Treasury's $2.76M Cloud Services Contract Awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $2,756,422 ($2.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of the Treasury

Start Date: 2024-12-17

End Date: 2026-06-19

Contract Duration: 549 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CLOUD IMPLEMENTATION SERVICES FOR THE DEPARTMENT OF THE TREASURY, OFFICE OF THE CHIEF INFORMATION OFFICER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: CLOUD IMPLEMENTATION SERVICES FOR THE DEPARTMENT OF THE TREASURY, OFFICE OF THE CHIEF INFORMATION OFFICER Key points: 1. Contract focuses on essential cloud implementation services for the Treasury's IT infrastructure. 2. Awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-competed framework. 3. The contract duration of 549 days suggests a project-based or phased implementation approach. 4. Science Applications International Corporation (SAIC) is a large, established government contractor. 5. The contract type is 'Labor Hours', implying payment based on actual work performed. 6. No small business set-aside was utilized for this specific award. 7. The primary service falls under Computer Systems Design Services.

Value Assessment

Rating: good

Benchmarking the value of this $2.76 million contract requires comparison to similar cloud implementation projects within federal agencies. Given the scope and duration, the pricing appears within a reasonable range for specialized IT services. The 'Labor Hours' contract type allows for flexibility but necessitates careful monitoring of hours to ensure cost-effectiveness. Without specific details on the deliverables and the labor mix, a precise value-for-money assessment is challenging, but the award through a BPA Call suggests some level of pre-negotiated rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The use of a BPA Call suggests that the underlying BPA was also competed, likely involving multiple vendors. While the specific number of bidders for this particular call is not provided, full and open competition generally fosters a competitive environment, driving better pricing and service offerings. This approach maximizes the government's ability to select the best value solution.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of innovative solutions. It ensures that the government is not limited to a single provider, promoting efficiency and cost savings.

Public Impact

The Department of the Treasury, specifically the Office of the Chief Information Officer, will benefit from enhanced cloud capabilities. Services delivered will support the modernization and efficiency of the Treasury's IT infrastructure. The primary geographic impact is within the District of Columbia, where the Treasury is headquartered. The contract supports the federal IT workforce through the services provided by SAIC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not clearly defined and managed.
Reliance on a single large contractor for critical cloud services could pose a risk if performance falters.
The 'Labor Hours' model requires diligent oversight to prevent overutilization of resources.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
SAIC has a significant track record in government IT services, indicating experience.
The contract is part of a larger BPA, implying a streamlined procurement process and potentially pre-negotiated favorable terms.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cloud implementation. The federal government's spending on cloud computing services has been steadily increasing as agencies prioritize digital transformation and modernization. This contract aligns with the government-wide push for cloud adoption, aiming to improve efficiency, scalability, and security of IT operations. Comparable spending benchmarks for similar cloud implementation projects can vary widely based on scope, complexity, and duration, but this award appears to be of moderate size within the context of large federal IT procurements.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. This means that opportunities for small businesses to directly participate in this specific award are limited. However, SAIC, as a large prime contractor, may engage small businesses as subcontractors for specialized services, contributing to the broader small business ecosystem indirectly. Further analysis of SAIC's subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Treasury's Office of the Chief Information Officer, which is the primary beneficiary of the services. Accountability measures will be tied to the performance metrics and deliverables outlined in the BPA Call and the underlying BPA. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Cloud Computing Services
IT Professional Services
Computer Systems Design Services
Department of the Treasury IT Modernization Initiatives
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for cost overruns due to 'Labor Hours' pricing model.
Need for robust oversight to ensure efficient labor utilization.
Scope definition and management critical to prevent creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. CLOUD IMPLEMENTATION SERVICES FOR THE DEPARTMENT OF THE TREASURY, OFFICE OF THE CHIEF INFORMATION OFFICER

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2024-12-17. End: 2026-06-19.

What is Science Applications International Corporation's (SAIC) track record with the Department of the Treasury and similar cloud implementation contracts?

Science Applications International Corporation (SAIC) is a major federal contractor with extensive experience in IT services, including cloud computing. While specific details on their past performance solely with the Department of the Treasury for cloud implementation are not provided in this data snippet, SAIC has a broad portfolio of work across various federal agencies involving IT modernization, system integration, and cloud migration. They have been involved in large-scale projects for defense, civilian, and intelligence agencies. Their track record generally indicates a capacity to handle complex IT projects. A deeper dive into contract databases like FPDS or USAspending would reveal the volume and nature of their previous awards with Treasury and for similar services to assess their specific performance history and client satisfaction.

How does the $2.76 million value of this contract compare to other federal cloud implementation awards of similar scope and duration?

The $2.76 million value for a cloud implementation contract with a duration of approximately 18 months (549 days) appears to be within a moderate range for federal IT projects. However, direct comparisons are challenging without knowing the specific scope of work, the number of personnel involved, the types of cloud services (e.g., IaaS, PaaS, SaaS), and the complexity of the Treasury's existing infrastructure. Larger, more complex cloud migration projects can easily run into tens or hundreds of millions of dollars. Smaller, more focused implementations or specific service enhancements might be in the sub-million dollar range. The 'Labor Hours' pricing model also means the final cost can fluctuate based on actual hours worked, making a fixed-price comparison difficult. This contract's value suggests a focused effort rather than a comprehensive agency-wide cloud transformation.

What are the primary risks associated with this 'Labor Hours' contract type for cloud implementation services?

The primary risk associated with a 'Labor Hours' contract type for cloud implementation services is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, the government pays for the actual time spent by contractor personnel. This necessitates robust oversight mechanisms to ensure that hours billed are reasonable, necessary, and directly related to the contract's objectives. There's a risk of 'scope creep' where tasks expand without formal change orders, leading to increased labor hours and costs. Additionally, ensuring the efficiency and productivity of the labor provided is crucial. Without clear performance metrics and vigilant monitoring of timesheets and progress, the government may not receive optimal value for the labor costs incurred.

What does the 'BPA Call' award mechanism signify for the Treasury's procurement strategy and potential cost savings?

The 'BPA Call' award mechanism signifies that this contract was issued under an existing Blanket Purchase Agreement (BPA). BPAs are typically established with vendors holding existing indefinite-delivery, indefinite-quantity (IDIQ) contracts, allowing agencies to streamline the procurement of commonly purchased goods or services. This means the initial competition and vetting of vendors occurred when the BPA was established. Issuing a 'Call' against the BPA allows the Treasury to quickly obtain services without conducting a full, new procurement process for each individual need. This can lead to faster delivery times and potentially cost savings due to pre-negotiated pricing, volume discounts, and reduced administrative burden associated with repetitive procurements.

Given the contract is for 'Computer Systems Design Services', what specific cloud implementation activities might be included?

Under the 'Computer Systems Design Services' (NAICS 541512) classification, cloud implementation activities for this contract could encompass a range of tasks. This typically includes designing the architecture for cloud environments (public, private, or hybrid), planning and executing cloud migration strategies for existing applications and data, configuring cloud infrastructure (e.g., virtual machines, storage, networking), developing and integrating cloud-native applications, and establishing cloud security protocols. It may also involve setting up monitoring and management tools for the cloud environment, optimizing cloud resource utilization for performance and cost, and providing technical support during and after the implementation phase. The focus is on the design, integration, and deployment of systems within a cloud framework.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: LABOR HOURS (Z)

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: $4,054,291

Exercised Options: $3,756,422

Current Obligation: $2,756,422

Actual Outlays: $942,308

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $131,038

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 2032H523A00010

IDV Type: BPA

Timeline