DoD's $39.6M NAWCAD contract with SAIC for ALRE/EAF support shows potential value concerns

Contract Overview

Contract Amount: $39,647,879 ($39.6M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2013-10-22

End Date: 2024-01-25

Contract Duration: 3,747 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF PROGRAMMATIC, ENGINEERING, AND LOGISTICS SUPPORT SERVICES TO THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) IN THE SUBJECT MATTER AREAS OF AIRCRAFT LAUNCH AND RECOVERY EQUIPMENT (ALRE) AND EXPEDITIONARY AIRFIELDS (EAF).

Place of Performance

Location: COLCHESTER, CHITTENDEN County, VERMONT, 05446

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $39.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF PROGRAMMATIC, ENGINEERING, AND LOGISTICS SUPPORT SERVICES TO THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) IN THE SUBJECT MATTER AREAS OF AIRCRAFT LAUNCH AND RECOVERY EQUIPMENT (ALRE) AND EXPEDITIONARY AIRFIELDS (EAF). Key points: 1. SAIC secured a significant contract for specialized engineering and logistics support. 2. The contract spans a decade, indicating a long-term need for these services. 3. Competition was full and open, suggesting a potentially competitive pricing environment. 4. The 'Cost Plus Fixed Fee' structure warrants scrutiny for cost control and efficiency.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. While the fixed fee provides some predictability, the government bears the risk of increased costs. Benchmarking against similar CPFF contracts for engineering and logistics support is crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the CPFF structure means the government absorbs cost increases, potentially negating some competitive advantages if costs escalate significantly.

Taxpayer Impact: Taxpayer funds are utilized for this contract. While competition is a positive sign, the CPFF structure necessitates careful oversight to ensure costs remain reasonable and efficient.

Public Impact

Supports critical Naval Air Warfare Center Aircraft Division (NAWCAD) functions. Ensures readiness and modernization of aircraft launch/recovery and expeditionary airfields. Long-term contract (10 years) indicates sustained demand for these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related aviation and expeditionary operations. Spending benchmarks for similar long-term, specialized engineering support contracts can vary widely based on scope and complexity.

Small Business Impact

The data indicates the prime contractor is Science Applications International Corporation (SAIC), a large business. There is no information provided on small business subcontracting participation in this award.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for contract administration and oversight. The CPFF structure requires diligent oversight to ensure cost control and prevent inefficiencies.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-defense, vt, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF PROGRAMMATIC, ENGINEERING, AND LOGISTICS SUPPORT SERVICES TO THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) IN THE SUBJECT MATTER AREAS OF AIRCRAFT LAUNCH AND RECOVERY EQUIPMENT (ALRE) AND EXPEDITIONARY AIRFIELDS (EAF).

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $39.6 million.

What is the period of performance?

Start: 2013-10-22. End: 2024-01-25.

What is the typical profit margin for CPFF contracts in the defense engineering sector, and how does SAIC's fee compare?

Profit margins for CPFF contracts in defense engineering typically range from 7-15%, depending on the complexity, risk, and strategic importance of the work. A detailed review of SAIC's fixed fee against industry benchmarks and the specific scope of services is necessary to assess if it represents fair value and adequate compensation for the services rendered.

How effectively has DCMA monitored cost growth and contractor performance under this CPFF contract?

Effective oversight by DCMA is crucial for CPFF contracts to mitigate cost overruns. Regular audits, performance reviews, and adherence to reporting requirements are key indicators. Assessing DCMA's historical performance on this specific contract, including any identified cost variances or performance issues, would reveal the level of accountability.

What is the long-term strategic value of this sustained engineering and logistics support to NAWCAD's mission?

The sustained support is vital for maintaining and modernizing critical aircraft launch/recovery equipment (ALRE) and expeditionary airfields (EAF). This directly impacts naval aviation readiness and operational flexibility. The long duration suggests a strategic alignment with NAWCAD's ongoing modernization and operational requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: N0002413R3120

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $40,915,634

Exercised Options: $40,609,196

Current Obligation: $39,647,879

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4143

IDV Type: IDC

Timeline

Start Date: 2013-10-22

Current End Date: 2024-01-25

Potential End Date: 2024-01-25 00:00:00

Last Modified: 2024-03-04

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