GSA IT contract awarded to SAIC for $185M to support mobile workforce and IT service delivery

Contract Overview

Contract Amount: $185,248,206 ($185.2M)

Contractor: Science Applications International Corporation

Awarding Agency: General Services Administration

Start Date: 2015-09-29

End Date: 2018-10-26

Contract Duration: 1,123 days

Daily Burn Rate: $165.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THIS TASK ORDER SUPPORTS GENERAL SERVICES ADMINISTRATION INFORMATION TECHNOLOGY (GSA IT)IN MANAGING AND EVOLVING IT SERVICE DELIVERY TO THE GSA ENTERPRISE. THIS SOLUTION WILL SUPPORT A MOBILE WORKFORCE AND DELIVER PRODUCTIVITY ENHANCING IT SERVICES TO THOSE WORKERS ANYWHERE, AT ANY TIME, AND ON ANY DEVICE. IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $185.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THIS TASK ORDER SUPPORTS GENERAL SERVICES ADMINISTRATION INFORMATION TECHNOLOGY (GSA IT)IN MANAGING AND EVOLVING IT SERVICE DELIVERY TO THE GSA ENTERPRISE. THIS SOLUTION WILL SUPPORT A MOBILE WORKFORCE AND DELIVER PRODUCTIVITY ENHANCING IT SERVICES TO THOSE WORKERS ANYWHERE, AT A… Key points: 1. Contract focuses on enhancing IT service delivery for a mobile workforce, aiming for productivity gains. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Award Fee (CPAF), which incentivizes performance but can lead to higher costs. 4. The duration of the task order is approximately 3 years, indicating a medium-term commitment. 5. The contract is managed by the Federal Acquisition Service within GSA, a central IT procurement body. 6. The North American Industry Classification System (NAICS) code 541512 points to Computer Systems Design Services.

Value Assessment

Rating: fair

The contract value of $185 million over approximately three years for IT service delivery and mobile workforce support appears substantial. Benchmarking against similar GSA IT contracts would be necessary to definitively assess value for money. The Cost Plus Award Fee (CPAF) structure allows for performance incentives but also introduces potential for cost overruns if not managed tightly. Without specific performance metrics and award fee payouts, a precise value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that there were 6 bidders suggests a healthy level of competition for this GSA IT requirement. This competitive environment is generally expected to drive better pricing and service offerings.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a market where contractors vie for the best price and performance, potentially leading to cost savings and higher quality services.

Public Impact

Federal employees within the General Services Administration will benefit from enhanced IT services supporting a mobile work environment. The contract aims to deliver productivity-enhancing IT services accessible anywhere, anytime, and on any device. The geographic impact is primarily within the District of Columbia, where GSA is headquartered, but the services support a distributed mobile workforce. Workforce implications include the potential for improved efficiency and flexibility for GSA IT personnel and end-users.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPAF) contracts can sometimes lead to higher final costs compared to fixed-price contracts if award fees are consistently maximized.
The duration of the task order (approx. 3 years) requires ongoing monitoring to ensure continued relevance and effectiveness of IT services.
The focus on mobile workforce support necessitates robust cybersecurity measures, which are a constant area of potential concern.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should drive value.
The contract aims to improve IT service delivery and productivity for a mobile workforce, a key modernization goal.
Managed by GSA's Federal Acquisition Service, which has expertise in IT procurement and management.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market. GSA's Federal Acquisition Service plays a crucial role in procuring IT solutions for federal agencies. Spending in this sector is driven by the government's continuous need to modernize IT infrastructure, enhance cybersecurity, and support evolving work environments, such as mobile and remote work. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded by GSA and other federal agencies for similar system design and support.

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 small business set-aside. However, the prime contractor, Science Applications International Corporation (SAIC), may engage small businesses as subcontractors, which would contribute to the small business ecosystem. The extent of this subcontracting is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within GSA's Federal Acquisition Service. Accountability measures are often tied to the Cost Plus Award Fee (CPAF) structure, where performance against defined metrics influences the award fee. Transparency is generally facilitated through contract award databases like FPDS-NG, though detailed performance reports may not always be publicly available. The Inspector General for GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

GSA IT Schedule Programs
Cloud Computing Services Contracts
Enterprise IT Modernization Initiatives
Federal Civilian Agency IT Spending
Mobile Workforce Support Solutions

Risk Flags

Potential for cost overruns due to CPAF structure
Ensuring cybersecurity for a mobile workforce
Defining and measuring performance metrics for award fees
Long-term relevance of IT services in a rapidly evolving tech landscape

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $185.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THIS TASK ORDER SUPPORTS GENERAL SERVICES ADMINISTRATION INFORMATION TECHNOLOGY (GSA IT)IN MANAGING AND EVOLVING IT SERVICE DELIVERY TO THE GSA ENTERPRISE. THIS SOLUTION WILL SUPPORT A MOBILE WORKFORCE AND DELIVER PRODUCTIVITY ENHANCING IT SERVICES TO THOSE WORKERS ANYWHERE, AT ANY TIME, AND ON ANY DEVICE. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $185.2 million.

What is the period of performance?

Start: 2015-09-29. End: 2018-10-26.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar IT services to the federal government?

Science Applications International Corporation (SAIC) is a major federal contractor with a long history of providing IT services, systems engineering, and integration solutions across various government agencies. They have held numerous large contracts supporting defense, civilian, and intelligence communities. Their experience often includes managing complex IT infrastructure, developing software solutions, and supporting mission-critical systems. While specific performance details for this particular GSA task order are not provided, SAIC's general track record indicates significant capability in the IT services domain. However, as with any large contractor, past performance reviews and contract close-outs would offer a more granular view of their success on specific projects, including adherence to schedule, budget, and technical requirements.

How does the $185 million contract value compare to other GSA IT service contracts awarded around the same period?

The $185 million value for this task order, spanning approximately three years, positions it as a significant, but not exceptionally large, IT services contract within the federal government landscape. GSA, particularly through its IT Schedule programs, awards numerous contracts of varying sizes. Contracts in the tens to hundreds of millions of dollars for IT modernization, system design, and support services are common. To provide a precise comparison, one would need to analyze the average contract value for similar 'Computer Systems Design Services' (NAICS 541512) awarded by GSA's Federal Acquisition Service between 2015 and 2018. However, it is reasonable to infer that this contract represents a substantial investment in GSA's internal IT capabilities and mobile workforce enablement, aligning with broader federal trends towards IT modernization.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for IT services?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract structure, like the one used here, revolve around cost control and performance definition. For the government, the risk is that costs could escalate beyond initial projections if the contractor is highly successful in achieving performance targets and thus earns maximum award fees, potentially leading to a higher total price than a fixed-price contract. Defining objective and measurable performance criteria (Past Performance Evaluation - PPE) that accurately reflect desired outcomes can be challenging and may lead to disputes. For the contractor, the risk lies in not meeting the performance standards required to earn the award fee, which can reduce their profit margin. Effective oversight and clear, well-defined performance metrics are crucial to mitigate these risks and ensure value for money.

How does this contract contribute to GSA's overall IT modernization goals?

This contract directly supports GSA's IT modernization goals by focusing on enhancing IT service delivery and enabling a mobile workforce. Modernizing IT infrastructure to support anywhere, anytime, any-device access is a key component of federal IT modernization efforts, aiming to improve efficiency, agility, and employee productivity. By investing in these capabilities, GSA seeks to ensure its own personnel have the tools necessary to perform their duties effectively, regardless of location. This aligns with broader government initiatives to move away from legacy systems and adopt more flexible, user-centric IT solutions that can adapt to evolving technological landscapes and work practices.

What is the historical spending pattern for GSA's Federal Acquisition Service in Computer Systems Design Services?

The Federal Acquisition Service (FAS) within GSA is a major procurer of IT services, including Computer Systems Design Services (NAICS 541512). Historical spending patterns for FAS in this category have generally shown a consistent and significant demand, driven by the need for agencies to acquire, integrate, and maintain complex IT systems. Spending often fluctuates based on major modernization initiatives, cybersecurity requirements, and the adoption of new technologies like cloud computing and mobile solutions. Analyzing FPDS data would reveal trends in contract values, types (e.g., IDIQs, task orders), and prime contractors over time. Generally, GSA's FAS has been a leader in leveraging IT Schedules and other contract vehicles to streamline procurement for IT services across the government, indicating a sustained level of investment in this sector.

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: GSCQF0B1532936

Offers Received: 6

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 12010 SUNSET HILLS RD, 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: $549,954,492

Exercised Options: $324,641,019

Current Obligation: $185,248,206

Actual Outlays: $-37,735

Subaward Activity

Number of Subawards: 176

Total Subaward Amount: $234,684,126

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0048

IDV Type: GWAC

Timeline