PBGC Awards $130.5M Contract to Science Applications International Corp for IT Services
Contract Overview
Contract Amount: $130,516,632 ($130.5M)
Contractor: Science Applications International Corporation
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2020-01-01
End Date: 2025-05-15
Contract Duration: 1,961 days
Daily Burn Rate: $66.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: O&M AND DM&E WORK
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $130.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: O&M AND DM&E WORK Key points: 1. Significant contract value of $130.5 million over its period of performance. 2. Science Applications International Corporation is a major player in the government contracting space. 3. Potential risk associated with a Cost Plus Award Fee contract type, which can lead to cost overruns. 4. The contract falls under 'Other Computer Related Services', a broad IT category.
Value Assessment
Rating: fair
The Cost Plus Award Fee structure allows for flexibility but requires robust oversight to manage costs effectively. Benchmarking against similar IT service contracts is challenging without specific deliverable details, but the award fee component suggests a focus on performance incentives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value, though the Cost Plus Award Fee structure requires careful monitoring.
Taxpayer Impact: Taxpayer funds are being utilized for essential IT operations and maintenance. The competitive award process aims to ensure value for money, but the fee structure necessitates diligent oversight to prevent excessive spending.
Public Impact
Ensures continued IT operations and maintenance for the Pension Benefit Guaranty Corporation. Supports critical functions of a federal agency responsible for defined benefit pension plans. Potential for job creation within the IT services sector through this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires close monitoring.
- Contract duration is substantial, requiring long-term oversight.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Contract supports essential government functions.
- Performance incentives are included.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Government spending in this area is substantial, supporting a wide range of agency operations. Benchmarks for similar contracts vary widely based on scope and complexity.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award. Opportunities for small business subcontracting may exist, but are not explicitly detailed in the provided information.
Oversight & Accountability
The Cost Plus Award Fee contract type necessitates strong oversight from the Pension Benefit Guaranty Corporation to ensure performance standards are met and costs are managed effectively. Regular reviews and audits will be crucial for accountability.
Related Government Programs
- Other Computer Related Services
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Cost Plus Award Fee structure.
- Long contract duration (over 4 years).
- Lack of explicit small business participation.
- Broad service category ('Other Computer Related Services').
Tags
other-computer-related-services, pension-benefit-guaranty-corporation, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $130.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. O&M AND DM&E WORK
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Pension Benefit Guaranty Corporation (Pension Benefit Guaranty Corporation).
What is the total obligated amount?
The obligated amount is $130.5 million.
What is the period of performance?
Start: 2020-01-01. End: 2025-05-15.
What specific IT services are included under 'O&M AND DM&E WORK' to assess the true value proposition?
The 'O&M AND DM&E WORK' likely encompasses Operations & Maintenance and Development, Modernization, & Enhancement activities. Understanding the specific breakdown of these services, such as network management, software development, cybersecurity, and system upgrades, is crucial for a comprehensive value assessment. Without this detail, it's difficult to benchmark against industry standards or determine if the $130.5 million is justified.
How will the 'Award Fee' component be objectively measured to ensure fair compensation and prevent potential cost escalation?
The effectiveness of the award fee component hinges on clearly defined, measurable performance metrics tied to the contract's objectives. The Pension Benefit Guaranty Corporation must establish objective criteria for evaluating Science Applications International Corporation's performance. Regular performance reviews and transparent reporting mechanisms are essential to ensure the fee is earned based on merit and to mitigate the risk of costs escalating due to subjective evaluations.
What is the potential impact of this long-term contract on the PBGC's internal IT capabilities and future modernization strategies?
A five-year contract for O&M and DM&E work could either bolster or hinder the PBGC's internal IT capabilities. If managed well, it can provide stable, expert support. However, over-reliance on external contractors might lead to a decline in internal expertise. The agency needs to ensure knowledge transfer and strategic alignment to avoid vendor lock-in and maintain flexibility for future technological shifts and modernization efforts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
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: $130,516,643
Exercised Options: $130,516,632
Current Obligation: $130,516,632
Actual Outlays: $114,529,010
Subaward Activity
Number of Subawards: 68
Total Subaward Amount: $77,657,003
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 16PBGC20D0002
IDV Type: IDC
Timeline
Start Date: 2020-01-01
Current End Date: 2025-05-15
Potential End Date: 2025-05-15 00:00:00
Last Modified: 2025-05-30
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