Army Awards $923M for Software Engineering Support to Science Applications International Corp
Contract Overview
Contract Amount: $922,864,971 ($922.9M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2009-09-30
End Date: 2014-09-14
Contract Duration: 1,810 days
Daily Burn Rate: $509.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: SYSTEMS AND COMPUTER RESOURCES SUPPORT (SCRS) FOR THE SOFTWARE ENGINEERING DIRECTORATE (SED), U.S. ARMY RESEARCH, DEVELOPMENT AND ENGINEERING COMMAND (USA RDECOM)
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $922.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SYSTEMS AND COMPUTER RESOURCES SUPPORT (SCRS) FOR THE SOFTWARE ENGINEERING DIRECTORATE (SED), U.S. ARMY RESEARCH, DEVELOPMENT AND ENGINEERING COMMAND (USA RDECOM) Key points: 1. Significant contract value for R&D support services. 2. Competition was full and open, indicating market engagement. 3. Risk appears moderate given the contract duration and fixed-price nature. 4. Sector is Research and Development, a key area for defense innovation.
Value Assessment
Rating: good
The contract value of $923M over approximately 5 years suggests a substantial investment. Benchmarking against similar R&D support contracts would be necessary for a precise assessment, but the scale indicates a significant, potentially competitive, pricing environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a broad range of potential contractors to bid. This method is expected to yield fair market prices.
Taxpayer Impact: Taxpayer funds are being used for critical R&D support, aiming for technological advancement. The competitive award process is designed to ensure value for money.
Public Impact
Supports critical software engineering for Army research and development. Contract duration of nearly 5 years implies long-term need for these services. Award to a single vendor, Science Applications International Corporation, for a significant sum. Funding allocated for advanced research and engineering capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or price escalation if not managed.
- Reliance on a single vendor for a large portion of R&D support.
- Potential for vendor lock-in if follow-on contracts are not competitively bid.
Positive Signals
- Full and open competition suggests a robust bidding process.
- Firm Fixed Price contract type helps control costs.
- Award supports a critical R&D function for the Army.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on software engineering for the Army. Spending in this area is crucial for maintaining technological superiority and innovation, with benchmarks varying widely based on project scope and complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). While this specific award may not directly benefit SMBs, the overall R&D ecosystem often involves subcontracting opportunities.
Oversight & Accountability
Oversight would typically involve program management reviews, performance metrics tracking, and financial audits to ensure the contractor meets requirements and stays within budget. The Department of the Army is responsible for this oversight.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract awarded to a single large business.
- Long contract duration.
- Potential for vendor lock-in.
- No specific small business set-aside mentioned.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $922.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SYSTEMS AND COMPUTER RESOURCES SUPPORT (SCRS) FOR THE SOFTWARE ENGINEERING DIRECTORATE (SED), U.S. ARMY RESEARCH, DEVELOPMENT AND ENGINEERING COMMAND (USA RDECOM)
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 Army).
What is the total obligated amount?
The obligated amount is $922.9 million.
What is the period of performance?
Start: 2009-09-30. End: 2014-09-14.
What specific software engineering capabilities are being procured, and how do they align with current Army modernization priorities?
The contract supports the Software Engineering Directorate (SED) for the U.S. Army Research, Development and Engineering Command (RDECOM). This likely includes a broad range of services such as software design, development, testing, integration, and maintenance for various Army systems and platforms. Alignment with modernization priorities would depend on the specific projects undertaken by SED, which could range from AI/ML integration to cybersecurity enhancements and advanced simulation tools.
Given the $923M value and 5-year duration, what are the primary risks associated with vendor performance and cost control?
Primary risks include potential cost overruns if the Firm Fixed Price (FFP) contract doesn't adequately account for unforeseen technical challenges or scope changes. Vendor performance risk involves ensuring SAIC delivers high-quality software on time and meets evolving technical requirements. There's also a risk of knowledge transfer limitations if SAIC's personnel turnover is high, potentially impacting long-term sustainment and future development efforts.
How effectively does this contract leverage competition to ensure optimal value for taxpayer investment in R&D?
The contract's 'full and open competition' award method is a strong indicator of efforts to achieve optimal value. This process allows multiple qualified vendors to compete, driving down prices and encouraging innovation. However, the true effectiveness depends on the clarity of the Statement of Work, the rigor of the evaluation criteria, and the government's ability to manage the contract to prevent scope creep and ensure deliverables meet the intended R&D objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
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: $924,816,123
Exercised Options: $922,864,971
Current Obligation: $922,864,971
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q05A0031
IDV Type: IDC
Timeline
Start Date: 2009-09-30
Current End Date: 2014-09-14
Potential End Date: 2014-09-14 12:09:00
Last Modified: 2024-05-03
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