Army Reserve Data Center Support Services Contract Awarded to SAIC for $71.6M
Contract Overview
Contract Amount: $71,633,684 ($71.6M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2011-11-23
End Date: 2016-04-30
Contract Duration: 1,620 days
Daily Burn Rate: $44.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DATA CENTER SUPPORT SERVICES FOR UNITED STATES ARMY RESERVE COMMAND.
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310
Plain-Language Summary
Department of Defense obligated $71.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: DATA CENTER SUPPORT SERVICES FOR UNITED STATES ARMY RESERVE COMMAND. Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for data center support. 2. The contract value is substantial at $71.6 million over its duration. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The North American Industry Classification System (NAICS) code 517110 relates to wired telecommunications carriers. 5. The contract spans from November 2011 to April 2016.
Value Assessment
Rating: good
The contract was awarded under a firm fixed price structure, which helps control costs. The total award value of $71.6M for over 4 years of support suggests a reasonable annual expenditure for data center services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The use of full and open competition likely resulted in a fair market price, maximizing the value of taxpayer dollars spent on essential data center support.
Public Impact
Ensures critical data center operations for the U.S. Army Reserve Command. Supports the technological infrastructure necessary for military readiness and operations. Provides employment opportunities within the telecommunications and IT support sectors. The contract's duration of over four years indicates a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if services are highly specialized.
- Reliance on a single contractor for critical infrastructure support.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type helps manage costs.
- Long contract duration suggests sustained need and potential for economies of scale.
Sector Analysis
This contract falls within the IT services sector, specifically supporting data center operations. Spending benchmarks for similar IT support contracts can vary widely based on scope, but $71.6M over four years for a major command is within a plausible range.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The primary awardee, SAIC, is a large corporation, suggesting that the prime contract was not specifically set aside for small businesses.
Oversight & Accountability
The contract was awarded through full and open competition, implying a structured procurement process. Further oversight would involve monitoring performance, adherence to the fixed price, and delivery order management.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is significant (over 4 years).
- Reliance on a single large contractor.
- Potential for cost overruns if scope creep occurs despite fixed price.
- Need for robust performance monitoring.
- Cybersecurity risks associated with data center operations.
Tags
wired-telecommunications-carriers, department-of-defense, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. DATA CENTER SUPPORT SERVICES FOR UNITED STATES ARMY RESERVE COMMAND.
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 $71.6 million.
What is the period of performance?
Start: 2011-11-23. End: 2016-04-30.
What specific data center support services were included in this contract?
The contract likely encompassed a range of services essential for data center operations, such as hardware maintenance, network management, system administration, cybersecurity monitoring, and potentially cloud integration or migration support. Detailed service level agreements (SLAs) would define the exact scope and performance metrics.
How did the firm fixed price structure impact the overall cost and risk for the Army Reserve?
A firm fixed price contract shifts most of the cost risk to the contractor (SAIC). This provides budget certainty for the Army Reserve, as the price is fixed regardless of the contractor's actual costs. However, it could lead to higher initial pricing to account for contractor risk premiums.
What is the potential impact of this contract on the Army Reserve's IT modernization efforts?
This contract provided essential operational support during its term. Its impact on modernization depends on whether the services facilitated or hindered upgrades. If SAIC's support included modernizing infrastructure or adopting new technologies, it would be positive; if it maintained legacy systems without modernization, it could pose a challenge.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
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: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $71,633,684
Exercised Options: $71,633,684
Current Obligation: $71,633,684
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06D0016
IDV Type: IDC
Timeline
Start Date: 2011-11-23
Current End Date: 2016-04-30
Potential End Date: 2016-04-30 00:00:00
Last Modified: 2018-04-24
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