DoD's $196M IT contract to SAIC for computer systems design services awarded via full and open competition
Contract Overview
Contract Amount: $196,377,586 ($196.4M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-25
End Date: 2026-12-01
Contract Duration: 1,163 days
Daily Burn Rate: $168.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: GMASS
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $196.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: GMASS Key points: 1. Contract awarded to a large, established IT services provider with a significant federal footprint. 2. Full and open competition suggests a potentially competitive bidding process, which can drive better pricing. 3. The contract type (Cost Plus Fixed Fee) can incentivize cost control by the contractor, but requires robust oversight. 4. The duration of the contract (over 3 years) indicates a long-term need for these services. 5. The specific NAICS code (541512) points to a focus on computer systems design and integration. 6. The contract is a delivery order under a larger IDIQ, suggesting it's part of a broader IT services strategy.
Value Assessment
Rating: good
The contract value of $196.4M over approximately 3.2 years (1163 days) for computer systems design services appears reasonable given the scope and duration. While specific benchmarks for this exact service are difficult without more detail, SAIC is a major federal contractor, and the pricing would be expected to be competitive under a full and open competition. The Cost Plus Fixed Fee structure requires careful monitoring to ensure value for money, but it is a common contract type for complex IT services where costs can be variable.
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 data shows 4 bidders, suggesting a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government receives competitive pricing for essential IT services.
Public Impact
The Department of the Air Force benefits from enhanced computer systems design and integration capabilities. This contract supports the modernization and efficiency of critical Air Force IT infrastructure. The services delivered are essential for maintaining and improving the operational effectiveness of Air Force systems. The primary beneficiaries are the end-users within the Department of the Air Force who rely on these IT systems. The contract is likely to support a workforce of IT professionals, including systems designers, engineers, and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns and ensure contractor efficiency.
- The long duration of the contract necessitates ongoing performance monitoring to ensure continued value.
- Reliance on a single large contractor for critical IT services could pose a risk if performance degrades.
Positive Signals
- Awarded through full and open competition, indicating a competitive environment that can drive value.
- The contractor, Science Applications International Corporation (SAIC), is a well-established entity with extensive experience in federal IT services.
- The contract is a delivery order under a larger IDIQ, suggesting a strategic approach to IT procurement and potentially leveraging existing contract vehicles.
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. The federal IT market is substantial, with agencies consistently investing in modernizing and maintaining their digital infrastructure. This contract with the Department of Defense aligns with broader government trends towards digital transformation and cybersecurity. Comparable spending benchmarks for IT services contracts of this size and scope are common across various federal agencies.
Small Business Impact
The 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 specific set-aside. However, the prime contractor, SAIC, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means the primary competition was open to all responsible sources, including large businesses.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial and performance oversight is crucial to ensure costs remain within projections and that the contractor meets all performance requirements. Transparency is facilitated through contract reporting mechanisms and potentially through the agency's Inspector General if performance or cost issues arise. Accountability rests with SAIC to deliver services as specified and within the agreed-upon cost structure.
Related Government Programs
- IT Services
- Computer Systems Design
- Department of Defense IT Procurement
- IDIQ Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires robust oversight to manage costs.
- Long contract duration necessitates continuous performance monitoring.
- Potential for vendor lock-in if not managed carefully.
Tags
it, computer-systems-design, department-of-defense, department-of-the-air-force, delivery-order, full-and-open-competition, cost-plus-fixed-fee, large-contract, information-technology, science-applications-international-corporation, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $196.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. GMASS
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
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 $196.4 million.
What is the period of performance?
Start: 2023-09-25. End: 2026-12-01.
What is the track record of Science Applications International Corporation (SAIC) with the Department of Defense?
Science Applications International Corporation (SAIC) is a major federal contractor with a long history of providing IT and technical services to the Department of Defense (DoD). They have consistently secured significant contracts across various branches of the military, including the Air Force, Army, and Navy. Their portfolio includes work in areas such as enterprise IT, cybersecurity, cloud migration, data analytics, and systems engineering. SAIC's extensive experience with the DoD suggests a deep understanding of military requirements, procurement processes, and operational environments. While specific performance metrics for individual contracts are not publicly detailed, their continued success in winning large-scale DoD contracts indicates a generally positive track record and established relationship with the agency.
How does the value of this contract compare to similar IT services contracts awarded by the DoD?
The $196.4 million value for this computer systems design services contract awarded to SAIC is substantial but falls within the typical range for large-scale IT service contracts within the Department of Defense. The DoD procures a vast array of IT services, and contracts of this magnitude are common for system design, integration, modernization, and sustainment efforts. Factors influencing this value include the complexity of the systems, the duration of the contract (over three years), the number of personnel involved, and the specific technical requirements. When benchmarked against other full and open competition IT contracts for similar services, this award appears to be in line with market rates for major defense IT programs, especially considering the expertise of a contractor like SAIC.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for IT services?
Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to SAIC, present specific risks primarily related to cost control and contractor incentive. The main risk for the government is that the contractor may have less incentive to control costs rigorously because the fee is fixed, regardless of the final cost (within reason). This can lead to potential cost overruns if not managed carefully. For the government, effective oversight is paramount to scrutinize incurred costs and ensure they are reasonable and allocable to the contract. Another risk is that the contractor might prioritize scope expansion or less efficient methods if they perceive it as leading to a higher profit margin within the fixed fee structure. However, CPFF contracts are often used when the scope of work is not precisely defined or is expected to evolve, providing flexibility.
What is the historical spending pattern for computer systems design services within the Department of the Air Force?
The Department of the Air Force consistently allocates significant funding towards computer systems design and related IT services. Historical spending patterns show a continuous investment in modernizing and maintaining complex IT infrastructures, including command and control systems, logistics platforms, and cybersecurity solutions. Spending in this category has generally increased over the years, driven by the need to keep pace with technological advancements, address evolving threats, and support new operational requirements. Contracts for computer systems design are often awarded through competitive processes, with major IT service providers like SAIC being frequent recipients. The Air Force's reliance on advanced IT underscores the importance of these services and the substantial, ongoing budget allocated to them.
How does the level of competition (4 bidders) impact the value received by the government?
Having four bidders in a full and open competition generally indicates a healthy level of competition, which is positive for the government. More bidders typically lead to more competitive pricing as companies vie for the contract. This increased competition can drive down costs, encourage innovation, and ensure that the government selects the offer that provides the best overall value, considering both price and technical merit. With four bidders, the government has a solid basis for comparison to assess the reasonableness of proposed costs and the quality of the proposed solutions. It reduces the risk of awarding a contract at an inflated price or to a less capable vendor, thereby enhancing the value received by taxpayers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
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: $248,814,123
Exercised Options: $248,814,123
Current Obligation: $196,377,586
Actual Outlays: $311,835
Subaward Activity
Number of Subawards: 87
Total Subaward Amount: $284,856,835
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0001
IDV Type: GWAC
Timeline
Start Date: 2023-09-25
Current End Date: 2026-12-01
Potential End Date: 2026-12-01 00:00:00
Last Modified: 2025-12-30
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