverse IT services. The scale of the Army's requirement could influence market dynamics by setting expectations for features, scalability, and vendor support. It also validates the market position of vendors offering comprehensive ITSM SaaS solutions capable of meeting the stringent requirements of large defense organizations.
How does the firm fixed-price contract type mitigate risks for the government compared to other contract types?
A firm fixed-price (FFP) contract type is generally considered to offer the lowest risk for the government in terms of cost. Under an FFP agreement, the contractor assumes most of the risk for cost overruns. The price is set at the outset and does not change unless the contract scope is formally modified. This provides budget certainty for the government, as they know the maximum cost they will incur for the defined scope of work. While it can incentivize contractors to be efficient, it also means the government might pay a premium upfront to account for the contractor's risk. This contrasts with cost-plus contracts, where the government bears more cost risk but may achieve greater flexibility or access to cutting-edge technology.
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 › IT AND TELECOM - DELIVERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1412 LEGEND HILLS DR, CLINTON, UT, 84015
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,607,317
Exercised Options: $19,607,317
Current Obligation: $19,607,317
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: W52P1J22D0040
IDV Type: IDC
Timeline
Start Date: 2022-09-26
Current End Date: 2026-09-25
Potential End Date: 2026-09-25 12:09:00
Last Modified: 2026-01-12
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