DoD Awards $78M for Electro-Optic Systems R&D to Science Applications International Corp

Contract Overview

Contract Amount: $78,002,748 ($78.0M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2019-08-23

End Date: 2024-09-24

Contract Duration: 1,859 days

Daily Burn Rate: $42.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SUSTAINMENT AND DEVELOPMENT OF ELECTRO-OPTIC INFRARED SYSTEMS FOR THE ELECTRO-OPTIC TECHNOLOGY DIVISION, NAVAL SURFACE WARFARE CENTER, CRANE DIVISION

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $78.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SUSTAINMENT AND DEVELOPMENT OF ELECTRO-OPTIC INFRARED SYSTEMS FOR THE ELECTRO-OPTIC TECHNOLOGY DIVISION, NAVAL SURFACE WARFARE CENTER, CRANE DIVISION Key points: 1. This contract focuses on research and development in electro-optic infrared systems. 2. The primary awardee is Science Applications International Corporation (SAIC). 3. The contract falls under the R&D sector, specifically NAICS 541715. 4. The contract duration is approximately 5 years, ending in September 2024.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for advanced technology development.

Public Impact

Advancement of critical electro-optic infrared technologies for naval applications. Potential for technological breakthroughs impacting national defense capabilities. Investment in specialized R&D services supporting military readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contracts require diligent oversight to prevent scope creep and ensure cost efficiency.
  • Long contract duration may require periodic reviews to ensure continued relevance and value.

Positive Signals

  • Awarded under full and open competition, indicating a robust market engagement.
  • Focus on R&D aligns with strategic defense modernization goals.

Sector Analysis

This contract is within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority in defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is a large corporation. There is no direct indication of small business participation in this specific award.

Oversight & Accountability

The Naval Surface Warfare Center, Crane Division is responsible for this contract. Oversight will be critical to manage the Cost Plus Fixed Fee structure and ensure deliverables meet R&D objectives.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost Plus Fixed Fee contract type requires close monitoring.
  • Long contract duration may present risks of obsolescence or shifting requirements.
  • Lack of specific technical details makes independent value assessment challenging.
  • No explicit small business participation noted.

Tags

research-and-development-in-the-physical, department-of-defense, in, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SUSTAINMENT AND DEVELOPMENT OF ELECTRO-OPTIC INFRARED SYSTEMS FOR THE ELECTRO-OPTIC TECHNOLOGY DIVISION, NAVAL SURFACE WARFARE CENTER, CRANE DIVISION

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 Air Force).

What is the total obligated amount?

The obligated amount is $78.0 million.

What is the period of performance?

Start: 2019-08-23. End: 2024-09-24.

What specific electro-optic infrared systems are being developed or sustained under this contract, and how do they align with current naval warfare requirements?

The contract details are broad, focusing on 'Sustainment and Development of Electro-Optic Infrared Systems.' Specific system details are likely proprietary or classified. However, the Naval Surface Warfare Center, Crane Division's mission includes developing and supporting advanced sensors and targeting systems, suggesting this contract supports technologies for threat detection, identification, and engagement in naval environments.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate potential cost overruns and ensure the government receives fair value for its investment?

The fixed fee component provides a ceiling on the contractor's profit, incentivizing efficiency. However, effective oversight by the Naval Surface Warfare Center is paramount. This includes rigorous monitoring of direct costs, regular progress reviews, and strict adherence to the contract's Statement of Work to prevent scope creep and ensure all expenditures are justified and necessary for the R&D objectives.

How will the outcomes of this R&D contract be evaluated for effectiveness and potential transition into operational systems within the Department of Defense?

Evaluation of effectiveness will likely involve technical reviews, performance metrics defined in the contract, and demonstrations of prototype systems. The Naval Surface Warfare Center's role includes assessing the technological maturity and operational utility of the developed systems. Transition planning to operational units or further development phases would be a subsequent step, contingent on successful R&D outcomes and evolving defense needs.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTOTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $82,953,292

Exercised Options: $82,953,292

Current Obligation: $78,002,748

Actual Outlays: $5,507,495

Subaward Activity

Number of Subawards: 56

Total Subaward Amount: $73,798,431

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0007

IDV Type: IDC

Timeline

Start Date: 2019-08-23

Current End Date: 2024-09-24

Potential End Date: 2024-09-24 00:00:00

Last Modified: 2025-08-07

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