Commerce Awards $4.5M for Cloud Services to Science Applications International Corp
Contract Overview
Contract Amount: $4,492,194 ($4.5M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Commerce
Start Date: 2023-08-01
End Date: 2025-07-31
Contract Duration: 730 days
Daily Burn Rate: $6.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: CLOUD UTILITY SERVICES AND CLOUD PROFESSIONAL SERVICES
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $4.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: CLOUD UTILITY SERVICES AND CLOUD PROFESSIONAL SERVICES Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for cloud utility and professional services. 2. The award is a BPA Call under a larger contract, indicating a specific need within NOAA. 3. The contract duration is 2 years, with a total value of $4.5 million. 4. The NAICS code 541511 points to custom computer programming services, suggesting a focus on specialized IT solutions.
Value Assessment
Rating: good
The contract value of $4.5 million over two years appears reasonable for cloud utility and professional services, especially given the specialized nature of custom programming. Benchmarking against similar NOAA or Commerce Department cloud service contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a BPA Call indicates that multiple vendors may have been considered, potentially leading to competitive pricing.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes market-driven pricing and encourages a wider range of providers.
Public Impact
Ensures NOAA has access to necessary cloud infrastructure and expertise for its operations. Supports critical scientific and data processing functions within the National Oceanic and Atmospheric Administration. The contract's success could lead to further investments in cloud-based solutions for government agencies.
Waste & Efficiency Indicators
Waste Risk Score: 100 / 10
Warning Flags
- Potential for cost overruns if Time and Materials pricing is not closely managed.
- Dependence on a single vendor for critical cloud services could pose a risk.
- Scope creep could increase the overall cost beyond the initial $4.5 million.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- BPA Call mechanism can streamline procurement for specific needs.
- Supports NOAA's mission-critical functions.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on cloud computing and custom programming services. Government spending on cloud services has been steadily increasing as agencies modernize their infrastructure and seek greater flexibility and scalability.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific BPA Call or the underlying BPA. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract is managed by the Department of Commerce for NOAA. Oversight would involve ensuring SAIC meets performance requirements, adheres to security protocols, and stays within budget. The BPA Call mechanism allows for focused oversight on specific task orders.
Related Government Programs
- Custom Computer Programming Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Time and Materials pricing structure.
- Potential for vendor lock-in.
- Reliance on a single awardee for critical services.
- Scope creep risk.
Tags
custom-computer-programming-services, department-of-commerce, md, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $4.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. CLOUD UTILITY SERVICES AND CLOUD PROFESSIONAL SERVICES
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $4.5 million.
What is the period of performance?
Start: 2023-08-01. End: 2025-07-31.
What is the specific breakdown of cloud utility versus cloud professional services within this contract, and how does this align with NOAA's projected needs?
The provided data does not detail the allocation between cloud utility and professional services. Understanding this breakdown is crucial for assessing if the contract effectively addresses NOAA's specific requirements for both infrastructure and specialized IT support. A clear delineation helps in evaluating value for money and ensuring that funds are directed towards the most critical needs.
How will the Time and Materials pricing structure be monitored to prevent cost overruns and ensure fair pricing for the government?
Effective oversight of Time and Materials (T&M) contracts requires robust monitoring of labor hours, rates, and material costs. NOAA should implement strict controls, regular audits, and clear performance metrics to ensure SAIC's billing is accurate and justified. Establishing not-to-exceed (NTE) limits for specific tasks and requiring detailed progress reports are essential to mitigate the risk of uncontrolled cost escalation.
What performance metrics are in place to measure the effectiveness of the cloud professional services provided by SAIC?
The effectiveness of cloud professional services is typically measured through Service Level Agreements (SLAs) and Key Performance Indicators (KPIs). These should include metrics related to system uptime, response times for support, successful project completion rates, and adherence to security standards. Regular performance reviews between NOAA and SAIC are necessary to track progress against these metrics and ensure the services are meeting operational and strategic objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DATA CENTER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 1305L423QNAAJ0045
Pricing Type: TIME AND MATERIALS (Y)
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: $5,749,816
Exercised Options: $5,738,879
Current Obligation: $4,492,194
Actual Outlays: $3,573,952
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $5,340,880
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 1305L419ANAAJ0008
IDV Type: BPA
Timeline
Start Date: 2023-08-01
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2026-03-10
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