Over $79M for IT Support Services to Science Applications International Corporation by DHS

Contract Overview

Contract Amount: $79,441,989 ($79.4M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2008-01-15

End Date: 2013-07-14

Contract Duration: 2,007 days

Daily Burn Rate: $39.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: IT

Official Description: IT SUPPORT SERVICES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $79.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IT SUPPORT SERVICES Key points: 1. Contract awarded for IT support services, indicating a need for ongoing technical assistance. 2. The contractor, Science Applications International Corporation, is a large, established entity in the federal contracting space. 3. Awarded by the Department of Homeland Security, highlighting the critical nature of IT infrastructure for national security. 4. The contract duration spans over five years, suggesting a long-term requirement for these services. 5. The specific service category is Computer Facilities Management Services, pointing to the operational backbone of IT systems. 6. This was a competitive delivery order, implying some level of market engagement, though details on the competition are needed.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific service details and comparable contract data. The total award amount of approximately $79.4 million over five years suggests an average annual spend of around $15.9 million. This figure needs to be compared against the scope and complexity of the IT support services provided to determine if it represents good value for money. Without specific performance metrics or a breakdown of services rendered, a definitive assessment of cost-effectiveness is difficult. The provided data does not include unit costs or pricing structures for comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed among multiple vendors. The presence of two bids ('no': 2) suggests a degree of competition, but the limited number of bidders may warrant further investigation into the solicitation process and market availability. A low number of bids can sometimes lead to less favorable pricing for the government. Understanding the specific requirements of the solicitation and the number of potential offerors would provide a clearer picture of the competition's effectiveness in driving down costs and ensuring optimal value.

Taxpayer Impact: While the contract was competed, only two bids were received. This limited competition might have resulted in a higher price than if more vendors had participated. Taxpayers may have paid a premium due to the restricted bidding pool.

Public Impact

The Department of Homeland Security benefits from reliable IT support, ensuring the continuity of its operations. Computer facilities management services are delivered, which are essential for maintaining the infrastructure that supports various agency functions. The geographic impact is likely concentrated around the locations where DHS operates, particularly within Virginia where the contract is noted. Workforce implications include the employment of IT professionals by Science Applications International Corporation to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) for a competitive delivery order may indicate potential issues with market research or solicitation strategy, possibly leading to suboptimal pricing.
The contract duration of over five years could lock the government into a specific vendor relationship, potentially limiting flexibility to adopt newer technologies or seek more competitive solutions mid-term.
Lack of detailed performance metrics or service level agreements in the provided data makes it difficult to assess the quality and effectiveness of the IT support provided.

Positive Signals

The contract was awarded through a competitive process, suggesting an effort to obtain services from qualified vendors.
The selected vendor, Science Applications International Corporation, is a well-established company with significant experience in federal IT services, implying a higher likelihood of successful performance.
The award to a large, experienced contractor can provide stability and continuity for critical IT support functions within DHS.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT Facilities Management. The federal IT services market is substantial, with agencies consistently outsourcing complex IT operations to manage infrastructure, cybersecurity, and data. Comparable spending benchmarks for IT support services vary widely based on scope, complexity, and geographic location. However, contracts of this magnitude often represent a significant portion of an agency's IT budget, underscoring the importance of competitive sourcing and value assessment.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses ('sb': false). Science Applications International Corporation is a large business. While there's no direct indication of small business subcontracting requirements from this data alone, large federal contracts often include subcontracting goals. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were limited. Future analysis could explore subcontracting plans to understand the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Homeland Security's contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

IT Operations and Maintenance
Computer Systems Design Services
IT Professional Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Limited Competition
Long Contract Duration
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $79.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IT SUPPORT SERVICES

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $79.4 million.

What is the period of performance?

Start: 2008-01-15. End: 2013-07-14.

What specific IT support services were included under this contract, and how did their scope align with the Computer Facilities Management Services NAICS code?

The provided data identifies the contract's North American Industry Classification System (NAICS) code as 541513, which corresponds to Computer Facilities Management Services. This typically encompasses services such as operating and managing clients' computer systems and/or data centers. Specific services could include network management, server administration, data storage management, help desk support, and IT infrastructure maintenance. Without the detailed statement of work (SOW) or contract line item numbers (CLINs), it's impossible to ascertain the precise services rendered. However, the broad category suggests a focus on the operational backbone of the Transportation Security Administration's IT environment, ensuring systems are available, secure, and performing optimally.

How does the total contract value of approximately $79.4 million compare to other IT support service contracts awarded by the Department of Homeland Security or similar agencies?

Comparing the total contract value of $79.4 million requires context regarding the contract's duration and scope. Awarded over approximately five years (January 15, 2008, to July 14, 2013), this represents an average annual spend of roughly $15.9 million. This figure is substantial but not extraordinary within the federal IT services market, especially for a large agency like DHS. To provide a precise comparison, one would need to analyze similar 'Computer Facilities Management Services' contracts awarded during the same period by agencies of comparable size and mission (e.g., FBI, IRS, DoD components). Factors like the number of users supported, complexity of the infrastructure, and specific service level agreements (SLAs) are critical for a meaningful benchmark. Generally, annual IT spending for large federal agencies can range from tens of millions to billions of dollars, placing this contract within a moderate to significant tier for a specific service category.

What was the historical spending trend for IT support services by the Transportation Security Administration prior to and during this contract period?

Analyzing historical spending trends for IT support services by the TSA requires access to historical contract data beyond this single award. This contract, awarded in 2008 and ending in 2013, represents a specific period of spending. To understand the trend, one would need to examine TSA's IT expenditures in the years preceding 2008 and continuing after 2013. This would involve looking at all contracts related to IT support, facilities management, and related services. A rising trend might indicate increasing reliance on outsourced IT support or expanding IT infrastructure. A declining trend could suggest insourcing, consolidation, or shifts in technology adoption. Without a broader dataset, it's impossible to definitively describe the historical spending pattern for TSA's IT support services.

What are the potential risks associated with a five-year contract for IT support services, particularly concerning technological obsolescence and vendor lock-in?

A five-year contract for IT support services carries inherent risks, primarily related to technological obsolescence and vendor lock-in. Technology evolves rapidly, and a long-term contract might commit the government to outdated systems or support methodologies if the vendor does not proactively update their offerings or if the contract terms do not facilitate adaptation. Vendor lock-in is another significant concern; the extensive integration of a vendor's services into an agency's operations can make switching providers difficult and costly, potentially reducing leverage in future negotiations. To mitigate these risks, contracts should include clauses for technology refresh, performance-based metrics that incentivize innovation, and clear exit strategies. Regular reviews and market analysis throughout the contract's life are also crucial to ensure continued value and alignment with current technological standards.

Given that Science Applications International Corporation (SAIC) was the awardee, what is their general track record with federal IT support contracts of similar size and scope?

Science Applications International Corporation (SAIC) is a major federal contractor with a substantial history of providing IT services across various government agencies. Their track record with IT support contracts of similar size and scope is generally extensive. SAIC has consistently secured large, complex IT contracts, including those involving facilities management, systems integration, and operational support. While specific performance details for individual contracts are often proprietary or require deep dives into past performance evaluations, SAIC's continued success in winning significant federal IT awards suggests a generally positive track record. However, like any large contractor, they may have faced challenges or criticisms on specific projects. A thorough assessment would involve reviewing past performance reviews, any contract disputes, and client feedback related to comparable contracts.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

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: $111,199,606

Exercised Options: $79,441,989

Current Obligation: $79,441,989

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00026

IDV Type: IDC

Timeline