Historical Analysis at NASA’s $60B SEWP Evolution

NASA released the sixth iteration of the Solutions for Enterprise-Wide Procurement GWAC (SEWP VI) on May 23, 2023 with no limit on the number of contract awards.

Spanning a 31-year history, the SEWP vehicle continues to keep pace with the rapidly changing Information Technology (IT) environment from the basic workstation and network requirements in the late 1990s to today’s dynamic Artificial Intelligence/Machine Learning (AI/ML) world. This article provides a historical overview of the SEWP contract evolution, spending trends, small business utilization, and agency usage. Deltek and Red Team Consulting will present an in-depth look at the final solicitation on May 31, 2024.

SEWP I

NASA awarded the first SEWP Indefinite Delivery, Indefinite Quantity (IDIQ) contracts in 1993 under the title, Scientific and Engineering Workstation Procurement. The primarily hardware-focused requirements included a single category with nine high- and low-end workstation classes, two of which provided networking, maintenance, software, and support equipment (printers, network equipment, and X terminals). At that time, the Office of Management and Budget (OMB) classified products and services under the Standard Industrial Classification (SIC) system. The government adopted the North American Industry Classification System in 1997. This first solicitation was a Full & Open competition resulting in a single award per class, none of which were to small businesses. The government anticipated purchasing 13,700 workstations. The IDIQ’s originally estimated value was $827M over a 4-year period of performance. Final reported obligations were $2.5M, significantly below the agency’s expectations.

SEWP II

The Scientific and Engineering Workstation Procurement II (SEWP II), awarded in 1996, divided the requirements into three categories, Workstations, Complementary Products and Services, and Specialized System. This expanded the offerings to 13 classes, adding Personal Digital Assistants (PDA) and UNIX portable devices to provide mobile access for computing needs. The government anticipated purchasing 34,000 workstations. NASA awarded 16 contracts: six provided UNIX and NT workstations, three supplied network and storage device support, three were server contracts, and four provided software, maintenance, integration, installation, assistive technology, and advanced studies. Although the procurement was Full & Open, NASA awarded three 8(a) Direct Awards. The government’s original estimate was $1.8B, but final spending of $805.4M over the 4.5-year lifecycle was significantly below the ceiling.

SEWP III

The space agency awarded SEWP III, still known as Scientific and Engineering Workstation Procurement, in 2001 and continued the evolution to include mass storage devices, advanced video and visualization solutions, and security systems and tools. The contract classified requirements under two categories, Computer Systems/Servers, and Supporting Equipment, with 14 separate product classes. Three of the classes were set aside for Small Business (SB). The SEWP III catalog contract line items exceeded 400,000 from more than 1,400 Original Equipment Manufacturers (OEM). The solicitation under NAICS 423430, was the first to incorporate the NAICS classification system. NASA awarded 25 contracts, with 11 awarded to small businesses including three 8(a) Direct Awards. The SEWP III estimated value was $4B, over 10 years. Final obligations came close to reaching the ceiling at $3.9B.

SEWP IV

During the 2007 recompete, NASA changed the contract name to Solutions for Enterprise-wide Procurement (SEWP IV). Keeping step with ever-changing technology, SEWP IV added cloud-based services and multi-function device capabilities and focused on enterprise-wide and mission-based services. The space agency streamlined the requirements under Category A – Computer System and Category B – Complementary Products, reduced the number of classes to 11, and increased the number of products to more than 800,000. Providers increased to 1,600 OEMs and value-added resellers (VAR). Small Business Spending information also changed as SEWP IV due to the Small Business Jobs Act incorporation and the government’s ability to specify socio-economic categories in the SEWP Quote Request Tool. The competition was unrestricted under NAICS Codes 334111 and 541519. The agency awarded 52 contracts, including 25 small business awards, 7 SDVOSB contracts, and one 8(a) Direct Award. Final contract spending was $19.1B over the 8-year lifecycle, far exceeding the government’s planned $5.6B ceiling.

SEWP V

While previous iterations included small business awards, the 2013 SEWP V procurement was the first to incorporate socio-economic competition categories. These included set-asides for Small Businesses, HUBZone, and SDVOSB firms under NAICS Codes 334111 and 541519. The agency kept the two requirement categories but consolidated the offerings under four groups based on the set-aside types. The scope also expanded offerings to include cybersecurity requirements, additional cloud systems, and virtual storage capabilities. NASA awarded 212 contracts (94 SB awards) to 147 vendors in 2015 offering products and services from more than 9,700 OEMs. In May 2017, SEWP V became one of the initially designated Best-in-Class vehicles with GSA's implementation of Category Management. The government estimated a $20B contract ceiling over a potential 10-year period of performance consisting of a 5-year base and a 5-year option. Reported obligations are nearing $60B with about a year remaining. And that leads us to SEWP VI

SEWP VI

SEWP VI will be an enterprise-wide and mission-based focused IDIQ with increased provisions for cybersecurity and dynamic Artificial Intelligence and Machine Learning requirements. The agency issued the RFP in late May under NAICS Codes 541519 and 541512 (a NAICS Code crosswalk is available in the solicitation package). This is the first solicitation to specify SB, HUBZone, and SDVOSB competition types and include multiple task order type options instead of only firm-fixed-priced orders under previous contracts. SEWP VI not only broadens the scope of requirements but provides more specifically defined offerings under 31 Technical Areas and detailed sub-areas. The contract ceiling is $60B over 10 years (5-year base and one 5-year option) with an unlimited number of awards.

Since its inception in 1993, SEWP contracts have provided more than $79B in products and services. Beginning with SEWP III, vehicle spending has consistently exceeded the government’s original estimates. Requirements continue expanding as agencies adapt to the dynamic IT environment, employ cost and productivity efficiencies, modernize infrastructure, and comply with federal mandates. Although the government includes a $60B contract ceiling for SEWP VI, actual spending is likely to reach or exceed that ceiling well ahead of the contract expiration, considering the vehicle history and the option for an unlimited number of awards.

Register here to join Deltek and Red Team Consulting for an in-depth look at SEWP VI.