DOT awards $87.5M for IT infrastructure support, exceeding initial benchmark by $200K

Contract Overview

Contract Amount: $87,487,081 ($87.5M)

Contractor: Science Applications International Corp

Awarding Agency: Department of Transportation

Start Date: 2021-09-20

End Date: 2024-06-30

Contract Duration: 1,014 days

Daily Burn Rate: $86.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TO AWARD A TASK ORDER FOR EITSS INFRASTRUCTURE SUPPORT SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $87.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORP for work described as: TO AWARD A TASK ORDER FOR EITSS INFRASTRUCTURE SUPPORT SERVICES. Key points: 1. Value for money appears reasonable given the contract duration and scope. 2. Full and open competition suggests a competitive pricing environment. 3. Potential risks include contractor performance and adherence to delivery schedules. 4. This contract supports critical IT infrastructure for the Federal Highway Administration. 5. The IT services sector is characterized by rapid technological change and high demand. 6. Spending aligns with typical IT support contracts for federal agencies.

Value Assessment

Rating: good

The awarded amount of $87.5 million for EITSS Infrastructure Support Services appears to be in line with market rates for similar IT support contracts. The final award was slightly above the benchmark of $86.3 million, a difference of approximately 1.4%. This minor variance suggests effective negotiation or adjustments based on evolving needs. The time and materials pricing model, while common, requires careful monitoring to ensure cost efficiency over the contract's duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders is not provided, but the method of competition suggests a robust selection process.

Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by encouraging a wider range of offers and driving down costs through market forces.

Public Impact

The Federal Highway Administration (FHWA) benefits from enhanced IT infrastructure support. Services include computer facilities management, ensuring operational continuity. The geographic impact is concentrated in the District of Columbia. Workforce implications include potential support roles for IT professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with time and materials pricing if not closely managed.
Dependence on a single contractor for critical IT infrastructure could pose a risk.
Ensuring continued alignment with evolving technological standards.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contract duration provides stability for essential IT services.
Supports critical infrastructure for a key federal agency.

Sector Analysis

The Information Technology services sector is a significant area of federal spending, with agencies increasingly relying on advanced IT solutions for operations. This contract for computer facilities management services falls within the broader IT support and infrastructure domain. Comparable spending benchmarks for similar IT support contracts can vary widely based on scope, duration, and specific services, but this award appears to be within a typical range for agency-wide support.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Science Applications International Corp, a large business, suggests that the primary focus was on capability and price rather than small business participation. This means opportunities for small businesses may be limited unless they are part of the prime contractor's supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration's contracting officers and program managers. Performance reviews, regular reporting, and adherence to contract terms are standard accountability measures. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

EITSS Infrastructure Support Services
IT Support Services
Computer Facilities Management Services
Federal Agency IT Modernization

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Contract performance risk if contractor fails to meet service level agreements.
Dependence on contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $87.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORP. TO AWARD A TASK ORDER FOR EITSS INFRASTRUCTURE SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORP.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $87.5 million.

What is the period of performance?

Start: 2021-09-20. End: 2024-06-30.

What is the track record of Science Applications International Corp (SAIC) in delivering similar IT infrastructure support services to federal agencies?

Science Applications International Corp (SAIC) has a substantial track record of providing IT services to various federal agencies, including complex infrastructure support, cybersecurity, and systems integration. They have held numerous large-scale contracts with departments such as Defense, Homeland Security, and Energy. Their experience often involves managing mission-critical systems and large data centers. While specific performance metrics for this particular task order are not detailed here, SAIC's general history suggests they possess the technical capabilities and resources required for such a contract. However, as with any large contractor, past performance reviews and specific contract outcomes should be examined on a case-by-case basis to assess suitability and value.

How does the awarded price of $87.5 million compare to the initial benchmark of $86.3 million, and what does this variance signify?

The awarded price of $87,487,081.29 is approximately $206,000, or about 1.4%, higher than the benchmark of $86,279,000. This variance is relatively small, especially for a contract of this magnitude and duration (over 3 years). It could signify several things: the benchmark may have been an initial estimate that was refined during the procurement process, or the final price reflects adjustments based on detailed technical proposals, market fluctuations in labor or material costs, or specific requirements identified by the agency. A slight increase above the benchmark is not necessarily indicative of poor value, particularly if the competition was robust and the final offer represents the best value achievable.

What are the primary risks associated with a Time and Materials (T&M) contract for IT infrastructure support, and how are they mitigated?

Time and Materials (T&M) contracts carry inherent risks, primarily the potential for cost overruns if not managed diligently. Since the contractor is reimbursed for direct labor hours at specified rates and for the cost of materials, there's less incentive for efficiency compared to fixed-price contracts. This can lead to scope creep or extended timelines if not carefully monitored. Mitigation strategies employed by the government typically include establishing ceiling prices, requiring detailed reporting of labor hours and materials used, conducting thorough audits, and implementing strong project management oversight. The Federal Highway Administration would need robust mechanisms to track progress, validate effort, and ensure that the services provided are necessary and efficient to control costs.

What is the significance of awarding this contract under 'Full and Open Competition' for the Federal Highway Administration and taxpayers?

Awarding this contract under 'Full and Open Competition' is significant because it maximizes the potential for the government to obtain the best possible value. This method allows all responsible sources, regardless of size or type, to submit bids. The increased number of potential bidders typically leads to a more competitive environment, driving down prices and encouraging innovation. For the Federal Highway Administration, it means they are likely to receive high-quality IT infrastructure support services at a competitive rate. For taxpayers, it signifies that their money is being spent efficiently, as the competitive process helps ensure that the contract price reflects market realities and that the agency is not overpaying due to limited options.

How does this contract align with the Department of Transportation's broader IT modernization or infrastructure goals?

This contract for EITSS Infrastructure Support Services directly supports the Department of Transportation's (DOT) foundational IT infrastructure, which is critical for all its operations, including those of the Federal Highway Administration (FHWA). While the data doesn't specify 'modernization' explicitly, maintaining and supporting existing infrastructure is a prerequisite for any modernization efforts. Reliable IT infrastructure ensures the continuity of essential services, data management, and communication systems. Agencies like DOT are continuously working to update and secure their IT environments to meet evolving threats and operational demands. This contract likely ensures the stability and performance of the systems that underpin these modernization initiatives, providing the necessary base upon which future upgrades can be built.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

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: $90,992,178

Exercised Options: $90,992,178

Current Obligation: $87,487,081

Actual Outlays: $86,889,947

Subaward Activity

Number of Subawards: 129

Total Subaward Amount: $113,735,603

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JK420D500002

IDV Type: IDC

Timeline