USDA RMA Awards $154M IT Services Contract to SAIC via Full and Open Competition
Contract Overview
Contract Amount: $154,316,065 ($154.3M)
Contractor: Science Applications International Corporation
Awarding Agency: General Services Administration
Start Date: 2011-01-27
End Date: 2016-01-30
Contract Duration: 1,829 days
Daily Burn Rate: $84.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: THE PURPOSE OF THIS ACQUISITION IS TO PROCURE INFORMATION TECHNOLOGY (IT) SERVICES TO SUPPORT THE MISSION OF THE RISK MANAGEMENT AGENCY (RMA), AN AGENCY OF THE UNITED STATES DEPARTMENT OF AGRICULTURE (USDA). RMA REQUIRES THE FULL RANGE OF IT SERVICES IN ORDER TO DEVELOP AND DELIVER NEW CROP INSURANCE PRODUCTS, SUPPORT HIGH EMPLOYEE PRODUCTIVITY, DEVELOP AND MAINTAIN NEW IT SYSTEMS, AND DESIGN, DEPLOY, AND MAINTAIN THE UNDERLYING INFRASTRUCTURE FOR AFOREMENTIONED ACTIVITIES.
Place of Performance
Location: KANSAS CITY, JACKSON County, MISSOURI, 64141
State: Missouri Government Spending
Plain-Language Summary
General Services Administration obligated $154.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THE PURPOSE OF THIS ACQUISITION IS TO PROCURE INFORMATION TECHNOLOGY (IT) SERVICES TO SUPPORT THE MISSION OF THE RISK MANAGEMENT AGENCY (RMA), AN AGENCY OF THE UNITED STATES DEPARTMENT OF AGRICULTURE (USDA). RMA REQUIRES THE FULL RANGE OF IT SERVICES IN ORDER TO DEVELOP AND DELI… Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for IT services supporting the Risk Management Agency (RMA). 2. The acquisition aims to support the development of new crop insurance products and maintain IT infrastructure. 3. Competition was full and open, suggesting a competitive bidding process. 4. The contract type is Cost Plus Award Fee (CPAF), which can incentivize performance but requires careful oversight.
Value Assessment
Rating: good
The contract value of $154.3 million over 5 years for comprehensive IT services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for federal agencies would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price for taxpayers, though the CPAF structure necessitates monitoring to ensure cost efficiency.
Public Impact
Farmers and agricultural businesses will benefit from improved crop insurance products and services. USDA employees will have access to enhanced IT systems and infrastructure, boosting productivity. The contract supports critical functions of the RMA, contributing to the stability of the agricultural sector. SAIC's role in providing these services ensures continuity and development of essential IT capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Award Fee (CPAF) contracts can lead to higher costs if not managed effectively.
- The duration of the contract (5 years) requires ongoing monitoring of performance and value.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Supports critical mission functions of the RMA, aligning with agency goals.
- Contract value is substantial, indicating a significant investment in IT infrastructure.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area for federal agencies is substantial, supporting a wide range of digital infrastructure and software development needs.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. While awarded to a large prime contractor (SAIC), opportunities for small business subcontracting may exist but are not explicitly detailed here.
Oversight & Accountability
The Cost Plus Award Fee (CPAF) structure requires robust oversight from the General Services Administration (GSA) to ensure performance targets are met and costs are controlled. Regular performance reviews and audits are crucial.
Related Government Programs
- Computer Systems Design Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Risk of technological obsolescence over the 5-year contract term.
- Dependency on a single large contractor for critical IT functions.
- Need for strong government oversight to ensure performance and value.
Tags
computer-systems-design-services, general-services-administration, mo, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $154.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THE PURPOSE OF THIS ACQUISITION IS TO PROCURE INFORMATION TECHNOLOGY (IT) SERVICES TO SUPPORT THE MISSION OF THE RISK MANAGEMENT AGENCY (RMA), AN AGENCY OF THE UNITED STATES DEPARTMENT OF AGRICULTURE (USDA). RMA REQUIRES THE FULL RANGE OF IT SERVICES IN ORDER TO DEVELOP AND DELIVER NEW CROP INSURANCE PRODUCTS, SUPPORT HIGH EMPLOYEE PRODUCTIVITY, DEVELOP AND MAINTAIN NEW IT SYSTEMS, AND DESIGN, DEPLOY, AND MAINTAIN THE UNDERLYING INFRASTRUCTURE FOR AFOREMENTIONED ACTIVITIES.
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 $154.3 million.
What is the period of performance?
Start: 2011-01-27. End: 2016-01-30.
How effectively will the CPAF structure incentivize SAIC to deliver high-quality IT services within budget constraints for the RMA?
The effectiveness of the CPAF structure hinges on clearly defined performance metrics and achievable award fee criteria. If well-structured, it can motivate SAIC to exceed expectations in service delivery and cost management. However, poorly defined criteria or excessive fees could inflate costs without a proportional increase in value, necessitating diligent oversight by GSA to ensure taxpayer funds are used efficiently and effectively.
What are the potential risks associated with a 5-year IT services contract, and how are they mitigated?
Potential risks include technological obsolescence, vendor lock-in, and performance degradation over time. Mitigation strategies likely involve contract clauses for regular performance reviews, technology refresh requirements, and clear exit strategies. The full and open competition at the outset helps mitigate initial pricing risks, but ongoing vendor management is key to addressing long-term challenges and ensuring continued value.
Does the $154 million contract value represent a fair market price for the IT services procured by the RMA?
The contract value appears within a reasonable range for a 5-year, comprehensive IT services contract for a federal agency of the RMA's size and scope. The use of full and open competition suggests a competitive pricing environment. However, a definitive assessment of fair market price would require detailed analysis of the specific services, labor categories, and comparison with industry benchmarks for similar government contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
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: $208,029,306
Exercised Options: $208,029,306
Current Obligation: $154,316,065
Actual Outlays: $-148,150
Subaward Activity
Number of Subawards: 252
Total Subaward Amount: $220,716,331
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0048
IDV Type: GWAC
Timeline
Start Date: 2011-01-27
Current End Date: 2016-01-30
Potential End Date: 2016-01-30 00:00:00
Last Modified: 2018-12-04
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