CBP's $84.8M contract for automated systems maintenance awarded to SAIC, raising value-for-money questions

Contract Overview

Contract Amount: $84,785,074 ($84.8M)

Contractor: Science Applications International Corp

Awarding Agency: Department of Homeland Security

Start Date: 2015-09-28

End Date: 2017-03-27

Contract Duration: 546 days

Daily Burn Rate: $155.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CL,CT::IGF TASK ORDER FOR CONTINUED MAINTENANCE OF CBP AUTOMATED SYSTEMS AND APPLICATIONS MANAGED BY THE BORDER ENFORCEMENT MANAGEMENT SYSTEMS DIVISION.

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $84.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORP for work described as: IGF::CL,CT::IGF TASK ORDER FOR CONTINUED MAINTENANCE OF CBP AUTOMATED SYSTEMS AND APPLICATIONS MANAGED BY THE BORDER ENFORCEMENT MANAGEMENT SYSTEMS DIVISION. Key points: 1. The contract's value of $84.8 million over its period of performance warrants scrutiny for cost-effectiveness. 2. Competition dynamics for this IT services contract need further examination to ensure optimal pricing. 3. Performance context is crucial to understand if the services delivered met the needs of CBP's Border Enforcement Management Systems Division. 4. The sector positioning of this contract within IT services highlights the government's reliance on specialized vendors. 5. Risk indicators associated with IT maintenance contracts, such as obsolescence and security vulnerabilities, should be considered.

Value Assessment

Rating: fair

The total contract value of $84.8 million for a 546-day period suggests a significant investment in IT maintenance. Benchmarking this against similar contracts for automated systems support within the Department of Homeland Security or other large federal agencies is necessary to determine if the pricing is competitive. Without detailed service delivery metrics and comparison data, assessing the true value-for-money is challenging. The cost-plus-fixed-fee (CPFF) contract type can sometimes lead to higher costs if not managed diligently, as it allows for the reimbursement of costs plus a fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the number of bids received and the specific evaluation criteria are not detailed here. Full and open competition is generally preferred as it fosters a competitive environment that can lead to better pricing and innovation. The specific nature of the IT systems being maintained may have limited the pool of highly qualified bidders, even within a full and open process.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not locked into a single provider, which could lead to inflated costs over time.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and its Border Enforcement Management Systems Division, which receive continued maintenance for critical automated systems. The services delivered are essential for the operational efficiency and effectiveness of border security and management. The geographic impact is national, supporting CBP operations across all ports of entry and border sectors. Workforce implications include ensuring that CBP personnel have reliable systems to perform their duties, indirectly supporting the federal workforce involved in border security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously monitored.
Risk of system obsolescence if maintenance does not keep pace with technological advancements.
Dependency on a single contractor (SAIC) for critical system maintenance could pose continuity risks.
Cybersecurity vulnerabilities if maintenance protocols are not robust and up-to-date.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Contract awarded to a large, established IT services provider (SAIC) with a track record in government contracting.
Focus on continued maintenance implies a commitment to operational stability for critical systems.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer systems design and related services. The federal government is a significant consumer of IT services, with spending often concentrated on system design, integration, maintenance, and support for complex operational platforms. Comparable spending benchmarks would involve analyzing other large IT maintenance contracts awarded by agencies like DHS, DoD, or GSA, looking at contract values relative to system complexity and duration.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Science Applications International Corp (SAIC), is a large business. Analysis of subcontracting opportunities for small businesses would require further data on the contract's specific work breakdown structure and subcontracting plans. Large IT contracts often involve significant subcontracting, which can provide opportunities for small businesses, but this is not guaranteed without specific set-aside goals or diligent oversight.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Customs and Border Protection contracting officers and program managers. Accountability measures would be tied to the performance work statement and the terms of the Cost Plus Fixed Fee contract. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

CBP Automated Systems Maintenance
DHS IT Services Contracts
Computer Systems Design Services
Border Enforcement Management Systems
Federal IT Maintenance Contracts

Risk Flags

Cost-Plus-Fixed-Fee contract type requires diligent oversight to manage costs.
Potential for system obsolescence if maintenance is not forward-looking.
Dependency on a single vendor for critical systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $84.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORP. IGF::CL,CT::IGF TASK ORDER FOR CONTINUED MAINTENANCE OF CBP AUTOMATED SYSTEMS AND APPLICATIONS MANAGED BY THE BORDER ENFORCEMENT MANAGEMENT SYSTEMS DIVISION.

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $84.8 million.

What is the period of performance?

Start: 2015-09-28. End: 2017-03-27.

What is the historical spending trend for automated systems maintenance by CBP over the last five years?

Analyzing historical spending trends for automated systems maintenance by U.S. Customs and Border Protection (CBP) over the last five years would provide crucial context for the $84.8 million awarded to Science Applications International Corp (SAIC). This trend analysis would reveal whether this contract represents an increase, decrease, or stable level of investment in maintaining critical border enforcement systems. For instance, if historical spending has been significantly lower, it might indicate a new, more complex system or a shift in maintenance strategy. Conversely, if spending has been consistently high, it suggests a steady, ongoing need for these services. Understanding these patterns helps in assessing the long-term financial commitment and identifying potential areas for cost optimization or efficiency gains in future procurements. Without specific historical data, it's difficult to definitively categorize this award as typical or anomalous.

How does the cost per day for this contract compare to similar IT maintenance contracts within DHS?

To compare the cost per day for this contract ($84.8M / 546 days ≈ $155,285/day) to similar IT maintenance contracts within the Department of Homeland Security (DHS), one would need access to a database of comparable contract awards. Key factors for comparison would include the complexity of the systems being maintained, the criticality of the systems to agency operations, the specific services included (e.g., hardware, software, network, cybersecurity), and the contract type (e.g., CPFF, FFP). If similar contracts for maintaining large-scale, mission-critical IT infrastructure within DHS have a lower cost per day, it could indicate that this SAIC contract is priced above market rates. Conversely, if the systems supported by this contract are exceptionally complex or require specialized expertise, a higher cost per day might be justifiable. A thorough benchmark analysis would require identifying contracts with similar scope, duration, and technical requirements.

What specific automated systems and applications are covered under this maintenance contract?

The contract description, 'CONTINUED MAINTENANCE OF CBP AUTOMATED SYSTEMS AND APPLICATIONS MANAGED BY THE BORDER ENFORCEMENT MANAGEMENT SYSTEMS DIVISION,' indicates that the scope is broad, covering the automated systems and applications under the purview of CBP's Border Enforcement Management Systems (BEMS) Division. This division is responsible for systems that support various aspects of border security and management, potentially including entry/exit data processing, cargo targeting, traveler screening, and resource management. Specific systems could encompass databases, software platforms, network infrastructure, and related hardware. A detailed understanding of these systems is crucial for assessing the contract's necessity, the technical expertise required from SAIC, and the potential risks associated with system downtime or performance degradation. Without a detailed inventory of the covered systems, it is challenging to fully evaluate the contract's value and performance.

What is SAIC's performance history on similar government IT maintenance contracts?

Science Applications International Corporation (SAIC) is a large, established government contractor with extensive experience in IT services. Their performance history on similar government IT maintenance contracts would be a critical factor in assessing the risk and value of this specific award. Agencies typically evaluate past performance as part of the procurement process. SAIC has a long track record supporting various federal agencies, including the Department of Defense and DHS, with complex IT solutions. Reviewing past performance evaluations, any contract disputes, or awards for outstanding performance on similar contracts would provide insight into their reliability, technical capabilities, and ability to manage costs effectively. A positive performance history suggests a lower risk of contract failure or cost overruns, while a history of issues might warrant closer scrutiny and more robust oversight.

What are the key performance indicators (KPIs) used to measure the success of this maintenance contract?

Key Performance Indicators (KPIs) are essential for objectively measuring the success of any service contract, especially for critical IT systems. For this contract, potential KPIs could include system uptime percentages, response times for issue resolution, patch and update deployment rates, cybersecurity incident response times, and user satisfaction metrics. The effectiveness of the maintenance provided by SAIC would be evaluated against these predefined metrics. The contract type (Cost Plus Fixed Fee) necessitates clear performance standards to ensure that the fixed fee is earned through satisfactory service delivery. Without knowing the specific KPIs outlined in the contract's Performance Work Statement (PWS), it is difficult to assess whether the $84.8 million investment is yielding the desired operational outcomes for CBP's automated systems.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation (UEI: 078745061)

Address: 11720 PLAZA AMERICA DR, 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: $84,785,074

Exercised Options: $84,785,074

Current Obligation: $84,785,074

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,642,893

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSBP1013D00021

IDV Type: IDC

Timeline