SAIC awarded $387M contract for USCENTCOM IT support, spanning cyber defense to network operations

Contract Overview

Contract Amount: $387,037,579 ($387.0M)

Contractor: Science Applications International Corporation

Awarding Agency: General Services Administration

Start Date: 2012-09-07

End Date: 2017-09-06

Contract Duration: 1,825 days

Daily Burn Rate: $212.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IGF::OT::IGF THE EFFORT WILL SUPPORT ALL USCENTCOM C4 DIRECTORATE (CCJ6) IT PROGRAMS AND ASSETS AT THE HEADQUARTERS (HQ), FORWARD HEADQUARTERS (CFH), AND SECURITY COOPERATION ORGANIZATIONS (SCOS). THE CONTRACTOR SHALL PROVIDE IT SUPPORT SERVICES FOR THE C4 SYSTEMS THAT SUPPORT HQ USCENTCOM IN TAMPA, FLORIDA AND THROUGHOUT THEIR AOR. THE SCOPE OF THIS ACQUISITION IS TO PROVIDE A FULL RANGE OF IT SERVICES TO INCLUDE: CYBER DEFENSE, NETWORK OPERATIONS AND MAINTENANCE, IT TRAINING, IT PLANNING, SYSTEM INTEGRATION, TECHNICAL TESTING AND EVALUATION, ANALYSIS AND GUIDANCE, SOFTWARE CUSTOMIZATION, SYSTEMS ADMINISTRATION, HARDWARE AND SOFTWARE PURCHASE, HARDWARE REPAIR AND ENHANCEMENTS, HELPDESK SERVICES, SOFTWARE CONFIGURATION, ARCHITECTURE AND INFRASTRUCTURE MANAGEMENT, SYSTEM MANAGEMENT, AND ALL DELIVERABLES RELATED TO THESE SERVICES.

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $387.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF THE EFFORT WILL SUPPORT ALL USCENTCOM C4 DIRECTORATE (CCJ6) IT PROGRAMS AND ASSETS AT THE HEADQUARTERS (HQ), FORWARD HEADQUARTERS (CFH), AND SECURITY COOPERATION ORGANIZATIONS (SCOS). THE CONTRACTOR SHALL PROVIDE IT SUPPORT SERVICES FOR THE C4 SYSTEMS THAT SUPPORT … Key points: 1. Contract provides comprehensive IT support for USCENTCOM's C4 Directorate across multiple locations. 2. Services include cyber defense, network operations, IT training, system integration, and hardware/software management. 3. The contract duration is five years, indicating a long-term commitment to IT infrastructure support. 4. Awarded through full and open competition, suggesting a robust market response. 5. The contract type is Cost Plus Award Fee (CPAF), which incentivizes performance but can lead to higher costs. 6. The geographic scope covers headquarters in Tampa, Florida, and forward locations within the USCENTCOM Area of Responsibility (AOR).

Value Assessment

Rating: good

The total contract value of approximately $387 million over five years averages to about $77.4 million annually. This figure needs to be benchmarked against similar large-scale IT support contracts for military commands. The Cost Plus Award Fee (CPAF) structure allows for performance-based incentives, which can drive efficiency, but also carries the risk of cost overruns if not managed tightly. Without specific performance metrics and award fee payouts, a precise value-for-money assessment is challenging, but the broad scope suggests a significant investment in maintaining critical IT infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of a single award for a large, comprehensive IT support requirement suggests that Science Applications International Corporation (SAIC) presented the most compelling technical and cost proposal. The competitive process is expected to have driven pricing towards market rates, although the CPAF structure introduces variability.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. It ensures that the government explores a wide range of capabilities and prevents potential price gouging associated with less competitive solicitations.

Public Impact

US Central Command (USCENTCOM) benefits from enhanced and sustained IT capabilities crucial for its operations. Service members and civilian personnel within USCENTCOM gain access to reliable and secure IT systems. The contract supports critical functions including cyber defense, network operations, and system integration, ensuring operational readiness. Geographic impact extends from headquarters in Tampa, Florida, to forward operating bases within the USCENTCOM AOR. Workforce implications include potential employment opportunities for IT professionals supporting the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPAF) contracts can lead to higher final costs compared to fixed-price contracts if performance targets are consistently exceeded or if the base fee is substantial.
The broad scope of services could present management challenges in ensuring consistent quality across all IT domains.
Reliance on a single contractor for such a critical IT infrastructure could pose risks if the contractor faces financial instability or performance issues.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The five-year duration provides stability and allows for long-term planning and investment in IT infrastructure.
The CPAF structure incentivizes high performance, potentially leading to improved service delivery and efficiency.
SAIC is a large, established government contractor with significant experience in IT services, suggesting a lower risk of execution failure.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and modernizing their technological infrastructure. This contract represents a significant portion of spending for IT support within a major combatant command, highlighting the critical role of IT in modern military operations. Comparable spending benchmarks would typically involve analyzing other large IT support contracts awarded to major defense or intelligence agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded through full and open competition, it is likely that Science Applications International Corporation (SAIC) will engage small businesses as subcontractors to fulfill specific requirements or meet socio-economic goals. However, the extent of small business participation is not detailed in the provided data. The absence of a small business set-aside suggests the primary focus was on obtaining the best overall solution from the entire market.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) as the contracting agency, and the Department of Defense (DoD) components utilizing the services, specifically USCENTCOM. The Cost Plus Award Fee (CPAF) structure necessitates robust oversight to ensure that award fees are justified by performance metrics. Transparency is typically managed through contract reporting mechanisms and performance reviews. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

USCENTCOM IT Support Services
DoD IT Modernization Programs
Cybersecurity Support Contracts
Network Operations and Maintenance Contracts
IT Professional Services

Risk Flags

Cost Plus Award Fee (CPAF) structure may lead to higher final costs.
Broad scope of services requires robust contractor performance management.
Potential for vendor lock-in if transition is complex.
Cybersecurity risks inherent in supporting military IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $387.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF THE EFFORT WILL SUPPORT ALL USCENTCOM C4 DIRECTORATE (CCJ6) IT PROGRAMS AND ASSETS AT THE HEADQUARTERS (HQ), FORWARD HEADQUARTERS (CFH), AND SECURITY COOPERATION ORGANIZATIONS (SCOS). THE CONTRACTOR SHALL PROVIDE IT SUPPORT SERVICES FOR THE C4 SYSTEMS THAT SUPPORT HQ USCENTCOM IN TAMPA, FLORIDA AND THROUGHOUT THEIR AOR. THE SCOPE OF THIS ACQUISITION IS TO PROVIDE A FULL RANGE OF IT SERVICES TO INCLUDE: CYBER DEFENSE, NETWORK OPERATIONS AND MAINTENANCE, IT TRAINING, IT PLANNING, SY

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 $387.0 million.

What is the period of performance?

Start: 2012-09-07. End: 2017-09-06.

What is Science Applications International Corporation's (SAIC) track record with similar large-scale IT support contracts for military commands?

Science Applications International Corporation (SAIC) has a substantial track record of performing large-scale IT support contracts for various U.S. military branches and government agencies. They are a major defense contractor with extensive experience in areas such as network operations, cybersecurity, systems integration, and enterprise IT services. SAIC has previously held significant contracts with organizations like the U.S. Army, Navy, and Air Force, as well as intelligence agencies. Their experience often includes supporting complex command and control systems and global IT infrastructures, similar to the requirements of USCENTCOM. This history suggests a strong capability to manage and execute the scope of work outlined in the USCENTCOM C4 Directorate contract, although specific performance details on past contracts would require further investigation.

How does the $387 million total contract value compare to similar IT support contracts for combatant commands?

The $387 million total contract value for USCENTCOM's IT support services, spread over five years, averages approximately $77.4 million annually. This figure is substantial and aligns with the scale of IT support required for a major combatant command with a broad area of responsibility. To benchmark effectively, one would compare this to similar contracts awarded to other combatant commands (e.g., INDOPACOM, EUCOM) or large joint commands for comprehensive IT infrastructure management, cybersecurity, and network operations. Such contracts often range from tens to hundreds of millions of dollars annually, depending on the command's size, mission complexity, and geographic footprint. The value appears consistent with the significant IT needs of a command like USCENTCOM, which operates in a dynamic and often challenging environment.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude ($387 million) revolve around cost control and performance management. CPAF contracts reimburse the contractor for allowable costs plus a fee that is composed of a fixed base fee and an award amount that depends on meeting or exceeding performance objectives. The risk is that the 'cost plus' nature can incentivize spending, potentially leading to higher final costs than a fixed-price contract if not rigorously managed. Ensuring that performance metrics are clearly defined, measurable, and objectively assessed is crucial for the 'award' portion. Without strong government oversight and well-defined criteria for the award fee, there's a risk of paying higher fees than warranted, or conversely, the contractor may not be sufficiently motivated if the award criteria are too lenient or unclear. Additionally, the complexity of managing IT services across a wide AOR increases the potential for cost variances.

How effective is full and open competition in ensuring value for money for IT support services in the federal government?

Full and open competition is generally considered the most effective method for the federal government to ensure value for money in acquiring IT support services. By allowing all responsible sources to submit proposals, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. This broad competition increases the likelihood that the government will receive proposals that offer the best combination of technical capability, past performance, and price. For complex IT services like those required by USCENTCOM, this approach allows agencies to evaluate a wide range of solutions and select the one that best meets their specific needs and budget constraints. While CPAF contracts introduce some cost uncertainty, the competitive process itself helps establish a baseline for fair pricing.

What are the potential implications of this contract on the small business IT ecosystem?

As this contract was awarded under full and open competition and not specifically set aside for small businesses, the primary impact on the small business IT ecosystem would be through subcontracting opportunities. Large prime contractors like SAIC often utilize small businesses to fulfill specialized technical requirements, provide niche services, or meet government-mandated small business subcontracting goals. The extent of this impact depends on SAIC's subcontracting plan, which is not detailed here. If SAIC actively seeks out and partners with small businesses, it can provide valuable contract experience and revenue streams for them. Conversely, if the prime contractor performs most of the work in-house or relies on other large subcontractors, the direct benefit to the small business ecosystem might be limited. The overall health of the small business IT sector often relies on a mix of prime contract awards and robust subcontracting opportunities.

What oversight mechanisms are typically in place for large IT contracts awarded by GSA to support DoD components?

Oversight for large IT contracts awarded by the General Services Administration (GSA) to support Department of Defense (DoD) components involves a multi-layered approach. GSA, as the contracting agency, provides oversight on the contractual aspects, including compliance with terms, conditions, and acquisition regulations. The DoD component, in this case USCENTCOM, provides the technical oversight, ensuring the contractor meets the performance requirements and delivers the specified IT services. This often involves government technical representatives (GTRs) or contracting officer's technical representatives (COTRs) who monitor performance, approve deliverables, and manage day-to-day technical aspects. For CPAF contracts, specific oversight is required to validate performance metrics used for determining award fees. Additionally, the DoD Inspector General (IG) may conduct audits or investigations into contract performance, cost allowability, or potential fraud, waste, and abuse, providing an independent layer of accountability.

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: $433,322,729

Exercised Options: $433,322,729

Current Obligation: $387,037,579

Actual Outlays: $-355,102

Subaward Activity

Number of Subawards: 186

Total Subaward Amount: $913,457,278

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0048

IDV Type: GWAC

Timeline