VA awards $197M IT task order to SAIC for enterprise services platform maintenance and development

Contract Overview

Contract Amount: $197,194,582 ($197.2M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-01-22

End Date: 2026-01-22

Contract Duration: 2,192 days

Daily Burn Rate: $90.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF:OT:IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) TASK ORDER FOR ENTERPRISE SERVICES INTEGRATED PLATFORM MAINTENANCE AND DEVELOPMENT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22206

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $197.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF:OT:IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) TASK ORDER FOR ENTERPRISE SERVICES INTEGRATED PLATFORM MAINTENANCE AND DEVELOPMENT Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. Task order issued under the T4NG IDIQ, suggesting a competitive pre-selection process. 3. Duration of over 6 years implies a long-term need for these critical IT services. 4. The contract is for enterprise services, indicating a broad impact across VA systems. 5. Focus on maintenance and development suggests ongoing support and modernization efforts. 6. No small business set-aside, indicating the primary competition was likely large businesses.

Value Assessment

Rating: good

The contract's value of approximately $197 million over six years for enterprise IT services appears reasonable, especially considering it's a task order under a larger IDIQ vehicle (T4NG). While direct comparisons are difficult without knowing the specific scope of 'enterprise services integrated platform maintenance and development,' the firm-fixed-price structure helps manage cost certainty. Benchmarking against similar large-scale IT modernization and maintenance contracts within the federal government would provide a more precise value assessment, but the scale and duration suggest a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was issued under the 'Transformation Twenty-One Total Technology Next Generation' (T4NG) Indefinite Delivery/Indefinite Quantity (IDIQ) contract, which itself was awarded through full and open competition. While the specific number of bidders for this particular task order is not provided, the T4NG vehicle was designed to foster broad competition among qualified vendors for a wide range of IT services. The full and open nature of the underlying IDIQ suggests a robust competitive environment was established.

Taxpayer Impact: A full and open competition for the T4NG IDIQ, under which this task order was issued, generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition contracts. It ensures a wider pool of vendors can compete, driving efficiency and innovation.

Public Impact

Veterans will benefit from improved and maintained enterprise IT systems, leading to potentially more efficient access to VA services. The contract supports the development and maintenance of critical IT infrastructure for the Department of Veterans Affairs. Services are likely to have a nationwide impact, supporting VA operations across all its facilities. The contract may support a significant number of IT professionals, both within the contractor's organization and potentially through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term nature of the contract (over 6 years) could lead to vendor lock-in if not managed carefully.
Reliance on a single vendor for critical enterprise platform maintenance and development poses a risk if performance degrades.
Scope creep could increase costs beyond the initial award amount if not rigorously managed.

Positive Signals

Awarded under the T4NG IDIQ, which implies the contractor has already met stringent requirements.
Firm-fixed-price contract type provides cost certainty and reduces financial risk for the government.
The task order focuses on both maintenance and development, indicating a commitment to modernizing and sustaining essential IT functions.
The contractor, SAIC, has a significant track record in providing IT services to the federal government.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT market is vast, with agencies consistently investing in maintaining and modernizing their digital infrastructure. Contracts like this, for enterprise-level platform support, are common as agencies aim to ensure the reliability, security, and efficiency of their core systems. The T4NG IDIQ vehicle itself represents a significant portion of the VA's IT spending, designed to streamline procurement for a wide array of IT needs.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data does not indicate any specific subcontracting goals for small businesses. Given the scale and nature of enterprise IT services, it is possible that SAIC may utilize small businesses for specialized support, but this is not explicitly mandated by the provided information. The primary competition was likely among large, established IT service providers capable of handling such comprehensive requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. As a task order under the T4NG IDIQ, it benefits from the established oversight framework of that larger contract vehicle. Transparency is generally maintained through contract reporting mechanisms, and the VA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

T4NG IDIQ
VA Enterprise IT Services
Computer Systems Design Services
IT Modernization Contracts
Federal IT Maintenance Contracts

Risk Flags

Long-term contract duration
Reliance on a single vendor for critical systems
Potential for scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $197.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF:OT:IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) TASK ORDER FOR ENTERPRISE SERVICES INTEGRATED PLATFORM MAINTENANCE AND DEVELOPMENT

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 $197.2 million.

What is the period of performance?

Start: 2020-01-22. End: 2026-01-22.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar enterprise IT services to the federal government, particularly the VA?

Science Applications International Corporation (SAIC) has a substantial history of providing IT services to various federal agencies, including the Department of Veterans Affairs (VA). They are a major government contractor with extensive experience in areas such as enterprise IT modernization, cloud computing, cybersecurity, and systems integration. SAIC has held numerous large-scale contracts, including previous task orders under the T4NG IDIQ, demonstrating their capability to manage complex IT projects. Their performance history with the VA, while varied across different contracts, generally reflects their capacity to meet the demanding requirements of large federal IT procurements. Specific performance metrics for this particular task order would be detailed in past performance reviews and contract close-out reports, which are not publicly available in this context.

How does the value of this task order compare to other similar enterprise IT platform maintenance and development contracts awarded by the VA or other large federal agencies?

The value of this task order, approximately $197 million over six years, places it in the category of significant federal IT investments. Comparing it directly to 'similar' contracts is challenging without a precise definition of 'enterprise services integrated platform maintenance and development.' However, large federal agencies like the Department of Defense, Health and Human Services, and Homeland Security frequently award contracts in the tens to hundreds of millions of dollars for comprehensive IT infrastructure support, modernization, and sustainment. The firm-fixed-price nature and the six-year duration are common for such long-term, critical IT functions. Benchmarking against other large-scale IT service contracts within the VA or across government would reveal if this represents a competitive price point for the scope of work.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential vendor lock-in due to the long-term nature of the contract, the possibility of performance degradation by SAIC impacting critical VA systems, and the risk of scope creep leading to cost overruns. Mitigation strategies likely involve robust contract management by the VA, including regular performance reviews, clear performance metrics (Service Level Agreements - SLAs), and strict change control processes. The firm-fixed-price structure itself mitigates some financial risk by capping costs. Furthermore, the VA's ability to issue task orders under the T4NG IDIQ provides some flexibility to address issues or potentially shift work if performance becomes a significant concern, although this is a complex process.

How effective is the T4NG IDIQ vehicle in ensuring competitive pricing and quality for IT services procured by the VA?

The T4NG (Transformation Twenty-One Total Technology Next Generation) IDIQ vehicle was designed to be a primary source for the VA's IT needs, aiming to streamline procurement and foster competition. By establishing a pre-qualified pool of vendors through a competitive process for the IDIQ itself, it allows for faster issuance of task orders. The vehicle supports various contract types, including firm-fixed-price, which aids in cost control. While the effectiveness in ensuring competitive pricing and quality depends on how task orders are competed and managed, the underlying competitive nature of the IDIQ's award and the potential for multiple vendors to receive task orders generally promote better outcomes than sole-source procurements. However, the VA still needs to ensure robust competition at the task order level.

What are the historical spending patterns for enterprise IT services at the VA, and how does this contract fit within that trend?

The Department of Veterans Affairs has consistently been a major federal spender on IT services, driven by the need to modernize its systems, manage vast amounts of healthcare and benefits data, and improve services for veterans. Historical spending patterns show a significant and often increasing allocation towards IT, encompassing areas like electronic health records, cloud migration, cybersecurity, and enterprise resource planning. This $197 million task order for enterprise services platform maintenance and development fits squarely within these trends, representing a substantial investment in sustaining and evolving the core IT infrastructure that underpins the VA's operations. It reflects the ongoing commitment to digital transformation within the agency.

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: 5

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: $206,333,530

Exercised Options: $197,194,582

Current Obligation: $197,194,582

Actual Outlays: $103,274,507

Subaward Activity

Number of Subawards: 112

Total Subaward Amount: $184,062,591

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