Navy awards $26.4M engineering services contract to Science Applications International Corporation

Contract Overview

Contract Amount: $26,414,713 ($26.4M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2009-06-26

End Date: 2010-09-14

Contract Duration: 445 days

Daily Burn Rate: $59.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SECOND OPTION YEAR - LOT III

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SECOND OPTION YEAR - LOT III Key points: 1. Contract value represents a moderate investment in specialized engineering support. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of service. 3. Risk indicators appear low, given the contract type and duration. 4. Performance context is within the broader scope of naval engineering and support services. 5. Sector positioning is within the defense engineering services market.

Value Assessment

Rating: good

The contract value of $26.4 million for a period of approximately 1.5 years appears reasonable for specialized engineering services. Benchmarking against similar contracts for large-scale defense engineering support would provide a more precise value-for-money assessment. However, the fixed-fee structure suggests a degree of cost control and predictability for the government.

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 approach generally fosters a competitive environment, potentially leading to better pricing and innovative solutions. The presence of multiple bidders, though not explicitly detailed, is implied by the 'full and open' designation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down costs and ensuring the government receives the best value. It also promotes fairness and transparency in the procurement process.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to support its operations. Services delivered likely include design, analysis, and technical support for naval systems and infrastructure. Geographic impact is likely concentrated around naval facilities and operational areas. Workforce implications may involve skilled engineers and technical personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus contracts if not closely monitored.
Dependence on a single contractor for critical engineering services could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Fixed-fee component provides some cost certainty for the government.
Contractor has a significant presence in the defense sector, implying relevant experience.

Sector Analysis

The defense engineering services sector is a critical component of the broader aerospace and defense industry, characterized by high technical complexity and significant government spending. This contract fits within the segment focused on providing specialized engineering and technical support to military branches. Comparable spending benchmarks in this sector often involve multi-year, multi-billion dollar programs, making this a moderate-sized award for a specific task.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, Science Applications International Corporation, is a large business. There is no explicit information on subcontracting plans for small businesses, which could represent a missed opportunity for small business participation in this contract's execution.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Navy. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Science and Technology Support Services
Defense Logistics Agency Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Limited public detail on specific performance metrics for this delivery order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SECOND OPTION YEAR - LOT III

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 $26.4 million.

What is the period of performance?

Start: 2009-06-26. End: 2010-09-14.

What is the track record of Science Applications International Corporation (SAIC) with the Department of Defense, particularly in engineering services?

Science Applications International Corporation (SAIC) has a long-standing and extensive track record with the Department of Defense (DoD), serving as a major contractor across various branches and agencies. They are a significant provider of engineering, IT, and mission support services. Historically, SAIC has been awarded numerous large-scale contracts for complex defense programs, including those involving systems engineering, integration, and technical support for naval platforms, aircraft, and ground systems. Their experience spans research and development, acquisition, sustainment, and modernization efforts. While specific performance details for individual contracts are often proprietary, SAIC's continued success in securing substantial DoD contracts suggests a generally positive performance history and a strong understanding of military requirements and procurement processes. However, like any large contractor, they may have faced scrutiny or performance issues on specific projects, which would be detailed in contract performance reports not publicly available.

How does the value of this contract compare to other engineering services contracts awarded by the Department of the Navy in recent years?

The $26.4 million value for this specific delivery order represents a moderate-sized award within the vast landscape of Department of the Navy (DoN) contracts. The DoN procures a wide array of engineering services, ranging from small, specialized technical support tasks valued in the low millions to massive, multi-year platform development and sustainment programs that can reach billions of dollars. Contracts for similar engineering services, such as systems engineering, technical assistance, and design support, can vary significantly based on scope, duration, and complexity. While $26.4 million is a substantial sum, it is not uncommon for individual task orders or delivery orders under larger indefinite-delivery/indefinite-quantity (IDIQ) vehicles to fall within this range. To provide a precise comparison, one would need to analyze contracts with similar North American Industry Classification System (NAICS) codes (like 541330 for Engineering Services) and similar service descriptions awarded by the DoN over a comparable timeframe.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for engineering services?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to SAIC, present a unique set of risks for both the government and the contractor. For the government, the primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to reimburse all allowable costs plus a predetermined fixed fee. This can lead to cost overruns if the contractor's cost estimates are inaccurate or if unforeseen issues arise, increasing the total contract price beyond initial expectations. Effective oversight and robust cost accounting standards are crucial to mitigate this risk. For the contractor, the risk lies in underestimating the costs required to complete the work. If actual costs exceed projections, the fixed fee may not adequately compensate them for their effort and incurred expenses, potentially leading to a loss. Therefore, careful planning and accurate cost estimation are vital for the contractor.

What is the significance of the contract being awarded under 'Full and Open Competition' for the Department of the Navy?

Awarding a contract under 'Full and Open Competition' is a cornerstone of federal procurement policy designed to ensure the government obtains the best value by leveraging the widest possible range of potential suppliers. For the Department of the Navy (DoN), this means that all responsible sources, regardless of size or type, were encouraged and permitted to submit proposals. This broad competition typically leads to more competitive pricing, as multiple companies vie for the contract. It also fosters innovation by bringing diverse approaches and technologies to the table. Furthermore, it enhances transparency and fairness in the procurement process, reducing the likelihood of favoritism and ensuring that taxpayer funds are used efficiently. The DoN benefits from a larger pool of qualified contractors, increasing the probability of selecting a vendor that offers superior technical solutions at the most advantageous price.

How does the engineering services provided under this contract contribute to the overall mission effectiveness of the Department of the Navy?

Engineering services provided under contracts like this are fundamental to the Department of the Navy's (DoN) mission effectiveness. These services often encompass critical functions such as the design, development, testing, integration, and sustainment of complex naval systems, including ships, submarines, aircraft, and associated weaponry and communication systems. Specialized engineering expertise ensures that these platforms are designed to meet stringent operational requirements, are reliable under demanding conditions, and are maintainable throughout their lifecycle. Furthermore, engineering support is vital for modernizing existing assets, incorporating new technologies, and ensuring interoperability across different platforms and with allied forces. By contracting for these specialized skills, the DoN can access cutting-edge knowledge and capabilities that may not be available in-house, thereby enhancing its technological superiority, operational readiness, and overall ability to project power and fulfill its strategic objectives.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6523608R0029

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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: $26,448,200

Exercised Options: $26,448,200

Current Obligation: $26,414,713

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523608D2837

IDV Type: IDC

Timeline