DHS awards $36.9M R&D contract to Science Applications International Corp
Contract Overview
Contract Amount: $36,933,595 ($36.9M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2018-08-01
End Date: 2023-08-31
Contract Duration: 1,856 days
Daily Burn Rate: $19.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $36.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF Key points: 1. Contract awarded to a large business, indicating potential for significant scale and resources. 2. The R&D sector is critical for innovation but can carry inherent risks in outcome predictability. 3. Full and open competition suggests a robust price discovery process. 4. The Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to manage costs effectively.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently. Benchmarking against similar R&D contracts is challenging due to unique project scopes, but the fixed fee component provides some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. This method allows all eligible contractors to bid, promoting a fair marketplace.
Taxpayer Impact: Taxpayer funds are utilized for R&D, aiming for long-term technological advancement. The competitive award process is intended to maximize the value derived from these investments.
Public Impact
Supports technological advancement within the Department of Homeland Security. Potential for new capabilities or improved existing systems. Investment in research and development can lead to future economic benefits. Contract duration of over 1800 days suggests a long-term project with significant resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize cost increases.
- R&D projects have inherent uncertainty in achieving desired outcomes.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical R&D mission.
- Long contract duration allows for sustained effort.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for national security and technological progress, often characterized by high innovation potential and variable cost structures.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting. This suggests the project scope or requirements may have favored larger, established contractors.
Oversight & Accountability
The contract's duration and CPFF structure necessitate robust oversight from the Department of Homeland Security to ensure cost control and adherence to project objectives. Regular performance reviews and audits are essential.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Research and Development project inherent uncertainties.
- No small business participation.
- Long contract duration (1856 days).
Tags
research-and-development-in-the-physical, department-of-homeland-security, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $36.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. 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: Department of Homeland Security (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $36.9 million.
What is the period of performance?
Start: 2018-08-01. End: 2023-08-31.
What specific R&D outcomes are expected from this contract, and how will their achievement be measured?
The specific R&D outcomes are not detailed in the provided data. However, for a CPFF contract in this sector, success is typically measured by the contractor's ability to meet defined research milestones, deliver prototypes or findings, and achieve technical objectives within the agreed-upon fixed fee and estimated cost parameters. The agency's program office would establish key performance indicators (KPIs) and conduct regular reviews.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) structure in this R&D context?
The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs exceeding the estimate are borne by the government up to a ceiling. For R&D, this is compounded by the inherent uncertainty of research, where unexpected challenges can significantly increase costs. Effective oversight is crucial to mitigate these risks.
How does the full and open competition method ensure effective price discovery for this R&D contract?
Full and open competition allows multiple qualified vendors to submit proposals, creating a competitive environment that drives down prices and encourages innovative solutions. For R&D, this means the government can solicit diverse approaches and potentially find more cost-effective methods or superior technical solutions than through limited or sole-source procurements. The agency evaluates proposals based on both technical merit and price.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DHSSTLRBAA1402
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: $36,933,595
Exercised Options: $36,933,595
Current Obligation: $36,933,595
Actual Outlays: $8,682,955
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $5,774,839
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-08-01
Current End Date: 2023-08-31
Potential End Date: 2023-08-31 00:00:00
Last Modified: 2024-08-13
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