GSA awards $116M engineering services task order to SAIC for 5-year period

Contract Overview

Contract Amount: $116,326,444 ($116.3M)

Contractor: Science Applications International Corporation

Awarding Agency: General Services Administration

Start Date: 2025-09-17

End Date: 2030-09-16

Contract Duration: 1,825 days

Daily Burn Rate: $63.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: THE PURPOSE OF THIS ACTION IS TO AWARD THE TASK ORDER COBRA, AND PROVIDE INCREMENTAL FUNDING TO THE TASK ORDER.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $116.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THE PURPOSE OF THIS ACTION IS TO AWARD THE TASK ORDER COBRA, AND PROVIDE INCREMENTAL FUNDING TO THE TASK ORDER. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. The duration of 1825 days (5 years) indicates a long-term need for these services. 4. The task order is for engineering services, a critical component of many federal projects. 5. The awardee, Science Applications International Corporation (SAIC), is a large, established government contractor. 6. The contract is not set aside for small businesses, implying a focus on large prime contractors.

Value Assessment

Rating: good

The contract value of $116.3 million over five years averages to approximately $23.26 million per year. Without specific benchmarks for comparable engineering services task orders of this scope and duration, a precise value-for-money assessment is challenging. However, the Cost Plus Award Fee structure allows for performance-based incentives, which can drive efficiency and potentially lead to better value if managed effectively. The pricing will be further evaluated based on the award fee criteria and the contractor's ability to meet performance targets.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bids suggests a moderate level of competition for this specific task order. While the exact number of bidders is not a definitive measure of competition quality, having multiple offers generally promotes price discovery and encourages contractors to submit competitive proposals.

Taxpayer Impact: Full and open competition, with multiple bids received, is generally favorable for taxpayers as it increases the likelihood of obtaining services at a fair and reasonable price through market forces.

Public Impact

Federal agencies requiring specialized engineering services will benefit from the expertise provided under this contract. The services delivered will support various federal projects and initiatives requiring engineering solutions. The contract is geographically focused on the District of Columbia, suggesting support for federal operations in the capital. The contract is likely to support a workforce of engineers and technical specialists, both within the contractor's organization and potentially through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if not closely monitored, as the government bears the cost of performance plus an award fee.
The long duration of the contract could present risks if requirements change significantly over the five-year period.
Reliance on a single large contractor for critical engineering services might reduce flexibility in the long term.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The Cost Plus Award Fee structure incentivizes strong performance and efficiency.
The contract is with a well-established contractor (SAIC) with a significant track record in government contracting.
The task order is for engineering services, which are essential for many government functions.

Sector Analysis

Engineering services represent a significant segment of the federal contracting market, encompassing a wide range of disciplines from civil and mechanical to electrical and systems engineering. This contract falls within the broader professional, scientific, and technical services sector. Spending in this sector is driven by the government's need for expertise in areas such as infrastructure development, defense systems, research and development, and IT modernization. Comparable spending benchmarks would typically be assessed against other large, multi-year engineering services contracts awarded by agencies like GSA, DoD, or DOT.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific small business subcontracting goals in the provided data. This suggests that the primary focus of this award was on large prime contractors capable of handling the scope and complexity of the engineering services required. While not directly benefiting small businesses through a set-aside, large prime contractors are often required to meet broader subcontracting goals across their portfolio, which could indirectly involve small business participation.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms would typically include regular performance reviews, financial audits, and adherence to the terms and conditions of the Cost Plus Award Fee structure. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for GSA would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

GSA Federal Acquisition Service Contracts
Engineering Services Contracts
Cost Plus Award Fee Contracts
Task Orders
Professional, Scientific, and Technical Services

Risk Flags

Potential for cost growth in CPAF contracts.
Long contract duration may not adapt to evolving requirements.
Reliance on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $116.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THE PURPOSE OF THIS ACTION IS TO AWARD THE TASK ORDER COBRA, AND PROVIDE INCREMENTAL FUNDING TO THE TASK ORDER.

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $116.3 million.

What is the period of performance?

Start: 2025-09-17. End: 2030-09-16.

What is Science Applications International Corporation's (SAIC) track record with the General Services Administration (GSA) and similar engineering services contracts?

Science Applications International Corporation (SAIC) is a major government contractor with a substantial history of performing services for various federal agencies, including the GSA. SAIC has a broad portfolio encompassing IT, engineering, and mission support services. Analyzing their past performance on GSA contracts, particularly those involving engineering services and similar contract types (like Cost Plus Award Fee), would reveal their ability to meet performance requirements, manage costs, and deliver quality outcomes. Historical data on contract awards, modifications, and past performance reviews from sources like the Federal Procurement Data System (FPDS) or agency-specific contract databases would provide insights into their reliability and effectiveness in fulfilling government needs.

How does the $116.3 million value compare to similar engineering services task orders awarded by GSA or other agencies?

The $116.3 million value for a five-year engineering services task order is substantial, placing it in the mid-to-large range for such awards. To benchmark this value, one would compare it against other task orders or contracts for similar engineering disciplines (e.g., systems engineering, technical support, design services) awarded by GSA, DoD, or other major agencies over the past few years. Factors such as the specific services required, the complexity of the projects, the duration, and the level of competition influence pricing. A detailed comparison would involve analyzing the average annual cost, the cost per labor hour (if available), and the overall contract ceiling against a dataset of comparable procurements to determine if this award represents a fair and reasonable price.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude and duration?

The primary risks with a CPAF contract of this size and duration revolve around cost control and performance management. For the government, there's a risk that costs could escalate beyond initial projections, as the contractor is reimbursed for allowable costs. The 'award fee' component, while intended to incentivize performance, requires robust government oversight to ensure the criteria for earning the fee are objective, measurable, and aligned with desired outcomes. If the award fee criteria are poorly defined or the government's evaluation process is weak, the contractor may receive significant award fees without achieving exceptional performance. Over the five-year duration, there's also a risk of scope creep or evolving requirements, which, if not managed through contract modifications, could lead to inefficiencies or disputes.

How effective is the 'full and open competition' approach likely to be in ensuring competitive pricing for these engineering services?

Full and open competition is generally the most effective method for ensuring competitive pricing, as it allows all responsible sources to participate. The fact that three bids were received suggests a degree of market interest and competition. The effectiveness in this specific case depends on the number of qualified bidders in the market for these specialized engineering services and the rigor of the evaluation process. If the market is highly competitive with many capable firms, full and open competition is likely to yield favorable pricing. However, if the specialized nature of the services limits the pool of qualified bidders, the competitive pressure might be less intense, potentially impacting the final price.

What are the potential workforce implications, both for the contractor and the federal agency, stemming from this long-term engineering services contract?

This 5-year, $116.3 million contract implies a significant and sustained need for engineering expertise within the federal agency. For SAIC, it represents a stable revenue stream and the opportunity to deploy a dedicated team of engineers and technical staff, potentially leading to specialized knowledge development within the company. This could involve hiring new personnel or reallocating existing staff. For the federal agency, the contract provides consistent access to critical engineering capabilities without the long-term commitment of hiring permanent federal employees. This allows for flexibility in scaling the workforce up or down based on project needs. However, it also means a reliance on contractor personnel for core functions, necessitating strong government oversight to ensure knowledge transfer and continuity.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA25R0022

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

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: $1,399,172,556

Exercised Options: $177,294,011

Current Obligation: $116,326,444

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $49,488,476

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFCA22D0337

IDV Type: IDC

Timeline