GSA awards $95M engineering support contract to Science Applications International Corporation over 5 years

Contract Overview

Contract Amount: $95,079,049 ($95.1M)

Contractor: Science Applications International Corporation

Awarding Agency: General Services Administration

Start Date: 2018-04-16

End Date: 2023-10-15

Contract Duration: 2,008 days

Daily Burn Rate: $47.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENGINEERING SUPPORT SERVICES IGF::OT::IGF

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

General Services Administration obligated $95.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENGINEERING SUPPORT SERVICES IGF::OT::IGF Key points: 1. Contract value of $95.1M over five years suggests a significant need for engineering expertise. 2. The firm fixed-price contract type indicates a defined scope and predictable costs for the government. 3. Awarded under full and open competition, this contract likely benefited from competitive pricing. 4. The engineering services sector is critical for infrastructure and defense, with high demand for specialized skills. 5. A five-year duration allows for long-term project planning and sustained support. 6. The contract's geographic scope in Alabama may indicate a focus on regional infrastructure or defense projects.

Value Assessment

Rating: good

The contract value of $95.1 million over five years, averaging approximately $19 million annually, appears reasonable for comprehensive engineering support services. Benchmarking against similar large-scale engineering contracts awarded by GSA or other agencies would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, driving down prices and encouraging innovation. The presence of two bidders suggests a moderately competitive landscape for this specific requirement.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by ensuring the government receives the most advantageous offers available in the market.

Public Impact

The primary beneficiaries are likely government agencies requiring specialized engineering expertise for projects, potentially in infrastructure, defense, or technology. Services delivered include a broad range of engineering support, crucial for the design, development, and maintenance of complex systems. The geographic impact is specified as Alabama, suggesting a focus on projects within that state. Workforce implications could include the creation or sustainment of engineering jobs, both within the prime contractor and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the initial requirements are not clearly defined.
Dependence on a single contractor for critical engineering services could pose a risk if performance falters.
Ensuring fair subcontracting opportunities for small businesses within this large contract.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract type provides cost certainty for the government.
Long-term contract duration allows for continuity of essential engineering services.

Sector Analysis

The engineering services sector is a vital component of the federal procurement landscape, supporting a wide array of government functions from infrastructure development to advanced research and development. This contract, valued at $95.1 million, falls within the typical range for large-scale engineering support services. Comparable spending in this sector often involves significant investments in areas like aerospace, defense systems, civil engineering, and IT infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that small businesses may have limited direct opportunities through this specific award, although they could potentially participate as subcontractors to the prime. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration (GSA). The firm fixed-price nature of the contract provides a degree of financial oversight by fixing costs. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are not detailed here.

Related Government Programs

General Services Administration (GSA) Engineering Services Contracts
Department of Defense Engineering Support
Infrastructure Development Projects
Federal IT Engineering Services

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of contractor performance issues over a long contract duration.
Limited competition (two bidders) may impact price discovery.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $95.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ENGINEERING SUPPORT SERVICES IGF::OT::IGF

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 $95.1 million.

What is the period of performance?

Start: 2018-04-16. End: 2023-10-15.

What is the track record of Science Applications International Corporation (SAIC) with the GSA and similar engineering contracts?

Science Applications International Corporation (SAIC) is a well-established government contractor with a significant history of performing engineering and technical services for various federal agencies, including the GSA. They have a broad portfolio of contracts across defense, civilian, and intelligence sectors. Analyzing SAIC's past performance on similar firm fixed-price, full-and-open competition contracts with GSA would reveal their ability to manage costs, meet deadlines, and deliver quality engineering solutions. Their financial stability and past performance ratings on federal contracts are key indicators of their reliability for this $95.1 million award.

How does the $19 million average annual cost compare to similar engineering support contracts?

The average annual cost of approximately $19 million for this contract needs to be benchmarked against similar engineering support services procured by the GSA or other federal agencies. Factors influencing cost include the specific types of engineering disciplines required (e.g., civil, mechanical, electrical, software), the complexity of the projects, the level of security clearance needed, and the geographic location. A comparison with contracts for similar scope and duration, particularly those awarded under full and open competition, would help determine if this represents a fair and reasonable price. Without specific details on the services rendered, a precise comparison is challenging, but the $95.1 million total over five years suggests a substantial, long-term engagement.

What are the primary risks associated with a five-year firm fixed-price engineering contract?

A primary risk with a five-year firm fixed-price engineering contract is the potential for the contractor to face unforeseen cost increases that erode profit margins, potentially leading to performance issues or requests for modification. Conversely, if the initial price was set too high due to inaccurate cost estimations, taxpayers may overpay. Scope creep is another significant risk; if the government's needs evolve beyond the original contract scope, managing changes under a fixed-price agreement can be complex and contentious. Ensuring clear and detailed performance work statements is crucial to mitigate these risks. The long duration also means that technological advancements or changes in government requirements could make the contracted services less relevant over time.

How effective is full and open competition in ensuring value for money in engineering services contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for engineering services. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. This process typically leads to the selection of the offer that represents the best overall value, considering both price and technical factors. For engineering services, where technical expertise is paramount, the evaluation criteria under full and open competition are designed to balance cost-effectiveness with the contractor's ability to meet complex technical requirements. The presence of two bidders in this case suggests a moderate level of competition, which is still beneficial.

What are the historical spending patterns for engineering services by the GSA?

The General Services Administration (GSA) consistently awards significant contracts for engineering services, reflecting its role in managing federal real estate, IT infrastructure, and providing acquisition support. Historical spending patterns show a steady demand for services ranging from architectural and engineering design to construction management and specialized technical consulting. GSA's Federal Acquisition Service (FAS) often procures these services through various contract vehicles, including those awarded via full and open competition, to support its mission and other federal agencies. Analyzing GSA's historical spending data for engineering services can reveal trends in contract values, durations, and the types of services most frequently procured, providing context for the current $95.1 million award.

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: ID04170035

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $205,808,219

Exercised Options: $205,808,219

Current Obligation: $95,079,049

Actual Outlays: $-455,507

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $36,113,908

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU329

IDV Type: IDC

Timeline