Over $274M for Enterprise Tech Infrastructure by DHS, awarded to Science Applications International Corp

Contract Overview

Contract Amount: $274,364,437 ($274.4M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2010-09-24

End Date: 2015-09-11

Contract Duration: 1,813 days

Daily Burn Rate: $151.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SECURE ENTERPRISE TECHNOLOGY INFRASTRUCTURE (SETI)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20529

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $274.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SECURE ENTERPRISE TECHNOLOGY INFRASTRUCTURE (SETI) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1813 days indicates a long-term need for these services. 3. The North American Industry Classification System (NAICS) code 541513 points to computer facilities management services. 4. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The primary place of performance is Washington D.C., indicating a concentration of federal IT infrastructure in the capital region. 6. The contract type is 'Labor Hours', which can sometimes lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without access to the specific services rendered and the base IDIQ contract details. However, the total award amount of over $274 million over approximately five years suggests a significant investment in enterprise technology infrastructure. Without comparable contract data for similar scope and duration, it's difficult to definitively assess if this represents excellent value for money. The 'Labor Hours' contract type necessitates close monitoring to ensure efficient resource utilization and prevent cost creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this significant IT infrastructure contract. While two bidders is better than a sole-source award, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering a market where contractors strive to offer the best value and pricing to secure government business.

Public Impact

The primary beneficiary is U.S. Citizenship and Immigration Services (USCIS) within the Department of Homeland Security, which relies on this infrastructure for its operations. The services delivered likely include the management, maintenance, and enhancement of critical IT facilities and systems. The geographic impact is concentrated in Washington D.C., where the primary place of performance is located. This contract supports federal IT infrastructure, indirectly impacting the workforce that relies on these systems for their daily tasks and the public interacting with USCIS services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Labor Hours' contract type can be susceptible to cost overruns if not meticulously managed and monitored for efficiency.
Lack of specific details on the scope of work and performance metrics makes it difficult to fully assess the contractor's performance and value delivered.
The long duration of the contract could lead to technological obsolescence if not actively managed and updated.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The significant award amount suggests a critical need for these services by a major federal agency.
The contractor, Science Applications International Corporation, is a large and established entity with experience in government contracting.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. The market for federal IT services is substantial, with agencies increasingly relying on sophisticated infrastructure to support their missions. Contracts of this magnitude are typical for large-scale enterprise IT needs, encompassing hardware, software, networking, and data center operations. Benchmarks for similar contracts would depend heavily on the specific technologies and service levels required, but the scale indicates a significant portion of the agency's IT budget.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded to a major defense and IT contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime. The focus is on large-scale enterprise solutions rather than niche services typically provided by smaller firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within USCIS. Performance monitoring, invoicing, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Homeland Security IT Modernization Programs
USCIS Case Management Systems
Federal Cloud Computing Strategy Initiatives
Enterprise IT Infrastructure Services

Risk Flags

Labor Hours Contract Type Risk
Potential for Cost Overruns
Long-Term Contract Duration
Limited Competition (2 Bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $274.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SECURE ENTERPRISE TECHNOLOGY INFRASTRUCTURE (SETI)

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 (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $274.4 million.

What is the period of performance?

Start: 2010-09-24. End: 2015-09-11.

What specific IT infrastructure services were included under this contract?

The contract falls under NAICS code 541513 (Computer Facilities Management Services). While the specific details are not provided in the abbreviated data, this typically encompasses a range of services including the operation, maintenance, and management of computer systems and related facilities. This could include server management, data center operations, network infrastructure support, hardware and software maintenance, and potentially IT security services related to facility management. The 'Labor Hours' contract type suggests that the government is paying for the time and effort of personnel performing these tasks, rather than fixed-price deliverables.

How does the $274 million award compare to similar federal IT infrastructure contracts?

Comparing this $274 million award requires context regarding the contract's duration (approximately 5 years) and the specific scope of services. Large federal IT infrastructure contracts can range from tens of millions to billions of dollars. For a 5-year period, this award represents a substantial investment, averaging over $50 million per year. To provide a precise comparison, one would need to identify contracts with similar service descriptions (e.g., enterprise data center management, network operations) and durations awarded to agencies of comparable size and complexity. However, it is indicative of a significant, long-term commitment to maintaining critical IT facilities.

What are the potential risks associated with a 'Labor Hours' contract of this magnitude?

The primary risk with a 'Labor Hours' contract, especially one of this magnitude and duration, is the potential for cost overruns. Unlike fixed-price contracts, the government pays for the actual hours worked by contractor personnel. If work is inefficient, scope creep occurs without proper change order management, or if labor rates are higher than anticipated, the total cost can escalate beyond initial projections. Effective oversight, detailed work tracking, and strong program management are crucial to mitigate these risks and ensure the government receives good value for the labor hours purchased.

What is the track record of Science Applications International Corporation (SAIC) in managing large federal IT contracts?

Science Applications International Corporation (SAIC) is a well-established government contractor with extensive experience in providing IT services, systems engineering, and technical support to various federal agencies. They have a history of managing large, complex contracts, including those involving enterprise IT infrastructure, cybersecurity, and mission-critical systems. Their track record generally indicates a capacity to handle contracts of this scale, though performance can vary by specific contract and agency. Reviewing past performance evaluations and contract close-outs for SAIC on similar programs would provide a more granular assessment.

How has federal spending on computer facilities management services evolved over the years?

Federal spending on computer facilities management services has generally trended upwards, driven by the increasing reliance on digital infrastructure and the complexity of managing large IT environments. Agencies are continually investing in upgrading hardware, optimizing data center operations, and ensuring the reliability and security of their IT facilities. While specific figures for NAICS 541513 fluctuate based on agency priorities and budget cycles, the overall trend reflects a sustained need for these core IT services. Factors like cloud migration and cybersecurity investments also influence spending patterns within this category.

What does the 'Delivery Order' award type signify in this context?

The 'Delivery Order' award type indicates that this contract is likely a task order issued under a broader Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract vehicle. IDIQs allow agencies to procure services or supplies over a period of time, with the government issuing specific orders (delivery orders or task orders) as needed. This approach provides flexibility for the agency to acquire services incrementally. The total value of $274 million represents the cumulative value of all delivery orders issued against the base IDIQ contract for this specific effort.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSSCCG-10-R-00010

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

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: $276,482,138

Exercised Options: $274,364,437

Current Obligation: $274,364,437

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00026

IDV Type: IDC

Timeline