DoD's $19.1M MRAP TDP Development contract awarded to Science Applications International Corp. for engineering services

Contract Overview

Contract Amount: $19,140,994 ($19.1M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2012-12-19

End Date: 2014-06-28

Contract Duration: 556 days

Daily Burn Rate: $34.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MINE RESISTANT AMBUSH PROTECTED (MRAP) TECHNICAL DATA PACKAGE (TDP) DEVELOPMENT

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: MINE RESISTANT AMBUSH PROTECTED (MRAP) TECHNICAL DATA PACKAGE (TDP) DEVELOPMENT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 556 days indicates a significant project timeline for TDP development. 4. The award was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical component of defense procurement. 6. The contract was awarded by the Department of the Navy, a major component of the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without access to the full contract details and performance metrics. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control. While the total value is $19.1 million, the fixed fee component needs to be assessed against the scope of work to determine true value for money. Comparisons to similar TDP development contracts would be necessary for a more definitive assessment of pricing and value.

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 presence of 2 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery, the number of bidders can still influence the final price and terms.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging multiple companies to offer their best pricing and technical solutions.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Navy, who will receive the technical data package for MRAP vehicles. This contract delivers essential engineering services for the development of a technical data package, crucial for future manufacturing, maintenance, and upgrades of MRAP vehicles. The geographic impact is primarily within the defense industrial base, potentially involving facilities in South Carolina where the awardee has a presence. Workforce implications include employment for engineers and technical specialists involved in TDP development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
Limited number of bidders (2) may indicate potential barriers to entry or a specialized market.
The nature of TDP development can be complex, with potential for scope creep if requirements are not clearly defined.
The contract duration of 556 days requires sustained oversight to ensure timely completion and adherence to milestones.

Positive Signals

Awarded under full and open competition, which promotes a fair and transparent process.
The contractor, Science Applications International Corporation, is a large and established defense contractor with significant experience.
The development of a Technical Data Package is a critical step for ensuring the long-term sustainment and interoperability of MRAP vehicles.

Sector Analysis

The defense engineering services sector is a significant part of the broader aerospace and defense industry. Contracts for developing technical data packages (TDPs) are crucial for maintaining and upgrading military platforms. The market for such services is competitive, with established prime contractors often competing for large government contracts. Spending in this area is driven by the need for modernization, sustainment, and the development of new defense capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The focus on a large prime contractor like SAIC suggests that the primary contract work will be performed by the awardee, with potential for subcontracting opportunities depending on their internal capabilities and the specific requirements of the TDP development.

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 tied to the terms of the Cost Plus Fixed Fee contract, including adherence to the fixed fee, delivery schedules, and technical specifications. Transparency is generally facilitated through contract award databases, though detailed performance data may be restricted. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Mine Resistant Ambush Protected (MRAP) Vehicle Program
Defense Engineering Services
Technical Data Package Development Contracts
Department of the Navy Procurement

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Limited number of bidders may indicate reduced competitive pressure.
Technical Data Package development is critical and requires high accuracy and completeness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. MINE RESISTANT AMBUSH PROTECTED (MRAP) TECHNICAL DATA PACKAGE (TDP) DEVELOPMENT

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 $19.1 million.

What is the period of performance?

Start: 2012-12-19. End: 2014-06-28.

What is the track record of Science Applications International Corporation (SAIC) with similar technical data package development contracts for the Department of Defense?

Science Applications International Corporation (SAIC) has a substantial track record with the Department of Defense, including numerous contracts related to engineering services, technical support, and data development. While specific details on TDP development for MRAP vehicles by SAIC would require deeper database analysis, their extensive experience across various defense platforms suggests a high likelihood of capability. SAIC often engages in complex system engineering, logistics support, and lifecycle management, all of which are relevant to TDP creation. Their history includes work on major defense programs, indicating familiarity with the rigorous documentation and quality standards required by the DoD. However, a detailed review of past performance evaluations and contract close-outs for similar TDP contracts would provide a more precise assessment of their success rate and any potential performance issues.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types for TDP development in terms of value for money?

The Cost Plus Fixed Fee (CPFF) contract structure is often used for research and development or complex projects where the scope is not fully defined at the outset, such as Technical Data Package (TDP) development. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure can provide flexibility but carries a risk of cost overruns if the government does not maintain stringent oversight of costs. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less price certainty for the government but can be advantageous when technical uncertainties are high, potentially leading to a more comprehensive TDP. However, FFP contracts generally offer better value for money when the scope is well-defined, as they place the cost risk on the contractor. Incentive Fee contracts could also be considered, aligning contractor profit with performance metrics, potentially offering a better balance of risk and reward than pure CPFF.

What are the key risks associated with developing a Technical Data Package (TDP) for a complex system like the MRAP, and how are they mitigated in this contract?

Key risks in TDP development for complex systems like the MRAP include scope creep, evolving technical requirements, inadequate documentation from previous phases, and potential for errors or omissions that could impact future manufacturing, maintenance, or upgrades. For this contract, the CPFF structure allows for flexibility to address unforeseen technical challenges, but it necessitates robust government oversight to manage costs. Mitigation strategies likely involve detailed work breakdown structures, regular technical reviews, clear change management processes, and performance metrics tied to the fixed fee. The contractor's experience (SAIC) is also a mitigating factor, suggesting they possess the expertise to navigate these complexities. However, the effectiveness of these mitigations depends heavily on the diligence of the government's program management and technical representatives throughout the contract duration.

What is the historical spending trend for MRAP-related engineering and technical data development within the Department of the Navy?

Analyzing historical spending trends for MRAP-related engineering and technical data development within the Department of the Navy requires access to comprehensive historical contract databases. Generally, spending on such programs fluctuates based on the lifecycle of the vehicle platform, sustainment needs, and modernization efforts. Following the initial surge in MRAP procurement and development during active combat operations, spending often shifts towards sustainment, upgrades, and the maintenance of technical documentation. The Department of the Navy, as a major user and procurer of MRAP variants, would allocate funds for engineering changes, obsolescence management, and the continuous refinement of TDPs to ensure operational readiness and cost-effective maintenance. Specific figures for this contract's value ($19.1M) should be compared against the broader context of Navy's overall defense engineering services budget and specific MRAP sustainment funding over the years.

How does the competition level (2 bidders) for this delivery order impact the potential for cost savings or innovation compared to a contract with more bidders?

A competition with only two bidders, as seen in this delivery order, generally offers less potential for cost savings and innovation compared to a scenario with numerous bidders. With fewer competitors, the pressure to offer the lowest price or the most innovative solution is reduced. Each bidder may have a stronger understanding of the other's potential offerings, potentially leading to less aggressive pricing. Furthermore, if the market for specialized engineering services like TDP development is inherently limited, two bidders might represent a significant portion of the available qualified sources. While 'full and open competition' was utilized, the low number of actual bids suggests that either the barriers to entry are high, or the specific requirements of this delivery order were only attractive or feasible for a small number of firms. This limited competition could result in a higher price than might be achieved in a more crowded field.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523608R0153

Offers Received: 2

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: $19,504,067

Exercised Options: $19,504,067

Current Obligation: $19,140,994

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $5,518,343

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523612D4805

IDV Type: IDC

Timeline