SAIC awarded $53.4M for STRATCOM technology insertion, systems engineering, training, and analysis

Contract Overview

Contract Amount: $53,394,606 ($53.4M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2020-08-03

End Date: 2025-10-02

Contract Duration: 1,886 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TECHNOLOGY INSERTION, SYSTEMS ENGINEERING, TRAINING, AND ANALYSIS FOR THE UNITED STATES STRATEGIC COMMAND

Place of Performance

Location: WILLISTON, CHITTENDEN County, VERMONT, 05495

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $53.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TECHNOLOGY INSERTION, SYSTEMS ENGINEERING, TRAINING, AND ANALYSIS FOR THE UNITED STATES STRATEGIC COMMAND Key points: 1. Contract focuses on critical R&D services for strategic command. 2. Full and open competition suggests a robust bidding process. 3. Delivery order structure allows for phased execution and flexibility. 4. Cost Plus Fixed Fee pricing model requires careful oversight. 5. Contract duration of nearly 5 years indicates long-term support needs. 6. No small business set-aside noted, potentially limiting broader participation.

Value Assessment

Rating: good

The contract value of $53.4 million over approximately five years for specialized R&D services appears reasonable when benchmarked against similar complex technology insertion and systems engineering contracts within the Department of Defense. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, necessitates diligent oversight to ensure costs remain controlled and the fixed fee is justified by the scope of work. Without specific per-unit cost data, a direct pricing comparison is difficult, but the overall award value aligns with the specialized nature of the services required by the U.S. Strategic Command.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a competitive environment, though the exact number of proposals received and their technical evaluations are not detailed here. A competitive process generally fosters better price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government by driving down costs and improving service quality.

Public Impact

The United States Strategic Command (STRATCOM) is the primary beneficiary, receiving advanced technology, engineering, and training support. Services delivered are crucial for maintaining and enhancing the nation's strategic deterrence and global strike capabilities. The geographic impact is national, supporting a key element of U.S. national security infrastructure. Workforce implications include highly skilled technical and analytical roles, likely concentrated in areas supporting STRATCOM's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing requires robust cost monitoring to prevent overruns.
Limited visibility into specific performance metrics makes assessing value for money challenging.
The absence of small business participation may limit opportunities for innovative smaller firms.
The specialized nature of the work could lead to contractor lock-in if not managed carefully.

Positive Signals

Full and open competition indicates a fair and transparent procurement process.
Long contract duration suggests a stable and predictable requirement, allowing for focused development.
The award to a known entity like SAIC may imply a track record of successful performance.
Delivery Order structure allows for flexibility in adapting to evolving strategic needs.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, driven by the need for technological superiority. Comparable spending benchmarks would involve other large-scale R&D contracts awarded by DoD components for systems engineering, technology insertion, and advanced training solutions. The market is characterized by a mix of large prime contractors and specialized subcontractors.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting goals for small businesses. This means that opportunities for small businesses to participate in this contract are likely limited to those that can secure subcontracts from the prime contractor, Science Applications International Corporation (SAIC). The absence of a set-aside may mean that the government did not identify specific requirements that could be effectively fulfilled by small businesses or that the prime contractor was deemed the most capable source for the entire scope.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve rigorous monitoring of incurred costs by the Department of the Air Force, acting on behalf of STRATCOM. Accountability measures will be tied to performance metrics outlined in the contract's Statement of Work and delivery schedules. Transparency is facilitated through the contract award process itself, but detailed operational oversight and Inspector General jurisdiction would focus on ensuring compliance with cost principles and contract terms.

Related Government Programs

DoD Research and Development Programs
Strategic Command Support Contracts
Systems Engineering and Integration Services
Advanced Technology Development
Military Training and Simulation

Risk Flags

Cost Overruns (CPFF)
Scope Creep
Performance Risk
Contractor Lock-in
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TECHNOLOGY INSERTION, SYSTEMS ENGINEERING, TRAINING, AND ANALYSIS FOR THE UNITED STATES STRATEGIC COMMAND

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 $53.4 million.

What is the period of performance?

Start: 2020-08-03. End: 2025-10-02.

What is Science Applications International Corporation's (SAIC) track record with similar Department of Defense contracts?

SAIC has a long and extensive history of performing complex R&D, systems engineering, and technical support services for the Department of Defense and other federal agencies. They are a major defense contractor frequently awarded large-scale contracts across various domains, including strategic systems, intelligence, and command and control. Their track record typically includes managing large, multi-disciplinary teams, integrating advanced technologies, and providing critical analysis. While specific performance details for every contract are not publicly available, SAIC's sustained presence as a prime contractor on significant programs suggests a generally positive performance history and capability to meet demanding government requirements. However, like any large contractor, they may have faced past performance challenges on specific contracts, which would be assessed during the source selection process.

How does the $53.4 million value compare to similar R&D contracts for strategic command support?

The $53.4 million value for approximately five years of support for technology insertion, systems engineering, training, and analysis for U.S. Strategic Command (STRATCOM) appears to be within a reasonable range for specialized R&D services. Large-scale R&D and systems engineering contracts for major combatant commands can range from tens of millions to hundreds of millions of dollars over their lifecycle. Factors influencing this value include the complexity of the technologies involved, the criticality of the mission supported (strategic deterrence), the level of systems integration required, and the duration of the contract. Without specific details on the scope of work and deliverables, a precise benchmark is difficult, but this award is consistent with the significant investment required to maintain and advance strategic capabilities.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. The 'fixed fee' component provides some incentive for efficient performance, but the government bears the risk of cost overruns above the estimated cost. This necessitates robust government oversight to monitor expenditures, ensure that costs are allowable and allocable, and verify that the contractor is exercising due diligence in managing resources. Scope creep can also be a significant risk, potentially leading to increased costs if not managed through formal contract modifications. The government must ensure the fee is commensurate with the risk and effort involved.

How effective is 'full and open competition' in ensuring value for money for this type of specialized R&D?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for specialized R&D services. It allows the government to solicit proposals from the widest possible range of qualified sources, fostering a competitive environment that drives innovation and encourages contractors to offer their best technical solutions and pricing. For complex R&D, this means potentially uncovering novel approaches or more cost-effective methods that might not be apparent through limited competition. The presence of multiple bidders, as indicated by the 3 bidders in this case, suggests that the market has sufficient capacity and interest. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess technical merit and cost realism.

What are the implications of the contract duration (1886 days) for program effectiveness?

The contract duration of 1886 days (approximately 5 years) is significant for a program involving technology insertion, systems engineering, and training. This extended period allows for sustained focus on complex R&D efforts, enabling the contractor to develop, test, and integrate advanced capabilities over a meaningful timeframe. It provides stability for the program, reducing the disruption associated with frequent recompetes and allowing personnel to build deep expertise. This long-term engagement can foster a stronger partnership between the government and the contractor, leading to better understanding of evolving requirements and more effective long-term solutions. It also allows for iterative development and refinement, crucial for cutting-edge technologies.

Are there any historical spending patterns with SAIC for similar STRATCOM support services?

Analyzing historical spending patterns with SAIC for similar STRATCOM support services would require access to detailed federal procurement databases and contract histories. However, as a major defense contractor, SAIC has consistently been awarded significant contracts across various DoD agencies, including those supporting strategic missions. It is probable that SAIC has held previous contracts or task orders related to systems engineering, technology insertion, or analysis for STRATCOM or related entities. Understanding these patterns could reveal trends in contract types, pricing structures, and the evolution of requirements over time. Without specific data, it's difficult to quantify historical spending, but SAIC's continued success in winning such contracts suggests a pattern of sustained engagement and perceived capability in this domain.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $66,391,868

Exercised Options: $66,391,868

Current Obligation: $53,394,606

Actual Outlays: $4,604,162

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $13,566,628

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