DoD's $54M R&D contract for transformational defense tech awarded to Science Applications International Corp

Contract Overview

Contract Amount: $54,268,996 ($54.3M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2023-09-18

End Date: 2028-09-17

Contract Duration: 1,826 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TRANSFORMATIONAL TECHNOLOGY ANALYSIS FOR DEFENSE SYSTEMS FOR NAVAL INFORMATION WARFARE CENTER (NIWC) ATLANTIC

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29406

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $54.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TRANSFORMATIONAL TECHNOLOGY ANALYSIS FOR DEFENSE SYSTEMS FOR NAVAL INFORMATION WARFARE CENTER (NIWC) ATLANTIC Key points: 1. Contract focuses on advanced research and development for naval information warfare. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The contract duration of five years indicates a long-term investment in technology. 4. The contractor, SAIC, has a significant presence in defense contracting. 5. The specific NAICS code points to R&D in physical, engineering, and life sciences. 6. The contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful cost oversight.

Value Assessment

Rating: good

Benchmarking the value of this R&D contract is challenging due to its specialized nature. However, the award to a large, established contractor like SAIC suggests a competitive pricing structure was likely negotiated. The Cost Plus Fixed Fee (CPFF) award type implies that costs will be reimbursed, plus a fixed fee for profit, which is common for R&D where final costs are uncertain. Further analysis would require comparing specific deliverables and research scope against similar R&D efforts.

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 multiple bidders (implied by 'full and open') generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award. The number of bids received would provide further insight into the level of competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it drives down costs and encourages a wider range of solutions, maximizing the potential for innovative and cost-effective outcomes.

Public Impact

The primary beneficiaries are the U.S. Navy and the Department of Defense, who will receive advancements in information warfare capabilities. The contract will deliver research and development services aimed at enhancing naval defense systems. The geographic impact is primarily within South Carolina, where NIWC Atlantic is located, and potentially broader defense installations. The contract supports a highly skilled workforce in research and development, particularly in specialized engineering and scientific fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The specialized nature of R&D may make it difficult to precisely define scope and deliverables upfront.
Reliance on a single large contractor could limit future competition for follow-on work.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contractor, SAIC, is a well-established entity with a proven track record in defense R&D.
The contract duration suggests a strategic, long-term commitment to advancing critical defense technologies.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced technologies for defense applications. The market for defense R&D is substantial, driven by continuous innovation needs in areas like cybersecurity, artificial intelligence, and electronic warfare. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by the DoD to companies specializing in defense systems integration and technological advancement.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While SAIC is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on SAIC's strategy and the specific requirements of the R&D tasks. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve rigorous monitoring of costs, progress, and performance by the Naval Information Warfare Center (NIWC) Atlantic and potentially the Department of Defense's Inspector General. Transparency will be maintained through regular reporting requirements from the contractor. Accountability measures will be tied to the achievement of research milestones and the effective use of funds.

Related Government Programs

Naval Information Warfare Systems Command (NAVWAR) Programs
Department of Defense Research and Development Initiatives
Advanced Technology Development Contracts
Information Technology Research and Development

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of scope creep in a complex R&D environment.
Technological obsolescence over the five-year contract period.
Dependence on contractor's sustained performance and innovation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TRANSFORMATIONAL TECHNOLOGY ANALYSIS FOR DEFENSE SYSTEMS FOR NAVAL INFORMATION WARFARE CENTER (NIWC) ATLANTIC

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 $54.3 million.

What is the period of performance?

Start: 2023-09-18. End: 2028-09-17.

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

SAIC has a substantial history of performing R&D and technical services for the Department of Defense across various branches. They are frequently awarded contracts for systems engineering, integration, advanced technology development, and IT support. Their portfolio often includes work related to C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems, which aligns with the focus on naval information warfare. Examining their past performance on similar cost-plus contracts would reveal their ability to manage complex R&D projects within budget and schedule, and their success in delivering innovative solutions to defense challenges. Publicly available contract databases and SAIC's own reporting often detail their extensive experience in this domain.

How does the $54.2 million contract value compare to other R&D investments in naval information warfare?

The $54.2 million value for this five-year R&D contract is significant but falls within the typical range for major technological development efforts within the DoD. Naval information warfare is a critical and evolving domain, requiring substantial investment in areas like cyber warfare, electronic warfare, and data analytics. Larger, multi-year R&D programs can easily reach hundreds of millions or even billions of dollars. This specific contract's value suggests a focused effort on specific transformational technologies rather than a broad, sweeping modernization program. Benchmarking against other NIWC Atlantic awards or similar R&D efforts by other naval commands would provide more precise context on its relative scale and investment priority.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated?

The primary risk with CPFF contracts, especially in R&D, is the potential for cost overruns. Since the government reimburses the contractor's costs plus a fixed fee, there's less incentive for the contractor to control costs tightly compared to fixed-price contracts. Scope creep is another risk, where research objectives expand beyond the initial agreement. Mitigation strategies include robust government oversight, detailed cost tracking, regular performance reviews, and clearly defined milestones. The fixed fee provides some incentive for efficiency, as it doesn't increase with costs. Strong contract management by the procuring agency is crucial to ensure the R&D stays within the intended scope and budget.

What does the NAICS code 541715 indicate about the nature of the research being conducted?

The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' indicates that the research funded by this contract is focused on fundamental and applied research within these scientific disciplines. This could encompass a wide range of activities, from developing new materials and algorithms to testing advanced sensor technologies or improving communication protocols. Given the context of 'Transformational Technology Analysis for Defense Systems' and the awarding agency (NIWC Atlantic), the R&D likely pertains to advanced electronics, signal processing, cybersecurity, network engineering, or other areas critical to modern naval warfare capabilities.

How does the five-year duration (2023-2028) impact the assessment of this contract's value and risk?

The five-year duration suggests a long-term strategic investment by the Navy in developing and analyzing transformational technologies. This extended timeline is appropriate for R&D, which often requires iterative development, testing, and refinement. From a value perspective, it allows for deeper exploration of complex problems and the potential for groundbreaking innovations. However, a longer duration also increases inherent risks, such as technological obsolescence, shifts in strategic priorities, or contractor performance issues over time. Robust contract management and flexibility to adapt to changing requirements are essential to ensure value realization throughout the contract's life.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

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: $124,629,530

Exercised Options: $124,629,530

Current Obligation: $54,268,996

Actual Outlays: $216,838

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $36,648,666

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