Army HR IT Support Contract Awarded to Science Applications International Corporation for Over $151 Million
Contract Overview
Contract Amount: $151,992,005 ($152.0M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2021-04-06
End Date: 2024-06-05
Contract Duration: 1,156 days
Daily Burn Rate: $131.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DATA AND APPLICATIONS SUPPORT TASK ORDER SERVICES IN SUPPORT OF THE US ARMY HUMAN RESOURCES COMMAND IN FORT KNOX, KY FOR A BASE PERIOD OF PERFORMANCE 6 APR 21 - 5 AUG 21 AND TWO OPTIONS THROUGH 5 MAR 22.
Place of Performance
Location: FORT KNOX, HARDIN County, KENTUCKY, 40122
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $152.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: DATA AND APPLICATIONS SUPPORT TASK ORDER SERVICES IN SUPPORT OF THE US ARMY HUMAN RESOURCES COMMAND IN FORT KNOX, KY FOR A BASE PERIOD OF PERFORMANCE 6 APR 21 - 5 AUG 21 AND TWO OPTIONS THROUGH 5 MAR 22. Key points: 1. Contract provides essential IT services for Army Human Resources Command, impacting personnel management. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract's duration of nearly four years indicates a long-term need for these services. 4. The cost-plus-fixed-fee (CPFF) pricing structure requires careful monitoring to control costs. 5. Performance is located in Kentucky, potentially benefiting the local economy and workforce. 6. This contract falls under IT services, a critical area for modern military operations.
Value Assessment
Rating: good
The total contract value of over $151 million for nearly four years of IT support for Army HR functions appears reasonable given the scope. While specific benchmarks for this exact service are difficult to ascertain without more granular data, IT support for large government organizations is typically a significant investment. The CPFF structure necessitates close oversight to ensure costs remain within expectations and that the fixed fee is justified by the services rendered. Comparing this to similar large-scale IT support contracts within the DoD would provide a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a competitive environment where multiple companies likely vied for the contract. The presence of multiple bidders generally promotes price discovery and can lead to more favorable terms for the government. The specific number of bidders is not provided, but the designation implies a healthy level of competition.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at a competitive price, preventing potential overspending that could occur with less competitive procurement methods.
Public Impact
The primary beneficiaries are the U.S. Army Human Resources Command, which receives critical IT support to manage personnel data and operations. Services delivered include IT support, likely encompassing network management, system maintenance, and user support for HR systems. The geographic impact is centered in Fort Knox, Kentucky, potentially creating or sustaining jobs in the region. Workforce implications may include direct employment by Science Applications International Corporation and potential subcontracting opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractors to incur more costs if not properly managed, as their fee is a percentage of the total cost.
- Lack of specific performance metrics in the provided data makes it difficult to assess the quality and efficiency of the IT services.
- The long duration of the contract could lead to vendor lock-in if not structured with clear exit strategies or performance review clauses.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
- The contract supports a critical function (Army HR), indicating a well-defined and necessary government requirement.
- Science Applications International Corporation is a large, established government contractor with a significant track record in IT services.
Sector Analysis
This contract falls within the broader Information Technology (IT) services sector, specifically focusing on IT support for government human resources functions. The IT services market for the federal government is substantial, with significant spending allocated to maintaining and upgrading complex systems. This contract represents a portion of that spending, supporting a critical mission within the Department of Defense. Comparable spending benchmarks would involve looking at other large-scale IT support contracts awarded to manage sensitive personnel data for federal agencies.
Small Business Impact
The 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, as a large prime contractor, Science Applications International Corporation may engage small businesses for subcontracting opportunities as part of its overall business strategy or to meet broader federal goals, though this is not explicitly mandated by the contract type described.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army and the U.S. Army Human Resources Command. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee remains appropriate for the services rendered. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by the Defense Contract Audit Agency (DCAA) or the Department of Defense Inspector General (IG) if specific concerns arise or during routine audits.
Related Government Programs
- DoD IT Modernization Programs
- Army Personnel Management Systems
- Federal Civilian HR IT Support Contracts
- Large-Scale IT Service Contracts
- Cost-Plus-Fixed-Fee Contracts
Risk Flags
- Cost-plus-fixed-fee contract requires diligent oversight to manage costs.
- Long contract duration may present challenges in adapting to future technological changes.
- Cybersecurity risks associated with handling sensitive Army personnel data.
Tags
it-services, department-of-defense, department-of-the-army, army-human-resources-command, full-and-open-competition, cost-plus-fixed-fee, it-support, personnel-management, fort-knox, kentucky, large-contract, saic
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $152.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. DATA AND APPLICATIONS SUPPORT TASK ORDER SERVICES IN SUPPORT OF THE US ARMY HUMAN RESOURCES COMMAND IN FORT KNOX, KY FOR A BASE PERIOD OF PERFORMANCE 6 APR 21 - 5 AUG 21 AND TWO OPTIONS THROUGH 5 MAR 22.
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 $152.0 million.
What is the period of performance?
Start: 2021-04-06. End: 2024-06-05.
What is the historical spending pattern for IT support services at the Army Human Resources Command prior to this contract?
Analyzing historical spending for IT support at the Army Human Resources Command (HRC) is crucial for context. While specific figures for prior HRC IT contracts are not detailed here, the U.S. Army consistently invests heavily in IT infrastructure and support to manage its vast personnel data and operational systems. Trends typically show increasing reliance on specialized IT services, driven by modernization efforts, cybersecurity needs, and the complexity of managing a large, distributed workforce. Previous contracts likely varied in scope and duration, potentially involving different pricing structures. Understanding past spending levels, including the number of contracts awarded and their total value over several fiscal years, would reveal whether this $151 million award represents a significant increase, a continuation of existing investment, or a shift in procurement strategy for HRC's IT needs.
How does the pricing structure (Cost Plus Fixed Fee) compare to other similar IT support contracts for large federal agencies?
The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex government contracts where the scope of work may evolve or is difficult to precisely define upfront, such as IT support services. In a CPFF contract, the government reimburses the contractor for allowable costs plus a fixed fee representing profit. This differs from fixed-price contracts, where the contractor agrees to a set price regardless of costs incurred. Compared to similar large federal IT support contracts, CPFF can offer flexibility but also carries a risk of cost overruns if not meticulously managed. Agencies often prefer fixed-price contracts for well-defined scopes to ensure cost certainty. However, for services involving research, development, or extensive system integration where costs are less predictable, CPFF is often deemed necessary. The effectiveness of CPFF hinges on robust government oversight to control costs and ensure the fixed fee remains fair.
What specific IT services are included under this contract, and how do they align with Army HR modernization goals?
The provided data indicates the contract is for 'DATA AND APPLICATIONS SUPPORT TASK ORDER SERVICES IN SUPPORT OF THE US ARMY HUMAN RESOURCES COMMAND.' This suggests a broad scope encompassing the maintenance, operation, and potentially enhancement of IT systems and applications critical to Army HR functions. These services likely include help desk support, system administration, network management, cybersecurity measures, database management, and application development/maintenance for HR-specific software (e.g., personnel records, payroll, benefits, talent management). Alignment with Army HR modernization goals would depend on whether these services facilitate the transition to newer platforms, improve data analytics capabilities, enhance user experience for soldiers and HR personnel, or strengthen the security and reliability of existing systems. Without a detailed statement of work, it's presumed these services are essential for the day-to-day functioning and ongoing modernization efforts of the Army's human resources infrastructure.
What is the track record of Science Applications International Corporation (SAIC) in delivering similar IT support services to the Department of Defense?
Science Applications International Corporation (SAIC) has a substantial and long-standing track record of delivering a wide array of IT and technical services to the Department of Defense (DoD) and other federal agencies. They are a major government contractor known for expertise in areas such as enterprise IT, cloud computing, cybersecurity, data analytics, and systems engineering. SAIC has held numerous large-scale contracts supporting various military branches and defense organizations, often involving complex systems integration, mission-critical application support, and infrastructure management. Their experience typically includes managing large teams, handling sensitive data, and operating under stringent security protocols. While specific performance details for every contract are not publicly available, SAIC's continued success in winning significant DoD contracts suggests a generally positive performance history and a strong capability to meet the demanding requirements of military IT support.
Are there any specific performance risks associated with this contract, and what mitigation strategies are in place?
Potential performance risks for this IT support contract include the complexity of integrating and maintaining diverse HR applications, ensuring robust cybersecurity for sensitive personnel data, managing user support across a large organization, and adapting to evolving technological requirements. Given the CPFF structure, a key risk is cost escalation if project scope creeps or inefficiencies arise. Mitigation strategies typically involve strong contract management by the Army, including detailed performance work statements, regular progress reviews, key performance indicator (KPI) tracking, and potentially independent government cost estimates. SAIC, as an experienced contractor, would likely employ its own internal quality assurance processes, risk management frameworks, and skilled personnel to ensure successful delivery. The full and open competition may also serve as a risk mitigator, as it implies a pool of capable vendors who understand the requirements.
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 › IT AND TELECOM - APLLICATIONS
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: $151,992,005
Exercised Options: $151,992,005
Current Obligation: $151,992,005
Actual Outlays: $298,005
Subaward Activity
Number of Subawards: 48
Total Subaward Amount: $108,831,017
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J18DA075
IDV Type: IDC
Timeline
Start Date: 2021-04-06
Current End Date: 2024-06-05
Potential End Date: 2024-06-05 00:00:00
Last Modified: 2024-10-11
More Contracts from Science Applications International Corporation
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Department of State)
- Software Life Cycle Development — $1.4B (General Services Administration)
- Unified Nasa Information Technology Services (unites) — $1.4B (National Aeronautics and Space Administration)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (General Services Administration)
- This Effort IS for a Follow on Procurement Requirement. the Name of This Procurement IS the Omnibus Multidiscipline Engineering Services (omes) II. the Principal Purpose of This Contract IS to Provide Multidiscipline Engineering Support Services and Related Work to EED, Istd, SED, MSD, Mesa, Jpss, Ssco, and Related Organizations, AS Required, for the Study, Design, Systems Engineering, Development, Fabrication, Integration, Testing, Verification, and Operations of Space Flight, Airborne, and Ground System Hardware and Software, Including Development and Validation of NEW Technologies to Enable Future Space and Science Missions. to This END, the Contractor Shall Provide On/Off-Site Multidiscipline Engineering Services, Pursuant to Task Orders Issued by the Contracting Officer. These Services Shall Include the Personnel, Facilities, and Materials (unless Otherwise Provided by the Government) to Accomplish the Tasks. Travel MAY BE Required by the Contractor to Support Certain Task Orders, These Travel Requirements Will BE Identified on a Task by Task Basis — $1.0B (National Aeronautics and Space Administration)
View all Science Applications International Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)