DoD's $38.9M Combat Operations Center Support Contract Awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $38,878,376 ($38.9M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2013-07-18

End Date: 2017-07-15

Contract Duration: 1,458 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CL,CT::IGF OR IGF::CT,CL::IGF COMBAT OPERATIONS CENTER SUSTAINING ENGINEERING SUPPORT

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $38.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::CL,CT::IGF OR IGF::CT,CL::IGF COMBAT OPERATIONS CENTER SUSTAINING ENGINEERING SUPPORT Key points: 1. Contract awarded through 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 the contract is over 3 years, indicating a long-term need for these services. 4. The contract was awarded to Science Applications International Corporation, a large defense contractor. 5. The contract falls under Engineering Services, a broad category with many potential applications. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and comparisons to similar sustaining engineering support contracts. The Cost Plus Fixed Fee (CPFF) structure means the final cost is not fixed upfront, making direct price comparisons difficult. However, the contract value of approximately $38.9 million over more than three years suggests a significant investment in operational support.

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 two bids suggests a moderate level of competition for this specific award. While full and open competition is generally preferred, the number of bidders can influence price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process, potentially leading to lower prices than sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who receive sustained engineering support for combat operations centers. Services delivered include engineering support crucial for the functionality and maintenance of critical operational infrastructure. The geographic impact is likely concentrated where the combat operations centers are located, with potential implications for personnel and facilities in those areas. Workforce implications may include the need for specialized engineering talent, both within the contractor's organization and potentially impacting government oversight personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to achieve a higher fee, requiring robust oversight.
The broad nature of 'Engineering Services' could lead to scope creep if not clearly defined and managed.
Reliance on a single large contractor for critical operational support may pose a risk if the contractor faces performance issues or financial instability.

Positive Signals

Awarded through full and open competition, which typically fosters competitive pricing.
The contract duration suggests a stable, long-term requirement, allowing for focused expertise development.
Science Applications International Corporation is a well-established entity with significant experience in defense contracting.

Sector Analysis

This contract falls within the Engineering Services sector, a broad category encompassing a wide range of technical support and development. The defense industry, in particular, relies heavily on such services for maintaining complex operational systems and infrastructure. Comparable spending in this sector for defense support services can range from millions to billions of dollars annually, depending on the scope and scale of the systems supported.

Small Business Impact

There is no indication that this contract involved small business set-asides. Science Applications International Corporation is a large business, and the nature of the services required may not lend itself to subcontracting opportunities with small businesses, though this cannot be definitively concluded without further data on subcontracting plans.

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 defined in the contract terms and conditions, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases, but detailed operational oversight specifics are generally not public.

Related Government Programs

Combat Operations Center Modernization
Defense Engineering Services Contracts
Sustaining Engineering Support
Department of the Navy IT and Engineering Support

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Long contract duration necessitates ongoing performance evaluation.
Potential for vendor lock-in due to specialized engineering knowledge.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::CL,CT::IGF OR IGF::CT,CL::IGF COMBAT OPERATIONS CENTER SUSTAINING ENGINEERING SUPPORT

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 $38.9 million.

What is the period of performance?

Start: 2013-07-18. End: 2017-07-15.

What is the historical spending pattern for sustaining engineering support for combat operations centers by the Department of Defense?

Analyzing historical spending patterns for sustaining engineering support for combat operations centers by the Department of Defense requires access to detailed contract databases and budget allocations over multiple fiscal years. Generally, such support is critical for maintaining the operational readiness and effectiveness of command and control facilities. Spending in this area can fluctuate based on the lifecycle of the systems being supported, modernization efforts, and the geopolitical environment. Contracts for sustaining engineering often involve long-term commitments due to the complexity and criticality of the systems. Without specific data points for this particular contract's predecessors or comparable contracts, it's difficult to establish a precise historical trend. However, it is reasonable to assume consistent, significant investment in this area given the nature of combat operations centers.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types in terms of cost control for engineering services?

The Cost Plus Fixed Fee (CPFF) contract structure is often used when the scope of work is not precisely defined or when there is a high degree of uncertainty in the costs. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee, which represents profit. This structure can incentivize contractors to incur costs, as their fee is fixed regardless of the total cost. Compared to Firm-Fixed-Price (FFP) contracts, where the contractor bears the risk of cost overruns, CPFF offers less cost certainty for the government. However, it provides more flexibility than FFP when requirements are evolving. Best practices for managing CPFF contracts include stringent cost monitoring, detailed audits, and clear definition of allowable costs to mitigate the risk of uncontrolled spending and ensure value for the government.

What is Science Applications International Corporation's track record with similar Department of Defense engineering support contracts?

Science Applications International Corporation (SAIC) has a substantial track record of performing engineering and technical support services for the Department of Defense (DoD) and other federal agencies. They are a large, established defense contractor with extensive experience in areas such as command, control, communications, computers, and intelligence (C4I) systems, as well as various engineering disciplines. Their portfolio often includes contracts for systems engineering, integration, sustainment, and modernization. Reviews of public contract award data indicate SAIC has been awarded numerous contracts of significant value for similar services across different branches of the military. While specific performance metrics for individual contracts are not always publicly available, their continued success in winning competitive bids suggests a generally positive performance history and capability to meet DoD requirements.

What are the potential risks associated with relying on a single contractor for sustaining engineering support of combat operations centers?

Relying on a single contractor for sustaining engineering support of combat operations centers presents several potential risks. Firstly, there is a risk of vendor lock-in, where the government becomes heavily dependent on the contractor's proprietary knowledge and systems, making it difficult and costly to switch providers. Secondly, reduced competition can lead to complacency and potentially higher prices or lower service quality over time, as the contractor may face less pressure to innovate or improve efficiency. Thirdly, if the contractor experiences financial difficulties, management issues, or a loss of key personnel, it could significantly disrupt critical operations. Finally, a single point of failure in contractor performance could have severe implications for national security if the combat operations centers are compromised or rendered inoperable.

How does the geographic location of the combat operations center influence the cost and complexity of sustaining engineering support?

The geographic location of a combat operations center can significantly influence the cost and complexity of sustaining engineering support. Factors such as accessibility, local labor costs, availability of specialized technical skills, and logistical challenges (e.g., transportation of equipment and personnel, security clearances) all play a role. Support for remote or overseas locations often incurs higher travel and per diem costs, as well as increased risks associated with deployment. Furthermore, the specific environmental conditions or infrastructure at a given site might require specialized engineering solutions or maintenance protocols. While this specific contract does not detail the location, it is a critical variable that contracting officers must consider when estimating costs and defining the scope of work for sustaining engineering services.

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: $40,934,690

Exercised Options: $34,004,610

Current Obligation: $38,878,376

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $3,113,986

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523612D4805

IDV Type: IDC

Timeline