Air Force awards $9.3M contract for cloud migration services to Science Applications International Corp

Contract Overview

Contract Amount: $9,324,813 ($9.3M)

Contractor: Science Applications International Corp

Awarding Agency: Department of Defense

Start Date: 2024-08-08

End Date: 2027-08-07

Contract Duration: 1,094 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CLOUD SUPPLEMENTAL. PROVIDE SERVICES TO EXPEDITE THE TRANSITION FROM THE ON-PREMISES FUNCTIONS AND CAPABILITIES TO THE AF WEATHER VIRTUAL PRIVATE CLOUD.

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $9.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORP for work described as: CLOUD SUPPLEMENTAL. PROVIDE SERVICES TO EXPEDITE THE TRANSITION FROM THE ON-PREMISES FUNCTIONS AND CAPABILITIES TO THE AF WEATHER VIRTUAL PRIVATE CLOUD. Key points: 1. Contract aims to accelerate the transition of on-premises functions to the Air Force Virtual Private Cloud. 2. This delivery order falls under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting potential for future task orders. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries inherent risk if not managed closely. 4. The award was made under full and open competition, indicating a competitive bidding process. 5. The geographic location for performance is Nebraska. 6. The North American Industry Classification System (NAICS) code 541512 points to Computer Systems Design Services.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total value of the parent IDIQ contract and the specific services rendered. The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses the contractor for allowable costs plus a fixed fee, which can sometimes lead to higher overall costs compared to fixed-price contracts if cost controls are not robust. However, for complex IT services where scope can evolve, CPFF can offer flexibility. Further analysis would require comparing the fixed fee percentage and the projected total cost against similar cloud migration projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. This typically leads to a more competitive pricing environment and a wider selection of potential solutions. The specific number of bidders is not provided, but the designation implies a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors are incentivized to offer competitive pricing and innovative solutions to win contracts.

Public Impact

The Department of the Air Force will benefit from modernized cloud infrastructure, potentially leading to improved operational efficiency and data accessibility. Services delivered will focus on expediting the transition from on-premises systems to a virtual private cloud environment. The primary geographic impact is in Nebraska, where the services will be performed. This contract supports the Air Force's digital transformation initiatives, impacting its IT workforce and operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type requires diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
Scope creep could increase costs beyond initial estimates if not managed effectively.
Dependence on a single contractor for critical cloud migration could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should drive value.
The contract aims to modernize critical Air Force infrastructure, aligning with strategic modernization goals.
The contractor, Science Applications International Corp (SAIC), is a large, established defense contractor with significant IT experience.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cloud computing and systems integration. The federal government's spending on cloud services has been steadily increasing as agencies modernize their IT infrastructure. This contract represents a small portion of the overall federal IT spending, but it is indicative of a larger trend towards cloud adoption across defense agencies. Comparable spending benchmarks would involve looking at other cloud migration contracts awarded by the Department of Defense or other federal agencies for similar scope and complexity.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small businesses is likely limited unless SAIC engages them as subcontractors. Further analysis would be needed to determine subcontracting plans and their potential benefit to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force, likely through contracting officers and technical representatives. Accountability measures are inherent in the CPFF structure, requiring justification of costs and adherence to the fixed fee. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and detailed cost breakdowns may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Cloud Computing Services
IT Systems Integration
Defense IT Modernization
Computer Systems Design Services

Risk Flags

Cost Plus Fixed Fee Contract Type
Potential for Scope Creep
Reliance on Contractor Performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORP. CLOUD SUPPLEMENTAL. PROVIDE SERVICES TO EXPEDITE THE TRANSITION FROM THE ON-PREMISES FUNCTIONS AND CAPABILITIES TO THE AF WEATHER VIRTUAL PRIVATE CLOUD.

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $9.3 million.

What is the period of performance?

Start: 2024-08-08. End: 2027-08-07.

What is the track record of Science Applications International Corp (SAIC) in performing similar cloud migration services for the Department of Defense?

Science Applications International Corp (SAIC) has a substantial track record in providing IT services, including cloud migration and modernization, to the Department of Defense and other federal agencies. They have been involved in numerous large-scale IT transformation projects, often leveraging their expertise in systems integration, cybersecurity, and cloud architecture. SAIC has secured significant contracts related to cloud adoption, data center consolidation, and the migration of legacy systems to modern cloud environments. Their experience typically spans various cloud models, including public, private, and hybrid clouds, and they often work with major cloud service providers. While specific performance details for every contract are not always public, SAIC's consistent presence as a prime contractor on complex defense IT initiatives suggests a demonstrated capability in delivering these types of services.

How does the estimated value of this delivery order compare to similar cloud migration contracts awarded by the Air Force or DoD?

The $9.3 million value for this specific delivery order for cloud migration services is moderate within the context of large federal IT contracts. Cloud migration projects for major agencies can range from tens of millions to billions of dollars, depending on the scope, complexity, and duration. This particular order focuses on expediting the transition to the Air Force Virtual Private Cloud, suggesting a defined phase or set of services. To provide a precise comparison, one would need to analyze the total value of the parent IDIQ contract, the specific services included in this order, and benchmark against other Air Force or DoD contracts for similar cloud transition efforts, considering factors like the number of users, data volume, and the specific on-premises systems being migrated. Without more granular data on comparable contracts, it's difficult to definitively state if $9.3 million represents a high, low, or average value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for cloud migration services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for cloud migration services revolve around cost control and potential for scope creep. In a CPFF arrangement, the government reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee. While the fixed fee incentivizes the contractor to manage costs to maximize their profit, the government bears the risk of cost overruns if actual costs exceed estimates. For complex IT projects like cloud migration, where requirements can evolve and unforeseen technical challenges may arise, there's a risk that the 'allowable costs' could escalate significantly. Effective oversight, robust change management processes, and clear definition of 'allowable costs' are crucial to mitigate these risks and ensure the government receives good value for its investment.

How does this contract contribute to the Air Force's broader digital transformation and modernization goals?

This contract directly supports the Air Force's broader digital transformation and modernization goals by facilitating the migration of critical functions to a cloud environment. Moving from on-premises infrastructure to a virtual private cloud (VPC) is a foundational step in modernizing IT systems. It enables greater agility, scalability, improved data accessibility, enhanced cybersecurity posture, and potentially reduced operational costs in the long run. By expediting this transition, the Air Force can accelerate its adoption of cloud-native technologies, improve its ability to leverage data analytics and artificial intelligence, and enhance its overall mission effectiveness. This contract is a tactical enabler for the strategic objective of achieving a more resilient, secure, and efficient digital enterprise.

What is the historical spending trend for computer systems design services (NAICS 541512) within the Department of the Air Force?

Historical spending trends for computer systems design services (NAICS 541512) within the Department of the Air Force have shown a consistent and significant investment over the years, reflecting the critical role of IT in modern military operations. As the Air Force continues its digital transformation initiatives, including cloud adoption, cybersecurity enhancements, and data management modernization, spending in this category has generally remained robust. While specific year-over-year figures fluctuate based on program priorities and budget allocations, the overall trend indicates a sustained need for these services. The increasing reliance on complex IT systems, network infrastructure, and software development means that contracts under NAICS 541512 are essential for maintaining and upgrading the Air Force's technological capabilities. This particular contract aligns with the broader trend of investing in IT modernization.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

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: $9,324,813

Exercised Options: $9,324,813

Current Obligation: $9,324,813

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $5,010,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA460020D0002

IDV Type: IDC

Timeline