VA awards $58.9M for IT services to Science Applications International Corporation under T4NG contract

Contract Overview

Contract Amount: $58,931,041 ($58.9M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-01-09

End Date: 2024-01-08

Contract Duration: 1,825 days

Daily Burn Rate: $32.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) MODIFICATION P00005

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22206

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $58.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) MODIFICATION P00005 Key points: 1. Contract awarded for computer systems design services, indicating a need for specialized IT support. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, suggesting potential for future task orders. 3. The firm-fixed-price contract type aims to control costs by establishing a set price for services. 4. The duration of 1825 days (5 years) suggests a long-term need for these IT services. 5. The contract was awarded through full and open competition, implying a robust bidding process.

Value Assessment

Rating: good

The contract value of $58.9 million over five years for computer systems design services appears reasonable given the scope. While specific benchmarks for this exact service under the T4NG IDIQ are not publicly detailed, the firm-fixed-price structure provides cost certainty. The award to Science Applications International Corporation, a large established government contractor, suggests a competitive process that likely yielded a fair market price. Further analysis would require comparing this specific task order's pricing against other T4NG task orders for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under the Transformation Twenty-One Total Technology Next Generation (T4NG) IDIQ contract, which itself was competed on a full and open basis. This specific delivery order was also subject to the competitive procedures outlined within the T4NG contract. The number of bidders for the T4NG IDIQ was substantial, indicating a high level of competition for the overall vehicle, which generally translates to better price discovery for individual task orders.

Taxpayer Impact: The full and open competition for the T4NG vehicle and subsequent task orders ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices.

Public Impact

Veterans Affairs (VA) will benefit from enhanced computer systems design and IT support. The services delivered are critical for the modernization and efficiency of VA's IT infrastructure. The contract's impact is primarily within Virginia, where the contractor is located. The contract supports skilled IT professionals within Science Applications International Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly within the fixed-price structure.
Reliance on a single large contractor for critical IT services could pose a risk if performance issues arise.

Positive Signals

Awarded under a well-established IDIQ (T4NG) known for its competitive nature.
Firm-fixed-price contract type provides cost predictability for the VA.
Long-term duration suggests a stable and ongoing need, allowing for focused service delivery.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The T4NG IDIQ is a major vehicle used by the VA to procure a wide range of IT services, encompassing hardware, software, and services. The market for these services is highly competitive, with numerous large and small businesses vying for government contracts. The total IT spending by the federal government is in the hundreds of billions annually, with a significant portion allocated to IT modernization and support services.

Small Business Impact

The T4NG IDIQ contract has provisions for small business participation. However, this specific delivery order was awarded to Science Applications International Corporation, a large business. While large businesses are often required to subcontract a portion of their work to small businesses, the extent of this subcontracting for this particular order is not detailed here. The overall impact on the small business ecosystem depends on the specific subcontracting plan implemented by SAIC for this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. As a delivery order under the T4NG IDIQ, it is subject to the oversight mechanisms established for that vehicle. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

T4NG IDIQ
IT Services
Computer Systems Design

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Reliance on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $58.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) MODIFICATION P00005

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $58.9 million.

What is the period of performance?

Start: 2019-01-09. End: 2024-01-08.

What is the track record of Science Applications International Corporation (SAIC) with the VA for IT services?

Science Applications International Corporation (SAIC) has a significant and long-standing track record of providing IT services to the Department of Veterans Affairs (VA). They are a major prime contractor on the Transformation Twenty-One Total Technology Next Generation (T4NG) IDIQ contract, which is the primary vehicle for IT procurement at the VA. SAIC has been awarded numerous task orders under T4NG and other VA contracts, covering a broad spectrum of IT needs including systems integration, software development, cybersecurity, and infrastructure support. Their extensive experience with the VA's complex IT environment and mission requirements positions them as a key partner. Performance metrics and past performance evaluations for SAIC on previous VA contracts would provide further insight into their reliability and effectiveness in delivering IT solutions.

How does the value of this $58.9M delivery order compare to other T4NG task orders for similar services?

Directly comparing the value of this specific $58.9 million delivery order to other T4NG task orders for 'Computer Systems Design Services' requires access to detailed data on all T4NG awards, including the specific scope of work for each. The T4NG IDIQ is designed to accommodate a wide range of IT requirements, from small, specialized projects to large-scale enterprise solutions. Therefore, the value of individual task orders can vary significantly. Factors influencing the value include the complexity of the systems being designed, the duration of the support, the number of personnel required, and the specific technologies involved. Without a detailed breakdown of comparable task orders, it's challenging to definitively benchmark this award. However, given SAIC's capabilities and the typical scale of IT modernization efforts within a large agency like the VA, $58.9 million over five years for comprehensive system design services is within a plausible range for a significant effort.

What are the primary risks associated with this contract for the VA?

The primary risks associated with this contract for the VA include potential performance issues if SAIC fails to deliver the required computer systems design services effectively, leading to delays or suboptimal IT solutions. Given the firm-fixed-price nature, there's a risk of scope creep if requirements are not clearly defined and managed, potentially leading to cost overruns if change orders are extensive, or reduced scope if the contractor tries to limit work to the fixed price. Another risk is vendor lock-in, where the VA becomes heavily reliant on SAIC's expertise and solutions, making future transitions or integrations more complex and costly. Finally, cybersecurity risks are inherent in any IT contract; a breach or vulnerability within the designed systems could have significant consequences for VA data and operations.

How effective is the T4NG IDIQ vehicle in ensuring value for money for the VA?

The Transformation Twenty-One Total Technology Next Generation (T4NG) IDIQ vehicle is generally considered effective in ensuring value for money for the VA, primarily due to its robust competitive structure. The T4NG IDIQ itself underwent a highly competitive full and open procurement, attracting numerous bidders. This competition at the IDIQ level sets a foundation for competitive task order awards. Agencies can issue multiple delivery orders against the IDIQ, and the VA typically uses competitive procedures for these task orders, often soliciting proposals from multiple awardees. This competition for individual task orders, combined with the use of firm-fixed-price or other cost-control contract types, helps drive down prices and ensures the VA receives services at market-competitive rates. Furthermore, the IDIQ structure allows the VA to streamline procurement processes for IT needs, reducing administrative costs and time.

What are the historical spending patterns for Computer Systems Design Services at the VA?

Historical spending patterns for Computer Systems Design Services at the VA, particularly through vehicles like the T4NG IDIQ, indicate a substantial and consistent investment in IT modernization and support. The VA is one of the largest federal agencies with complex IT requirements supporting millions of veterans. Spending in this category has generally trended upwards over the years as the VA seeks to upgrade legacy systems, implement new digital health records, enhance cybersecurity, and improve overall IT infrastructure. The T4NG IDIQ, awarded in 2015, has been a primary mechanism for channeling significant portions of this spending. Annual outlays for computer systems design and related IT services can range from hundreds of millions to over a billion dollars, reflecting the ongoing need for advanced technological solutions to support the VA's mission.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $58,931,041

Exercised Options: $58,931,041

Current Obligation: $58,931,041

Actual Outlays: $11,797,070

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $40,422,436

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1002

IDV Type: IDC

Timeline