GSA awards $33.2M for IT hosting services to Science Applications International Corp
Contract Overview
Contract Amount: $33,247,814 ($33.2M)
Contractor: Science Applications International Corp
Awarding Agency: General Services Administration
Start Date: 2018-10-01
End Date: 2022-03-31
Contract Duration: 1,277 days
Daily Burn Rate: $26.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CLEARPATH HOSTING SERVICES FOLLOW ON ADMINISTRATIVE CONTINUANCE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405
Plain-Language Summary
General Services Administration obligated $33.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORP for work described as: CLEARPATH HOSTING SERVICES FOLLOW ON ADMINISTRATIVE CONTINUANCE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 3 years indicates a significant, long-term need for these services. 3. The fixed-price contract type helps manage cost certainty for the government. 4. Services fall under Computer Systems Design, a critical area for federal IT infrastructure. 5. The award was a delivery order, implying it's part of a larger contract vehicle.
Value Assessment
Rating: good
The total award amount of $33.2 million over approximately 3.5 years for hosting services appears reasonable given the scope. Benchmarking against similar large-scale IT hosting contracts managed by GSA would provide a more precise value assessment. The firm-fixed-price structure is generally favorable for cost control in IT services.
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 bids. The number of bidders is not specified, but this method generally fosters competitive pricing and allows the government to select the best value offering. The open competition suggests a healthy market for these types of IT hosting services.
Taxpayer Impact: Taxpayers benefit from the competitive process, which is designed to drive down costs and ensure the government receives high-quality services at a fair market price.
Public Impact
Federal agencies requiring IT hosting and data center support services benefit from this contract. Ensures the continuity and reliability of critical federal IT systems and data. The services are delivered within the District of Columbia, impacting federal operations in the capital. Supports the IT workforce employed by Science Applications International Corp. and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the services are highly specialized and difficult to transition.
- Reliance on a single contractor for critical hosting services could pose availability risks.
- Ensuring ongoing cost-effectiveness throughout the contract lifecycle requires diligent oversight.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Firm-fixed-price contract type provides cost predictability.
- The contractor, Science Applications International Corp., is a large, established entity with significant federal contracting experience.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a vital component of the federal IT landscape. The market for IT hosting and cloud services is highly competitive, with numerous providers offering a range of solutions from traditional data centers to advanced cloud platforms. GSA's role as an intermediary often involves consolidating requirements and leveraging bulk purchasing power to achieve better pricing for agencies.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors, but this would depend on the prime contractor's strategy and the specific nature of the services required.
Oversight & Accountability
Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements.
Related Government Programs
- GSA IT Schedule 70
- Cloud Computing Services
- Data Center Operations
- IT Infrastructure Support
Risk Flags
- Potential for vendor lock-in
- Service availability and performance risks
- Cybersecurity vulnerabilities
- Cost management in evolving IT environments
Tags
it, gsa, general-services-administration, science-applications-international-corp, computer-systems-design-services, firm-fixed-price, full-and-open-competition, delivery-order, district-of-columbia, it-hosting, data-center
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $33.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORP. CLEARPATH HOSTING SERVICES FOLLOW ON ADMINISTRATIVE CONTINUANCE
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORP.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $33.2 million.
What is the period of performance?
Start: 2018-10-01. End: 2022-03-31.
What is the track record of Science Applications International Corp. (SAIC) as a federal contractor, particularly in IT hosting services?
Science Applications International Corp. (SAIC) is a major federal contractor with a long history of providing IT and technology services to various government agencies. They have extensive experience in areas such as cloud computing, cybersecurity, data center management, and systems integration. SAIC has been awarded numerous large contracts across different sectors, including defense, civilian, and intelligence agencies. Their performance history, as reflected in federal procurement data and past performance evaluations, generally indicates a capability to manage complex IT projects. However, like any large contractor, specific contract performance can vary, and a detailed review of past performance on similar hosting contracts would be necessary for a comprehensive assessment.
How does the awarded price of $33.2 million compare to similar IT hosting contracts awarded by GSA or other agencies?
A precise comparison of the $33.2 million award requires detailed analysis of contract scope, duration, service level agreements (SLAs), and specific technologies used. However, for a contract spanning over three years and covering comprehensive hosting services for potentially multiple federal entities, this figure appears within a reasonable range for large-scale IT infrastructure support. GSA often leverages its purchasing power to secure competitive rates. Benchmarking against other GSA IT Schedule contracts or similar large indefinite-delivery/indefinite-quantity (IDIQ) vehicles for hosting services would provide a more definitive assessment of value for money. Factors like the level of managed services, security requirements, and data volume significantly influence pricing.
What are the primary risks associated with this contract for the government?
The primary risks associated with this contract include potential vendor lock-in, where transitioning away from SAIC's services could be complex and costly due to proprietary configurations or deep integration. There's also a risk related to service availability and performance; any downtime or degradation in hosting services could disrupt critical federal operations. Cost overruns, although mitigated by the firm-fixed-price structure, could still occur if the scope expands significantly or unforeseen technical challenges arise. Furthermore, ensuring the contractor maintains robust cybersecurity measures to protect sensitive federal data is a continuous risk that requires diligent oversight.
How effective is the firm-fixed-price contract type in managing costs for IT hosting services?
The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in IT hosting services, especially when the scope of work is well-defined. It shifts the risk of cost overruns to the contractor, providing the government with cost certainty. This structure incentivizes the contractor to perform efficiently to maximize profit. However, for highly dynamic or evolving IT environments, an FFP contract might be less flexible if significant changes in requirements occur, potentially leading to costly change orders. In such cases, other contract types like cost-plus-fixed-fee or time-and-materials might offer more adaptability, but with less cost predictability for the government.
What is the historical spending trend for similar IT hosting services under GSA?
Historical spending trends for IT hosting services under GSA have shown a consistent and significant increase over the past decade, driven by the federal government's ongoing digital transformation initiatives and the shift towards cloud-based solutions. GSA's IT Schedule programs, in particular, facilitate substantial spending in this category. Agencies increasingly rely on GSA contracts to procure a wide range of IT services, including data center consolidation, cloud hosting (IaaS, PaaS, SaaS), and managed IT services. This trend reflects a broader government-wide effort to modernize IT infrastructure, improve efficiency, and enhance cybersecurity, making IT hosting a continuously growing segment of federal IT procurement.
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
Solicitation ID: ID06180018
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Science Applications International Corporation
Address: 11720 PLAZA AMERICA DR, 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: $58,235,153
Exercised Options: $33,260,814
Current Obligation: $33,247,814
Actual Outlays: $-18,282
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $8,913,609
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0060
IDV Type: GWAC
Timeline
Start Date: 2018-10-01
Current End Date: 2022-03-31
Potential End Date: 2022-03-31 00:00:00
Last Modified: 2024-01-31
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