DoD's $387M consulting contract with SAIC shows administrative task order needs, raising questions on cost efficiency
Contract Overview
Contract Amount: $387,403,844 ($387.4M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2016-04-01
End Date: 2019-02-28
Contract Duration: 1,063 days
Daily Burn Rate: $364.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF EXERCISE OPTIONS, NEW TASK ORDER NUMBER REQUIRED FOR ADMINISTRATIVE PURPOSES AS 0037 AND 0038 RAN OUT OF ACRNS.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $387.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::CT::IGF EXERCISE OPTIONS, NEW TASK ORDER NUMBER REQUIRED FOR ADMINISTRATIVE PURPOSES AS 0037 AND 0038 RAN OUT OF ACRNS. Key points: 1. Contract value of $387.4 million over its life suggests significant reliance on external expertise. 2. The need for new task orders due to ACRN exhaustion indicates potential administrative oversight gaps. 3. Firm Fixed Price contract type aims to control costs, but the need for extensions warrants scrutiny. 4. Competition was full and open, suggesting a potentially competitive pricing environment. 5. The contract's duration of 1063 days points to a long-term need for these services. 6. Focus on administrative management and general management consulting services highlights a core operational support function.
Value Assessment
Rating: fair
The total contract value of $387.4 million is substantial for administrative and management consulting services. While the firm fixed-price structure is intended to provide cost certainty, the need for administrative task order adjustments (ACRN exhaustion) suggests potential inefficiencies or underestimation in the initial planning. Benchmarking against similar large-scale consulting contracts within the DoD would be necessary to fully assess value for money, but the administrative issues raise a flag.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This level of competition is generally favorable for price discovery and ensuring the government receives competitive rates. The presence of multiple bidders suggests that the market for these services is robust enough to support broad solicitation.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, leading to potentially better value for the significant investment.
Public Impact
The Department of the Army benefits from specialized administrative and management consulting services to support its operations. These services likely contribute to the efficiency and effectiveness of various Army programs and administrative functions. The contract's impact is primarily internal to the Department of Defense, supporting its management structure. Workforce implications are indirect, potentially augmenting existing government staff with external expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Administrative task order adjustments due to ACRN exhaustion suggest potential issues with contract management or forecasting.
- The long duration of the contract could lead to scope creep or evolving requirements that may not be optimally managed.
- Reliance on a single large contractor for a significant duration may limit flexibility and opportunities for other vendors.
Positive Signals
- Firm Fixed Price contract type provides cost certainty for the government.
- Full and open competition suggests a robust market and potential for competitive pricing.
- The contract supports essential administrative and management functions within the Department of the Army.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This is a broad category supporting various government functions. The market for such services is large and competitive, with numerous firms capable of providing these expertise. The $387.4 million value positions this as a significant award within this sub-sector, likely supporting high-level strategic or operational initiatives.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Science Applications International Corporation (SAIC), may engage small businesses as subcontractors, though this information is not detailed in the provided data. The lack of a small business set-aside means opportunities were primarily open to larger, established firms.
Oversight & Accountability
Oversight for this contract would typically reside within the Department of the Army's contracting and program management offices. The firm fixed-price nature provides a degree of cost control, but the administrative adjustments require diligent monitoring. Transparency is generally facilitated through contract databases like FPDS, but detailed performance metrics and IG oversight specifics are not provided here. Accountability rests with the contracting officer and program managers to ensure deliverables meet requirements.
Related Government Programs
- Management and Consulting Services
- Department of Defense Administrative Support
- Army Operational Support Contracts
- Professional Services Contracts
Risk Flags
- Administrative Task Order Management
- Potential for Cost Overruns (despite FFP)
- Long Contract Duration Risks
Tags
department-of-defense, department-of-the-army, science-applications-international-corporation, administrative-management-consulting, general-management-consulting, firm-fixed-price, full-and-open-competition, large-contract, alabama, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $387.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::CT::IGF EXERCISE OPTIONS, NEW TASK ORDER NUMBER REQUIRED FOR ADMINISTRATIVE PURPOSES AS 0037 AND 0038 RAN OUT OF ACRNS.
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 $387.4 million.
What is the period of performance?
Start: 2016-04-01. End: 2019-02-28.
What is the specific nature of the administrative management and general management consulting services provided under this contract?
The provided data indicates the North American Industry Classification System (NAICS) code is 541611, which corresponds to Administrative Management and General Management Consulting Services. This broad category typically encompasses services such as organizational planning, business process reengineering, strategic planning, executive-level policy development, and general management support. For the Department of the Army, these services could range from improving internal administrative workflows, advising on organizational structures, developing strategic initiatives, to enhancing overall operational efficiency across various commands or directorates. Without more specific task order details, the exact nature remains generalized but points to foundational support for the Army's administrative and management functions.
How does the $387.4 million contract value compare to typical spending on similar consulting services within the DoD?
The $387.4 million total contract value is substantial, placing it among significant consulting awards. The Department of Defense is a major purchaser of professional and management consulting services, with annual spending often in the billions across various agencies and branches. Contracts of this magnitude are typically awarded for large-scale, long-term support initiatives that require extensive expertise and resources. To provide a precise comparison, one would need to benchmark against contracts with similar NAICS codes (541611) and durations awarded to large system integrators or consulting firms within the DoD over the past 5-10 years. However, generally, such figures indicate a significant investment in external expertise for critical support functions.
What are the implications of the contract requiring new task orders due to ACRN exhaustion?
The data notes 'IGF::CT::IGF EXERCISE OPTIONS, NEW TASK ORDER NUMBER REQUIRED FOR ADMINISTRATIVE PURPOSES AS 0037 AND 0038 RAN OUT OF ACRNS.' ACRNs (Accounting Classification Reference Numbers) are used to track funding. Running out of ACRNs for task orders 0037 and 0038 suggests that either the initial funding allocations were insufficient for the anticipated number of task orders, or the administrative process for managing and replenishing these numbers was not adequately planned or executed. This situation can indicate potential shortcomings in contract administration, financial tracking, or forecasting by the government. It may lead to administrative delays, require reprogramming of funds, and potentially impact the seamless execution of services if not managed proactively. It raises questions about the efficiency of the administrative processes supporting the contract.
What is Science Applications International Corporation's (SAIC) track record with large federal consulting contracts?
Science Applications International Corporation (SAIC) is a major government contractor with a long history of performing large, complex contracts across various federal agencies, including the Department of Defense. They have a significant presence in IT services, engineering, and management consulting. SAIC has consistently secured multi-billion dollar contracts, demonstrating their capability to manage large programs and deliver a wide range of services. Their track record includes extensive work in areas relevant to this contract, such as defense modernization, IT infrastructure, and administrative support. While specific performance details for this particular contract are not provided, SAIC's overall profile suggests they are a capable and experienced provider for substantial federal requirements.
How does the 'firm fixed price' contract type influence risk and value for this $387.4M award?
A 'Firm Fixed Price' (FFP) contract type is generally advantageous for the government as it shifts the majority of cost risk to the contractor. The contractor agrees to a set price, and any cost overruns are absorbed by them, while they retain any cost savings. This provides budget certainty for the government. For this $387.4 million contract, the FFP structure aims to cap the government's expenditure. However, the value derived depends heavily on the contractor's ability to manage costs effectively within that fixed price and deliver the required services. The administrative issues noted (ACRN exhaustion) might suggest that while the price is fixed, the scope or administrative overhead associated with managing the contract could be presenting challenges, potentially impacting the overall efficiency and value realization despite the FFP structure.
What historical spending patterns exist for administrative and management consulting services within the Department of the Army?
The Department of the Army, like other large federal agencies, consistently spends significant amounts on administrative and management consulting services. This spending is driven by the need for specialized expertise to improve organizational efficiency, implement new policies, manage complex projects, and support strategic decision-making. Historical data often shows a steady demand for these services, particularly in areas like IT modernization, process improvement, and organizational restructuring. The total value of such contracts can fluctuate based on budgetary priorities, specific program needs, and the availability of internal government expertise. The $387.4 million awarded to SAIC is indicative of a substantial, ongoing requirement for these types of services within the Army, aligning with broader historical spending trends for such support functions.
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12010, SUNSET HILLS ROAD, 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: $750,854,409
Exercised Options: $747,588,083
Current Obligation: $387,403,844
Subaward Activity
Number of Subawards: 177
Total Subaward Amount: $572,832,465
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q15A0024
IDV Type: BPA
Timeline
Start Date: 2016-04-01
Current End Date: 2019-02-28
Potential End Date: 2019-02-28 12:02:00
Last Modified: 2025-01-21
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