SAIC receives $12.65M task order for DOT's Federal Highway Administration computer facilities management

Contract Overview

Contract Amount: $57,789,279 ($57.8M)

Contractor: Science Applications International Corp

Awarding Agency: Department of Transportation

Start Date: 2024-07-01

End Date: 2026-06-30

Contract Duration: 729 days

Daily Burn Rate: $79.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THIS IS NEW SAIC INFRASTRUCTURE TASK ORDER AND INCREMENTAL FUNDING IN THE AMOUNT OF $12,651,796.45 IS PROVIDED THROUGH 10/31/2024.

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 $57.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORP for work described as: THIS IS NEW SAIC INFRASTRUCTURE TASK ORDER AND INCREMENTAL FUNDING IN THE AMOUNT OF $12,651,796.45 IS PROVIDED THROUGH 10/31/2024. Key points: 1. This task order represents new infrastructure spending for SAIC, with incremental funding provided. 2. The contract type is Time and Materials, which can carry higher cost risks if not managed closely. 3. The award is for Computer Facilities Management Services, a critical function for agency operations. 4. The duration of the task order is 729 days, indicating a medium-term commitment. 5. The base award amount is substantial, suggesting a significant scope of work. 6. The contract was awarded under full and open competition, implying a competitive bidding process.

Value Assessment

Rating: fair

The provided data does not allow for a direct comparison to similar contracts or a robust benchmarking of value. The Time and Materials pricing structure necessitates close monitoring to ensure cost-effectiveness. Without more detailed service descriptions or performance metrics, assessing the overall value for money is challenging. The base award of approximately $57.8 million over the contract's life suggests a significant investment, but the specific value proposition requires further analysis of deliverables and outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This process generally promotes a competitive environment, which can lead to better pricing and service offerings. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that the government explores a wide range of potential solutions.

Public Impact

The Department of Transportation, specifically the Federal Highway Administration, will benefit from enhanced computer facilities management. Services delivered include computer facilities management, crucial for maintaining IT infrastructure. The geographic impact is focused on the District of Columbia, where the services will be rendered. The contract supports the IT workforce by providing opportunities for skilled professionals in computer facilities management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not strictly managed.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
The substantial award amount warrants close scrutiny of expenditures and deliverables.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
The contract addresses critical IT infrastructure needs for a major federal agency.
The task order is for new infrastructure, indicating investment in modernization or expansion.

Sector Analysis

Computer Facilities Management Services fall within the broader IT services sector. This sector is characterized by rapid technological advancements and a constant demand for skilled labor. The market size for IT services to the federal government is substantial, with agencies increasingly relying on external contractors for specialized support. This contract fits within the government's ongoing efforts to modernize and maintain its IT infrastructure, ensuring operational continuity and efficiency.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, SAIC, may engage small businesses as subcontractors, but this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Federal Highway Administration. Accountability measures would be tied to the terms and conditions of the Time and Materials contract, including adherence to labor rates and the efficient delivery of services. Transparency is facilitated through contract award databases, though detailed performance reporting may not be publicly available.

Related Government Programs

IT Infrastructure Management
Computer Systems Management
Federal IT Services
Department of Transportation IT Contracts
Time and Materials Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Scope creep risk without strict management.
Dependence on contractor performance for critical IT infrastructure.
Need for robust oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $57.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORP. THIS IS NEW SAIC INFRASTRUCTURE TASK ORDER AND INCREMENTAL FUNDING IN THE AMOUNT OF $12,651,796.45 IS PROVIDED THROUGH 10/31/2024.

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 $57.8 million.

What is the period of performance?

Start: 2024-07-01. End: 2026-06-30.

What is SAIC's track record with the Department of Transportation, particularly for similar IT services?

SAIC has a significant history of contracting with the Department of Transportation (DOT) across various IT and professional services. While specific details on past performance for computer facilities management are not provided here, SAIC's extensive experience with federal agencies, including DOT, suggests a familiarity with government contracting requirements and operational environments. Their broader portfolio often includes large-scale IT support, systems integration, and infrastructure management. A deeper dive into historical DOT contracts with SAIC would reveal specific performance ratings, past issues, and the overall success of their engagements, providing a more precise context for this new task order.

How does the estimated cost of this task order compare to similar computer facilities management contracts within the federal government?

Benchmarking this specific task order's cost is challenging without more granular data on the scope of services, labor categories, and specific deliverables. However, the base award of approximately $12.65 million for a period of roughly two years, for computer facilities management, suggests a significant investment. Federal IT services, particularly those involving infrastructure management and support, can vary widely in cost depending on complexity, security requirements, and geographic location. Generally, Time and Materials contracts require careful monitoring to ensure costs remain competitive against fixed-price alternatives or internal government capabilities, if available. A comprehensive comparison would necessitate analyzing the number of personnel, their skill levels, and the specific infrastructure managed.

What are the primary risks associated with a Time and Materials (T&M) contract for computer facilities management?

The primary risk with a Time and Materials contract for computer facilities management is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements do not have a ceiling on the total cost, as payment is based on the actual labor hours expended and the cost of materials used. If not managed diligently, this can lead to the government paying more than anticipated. Other risks include scope creep, where the project expands beyond its original intent without a corresponding increase in funding or contract modification, and potential inefficiencies if contractor personnel are not productive. Robust oversight, clear task definitions, and strict monitoring of hours and expenses are crucial to mitigate these risks.

What is the expected effectiveness of these computer facilities management services for the Federal Highway Administration?

The expected effectiveness of these computer facilities management services hinges on SAIC's ability to maintain and enhance the IT infrastructure supporting the Federal Highway Administration's (FHA) mission. This includes ensuring the availability, reliability, and security of data centers, servers, networks, and related hardware. Effective management should lead to improved system performance, reduced downtime, and enhanced data integrity, all of which are critical for the FHA's operations, data analysis, and public-facing services. The success will be measured by the contractor's adherence to service level agreements (SLAs), response times to incidents, and the overall stability of the managed systems.

How has federal spending on computer facilities management services evolved over the past five years, and where does this contract fit?

Federal spending on computer facilities management services has generally seen a steady increase over the past five years, driven by the ongoing digitization of government operations and the need to maintain aging IT infrastructure while adopting new technologies. Agencies are increasingly outsourcing complex IT management functions to specialized contractors like SAIC to leverage expertise and potentially reduce costs. This specific task order, valued at $12.65 million incrementally, represents a portion of this broader trend. It reflects the Federal Highway Administration's commitment to ensuring robust IT support, likely as part of broader modernization efforts or to address specific infrastructure needs within the District of Columbia.

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 - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: WC2024S80CIOK0140

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: $116,587,531

Exercised Options: $76,948,849

Current Obligation: $57,789,279

Actual Outlays: $48,580,235

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $41,782,968

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