GSA Awards $230M R&D Contract to Science Applications International Corp for PNT SEI Follow On

Contract Overview

Contract Amount: $229,949,333 ($229.9M)

Contractor: Science Applications International Corporation

Awarding Agency: General Services Administration

Start Date: 2022-05-16

End Date: 2027-03-15

Contract Duration: 1,764 days

Daily Burn Rate: $130.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: PNT SEI FOLLOW ON

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $229.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: PNT SEI FOLLOW ON Key points: 1. Significant R&D investment of $230M highlights focus on advanced physical and engineering sciences. 2. Science Applications International Corporation (SAIC) is a major player in government contracting, indicating established capabilities. 3. The contract's Cost Plus Incentive Fee structure suggests a need for flexibility and performance-based incentives in complex R&D. 4. The R&D sector (NAICS 541712) often involves high-risk, high-reward projects with potential for significant technological advancement.

Value Assessment

Rating: good

The contract value of $230M for a 5-year period (2022-2027) appears reasonable for complex R&D services. Benchmarking against similar large-scale R&D contracts would provide further context on pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, suggesting a robust price discovery process. This method aims to ensure the government receives the best value by allowing all eligible contractors to bid.

Taxpayer Impact: The competitive award process is designed to optimize taxpayer value by securing services at a fair market price.

Public Impact

Potential for advancements in physical, engineering, and life sciences, benefiting national capabilities. Contract supports critical research and development efforts, potentially leading to new technologies or improved systems. Long-term commitment (5 years) indicates a sustained need for these specialized R&D services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Incentive Fee contracts can lead to cost overruns if not closely managed.
  • R&D projects inherently carry a risk of not achieving desired outcomes within budget or timeline.
  • Dependence on a single large contractor for critical R&D could pose a risk if performance falters.

Positive Signals

  • Full and open competition ensures a competitive environment, driving value.
  • Award to a well-established contractor like SAIC suggests a higher likelihood of successful execution.
  • Long-term contract duration provides stability for the contractor and continuity for the program.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation and maintaining technological superiority, with significant government investment typically allocated to projects with high potential impact.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large business. There is no explicit information on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The General Services Administration (GSA) manages this contract through its Federal Acquisition Service. Oversight will focus on ensuring SAIC meets the performance requirements and cost objectives outlined in the Cost Plus Incentive Fee structure.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • General Services Administration Contracting
  • Federal Acquisition Service Programs

Risk Flags

  • Potential for cost overruns due to CPIF structure.
  • Inherent risks associated with R&D project success.
  • Long-term reliance on a single contractor.
  • Lack of small business participation noted in award data.

Tags

research-and-development-in-the-physical, general-services-administration, ca, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $229.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. PNT SEI FOLLOW ON

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 $229.9 million.

What is the period of performance?

Start: 2022-05-16. End: 2027-03-15.

What specific PNT (Positioning, Navigation, and Timing) technologies or capabilities does this R&D contract aim to advance?

The contract, 'PNT SEI FOLLOW ON,' suggests a focus on advancing technologies related to Positioning, Navigation, and Timing (PNT) systems. While specific details are not provided, such R&D typically aims to enhance accuracy, resilience against interference or spoofing, and expand the operational capabilities of PNT services for various government and potentially civilian applications.

What are the key performance indicators (KPIs) and incentive mechanisms within the Cost Plus Incentive Fee (CPIF) structure for this contract?

The CPIF structure implies that SAIC's profit is tied to achieving specific performance targets and cost objectives. Key performance indicators would likely relate to research milestones, technological advancements, and system integration. The incentive mechanisms would reward exceeding targets and penalize underperformance, encouraging efficiency and innovation while managing costs.

How does the R&D conducted under this contract align with broader national security or technological development goals?

R&D in PNT is critical for national security, as reliable PNT is essential for military operations, critical infrastructure, and economic activities. Advancements in this area can enhance GPS resilience, develop alternative PNT sources, and ensure continued access to vital timing and location data, thereby supporting strategic objectives and technological leadership.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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: 47QFPA21Q0035

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 12010, SUNSET HILLS ROAD, 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: $373,424,502

Exercised Options: $261,237,847

Current Obligation: $229,949,333

Actual Outlays: $70,010

Subaward Activity

Number of Subawards: 56

Total Subaward Amount: $217,952,394

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU616

IDV Type: IDC

Timeline

Start Date: 2022-05-16

Current End Date: 2027-03-15

Potential End Date: 2029-03-15 00:00:00

Last Modified: 2026-04-13

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