GSA awards $66.5M IT Enterprise Services contract to SAIC for NORAD USNORTHCOM

Contract Overview

Contract Amount: $66,472,289 ($66.5M)

Contractor: Science Applications International Corporation

Awarding Agency: General Services Administration

Start Date: 2024-09-01

End Date: 2026-08-31

Contract Duration: 729 days

Daily Burn Rate: $91.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: NORAD USNORTHCOM INFORMATION TECHNOLOGY IT ENTERPRISE SERVICES (NITES) BASE AWARD.

Place of Performance

Location: HENDERSON, CLARK County, NEVADA, 89014

State: Nevada Government Spending

Plain-Language Summary

General Services Administration obligated $66.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: NORAD USNORTHCOM INFORMATION TECHNOLOGY IT ENTERPRISE SERVICES (NITES) BASE AWARD. Key points: 1. Contract aims to provide comprehensive IT enterprise services, including computer systems design. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Duration of 729 days indicates a medium-term engagement for IT support. 4. Cost Plus Award Fee contract type allows for performance-based incentives. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The North American Industry Classification System (NAICS) code 541512 points to a focus on IT systems integration and design.

Value Assessment

Rating: good

The contract value of $66.5 million over approximately two years for IT enterprise services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for defense and intelligence agencies suggests this pricing is within expected ranges. The Cost Plus Award Fee structure incentivizes performance, potentially leading to better value than fixed-price contracts if managed effectively. However, without detailed task order breakdowns, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders (implied by 'no': 4) suggests a healthy level of competition for this IT enterprise services requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition helps ensure taxpayer dollars are used efficiently by driving down prices through market forces. It provides assurance that the selected contractor offers the best value proposition available.

Public Impact

NORAD USNORTHCOM will benefit from enhanced and integrated IT enterprise services. Services delivered will likely include IT systems design, integration, and support. The geographic impact is primarily within the operational areas of NORAD USNORTHCOM, likely continental United States, Canada, and Alaska. Workforce implications may include the need for specialized IT personnel to support the contract, potentially impacting both government and contractor staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if not closely monitored.
The specific performance metrics and award fee criteria are not detailed, making it hard to assess the true incentive structure.
Reliance on a single delivery order under a potentially larger IDIQ could concentrate risk if the IDIQ vehicle itself has issues.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The Cost Plus Award Fee structure incentivizes contractor performance and quality.
The contract duration provides a stable period for service delivery and IT modernization.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The federal IT services market is substantial, with agencies increasingly relying on contractors for complex systems integration, cybersecurity, and cloud migration. This contract for NORAD USNORTHCOM's IT Enterprise Services is a significant component of the defense and national security IT infrastructure, aligning with broader government efforts to modernize and secure critical systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to Science Applications International Corporation (SAIC), a major defense contractor, it is unlikely to directly benefit small businesses through prime contract awards. However, SAIC may be required to subcontract a portion of the work to small businesses, which would provide indirect opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) and the contracting officers at NORAD USNORTHCOM. The Cost Plus Award Fee structure necessitates rigorous oversight of performance metrics and expenditures to ensure value for money. Transparency will depend on the reporting requirements within the contract and GSA's public contract data dissemination practices. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

NORAD USNORTHCOM IT Support Services
DoD IT Enterprise Services
GSA IT Schedule Contracts
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Potential for cost overruns due to CPAF structure.
Clarity and objectivity of award fee criteria are critical for performance assessment.
Dependence on the overall health and performance of the parent IDIQ contract.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $66.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. NORAD USNORTHCOM INFORMATION TECHNOLOGY IT ENTERPRISE SERVICES (NITES) BASE AWARD.

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $66.5 million.

What is the period of performance?

Start: 2024-09-01. End: 2026-08-31.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar IT enterprise services to defense or intelligence agencies?

SAIC has a long and extensive track record of providing IT services to various U.S. government agencies, including significant work for the Department of Defense (DoD) and intelligence community. They have historically secured large contracts for systems engineering, integration, cybersecurity, cloud services, and enterprise IT support. For instance, SAIC has held major contracts with the Army, Navy, Air Force, and various intelligence agencies, often involving complex IT infrastructure management and modernization efforts. Their experience typically includes managing large-scale IT operations, developing and implementing new technologies, and ensuring compliance with stringent security requirements. This background suggests SAIC possesses the necessary expertise and capacity to handle the NORAD USNORTHCOM IT Enterprise Services contract, although specific performance on past contracts would require deeper analysis.

How does the $66.5 million contract value compare to previous IT enterprise service contracts for NORAD USNORTHCOM or similar entities?

The $66.5 million contract value for NORAD USNORTHCOM's IT Enterprise Services, spanning approximately two years, represents a significant but not unprecedented investment in critical IT infrastructure. To provide a precise comparison, one would need to analyze historical spending patterns for NORAD USNORTHCOM's IT support and similar contracts awarded to entities like USCYBERCOM, DISA, or other combatant commands. Federal IT spending is consistently in the billions annually across the DoD. This specific contract's value should be assessed in the context of the scope of services (computer systems design, IT enterprise services) and the duration. If previous contracts for similar scope and duration were in a comparable range, it suggests consistent investment. If it's substantially higher or lower, it warrants further investigation into the reasons, such as increased scope, technological advancements, or changes in market pricing.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract type for IT enterprise services?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract type, like the one awarded to SAIC for NORAD USNORTHCOM IT Enterprise Services, revolve around cost control and performance definition. For the government, there's a risk that costs could escalate beyond initial projections if the contractor's incurred costs are not meticulously monitored and justified. The 'award fee' component introduces subjectivity; if the criteria for earning the award fee are not clearly defined, measurable, and objectively assessed, it can lead to disputes or the government paying fees for suboptimal performance. Conversely, contractors may face risks if the award fee criteria are perceived as unattainable or unfairly evaluated. Effective management and oversight by the contracting agency are crucial to mitigate these risks and ensure the contractor is incentivized to perform efficiently and effectively while controlling costs.

What is the significance of this contract being a 'Delivery Order' under a larger IDIQ vehicle?

This contract being a 'Delivery Order' signifies that it is a specific task order issued against a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract vehicle. IDIQ contracts establish terms and conditions for services over a period, allowing the government to issue multiple delivery or task orders up to a certain ceiling amount. The significance is that the foundational competition and contract terms were likely established during the award of the parent IDIQ contract, potentially streamlining the procurement process for this specific order. It also implies that NORAD USNORTHCOM (or the issuing entity) has access to a pre-vetted pool of contractors and services. The $66.5 million is the value for this specific delivery order, not necessarily the total ceiling of the parent IDIQ contract, which could be much larger and potentially cover multiple agencies or requirements.

How does the NAICS code 541512 (Computer Systems Design Services) define the scope of work for this contract?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' defines the primary scope of work for this contract. This code encompasses establishments primarily engaged in planning and designing computer systems that integrate computer hardware, software, and communication technologies. Services include analysis of an organization's current computer systems and business requirements, and the design of solutions that integrate hardware, software, and communication technologies. This can involve custom software development, systems integration, IT infrastructure design, and IT consulting. For NORAD USNORTHCOM, this likely translates to designing, developing, and implementing robust IT systems to support their critical command and control, intelligence, surveillance, and reconnaissance missions, ensuring seamless operation across various platforms and networks.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA24R0012

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 12010 SUNSET HILLS RD FL 4, 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: $228,582,611

Exercised Options: $74,498,312

Current Obligation: $66,472,289

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $120,189,632

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0001

IDV Type: GWAC

Timeline