DHS contract for IT services awarded to Science Applications International Corporation for over $42.6 million
Contract Overview
Contract Amount: $42,668,831 ($42.7M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2010-09-30
End Date: 2015-09-25
Contract Duration: 1,821 days
Daily Burn Rate: $23.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: US-VISIT PROGRAM LEVEL SYSTEMS ENGINEERING
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $42.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: US-VISIT PROGRAM LEVEL SYSTEMS ENGINEERING Key points: 1. The contract value of over $42.6 million represents a significant investment in IT systems engineering. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing this contract to similar IT service procurements. 5. The contract positions the Department of Homeland Security within the broader IT services sector. 6. The duration of the contract (over 4 years) suggests a need for sustained IT support.
Value Assessment
Rating: fair
The total award amount of $42.6 million over approximately five years for IT systems engineering services appears within a reasonable range for large-scale federal IT projects. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for systems engineering and computer facilities management services would provide a clearer picture of whether the pricing is competitive. The Time and Materials (T&M) contract type can sometimes lead to cost overruns if not managed diligently, which is a factor in assessing overall value.
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 had the opportunity to bid. The presence of 3 bidders suggests a moderate level of competition for this IT services requirement. While full and open competition is generally preferred for ensuring fair pricing and access to a wide range of capabilities, the specific number of bidders can influence the intensity of price discovery. A higher number of bidders typically leads to more competitive pricing.
Taxpayer Impact: Full and open competition, with 3 bidders, suggests that taxpayers likely benefited from a reasonably competitive bidding process, potentially leading to more cost-effective service delivery compared to sole-source or limited competition awards.
Public Impact
The primary beneficiary of this contract is the Department of Homeland Security, which receives essential IT systems engineering support. The services delivered are crucial for the operational effectiveness of the US-VISIT Program, enhancing border security and immigration processes. The geographic impact is primarily within the United States, supporting federal IT infrastructure. The contract supports a workforce skilled in IT systems engineering and computer facilities management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Time and Materials (T&M) contract type carries inherent risks of cost escalation if not closely monitored and managed.
- The duration of the contract (over 4 years) requires sustained oversight to ensure continued alignment with evolving IT needs and performance standards.
- The specific performance metrics and quality assurance surveillance plans are not detailed, making it difficult to fully assess performance risks.
Positive Signals
- Awarded under full and open competition, indicating a broad market search and potential for competitive pricing.
- The contract is for a critical function (US-VISIT Program Systems Engineering), suggesting a well-defined and necessary requirement.
- The contractor, Science Applications International Corporation, is a large and established entity in the federal IT services space, potentially bringing significant experience and stability.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on systems engineering and computer facilities management. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are typical for supporting large-scale government programs that rely heavily on complex IT systems. Comparable spending benchmarks in this area would involve looking at other large IT support contracts awarded by agencies like DHS, DoD, and GSA.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal. However, the prime contractor may engage small businesses as subcontractors, which would indirectly benefit them. Further analysis would be needed to determine the extent of any small business subcontracting.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of Homeland Security. The Time and Materials (T&M) nature of the contract necessitates rigorous monitoring of labor hours and material costs to prevent overruns. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- US-VISIT Program
- Department of Homeland Security IT Modernization Efforts
- Federal Civilian IT Services Procurement
- Systems Engineering Support Contracts
Risk Flags
- Potential for cost overruns due to T&M contract type.
- Need for diligent oversight of contractor performance and resource utilization.
- Ensuring alignment of IT systems with evolving program requirements.
Tags
it-services, systems-engineering, computer-facilities-management, department-of-homeland-security, science-applications-international-corporation, full-and-open-competition, time-and-materials, delivery-order, us-visit-program, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $42.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. US-VISIT PROGRAM LEVEL SYSTEMS ENGINEERING
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $42.7 million.
What is the period of performance?
Start: 2010-09-30. End: 2015-09-25.
What was the specific scope of work for the US-VISIT Program Level Systems Engineering contract awarded to Science Applications International Corporation?
The provided data indicates the contract was for 'US-VISIT PROGRAM LEVEL SYSTEMS ENGINEERING' and falls under the NAICS code 541513 for Computer Facilities Management Services. While the specific scope is not detailed, systems engineering in this context likely involves the design, integration, management, and maintenance of the complex IT infrastructure supporting the US-VISIT program. This could include aspects like system architecture, software development oversight, hardware lifecycle management, network operations, cybersecurity integration, and ensuring the overall reliability and performance of the systems that facilitate the tracking and processing of international travelers.
How does the $42.6 million award compare to other similar IT systems engineering contracts awarded by DHS or other federal agencies?
Comparing the $42.6 million award requires context on the contract's duration and specific deliverables. For a contract spanning approximately five years (September 2010 to September 2015), this annual average of roughly $8.5 million is within the range for significant IT systems engineering support. Large federal IT contracts, especially for critical programs like US-VISIT, often run into tens or hundreds of millions of dollars over their lifecycle. For instance, other large-scale IT support contracts for agencies like the Department of Defense or the IRS can easily exceed this amount annually. However, without detailed scope and performance metrics, a precise benchmark is difficult. The key is whether the services provided justified the cost relative to market rates and alternative solutions.
What are the primary risks associated with a Time and Materials (T&M) contract for IT systems engineering, and how were they mitigated in this case?
The primary risk of a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and material costs incurred by the contractor. This can be exacerbated if the scope of work is not well-defined or if contractor performance is inefficient. For IT systems engineering, this could mean extended development times or unnecessary resource allocation. Mitigation strategies typically involve robust oversight by the Contracting Officer's Representative (COR), detailed tracking of all hours and expenses, establishing ceiling prices, and implementing strong performance standards and incentives. The government must actively manage the contractor's effort to ensure efficiency and prevent scope creep without proper authorization and funding adjustments.
What is the historical spending pattern for IT systems engineering services within the US-VISIT Program or similar DHS initiatives?
Historical spending patterns for IT systems engineering within the US-VISIT Program, or similar large-scale DHS initiatives, are generally characterized by substantial and sustained investment. Programs like US-VISIT are complex, long-term endeavors requiring continuous technological updates, maintenance, and integration to meet evolving security and operational requirements. Federal agencies, particularly those in homeland security, often allocate significant portions of their budgets to IT infrastructure and services. Spending can fluctuate based on program phases (e.g., initial development vs. sustainment), major system upgrades, or shifts in policy and technology. Analyzing past contract awards for US-VISIT and related DHS programs would reveal trends in spending levels, contractor choices, and the types of IT services procured over time.
How does the contractor, Science Applications International Corporation (SAIC), perform on federal contracts, particularly in the IT services domain?
Science Applications International Corporation (SAIC) is a major federal contractor with a long history of providing IT and engineering services across various government agencies. Historically, SAIC has been involved in numerous large and complex federal contracts, including significant work within the Department of Defense and Homeland Security. Performance reviews and past performance data, often available through federal procurement databases (like CPARS - Contractor Performance Assessment Reporting System), would provide specific insights into SAIC's track record on contracts similar to this one. Generally, large contractors like SAIC are expected to have established processes for quality management, project execution, and compliance. However, performance can vary significantly by contract, program, and specific task orders.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management 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
Solicitation ID: HSHQVT-10-R-00012
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
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: $42,668,831
Exercised Options: $42,668,831
Current Obligation: $42,668,831
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSHQDC06D00026
IDV Type: IDC
Timeline
Start Date: 2010-09-30
Current End Date: 2015-09-25
Potential End Date: 2015-09-25 00:00:00
Last Modified: 2018-07-13
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