Navy awards $63.7M combat environment simulation contract to Science Applications International Corporation

Contract Overview

Contract Amount: $63,677,808 ($63.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2011-09-14

End Date: 2018-09-30

Contract Duration: 2,573 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: COMBAT ENVIRONMENT SIMULATION

Place of Performance

Location: RIDGECREST, KERN County, CALIFORNIA, 93555

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $63.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: COMBAT ENVIRONMENT SIMULATION Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2,573 days indicates a long-term engagement for simulation services. 3. The use of a Cost Plus Fixed Fee (CPFF) pricing structure can present cost control challenges. 4. This contract falls under Engineering Services, a broad category with diverse applications. 5. The award was a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contractor, Science Applications International Corporation, is a major player in defense contracting. 7. The contract was awarded by the Department of the Navy, indicating a focus on naval capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this $63.7 million contract is challenging without specific performance metrics or comparable simulation contracts. The Cost Plus Fixed Fee (CPFF) pricing structure, while common, can lead to cost overruns if not managed diligently. The fixed fee component provides some cost certainty for the contractor, but the government bears the risk of actual costs exceeding the estimate. Without more detailed cost breakdowns or comparisons to similar simulation development projects, assessing the true value-for-money is difficult.

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, but this method generally fosters a competitive environment, which can lead to better pricing and innovation. The open competition suggests the Navy sought the best possible solution and price from the market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives a wide range of options, potentially leading to cost savings.

Public Impact

The Department of the Navy benefits from advanced combat environment simulation capabilities. This contract supports the development and delivery of sophisticated simulation services. The geographic impact is primarily within the United States, likely supporting naval training and development centers. The contract may have implications for a specialized workforce in simulation engineering and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the full value delivered.
The long contract duration (2573 days) may present challenges in adapting to rapidly evolving technological needs.

Positive Signals

Awarded through full and open competition, suggesting a robust market evaluation.
The contractor, Science Applications International Corporation, has extensive experience in defense contracting.
The contract supports critical naval simulation capabilities, aligning with defense objectives.

Sector Analysis

The defense simulation and training market is a significant segment within the broader aerospace and defense industry. Companies like Science Applications International Corporation compete for contracts that provide realistic training environments and system development for military branches. Spending in this sector is driven by the need for advanced, cost-effective training solutions and the continuous evolution of warfare technologies. This contract fits within the broader trend of leveraging technology to enhance military readiness and operational effectiveness.

Small Business Impact

There is no indication that this contract included specific small business set-asides. As a large prime contract awarded to a major defense contractor, the primary impact on small businesses would likely be through subcontracting opportunities. The extent of small business participation would depend on the prime contractor's subcontracting plan and the availability of specialized small businesses capable of providing services or components for the simulation system.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be embedded within the contract terms, including reporting requirements, performance standards, and payment milestones tied to deliverables. Transparency is generally maintained through contract awards databases, though specific details of the simulation's technical specifications and cost breakdowns may be considered sensitive.

Related Government Programs

Naval Training Systems
Simulation and Modeling
Defense Engineering Services
Combat Systems Development

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to manage costs.
Long contract duration may lead to technological obsolescence or requirement drift.
Specific performance metrics and value-for-money assessment are not readily available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. COMBAT ENVIRONMENT SIMULATION

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 Navy).

What is the total obligated amount?

The obligated amount is $63.7 million.

What is the period of performance?

Start: 2011-09-14. End: 2018-09-30.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar simulation contracts for the Department of Defense?

Science Applications International Corporation (SAIC) has a substantial track record in providing advanced simulation, training, and engineering services to the Department of Defense and other government agencies. They have been involved in numerous complex projects, including virtual training environments, constructive simulations, and live-virtual-constructive (LVC) integration. SAIC's experience often spans across various military branches, developing solutions for air, land, and sea warfare scenarios. Their portfolio includes work on sophisticated modeling and simulation platforms that require deep technical expertise in software development, systems integration, and domain-specific knowledge. This extensive background suggests a strong capability to handle large-scale simulation contracts like the one awarded by the Navy, although specific performance on past contracts would require further detailed review.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for simulation development, and what are its implications for value?

The Cost Plus Fixed Fee (CPFF) contract type is common in research and development or complex service contracts where the scope of work is not fully defined at the outset, or where innovation is a key driver. In a CPFF contract, the government pays the contractor's actual allowable costs plus a fixed fee, representing the contractor's profit. This structure shifts much of the cost risk to the government, as the final price can fluctuate based on actual expenses. Compared to Firm-Fixed-Price (FFP) contracts, where the price is set regardless of costs, CPFF offers more flexibility but potentially less cost certainty for the government. For simulation development, CPFF can be advantageous when exploring novel solutions or dealing with evolving requirements. However, it necessitates robust government oversight to ensure costs are reasonable and necessary, and the fixed fee may not always align perfectly with the value delivered if costs escalate significantly without a proportional increase in the quality or scope of the final product.

What are the potential risks associated with a long contract duration of 2,573 days for simulation services?

A contract duration of 2,573 days (approximately 7 years) for simulation services presents several potential risks. Firstly, technological obsolescence is a significant concern; simulation technologies and the platforms they represent can evolve rapidly. By the end of a 7-year period, the initial requirements or the developed simulation might be outdated or less effective compared to newer advancements. Secondly, requirements drift is common in long-term projects. The operational needs or strategic objectives of the Navy could change over seven years, necessitating costly modifications or rendering parts of the simulation irrelevant. Thirdly, maintaining contractor engagement and institutional knowledge over such an extended period can be challenging, potentially leading to knowledge gaps if key personnel leave. Finally, long contracts can sometimes mask inefficiencies or a lack of agility, as the extended timeline might not incentivize rapid problem-solving or adaptation.

How does the $63.7 million contract value compare to overall Navy spending on simulation and training?

The $63.7 million contract value represents a specific investment in combat environment simulation services by the Department of the Navy. To contextualize this amount, one would need to examine the Navy's overall budget allocation for training systems, simulation, and related engineering services. The Navy, like other branches of the military, invests billions annually in training technologies to maintain readiness and develop advanced capabilities. This particular contract, while substantial, is likely one of many within the broader simulation and training portfolio. Its significance should be assessed not just by its dollar amount but by its contribution to specific naval warfare training objectives and its role within a larger suite of simulation capabilities. Without access to the Navy's detailed training system budgets, a precise comparison is difficult, but it is reasonable to assume this contract is a significant component of a specific simulation program.

What does the 'Engineering Services' (NAICS 541330) classification imply for the nature of the work performed under this contract?

The classification under NAICS code 541330, 'Engineering Services,' indicates that the primary work performed under this contract involves the application of engineering principles and knowledge to provide services related to the design, development, and integration of systems. For a combat environment simulation contract, this would typically encompass activities such as requirements analysis, system design, software development, hardware integration, testing, and validation of the simulation environment. It suggests a focus on the technical and scientific aspects of creating a realistic and effective simulation, rather than purely operational or maintenance services. This classification implies that highly skilled engineers and technical professionals are likely engaged in tasks requiring specialized knowledge in areas like physics, computer science, electrical engineering, and systems engineering to build and refine the simulation capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6893609R0001

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: $63,679,224

Exercised Options: $63,679,224

Current Obligation: $63,677,808

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6893610D0036

IDV Type: IDC

Timeline