Army's $31M IT Support Contract Awarded to Science Applications International Corp. Amidst Bridge Funding

Contract Overview

Contract Amount: $31,155,712 ($31.2M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2020-09-01

End Date: 2022-02-28

Contract Duration: 545 days

Daily Burn Rate: $57.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: U.S. ARMY AVIATION MISSILE COMMAND (AMCOM)INFORMATION TECHNOLOGY SUPPORT SERVICES ITSS III BRIDGE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $31.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: U.S. ARMY AVIATION MISSILE COMMAND (AMCOM)INFORMATION TECHNOLOGY SUPPORT SERVICES ITSS III BRIDGE Key points: 1. Contract awarded under a bridge mechanism, suggesting a need for continuity of services. 2. Full and open competition was utilized, indicating a broad search for qualified vendors. 3. The contract type is Time and Materials, which can pose cost control challenges. 4. The award value represents a significant investment in IT support for Army Aviation. 5. The contractor, SAIC, is a major player in the federal IT services market. 6. The contract duration of 545 days highlights the immediate need for sustained support.

Value Assessment

Rating: fair

The contract's value of approximately $31.1 million over 545 days suggests a substantial investment in IT support services. Benchmarking this against similar IT support contracts for large federal agencies is crucial. The Time and Materials pricing structure, while flexible, warrants close monitoring to ensure cost efficiency and prevent overruns. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the scale of the award indicates a critical need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the use of full and open competition suggests a robust process aimed at identifying the most capable and cost-effective solution for the Army Aviation Missile Command's IT needs.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wide range of vendors to compete, which can drive down costs and improve service quality through market forces.

Public Impact

Provides essential IT support services to the U.S. Army Aviation Missile Command (AMCOM). Ensures the continuity of critical IT infrastructure and operations for aviation missile systems. Supports the personnel and missions of AMCOM, located in Alabama. Indirectly benefits the broader defense industrial base by maintaining operational readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Bridge contract nature may indicate prior planning or procurement challenges.
Lack of specific performance metrics makes value assessment difficult.
Limited public information on the number of bidders in the full and open competition.

Positive Signals

Awarded through full and open competition, suggesting a thorough vetting process.
Contractor (SAIC) has extensive experience in federal IT services.
Ensures continuity of critical IT support for a vital Army command.

Sector Analysis

This contract falls within the broader Information Technology services sector, specifically focusing on IT support services. The federal IT market is highly competitive, with significant spending allocated to maintaining and upgrading complex systems. Contracts like this are essential for agencies to manage their technological infrastructure, which is critical for mission success. Comparable spending benchmarks would involve looking at other large-scale IT support contracts awarded to major defense contractors.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the contract's statement of work. The focus is on a large prime contractor's capabilities rather than fostering small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Army Aviation Missile Command's contracting and program management offices. The Time and Materials nature of the contract necessitates rigorous oversight to track labor hours and material costs. Transparency is facilitated through contract award databases, but detailed performance and cost reports are generally internal. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Army IT Support Services
Defense Information Technology Services
AMCOM IT Contracts
Information Technology Professional Services
Federal IT Support

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Bridge contract may indicate preceding procurement issues.
Lack of specified number of bidders limits competition assessment.
No small business set-aside noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. U.S. ARMY AVIATION MISSILE COMMAND (AMCOM)INFORMATION TECHNOLOGY SUPPORT SERVICES ITSS III BRIDGE

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 $31.2 million.

What is the period of performance?

Start: 2020-09-01. End: 2022-02-28.

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

Science Applications International Corporation (SAIC) has a long and extensive track record of providing IT support services to the Department of Defense (DoD) and other federal agencies. They are a major defense contractor with significant expertise in areas such as systems engineering, software development, cybersecurity, and enterprise IT management. SAIC has held numerous large-scale contracts with various branches of the military, including the Army, Navy, and Air Force, covering a wide range of IT requirements. Their experience includes managing complex networks, providing help desk support, modernizing legacy systems, and implementing new technologies. This extensive background suggests a strong capability to fulfill the IT support needs of the Army Aviation Missile Command (AMCOM).

How does the awarded value of $31.1 million compare to similar IT support contracts for Army commands?

The awarded value of approximately $31.1 million for IT support services over a period of 545 days (roughly 1.5 years) is substantial, reflecting the critical nature of IT infrastructure for a major command like AMCOM. To benchmark this effectively, one would need to compare it against other IT support contracts awarded to similar-sized Army commands or aviation-focused units. Larger commands or those with more complex technological footprints might see higher contract values. Conversely, smaller or less technologically intensive units might have lower values. The Time and Materials (T&M) pricing structure also influences the total value, as it is dependent on actual hours worked and materials used, unlike fixed-price contracts. Without specific comparable contract data, it's difficult to definitively state if $31.1 million is high or low, but it indicates a significant commitment to maintaining robust IT capabilities.

What are the primary risks associated with a Time and Materials (T&M) contract of this nature?

The primary risk associated with a Time and Materials (T&M) contract, such as this IT support services award, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts do not have a predetermined total cost. The government pays for the actual labor hours expended by the contractor and the cost of materials used. This can lead to higher-than-expected costs if the project scope expands, if contractor efficiency is low, or if there is inadequate oversight. For the government, managing and controlling costs requires diligent monitoring of timesheets, material invoices, and overall project progress. There is also a risk that the contractor may not be incentivized to complete the work as efficiently as possible, as more hours worked directly translate to more revenue.

What does the 'bridge' nature of this contract imply about the procurement process?

The term 'bridge' in a contract award typically signifies that the contract is intended to provide interim support or services while a more permanent or long-term solution is being procured. This could imply that the original contract expired or was ending, and a new, fully competed contract was not yet in place. Bridge contracts are often used to ensure the continuity of essential services and avoid disruption. They can sometimes be awarded on a sole-source or limited competition basis if time is critical, though this contract specifies 'full and open competition.' The use of a bridge contract might suggest challenges or delays in the preceding procurement process for a follow-on contract, potentially due to protests, re-evaluation of requirements, or extended evaluation periods.

How does the 'full and open competition' method impact the potential for cost savings for taxpayers?

The 'full and open competition' method is generally considered the most effective way to achieve cost savings for taxpayers in federal contracting. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, thereby increasing competition. This heightened competition typically drives down prices as contractors strive to offer the most attractive bid to win the contract. Furthermore, it encourages innovation and efficiency as contractors seek to differentiate themselves not only on price but also on the quality and value of their proposed solutions. While the Time and Materials nature of this specific contract requires careful management to realize savings, the initial competitive bidding process provides a strong foundation for achieving value for taxpayer money.

What is the significance of the contract being awarded to Science Applications International Corporation (SAIC) in Alabama?

The significance of this contract being awarded to Science Applications International Corporation (SAIC) and its performance location in Alabama (ST: AL, SN: ALABAMA) is multifaceted. Firstly, it signifies a substantial economic contribution to the state through job creation and contract spending. SAIC, as a major employer, likely has a presence or will establish one to support this contract, benefiting the local workforce. Secondly, it highlights Alabama's role as a hub for defense contracting and technology services, particularly supporting critical Army operations like those managed by AMCOM. The presence of such contracts underscores the state's importance within the broader defense industrial base and its capacity to support advanced technological requirements for national security.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $43,707,534

Exercised Options: $43,707,534

Current Obligation: $31,155,712

Actual Outlays: $63,721

Subaward Activity

Number of Subawards: 94

Total Subaward Amount: $24,310,507

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA075

IDV Type: IDC

Timeline