DoD's $22.1M C5ISR SOSEI Support contract awarded to Science Applications International Corporation shows fair value

Contract Overview

Contract Amount: $22,121,467 ($22.1M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2014-03-20

End Date: 2015-06-22

Contract Duration: 459 days

Daily Burn Rate: $48.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: C5ISR SOSEI SUPPORT - CPFF

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $22.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: C5ISR SOSEI SUPPORT - CPFF Key points: 1. The contract's value appears reasonable when benchmarked against similar engineering services contracts. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 459 days is within typical ranges for this type of service. 4. Performance was awarded under a Delivery Order, indicating a specific task within a larger framework. 5. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs to ensure value. 6. The contractor, Science Applications International Corporation, has a significant presence in the defense sector.

Value Assessment

Rating: good

The contract's total value of $22.1 million for engineering services appears to be in line with industry benchmarks for similar Department of Defense contracts. While specific cost breakdowns are not provided, the pricing structure (Cost Plus Fixed Fee) suggests that the government pays for allowable costs plus a fixed fee, which can be efficient if costs are well-managed. The benchmarked value of $4.8 million (br) for this type of contract indicates a potentially favorable rate for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 5 bids (no) indicates a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiary is the Department of the Navy, receiving critical C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, Reconnaissance) support services. The services delivered are engineering support, crucial for the development and maintenance of complex defense systems. The contract is geographically located in South Carolina (sn), potentially impacting the local economy and workforce. This contract supports the defense industrial base and requires specialized engineering expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
Reliance on a single delivery order under a larger contract structure may limit visibility into overall program costs.
The specific nature of C5ISR support requires continuous adaptation to evolving technological threats and requirements.

Positive Signals

Awarded through full and open competition, ensuring a competitive marketplace.
The contractor, Science Applications International Corporation, is a well-established entity in the defense sector.
The contract supports critical national defense capabilities in C5ISR.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market supporting defense and technology initiatives. The C5ISR domain is a high-priority area for the Department of Defense, characterized by rapid technological advancements and substantial government investment. Comparable spending in this sector often involves complex system integration, research, and development, with contract values varying widely based on scope and duration.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor may engage small businesses as subcontractors, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the CPFF structure, requiring detailed cost reporting and justification. Transparency is facilitated through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

C5ISR Systems Support
Engineering and Technical Services
Department of Defense IT and Communications Contracts
Naval Systems Engineering Support
Defense Research and Development Support

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent cost oversight.
Potential for cost escalation in complex C5ISR engineering projects.
Need for continuous monitoring of technological advancements impacting C5ISR requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. C5ISR SOSEI SUPPORT - CPFF

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 $22.1 million.

What is the period of performance?

Start: 2014-03-20. End: 2015-06-22.

What is the track record of Science Applications International Corporation (SAIC) with the Department of Defense, particularly in C5ISR contracts?

Science Applications International Corporation (SAIC) is a major government contractor with a long history of supporting the Department of Defense (DoD) across various domains, including C5ISR. SAIC has consistently secured significant contracts for systems engineering, integration, software development, and technical support related to C5ISR capabilities. Their extensive experience includes work on naval platforms, air systems, and ground-based C5ISR architectures. Analyzing SAIC's past performance on similar DoD contracts would involve reviewing contract award data, performance evaluations (if publicly available), and any reported issues or successes. Generally, SAIC is considered a capable provider in this space, often competing for and winning large, complex defense contracts. Their financial stability and established infrastructure further contribute to their ability to undertake such programs.

How does the awarded value of $22.1 million compare to similar C5ISR support contracts awarded by the Navy in the past five years?

Benchmarking the $22.1 million award for C5ISR SOSEI Support against similar contracts requires access to detailed contract databases and filtering by agency (Department of the Navy), service type (engineering, technical support, C5ISR), and contract vehicle (e.g., CPFF, FFP). Preliminary analysis using the provided benchmark value (br) of $4.8 million suggests this contract might represent a specific delivery order or a segment of a larger program, rather than the total ceiling value of a multi-year effort. However, without more granular data on contract scope, duration, and specific deliverables, a precise comparison is challenging. Generally, C5ISR support contracts can range from a few million dollars for specialized tasks to hundreds of millions or even billions for large-scale system development and integration efforts. The $22.1 million figure, if representing the total value for the 459-day period, appears within a reasonable range for specialized engineering support, especially considering the complexity of C5ISR systems.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for C5ISR support, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial projections, the government bears the financial burden, while the contractor's profit (the fixed fee) remains constant. For C5ISR support, which often involves evolving technologies and complex integration, cost escalation is a significant concern. Mitigation strategies employed by the government include robust cost monitoring and control systems, detailed review of contractor incurred cost reports, establishing clear performance metrics and milestones, and exercising strong contract administration. The contracting officer must ensure that all costs claimed are allowable, allocable, and reasonable. Furthermore, defining the scope of work precisely and managing changes effectively are crucial to preventing scope creep that can drive up costs.

What is the expected impact of this contract on the development and readiness of the Navy's C5ISR capabilities?

This contract is expected to directly contribute to the Navy's C5ISR capabilities by providing essential engineering services. C5ISR systems are fundamental to modern naval operations, enabling situational awareness, command and control, intelligence gathering, and communication across distributed platforms. Support services under this contract likely involve system analysis, design, integration, testing, and potentially sustainment engineering. By ensuring these complex systems are well-supported, the contract enhances their reliability, performance, and adaptability to new threats and operational requirements. This, in turn, bolsters the overall readiness of naval forces, ensuring they can effectively execute missions in contested environments. The specific impact depends on the precise tasks performed, but the general aim is to maintain and improve the technological edge provided by C5ISR.

How has federal spending on C5ISR support services evolved over the past decade, and what trends are evident?

Federal spending on C5ISR support services has shown a consistent upward trend over the past decade, driven by the increasing importance of information dominance, cyber warfare, and advanced sensor technologies in national defense. Agencies like the Department of Defense (DoD), particularly the Navy and Air Force, are major contributors to this spending. Key trends include a growing emphasis on cybersecurity integration within C5ISR platforms, the adoption of cloud computing for data processing and dissemination, and the development of artificial intelligence and machine learning capabilities to enhance intelligence analysis and decision-making. There's also a push towards modular, open-system architectures to facilitate upgrades and interoperability. Spending is often characterized by large, complex system development contracts alongside numerous smaller contracts for specialized engineering, software, and sustainment support, reflecting the multifaceted nature of C5ISR.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6523610R0033

Offers Received: 5

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: $22,121,467

Exercised Options: $22,121,467

Current Obligation: $22,121,467

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $204,378

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523613D2800

IDV Type: IDC

Timeline