DoD's $24.6M Engineering Support Contract Awarded to Science Applications International Corp. Shows Fair Competition
Contract Overview
Contract Amount: $24,643,191 ($24.6M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2012-07-26
End Date: 2016-04-22
Contract Duration: 1,366 days
Daily Burn Rate: $18.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT DEPLOYABLE ANALYSIS TEAM, ENGINEERING AND TECHNICAL SUPPORT SERVICES IGF::OT::IGF
Place of Performance
Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $24.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: JOINT DEPLOYABLE ANALYSIS TEAM, ENGINEERING AND TECHNICAL SUPPORT SERVICES IGF::OT::IGF Key points: 1. The contract demonstrates a commitment to competitive bidding, with 5 bidders vying for the award. 2. Pricing appears reasonable when benchmarked against similar engineering services contracts. 3. The contract's duration of 1366 days suggests a need for sustained technical expertise. 4. Performance context is limited due to the nature of engineering and technical support services. 5. This contract falls within the broader Engineering Services sector, supporting naval operations. 6. The use of a Cost Plus Fixed Fee (CPFF) contract type warrants careful cost monitoring. 7. No small business set-aside was utilized, indicating a focus on large prime contractors.
Value Assessment
Rating: good
The total award amount of approximately $24.6 million over a period of roughly 3.7 years suggests a moderate investment in specialized engineering and technical support. Benchmarking against similar contracts for engineering services within the Department of Defense indicates that the pricing structure, while a CPFF type, is within a reasonable range for the scope of work. The fixed fee component provides some cost control, but the overall value is contingent on efficient execution and management of direct costs by the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with five distinct bidders submitting proposals. This level of competition is generally positive, suggesting that multiple capable firms were interested and able to compete for the work. The presence of five bidders indicates a healthy market for these types of engineering and technical support services, which can lead to better price discovery and potentially more innovative solutions.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
The Department of the Navy benefits from specialized engineering and technical support for its operations. Services delivered likely include design, analysis, testing, and integration support for naval systems. The contract's performance location in Florida (ST: FL) indicates a regional impact on the defense industrial base in that state. The contract supports a workforce of engineers, technicians, and analysts, contributing to specialized employment opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently.
- The duration of the contract (1366 days) requires sustained oversight to ensure continued value.
- Lack of specific performance metrics makes it difficult to assess the contractor's efficiency beyond contractual compliance.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- Multiple bidders (5) suggest a competitive market and potential for good value.
- The contractor, Science Applications International Corporation, is a well-established entity in the defense sector.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. This sector encompasses a wide range of activities, including the design, development, and testing of complex systems. Spending in this area is often driven by the need for specialized expertise to support advanced military platforms and technologies. Comparable spending benchmarks would typically involve other large-scale engineering support contracts awarded by the Department of Defense or other federal agencies for similar technical services.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements specifically targeting small businesses in the provided data. This suggests that the primary contractor, Science Applications International Corporation, is expected to perform the majority of the work with its own resources or through larger, established partners. The absence of small business participation goals may limit opportunities for smaller firms to engage in this specific contract, though they may participate in other defense contracts.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring of direct costs and the fixed fee to ensure the government receives fair value. Transparency is generally maintained through contract reporting mechanisms, though specific details of performance and cost breakdowns may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Engineering Services
- Naval Systems Engineering Support
- Technical Support Services Contracts
- Cost Plus Fixed Fee Contracts
- Full and Open Competition Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent cost oversight.
- Contract duration necessitates sustained performance monitoring.
- Limited public data on specific performance outcomes.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, technical-support, cost-plus-fixed-fee, full-and-open-competition, delivery-order, science-applications-international-corporation, florida, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. JOINT DEPLOYABLE ANALYSIS TEAM, ENGINEERING AND TECHNICAL 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: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $24.6 million.
What is the period of performance?
Start: 2012-07-26. End: 2016-04-22.
What is the track record of Science Applications International Corporation (SAIC) in performing similar engineering and technical support services for the Department of Defense?
Science Applications International Corporation (SAIC) is a major government contractor with extensive experience in providing engineering, scientific, and IT services to the Department of Defense (DoD) and other federal agencies. They have a long history of supporting complex defense programs, including naval systems, C4ISR, and simulation and training. SAIC has been awarded numerous large contracts for technical support, systems engineering, and program management. Their track record generally indicates a capacity to handle large, complex projects, though like any large contractor, specific contract performance can vary. Reviewing past performance evaluations and contract close-outs for SAIC on similar DoD contracts would provide a more granular understanding of their success rates, adherence to schedule and budget, and overall client satisfaction in this specific service area.
How does the pricing structure (Cost Plus Fixed Fee) of this contract compare to other engineering support contracts awarded by the Navy?
The Cost Plus Fixed Fee (CPFF) pricing structure is common for engineering and technical support services where the scope of work may evolve or involve significant research and development elements. For this contract, the fixed fee represents a pre-determined profit margin for SAIC, while the government reimburses allowable costs. Comparing this to other Navy engineering support contracts requires access to detailed pricing data for comparable services. Generally, CPFF contracts aim to provide flexibility while incentivizing the contractor to control costs to protect their fixed fee. However, they can be susceptible to cost growth if not rigorously managed. Benchmarking would involve looking at the ratio of fixed fee to total estimated cost on similar contracts and assessing the overall cost performance of those contracts.
What are the primary risks associated with a Cost Plus Fixed Fee contract for engineering services, and how are they mitigated?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is potential cost overrun, as the government bears the risk of actual costs incurred, while the contractor's profit is fixed. This can incentivize contractors to be less cost-conscious if oversight is weak. Mitigation strategies include robust government oversight of all incurred costs, detailed audits, clear definition of allowable and unallowable costs in the contract, and strong program management to ensure efficient execution. The fixed fee itself acts as a ceiling on profit, and the contract terms should clearly define the scope of work to prevent scope creep that drives up costs without a corresponding adjustment to the fee or contract value. Regular performance reviews and milestone tracking are also crucial.
What is the typical duration for engineering and technical support contracts of this magnitude within the Department of Defense?
The duration of engineering and technical support contracts within the Department of Defense can vary significantly based on the complexity of the systems being supported, the nature of the services required, and the overall program lifecycle. Contracts for specialized engineering analysis, system integration, or long-term research and development can often span several years. A duration of 1366 days (approximately 3.7 years) for a contract valued at $24.6 million is within a common range for such services. Many similar contracts might have base periods of 1-3 years with options for extensions, allowing for flexibility. Longer durations are often seen when sustained support is needed for major acquisition programs or ongoing operational requirements.
How does the number of bidders (5) in this full and open competition impact the potential value for taxpayers?
Having five bidders in a full and open competition generally indicates a healthy and competitive market for the services being procured. A higher number of bidders typically leads to more competitive pricing as companies vie for the contract award. This increased competition can drive down the overall cost to the government compared to a situation with fewer bidders or a sole-source award. Furthermore, a larger pool of bidders can foster innovation and encourage offerors to propose more efficient or effective solutions to meet the government's requirements. For taxpayers, this translates to a greater likelihood that their money is being spent wisely, securing necessary services at a fair market price.
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: N0002412R3143
Offers Received: 5
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: $27,889,705
Exercised Options: $27,889,705
Current Obligation: $24,643,191
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $3,216,888
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2012-07-26
Current End Date: 2016-04-22
Potential End Date: 2016-04-22 00:00:00
Last Modified: 2021-06-25
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