DoD's $767M R&D contract with SAIC shows strong competition and fair value, with a focus on physical sciences

Contract Overview

Contract Amount: $767,275,609 ($767.3M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2012-02-14

End Date: 2016-04-05

Contract Duration: 1,512 days

Daily Burn Rate: $507.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: R&D

Official Description: TASK ORDER/BASE AWARD

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $767.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TASK ORDER/BASE AWARD Key points: 1. The contract demonstrates a robust competitive landscape, indicating potential for good price discovery. 2. Value for money appears reasonable given the extensive research and development scope. 3. Performance context suggests a focus on complex scientific endeavors within the physical sciences. 4. Sector positioning places this within the broader defense R&D market, a significant area of federal investment. 5. Risk indicators are moderate, typical for large-scale R&D projects with long durations.

Value Assessment

Rating: good

Benchmarking this contract's value is challenging without specific deliverables, but the total award amount over its duration suggests a significant investment in research. The per-unit cost, while not directly calculable from the provided data, would need to be assessed against the complexity and novelty of the research undertaken. Compared to other large-scale R&D contracts within the Department of Defense, the overall value appears within a reasonable range for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The presence of a competitive process is generally favorable for ensuring that the government receives competitive pricing and the best value. The specific number of bidders is not provided, but the designation implies a broad solicitation.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and encouraging innovation among potential offerors.

Public Impact

The Department of the Army is the primary beneficiary, utilizing advanced research capabilities. Services delivered include research and development in physical, engineering, and life sciences. Geographic impact is likely concentrated around research facilities, with potential for broader technological diffusion. Workforce implications include employment for scientists, engineers, and support staff involved in R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1512 days) can sometimes lead to scope creep or evolving requirements that may impact cost.
The nature of R&D inherently carries risks of unforeseen challenges or failure to achieve desired outcomes.
Reliance on a single large contractor for such a significant R&D effort could present concentration risk.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contractor, Science Applications International Corporation (SAIC), has a significant presence and experience in government contracting.
The contract focuses on critical R&D areas, potentially leading to technological advancements beneficial to national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541710). This sector is a critical component of the federal budget, particularly for agencies like the Department of Defense, which invest heavily in innovation to maintain technological superiority. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by DoD and other science-focused agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract, it may offer subcontracting opportunities for small businesses, depending on the prime contractor's subcontracting plan and the nature of the work. However, the primary awardee is a large business, suggesting that the direct impact on the small business ecosystem through this specific prime contract is limited.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices. Accountability measures would be tied to performance metrics and milestones outlined in the contract. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development
Science and Technology Programs
Engineering Services Contracts
Physical Sciences Research
Life Sciences Research

Risk Flags

Long-term R&D projects carry inherent technical and schedule risks.
Potential for cost growth over the contract's extended duration.
Need for robust government oversight to ensure alignment with evolving scientific frontiers.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $767.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TASK ORDER/BASE AWARD

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 $767.3 million.

What is the period of performance?

Start: 2012-02-14. End: 2016-04-05.

What is the track record of Science Applications International Corporation (SAIC) in performing similar large-scale R&D contracts for the Department of Defense?

Science Applications International Corporation (SAIC) has a substantial track record with the Department of Defense, frequently securing large contracts across various domains, including research and development, IT services, and engineering support. Their history with DoD encompasses numerous task orders and prime contracts, often involving complex scientific and technical challenges. While specific performance metrics for this particular $767 million contract are not detailed here, SAIC's overall performance on similar large R&D endeavors is generally characterized by their extensive experience and established infrastructure. Government contract performance databases often reflect a mix of positive performance reviews and occasional areas for improvement, typical for a contractor of SAIC's size and scope. Their ability to consistently win and execute large contracts suggests a strong capability in managing complex projects and delivering on technical requirements, though detailed analysis would require examining specific past performance evaluations.

How does the awarded amount of $767 million compare to other R&D contracts of similar scope and duration within the federal government?

The $767 million award to SAIC for R&D over a period of approximately 1512 days (around 4 years) represents a significant investment. To benchmark this, one would typically compare it against other large-scale, multi-year R&D contracts awarded by agencies like DoD, NASA, or the Department of Energy. Contracts in the hundreds of millions of dollars for R&D are not uncommon for major scientific initiatives or technological development programs. The average annual value of this contract is roughly $200 million, which is substantial but falls within the range of major federal R&D efforts. Factors influencing comparability include the specific scientific disciplines involved (e.g., basic research vs. applied engineering), the level of innovation required, and the associated risks. Without more granular data on the specific research objectives and deliverables, a precise comparison is difficult, but the magnitude suggests a program of national importance or significant technological advancement.

What are the primary risk indicators associated with a contract of this size and nature (R&D, long duration)?

Contracts of this magnitude and nature, particularly in Research and Development (R&D) with a long duration, carry several inherent risk indicators. Firstly, technical risk is paramount; R&D inherently involves uncertainty, and projects may not yield the expected results or could encounter unforeseen scientific or engineering hurdles. Secondly, cost risk is significant; long-term projects are susceptible to cost overruns due to evolving requirements, inflation, or underestimation of complexity. Thirdly, schedule risk is common, as R&D timelines can be unpredictable, leading to delays. Management risk also plays a role, as overseeing a large, complex project requires robust program management capabilities from both the contractor and the government. Finally, there's a risk of obsolescence, where the technology being developed might be surpassed by advancements elsewhere before the project is completed. The government's oversight and the contractor's risk mitigation strategies are crucial for managing these factors.

What does the 'full and open competition' designation imply about the pricing and potential for innovation in this contract?

The designation 'full and open competition' signifies that the contract was solicited with the intent of allowing all responsible sources to submit a bid. This process is generally considered the most effective method for achieving competitive pricing, as it encourages multiple companies to vie for the contract, driving down costs through market forces. It also fosters innovation by allowing a wide range of potential solutions and approaches to be proposed by different offerors. For taxpayers, this means a higher likelihood of receiving the best value for their investment. Furthermore, it ensures a level playing field for businesses and promotes transparency in the procurement process. The absence of restrictions means the government could select the most technically capable and cost-effective solution available in the market.

How does the specific NAICS code (541710) for R&D in Physical, Engineering, and Life Sciences shape the understanding of this contract's objectives?

The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' provides crucial context for this contract. It indicates that the work performed is not related to social sciences or humanities but is focused on scientific inquiry and technological advancement within the physical sciences (e.g., physics, chemistry, materials science), engineering disciplines (e.g., mechanical, electrical, civil), and life sciences (e.g., biology, medicine, agriculture). This suggests the contract likely involves activities such as basic research, applied research, and experimental development aimed at discovering new knowledge, creating new or improved products, processes, or services, or developing prototypes. The objectives could range from developing advanced materials for defense applications to engineering new systems or understanding complex biological processes. This specificity helps in understanding the technical domain and the types of expertise required.

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: LABOR HOURS (Z)

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: $769,159,757

Exercised Options: $767,275,609

Current Obligation: $767,275,609

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q05A0031

IDV Type: IDC

Timeline