Transportation awards $32M for NextGen Systems Engineering and Program Support to Science Applications International Corporation

Contract Overview

Contract Amount: $31,985,208 ($32.0M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Transportation

Start Date: 2013-02-05

End Date: 2017-08-31

Contract Duration: 1,668 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF AWARD OF TASK ORDER NO. DTRTV-T3013 ENTITLED: "NEXTGEN SYSTEMS ENGINEERING AND PROGRAM SUPPORT."

Place of Performance

Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $32.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF AWARD OF TASK ORDER NO. DTRTV-T3013 ENTITLED: "NEXTGEN SYSTEMS ENGINEERING AND PROGRAM SUPPORT." Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1668 days indicates a significant, long-term need for these services. 3. Task order awarded under a larger IDIQ contract, potentially leveraging pre-negotiated terms. 4. The 'Other Scientific and Technical Consulting Services' NAICS code points to a broad range of potential support activities. 5. Cost Plus Fixed Fee contract type requires careful monitoring of costs to ensure value. 6. The award to a single contractor, Science Applications International Corporation, highlights their role in fulfilling this specific requirement.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without access to the parent IDIQ contract's pricing structure and other task orders issued under it. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent oversight to manage costs effectively and ensure the fixed fee remains reasonable for the scope of work. Comparing this to similar systems engineering and program support contracts across the government would require detailed analysis of scope, duration, and contractor performance.

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 an offer. The fact that it is a task order under a larger IDIQ contract suggests that the initial competition for the IDIQ established the pool of eligible contractors. The specific competition for this task order would have involved soliciting proposals from that pool, and the award was made to the offeror providing the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and higher quality services, as contractors vie to win the award.

Public Impact

The Department of Transportation benefits from specialized systems engineering and program support to advance its initiatives, likely related to aviation or other transportation infrastructure. Services delivered are expected to enhance the planning, development, and execution of complex transportation programs. The geographic impact is likely national, given the scope of the Department of Transportation's mission. Workforce implications may include the utilization of highly skilled engineers, program managers, and technical consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs if not properly managed, as the fee is fixed regardless of actual expenses.
The long duration of the contract (over 4 years) increases the risk of scope creep or evolving requirements that may not be adequately addressed within the original contract terms.
Reliance on a single contractor for critical systems engineering and program support could create dependency and limit flexibility.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contractor, Science Applications International Corporation, is a large, established entity with significant experience in government contracting, implying a degree of reliability.
The task order structure under an IDIQ allows for potentially streamlined acquisition of specialized services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on consulting services related to systems engineering and program management. This sector is crucial for government agencies undertaking complex technological advancements and large-scale program execution. Comparable spending benchmarks would involve analyzing other large federal contracts for similar engineering and program support services across agencies like the Department of Defense or NASA, considering the specific technical domains involved.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration, as the award was made under full and open competition and the contractor is a large business. There is no explicit mention of small business subcontracting goals within the provided data. The impact on the small business ecosystem would depend on whether SAIC utilizes small businesses as subcontractors for specialized components of the work, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation's contracting officers and program managers. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring the contractor to justify costs and deliver against a fixed fee. Transparency is generally facilitated through contract award databases, though detailed performance metrics and cost breakdowns may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Consulting Services
Aerospace Engineering Support
Program Management Support Services
Systems Engineering Services
Department of Transportation IT Modernization

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration increases risk of scope creep and evolving requirements.
Potential for contractor dependency and limited agency flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $32.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF AWARD OF TASK ORDER NO. DTRTV-T3013 ENTITLED: "NEXTGEN SYSTEMS ENGINEERING AND PROGRAM SUPPORT."

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $32.0 million.

What is the period of performance?

Start: 2013-02-05. End: 2017-08-31.

What is the specific nature of the 'NextGen Systems Engineering and Program Support' services provided under this task order?

The 'NextGen Systems Engineering and Program Support' task order, awarded to Science Applications International Corporation (SAIC), likely pertains to the Federal Aviation Administration's (FAA) Next Generation Air Transportation System (NextGen) initiative. This initiative aims to modernize the U.S. air traffic control system. Services would typically encompass a broad range of activities including systems architecture development, requirements analysis, integration and testing of new technologies, program planning and execution, risk management, and overall project oversight to ensure the successful implementation of NextGen's complex technological and operational changes. The NAICS code 541690, 'Other Scientific and Technical Consulting Services,' further supports this interpretation, indicating specialized advisory and technical support.

How does the Cost Plus Fixed Fee (CPFF) contract type influence the cost-effectiveness and risk for the government in this $32 million award?

The Cost Plus Fixed Fee (CPFF) contract type means SAIC will be reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can be advantageous when the scope of work is not precisely defined or is expected to evolve, as it allows for flexibility. However, it shifts the risk of cost overruns to the government, as SAIC is incentivized to incur costs to perform the work, while their profit remains constant. Effective government oversight is crucial to scrutinize allowable costs and ensure the fixed fee is reasonable for the effort. Without robust monitoring, CPFF contracts can lead to higher overall costs compared to fixed-price arrangements.

What is Science Applications International Corporation's (SAIC) track record with similar large-scale government engineering and program support contracts?

Science Applications International Corporation (SAIC) has a substantial track record of performing large-scale engineering, integration, and program support services for various U.S. federal agencies, including the Department of Defense, NASA, and the Department of Homeland Security, in addition to the Department of Transportation. They are a major government contractor with extensive experience in complex systems development, IT modernization, and mission support. Their history includes numerous contracts involving advanced technology integration, cybersecurity, and large program management. While specific performance details for every contract are not always public, SAIC's continued success in winning and executing significant government contracts suggests a generally positive performance history and capability in delivering complex technical solutions.

Given this is a task order under an IDIQ, what does the competition level for the parent IDIQ contract imply about the overall value for taxpayers?

The fact that this task order was issued under an IDIQ (Indefinite Delivery/Indefinite Quantity) contract that was itself awarded through full and open competition suggests a structured approach to acquiring services. The initial competition for the IDIQ likely established a pool of qualified contractors capable of meeting the government's needs. While the competition for the IDIQ sets the stage, the true value for taxpayers in this specific instance depends on how the task order itself was competed among the IDIQ holders. If the task order was also competed effectively, it would have driven price discovery and ensured the government received competitive pricing for the specific services rendered. The 'full and open' designation for the task order award itself is a positive indicator.

Are there any significant risks associated with the long duration (1668 days) and the specific service type (consulting) of this contract?

Yes, there are potential risks associated with the long duration and consulting nature of this contract. A duration of over four years for systems engineering and program support can lead to 'scope creep,' where the project's objectives expand beyond the original intent, potentially increasing costs. Technology and requirements can also evolve significantly over such a period, potentially making the initial scope or solutions outdated by the time of completion. For consulting services, there's a risk of over-reliance on external expertise, potentially hindering internal capability development within the agency. Furthermore, maintaining consistent quality and performance from the contractor over an extended period requires continuous government oversight and performance management to mitigate risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting 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

Offers Received: 2

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: $32,282,275

Exercised Options: $32,282,275

Current Obligation: $31,985,208

Actual Outlays: $154,185

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTRT5712D30003

IDV Type: IDC

Timeline