Army HR IT Support Contract Awarded to Science Applications International Corporation for Over $65 Million

Contract Overview

Contract Amount: $65,616,335 ($65.6M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2020-02-06

End Date: 2021-04-05

Contract Duration: 424 days

Daily Burn Rate: $154.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DATA AND APPLICATION SUPPORT TASK ORDER (DASTO) SERVICES FOR THE U.S. ARMY HUMAN RESOURCES COMMAND (HRC) FOR A BASE YEAR, 6 FEB 2020 - 5 FEB 2021 AND TWO ONE-MONTH OPTIONS.

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40122

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $65.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: DATA AND APPLICATION SUPPORT TASK ORDER (DASTO) SERVICES FOR THE U.S. ARMY HUMAN RESOURCES COMMAND (HRC) FOR A BASE YEAR, 6 FEB 2020 - 5 FEB 2021 AND TWO ONE-MONTH OPTIONS. Key points: 1. Contract provides essential data and application support for Army Human Resources Command. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract, including options, is approximately 14 months. 4. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 5. The primary service category is Other Computer Related Services. 6. The contract is managed by the Department of the Army, a component of the Department of Defense.

Value Assessment

Rating: fair

The total value of $65.6 million over 14 months for IT support services for a major command like HRC appears within a reasonable range for such complex operations. However, without specific details on the scope of work, deliverables, and performance metrics, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, as it reimburses the contractor for allowable costs plus a predetermined profit. Benchmarking against similar large-scale HR IT support contracts within the DoD would be necessary for a more definitive evaluation.

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 number of bidders is not specified in the provided data, but the use of full and open competition generally promotes price discovery and encourages competitive pricing among potential offerors. This approach is intended to ensure the government receives the best value by leveraging the widest possible pool of qualified contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring that the government is not overpaying for necessary services.

Public Impact

Soldiers and Army personnel benefit from the reliable functioning of HR systems. The contract supports critical human resources functions, including personnel management and data administration. The services are delivered to the U.S. Army Human Resources Command, impacting a large segment of the Army's workforce. The contract's impact on the civilian workforce supporting the Army's HR functions is significant.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, potentially leading to higher overall expenditures if not rigorously monitored.
Lack of specific performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
The duration of the contract, including options, is relatively short (14 months), which might limit long-term strategic planning and knowledge transfer.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contract supports critical Army Human Resources functions, indicating its strategic importance.
The contractor, Science Applications International Corporation, is a large and established entity in the federal IT services market.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on data and application support. The market for government IT services is substantial, with significant spending allocated to maintaining and upgrading complex systems. Contracts like this are crucial for ensuring the operational readiness and efficiency of government agencies. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded to major defense contractors for similar functional areas within the Department of Defense.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, Science Applications International Corporation, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means that larger, established companies were the primary focus of the competition.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army, likely through contracting officers and program managers responsible for the Human Resources Command's IT infrastructure. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Logistics Modernization Program
DoD Enterprise Resource Planning Systems
Defense Human Resources Activity IT Services
Global Combat Support System - Army

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to control costs.
Short contract duration may impact long-term system development and knowledge retention.
Lack of detailed performance metrics hinders objective assessment of value.
Potential for scope creep in 'Other Computer Related Services' category.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. DATA AND APPLICATION SUPPORT TASK ORDER (DASTO) SERVICES FOR THE U.S. ARMY HUMAN RESOURCES COMMAND (HRC) FOR A BASE YEAR, 6 FEB 2020 - 5 FEB 2021 AND TWO ONE-MONTH OPTIONS.

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $65.6 million.

What is the period of performance?

Start: 2020-02-06. End: 2021-04-05.

What is the specific scope of 'Data and Application Support Task Order Services' provided under this contract?

The provided data does not detail the specific scope of 'Data and Application Support Task Order Services.' However, for the U.S. Army Human Resources Command (HRC), these services typically encompass a wide range of IT functions. This could include maintaining and updating HR databases, ensuring the functionality of HR software applications (e.g., for personnel records, payroll, benefits), providing technical support to end-users, managing data integrity and security, developing or modifying applications as needed, and potentially supporting the migration or integration of HR data across different systems. The 'task order' nature suggests it addresses specific, defined IT needs within the broader HRC mission.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for IT services in terms of cost efficiency?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred, plus a fixed fee representing profit. This type is often used when the scope of work is not precisely defined or when there is significant uncertainty in the cost of performance, such as in research and development or complex IT projects. While it allows flexibility, it can be less cost-efficient for the government compared to Fixed-Price contracts if costs escalate significantly, as the government bears the risk of cost overruns. However, it can be more efficient than pure cost-reimbursement contracts because the fixed fee incentivizes the contractor to control costs to maximize their profit margin. For IT services where requirements might evolve, CPFF can be appropriate, but it necessitates robust oversight to manage costs effectively.

What are the potential risks associated with a 14-month contract duration for critical IT support?

A 14-month duration, including options, for critical IT support can present several risks. Firstly, it may lead to a 'short-term' focus from the contractor, potentially hindering long-term strategic planning, system optimization, and proactive maintenance. Knowledge transfer and continuity can be challenging if personnel frequently change due to the contract's limited timeframe. Furthermore, the government might face increased administrative burden and costs associated with frequent re-competition or contract extensions. This duration might also make it difficult to attract and retain highly skilled personnel who prefer longer-term engagements. Finally, it could limit the contractor's incentive to invest in significant system improvements or innovations that would yield benefits beyond the contract period.

What is Science Applications International Corporation's (SAIC) track record with similar DoD IT support contracts?

Science Applications International Corporation (SAIC) is a major federal contractor with extensive experience in providing IT services to the Department of Defense and other government agencies. They have a long history of supporting complex systems, including enterprise resource planning (ERP), logistics, and personnel management systems. SAIC has been awarded numerous large contracts for IT modernization, cybersecurity, cloud migration, and application development across various military branches. Their track record generally indicates a capacity to handle large-scale, mission-critical IT programs. However, specific performance details and past issues on similar contracts would require a deeper dive into contract performance reports and historical data.

How does the $65.6 million total award value compare to historical spending on Army HR IT support?

Without specific historical spending data for Army HR IT support, a direct comparison is difficult. However, $65.6 million over approximately 14 months represents an average annual spend of roughly $56 million. This figure should be evaluated in the context of the scale and complexity of the Army Human Resources Command's operations. Large, modern military forces require sophisticated IT infrastructure to manage personnel data, benefits, and readiness. Spending in this range is not uncommon for comprehensive IT support contracts serving major government entities. A thorough analysis would involve comparing this contract's value against previous contracts for similar services at HRC or comparable Army commands, adjusting for inflation and scope changes.

What are the implications of this contract being classified under 'Other Computer Related Services' (NAICS 541519)?

The classification under NAICS code 541519, 'Other Computer Related Services,' suggests that the contract encompasses a broad range of IT services that do not fit into more specific categories like software development (541511), computer systems design (541512), or computer facilities management (541513). This could include services such as IT consulting, data processing, disaster recovery, IT support, and specialized technical services. For this Army HR contract, it likely means the scope is diverse, covering various aspects of maintaining and supporting the HRC's IT environment, potentially including system integration, troubleshooting, and specialized data management tasks that fall outside the typical definitions of other computer service codes.

Industry Classification

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $65,616,335

Exercised Options: $65,616,335

Current Obligation: $65,616,335

Actual Outlays: $4,942,561

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $49,527,022

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA075

IDV Type: IDC

Timeline