Army IT systems development contract awarded to Science Applications International Corporation for over $339M

Contract Overview

Contract Amount: $339,006,199 ($339.0M)

Contractor: Science Applications International Corporation

Awarding Agency: General Services Administration

Start Date: 2008-05-23

End Date: 2013-09-05

Contract Duration: 1,931 days

Daily Burn Rate: $175.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: IT

Official Description: IT SYSTEMS DEVELOPMENT SERVICES FOR ARMY CORP OF ENGINEERS

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64133

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $339.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IT SYSTEMS DEVELOPMENT SERVICES FOR ARMY CORP OF ENGINEERS Key points: 1. Contract value exceeds $339 million, indicating a significant investment in IT systems development. 2. Awarded through a competitive delivery order, suggesting multiple vendors vied for this work. 3. The contract duration of over 5 years points to a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541512 categorizes this as Computer Systems Design Services. 5. The contract was awarded by the General Services Administration (GSA) Federal Acquisition Service. 6. The vendor, Science Applications International Corporation, is a major player in the federal IT services market. 7. The contract was issued as a Delivery Order, a common mechanism for tasking under larger indefinite-delivery/indefinite-quantity (IDIQ) contracts.

Value Assessment

Rating: good

Benchmarking the value of this contract requires comparison to similar large-scale IT development projects for defense or civilian agencies. Given the extensive scope and duration, the price appears within a reasonable range for complex systems integration and development. However, without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging. The competitive nature of the award suggests some level of price discovery, which generally supports fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed under a broader contract vehicle. The presence of 4 bidders (as indicated by 'no': 4) suggests a reasonable level of competition for this specific delivery order. A competitive process generally leads to better price discovery and potentially more innovative solutions as vendors strive to win the work.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging vendors to offer their best value.

Public Impact

The U.S. Army Corps of Engineers benefits from enhanced IT systems, likely improving operational efficiency and data management. Services delivered include computer systems design, crucial for modernizing military and civilian infrastructure management. The contract's impact is primarily within the federal government, supporting military and engineering operations. Workforce implications may include employment opportunities for IT professionals and systems engineers, both within the contractor's organization and potentially supporting roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term IT development projects, leading to cost overruns.
Reliance on a single large contractor for critical IT systems development could pose a risk if performance falters.
Ensuring adequate technical expertise within the government to oversee complex IT development is crucial.

Positive Signals

Awarded through a competitive process, indicating potential for good value and vendor responsiveness.
The contractor, Science Applications International Corporation, has a significant track record in federal IT services.
The long duration suggests a stable, ongoing requirement that the contractor is expected to fulfill reliably.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and integration. The federal IT market is vast, with agencies constantly seeking to modernize infrastructure and enhance capabilities. Spending in this area is driven by national security, operational efficiency, and the need to keep pace with technological advancements. Comparable spending benchmarks would involve looking at other large-scale IT development contracts awarded to major federal IT contractors by agencies like the Department of Defense or GSA.

Small Business Impact

The data indicates this contract was not set aside for small businesses ('sb': false). As a large contract awarded to a major prime contractor, it may offer subcontracting opportunities for small businesses, depending on the prime's subcontracting plan. However, the primary awardee is a large business, suggesting direct small business participation may be limited unless specifically mandated or pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Army Corps of Engineers and the General Services Administration. Accountability measures are embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated through federal contract databases like FPDS-NG, where award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army IT Modernization Programs
GSA IT Schedule Contracts
Defense Information Systems Agency (DISA) IT Services
Department of the Army IT Procurement
Federal Civilian IT Development Contracts

Risk Flags

Long-term technology dependence
Potential for scope creep
Contractor performance risk
Cybersecurity vulnerabilities in developed systems

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $339.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IT SYSTEMS DEVELOPMENT SERVICES FOR ARMY CORP OF ENGINEERS

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 $339.0 million.

What is the period of performance?

Start: 2008-05-23. End: 2013-09-05.

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

Science Applications International Corporation (SAIC) has a long and extensive history of providing IT systems development and integration services to various U.S. federal agencies, including the Department of Defense, intelligence agencies, and civilian departments. They are known for handling large, complex projects involving software development, systems engineering, cybersecurity, and cloud migration. Their track record includes numerous prime contracts for critical national security systems and large-scale IT infrastructure modernization efforts. While specific performance details for every contract are not always public, SAIC's sustained presence and significant contract awards suggest a generally positive performance history and capability to meet demanding federal requirements. However, like any large contractor, they may have faced challenges or criticisms on specific projects, which would require deeper dives into individual contract performance reports or IG investigations.

How does the total contract value of over $339 million compare to other large federal IT development contracts awarded around the same period (2008-2013)?

A contract value exceeding $339 million for IT systems development during the 2008-2013 period was substantial, placing it among significant federal IT investments. During this era, agencies, particularly the Department of Defense and Homeland Security, were heavily investing in IT modernization, cybersecurity, and data management capabilities. Large-scale system integration, enterprise resource planning (ERP) implementations, and the development of command and control systems often ran into hundreds of millions of dollars. For instance, major programs within the Army, Navy, and Air Force, as well as initiatives at agencies like the IRS or the Department of Veterans Affairs, frequently saw contract values in this range or higher. This contract's size is consistent with the trend of awarding large, multi-year development efforts to major system integrators capable of managing complex projects.

What are the primary risks associated with a long-duration (over 5 years) IT systems development contract of this magnitude?

Long-duration IT systems development contracts of this magnitude carry several inherent risks. Technology obsolescence is a major concern; systems designed and developed early in a five-year period may be outdated by its end, requiring costly upgrades or re-engineering. Scope creep is another significant risk, where requirements evolve or expand beyond the original agreement, leading to budget overruns and schedule delays. Contractor performance risk is also present; a large, complex project requires sustained high performance, and any faltering by the contractor can have cascading negative impacts. Furthermore, dependency risk arises, as the agency becomes heavily reliant on the contractor's expertise and the developed systems, making transitions difficult. Finally, security risks are amplified over longer periods, requiring continuous vigilance against evolving cyber threats to the systems being developed and maintained.

What does the NAICS code 541512 (Computer Systems Design Services) specifically entail in the context of this contract?

The NAICS code 541512, 'Computer Systems Design Services,' indicates that the core of this contract involves designing and developing integrated computer systems. This typically includes activities such as analyzing user needs, designing system architecture, developing and implementing software, integrating hardware and software components, and providing project management for the development of these systems. For the Army Corps of Engineers, this could translate to designing and building new software applications, upgrading existing systems, integrating disparate IT platforms, or creating custom solutions for managing engineering projects, logistics, personnel, or operational data. It encompasses the full lifecycle of system design and development, from conceptualization to implementation and potentially initial testing and deployment.

How might the General Services Administration (GSA) Federal Acquisition Service's involvement influence the contract's execution and oversight?

The GSA Federal Acquisition Service (FAS) often acts as a procurement agent for other federal agencies, leveraging its expertise and established contract vehicles (like IT Schedule 70, though this was a delivery order, likely under a similar mechanism). GSA's involvement suggests a standardized procurement process was followed, potentially ensuring compliance with federal acquisition regulations. FAS typically provides oversight on the procurement process itself, ensuring fair competition and adherence to terms. However, the day-to-day program management, technical oversight, and ultimate acceptance of deliverables would likely reside with the Army Corps of Engineers, the end-user agency. GSA's role ensures the contract vehicle is sound and the initial award is compliant, while the agency receiving the services manages the performance and technical aspects.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GSCTFMG07M087

Offers Received: 4

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Address: 1710 SAIC DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,321,265,526

Exercised Options: $343,565,344

Current Obligation: $339,006,199

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T99ALD0210

IDV Type: GWAC

Timeline